Cities Index.
Agenda, first session

Crescent City City Council
January 13, 2025

Document
Agenda, first session
Meeting
January 13, 2025
Body
Crescent City City Council
Pages
3
Original file
10.8 MB
Text extracted from the city's file for reading and search. Open the original on evogov.s3.us-west-2.amazonaws.com. That file is the official record.

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1/13/25 COUNCIL AGENDA

CITY OF CRESCENT CITY

MAYOR RAY ALTMAN MAYOR PRO TEM ISAIAH WRIGHT

COUNCIL MEMBER DARAN DOOLEY COUNCIL MEMBER JASON GREENOUGH

COUNCIL MEMBER CANDACE TINKLER
MONDAY JANUARY 13, 2025 6:00 P.M.

This meeting will be held in person at the location listed above. The City will broadcast the meeting on YouTube, however, if there is a technological issue with YouTube, the meeting will continue in person as scheduled. The public may access and participate in the public meeting by (1) attending the meeting in person and making public comment when called for by the Mayor or (2) by submitting a written comment via [email protected] or by filing it with the City Clerk at 377 J Street, Crescent City, California, 95531. All public comments (via email or mail) must be received by the City Clerk prior to 12:00 p.m. the day of the meeting. Please identify the meeting date and agenda item to which your comment pertains in the subject line. Public comments so received will be forwarded to the City Council and posted on the website next to the agenda. Written public comments will not be read aloud during the meeting.

Notice regarding Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (707)464-7483, ext. 223. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-

35.104 ADA Title II]. For TTYDD use for speech and hearing impaired, please dial 711. A full agenda packet may be reviewed at City Hall, 377 J Street, Crescent City, CA or on our website:
www.crescentcity.org

OPEN SESSION
Call to order
Roll call
Pledge of Allegiance

CEREMONIAL ITEMS
• Introduction of Police Officer Turkins
• Introduction of new Public Works employees – Michael Cordova, Joshua Clark, Caleb Dean, and Michael Kimbrall
• Human Trafficking Proclamation
REPORTS AND PRESENTATIONS - None
AGENDA

SPECIAL MEETING OF THE

CITY COUNCIL OF THE CITY OF CRESCENT CITY

WASTEWATER TREATMENT FACILITY CONFERENCE ROOM
210 BATTERY STREET
CRESCENT CITY, CA 95531
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1/13/25 COUNCIL AGENDA

PUBLIC COMMENT PERIOD
Any member of the audience is invited to address the City Council on any matter that is within the jurisdiction of the City of Crescent City. Comments of public interest or on matters appearing on the agenda are accepted. Note, however, that the Council is not able to undertake extended discussion or act on non-agendized items. Such items can be referred to staff for appropriate action, which may include placement on a future agenda. All comments shall be directed toward the entire Council. Any comments that are not at the microphone are out of order and will not be a part of the public record. After receiving recognition from the Mayor, please state your name and city or county residency for the record. Public comment is limited to three (3) minutes. The public is additionally allotted three minutes each in which to speak on any item on the agenda prior to any action taken by the Council.

CONSENT CALENDAR

1. Warrant Claims List
• Recommendation: Receive and file the warrant claims list for the period December 14, 2024 through December 27, 2024.

2. Council Meeting Minutes
• Recommendation: Approve and adopt the December 16, 2024 meeting minutes of the City Council.

3. Payroll Report
• Recommendation: Receive and file the biweekly payroll reports for the period ending December 28, 2024 paid January 3, 2025.

4. Pebble Beach Drive Slide Emergency Construction
• Recommendation: Declare by a 4/5 vote that there is a need to continue the emergency action for the continuous slide activity along Pebble Beach Drive between 7 th and 8th Streets per Public Contract code § 22050

5. Budget Amendment for Code Enforcement
• Recommendation: Approve and adopt Resolution No. 2025-01, A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY
• Approve and authorize the City Manager to sign Amendment No. 3 to the Legal Services Agreement with Civica Law Group

6. Measure S Oversight Committee Appointments
• Recommendation: Confirm the Mayor’s appointments of Shawna Hyatt and Steve Shamblin to the Measure S Oversight Committee

7. Water Quality Laboratory Heat System Repair
• Recommendation: Approve and adopt Resolution No. 2025-02, A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY
PUBLIC HEARING – None

ADJOURN TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY Call to order
Roll call
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1/13/25 COUNCIL AGENDA

CONSENT CALENDAR

8. Recognized Obligation Payment Schedule Pursuant to Health and Safety Code Section 34177(I) for the Period July 1, 2025 through June 30, 2026 • Recommendation: Consider and adopt Resolution SA2025-01, A Resolution of the Successor Agency to the Dissolved Redevelopment Agency of the City of Crescent City Approving a Recognized Obligation Payment Schedule (ROPS) for the Period July 1, 2025 Through June 30, 2026, Pursuant to Health and Safety Code Section 34177(l) and (m)

ADJOURN THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY Adjourn the Successor Agency to the Redevelopment Agency to the next meeting, date to be determined.

RECONVENE THE CITY COUNCIL MEETING
CONTINUING BUSINESS - None

NEW BUSINESS

9. Fiscal Year 2023-24 Audit Report
• Recommendation: Hear presentation from auditor
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Receive and file Fiscal Year 2023-24 Audited Financial Report for the City of Crescent City

10. Budget-to-Actual Operating Results for Fiscal Year 2023-24 • Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Receive and file budget-to-actual financial report of the City’s major operating funds for Fiscal Year 2023-24

11. 2025 Downtown Market Location
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Direct staff regarding a location for the 2025 season for the Downtown Market run by Del Norte & Tribal Lands Community Food Council

12. SCBA Purchase for Fire Department
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and ratify the City Manager’s signature on the purchase order for $198,682.28 worth of new Self-Contained Breathing Apparatus (SCBA) from Bauer Compressors for Crescent City Fire and Rescue
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1/13/25 COUNCIL AGENDA

13. Ranney Collector Surge Tank Partner Project with Elk Valley Rancheria • Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to sign a Memorandum of Agreement between Elk Valley Rancheria, California and the City of Crescent City

14. 2025 Council Board and Committee Appointments
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Confirm the Mayor’s appointments to 2025 Boards and Committees • Approve and adopt Resolution No. 2025-03, A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF CRESCENT CITY APPOINTING ONE MEMBER AND ONE

ALTERNATE TO THE BORDER COAST REGIONAL AIRPORT AUTHORITY BOARD OF

COMMISSIONERS

CITY COUNCIL ITEMS
➢ Reports, Concerns, Referrals, Council travel and training reports – In accordance with Gov’t Code § 54954.2(a), City Council Members may make brief announcements or brief reports on their own activities. They may ask questions for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. ➢ Legislative Matters – Consider miscellaneous legislative matters pertinent to the City of Crescent City. Authorize the Mayor to sign the appropriate letters and/or positions with respect to such matters.
➢ City Manager Report and City Council Directives – Pursuant to Crescent City Municipal Code § 2.08.200, the City Council may instruct the city manager on matters of importance to the administrative services of the City and provide direction with respect to subordinates of the City Manager. (Directives from individual Council Members that are not objected to by any member present shall be considered an order of the City Council.)

ADJOURNMENT
Adjourn to the regular meeting of the City Council of the City of Crescent City on Monday, February 3, 2025 at 6:00 p.m. in the Board Chambers of the Flynn Center, 981 H Street, Crescent City, CA 95531.

POSTED:

January 9, 2025
/s/ Robin Altman, City Clerk/Administrative Analyst
Vision:

The City of Crescent City will continue to stand the test of time and promote quality of life and community pride for our residents, businesses and visitors through leadership, diversity, and teamwork.

Mission:

The purpose of our city is to promote a high quality of life, leadership and services to the residents, businesses, and visitors we serve. The City is dedicated to providing the most efficient, innovative and economically sound municipal services building on our diverse history, culture and unique natural resources.

Values:
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1/13/25 COUNCIL AGENDA
Accountability
Honesty & Integrity
Excellent Customer Service
Effective & Active Communication
Teamwork
Fiscally Responsible
Introduction of
Police Officer Turkins

Proclamation
of the
City of Crescent City
WHEREAS, the United States was founded upon the principle that all people are created with the inalienable right of freedom, and added the 13th Amendment to the Constitution making slavery illegal; and
WHEREAS, slavery within the United States today is most often found in the form of human trafficking, which weakens our social fabric; increases violence and organized crime; and debases our humanity; and
WHEREAS, victims of human trafficking are typically forced to work in various forms of labor exploitation including, but not limited to commercial sex acts, drug processing and distribution and other services induced through force, fraud or coercion; and WHEREAS, due to its isolating nature, many individuals locally and across the globe are unaware that trafficking exists in Del Norte County and neighboring counties; and WHEREAS, it is estimated that more than 20 million men, women and children around the world are victims of human trafficking; and
WHEREAS, Soroptimist International of Crecent City continues to work to abolish human trafficking through education, advocacy and collaboration;
NOW, THEREFORE, BE IT RESOLVED that the City Council of Crescent City, hereby call upon the citizens of the city to recognize the vital role they can play in ending all forms of slavery and to support the Soroptimist International Club of Crescent City as they raise awareness through education and other efforts to stop human trafficking.

HUMAN TRAFFICKING AWARENESS MONTH
PASSED AND ADOPTED by the City Council, City of Crescent City, County of Del Norte, State of California, this 13TH day of January 2025.
_________________________________
Mayor Ray Altman
Accounts Payable
User:

Printed:
[email protected]
12/31/2024 2:10 PM
Checks by Date - Summary by Check Number
Check No Vendor No Vendor Name Check Date Void Checks Check Amount ACH EDDTAX State of California EDD TAX Auto Pay 12/18/2024 0.00 1,041.81 ACH FITTAX FIT Payroll Taxes Auto Pay 12/18/2024 0.00 3,061.56 ACH EDDTAX State of California EDD TAX Auto Pay 12/23/2024 0.00 5,078.22 ACH FITTAX FIT Payroll Taxes Auto Pay 12/23/2024 0.00 22,113.90 ACH ORTAX State of Oregon Income Tax Autopay 12/23/2024 0.00 409.19 ACH PERS2 Public Emp Retirement Sys 12/23/2024 0.00 40,486.70 ACH EDDTAX State of California EDD TAX Auto Pay 12/17/2024 0.00 10.00 ACH FITTAX FIT Payroll Taxes Auto Pay 12/17/2024 0.00 44.22 ACH FITTAX FIT Payroll Taxes Auto Pay 12/27/2024 0.00 610.01 ACH EDDTAX State of California EDD TAX Auto Pay 12/24/2024 0.00 328.91 ACH FITTAX FIT Payroll Taxes Auto Pay 12/24/2024 0.00 1,129.79 447267 ICMARE Mission Square 12/17/2024 0.00 256.03
447268 UB*06134 JORGE ALVARADO REYES 12/19/2024 0.00 129.97 447269 UB*06131 ROBERT BANKS JR 12/19/2024 0.00 193.18
447270 UB*06136 ERIK BURLINGGAME 12/19/2024 0.00 201.47 447271 UB*06130 ERVIN CAMPBELL 12/19/2024 0.00 196.23
447272 CANON Canon Solutions America Inc 12/19/2024 0.00 56.64 447273 CASCAD Cascade Fire Equipment Company 12/19/2024 0.00 696.25 447274 UB*06129 SOU CHANG 12/19/2024 0.00 241.44
447275 CHARTEC Charter Communications 12/19/2024 0.00 965.56 447276 DOWNTO Downtown Ford Sales 12/19/2024 0.00 70,588.00 447277 ESO ESO Solutions, Inc. 12/19/2024 0.00 2,125.00 447278 VERIZO2 Frontier California Inc 12/19/2024 0.00 790.00 447279 GHD INC GHD Inc 12/19/2024 0.00 13,519.72
447280 RECALL Iron Mountain 12/19/2024 0.00 267.90
447281 FIREAPP Kalmikov Enterprises, Inc 12/19/2024 0.00 802.98 447282 Lexipol Lexipol LLC 12/19/2024 0.00 3,323.50
447283 UB*06135 DHRUV MEHTA 12/19/2024 0.00 22.79
447284 UB*06128 BRITTANY NILES 12/19/2024 0.00 155.30
447285 HUMPES Northwest Property Services Inc 12/19/2024 0.00 82.00 447286 UB*06133 SHAWN REGAN 12/19/2024 0.00 83.51
447287 TIDEWA Tidewater Contractors Inc 12/19/2024 0.00 336,516.03 447288 UB*06132 DAWN TREHEARNE 12/19/2024 0.00 227.16
447289 CALCARDS US Bank Corporate Pmt Systems 12/19/2024 0.00 597.78 447290 CASTATE CA State Disbursement Unit 12/23/2024 0.00 88.84 447291 WAMUTU Crescent City Employees Association 12/23/2024 0.00 70.00 447292 CCPOLI Crescent City Police Officer's Association 12/23/2024 0.00 600.00 447293 ICMARE Mission Square 12/23/2024 0.00 2,933.36
447294 PORACRMT PORAC RMT 12/23/2024 0.00 600.00
447295 ICMARE Mission Square 12/24/2024 0.00 710.72
447296 NCHEAL Sydney M Clinton 12/23/2024 0.00 265.00
447297 CAPLIVE Secure Screening Solutions, Inc 12/23/2024 0.00 66.00 447298 ICMARE Mission Square 12/27/2024 0.00 4,752.42
Report Total (43 checks): 0.00 516,439.09
AP Checks by Date - Summary by Check Number (12/31/2024 2:10 PM) Page 1 AP
12-14-24 to 12-27-24 Council
User: [email protected]
Printed: 12/31/2024 2:09:35 PM
Check Numbe Check Date Acct 1 Description Amount Selected For Void 0 12/17/2024 610-000-2185-00000 PR Batch 07772.12.2024 State Income Tax 10.00 False 0 12/17/2024 610-000-2188-00000 PR Batch 07772.12.2024 Medicare Employer Portion 8.18 False 0 12/17/2024 610-000-2188-00000 PR Batch 07772.12.2024 Medicare Employee Portion 8.18 False 0 12/17/2024 610-000-2189-00000 PR Batch 07772.12.2024 Federal Income Tax 27.86 False 0 12/18/2024 610-000-2185-00000 PR Batch 00072.12.2024 State Income Tax 134.23 False 0 12/18/2024 610-000-2185-00000 PR Batch 77722.12.2024 State Income Tax 907.58 False 0 12/18/2024 610-000-2188-00000 PR Batch 00072.12.2024 Medicare Employer Portion 46.40 False 0 12/18/2024 610-000-2189-00000 PR Batch 77722.12.2024 Federal Income Tax 2,273.01 False 0 12/18/2024 610-000-2189-00000 PR Batch 00072.12.2024 Federal Income Tax 349.67 False 0 12/18/2024 610-000-2188-00000 PR Batch 00072.12.2024 Medicare Employee Portion 46.40 False 0 12/18/2024 610-000-2188-00000 PR Batch 77722.12.2024 Medicare Employer Portion 173.04 False 0 12/18/2024 610-000-2188-00000 PR Batch 77722.12.2024 Medicare Employee Portion 173.04 False 0 12/23/2024 610-000-2187-00000 PR Batch 77722.12.2024 EE PERS Contribution 1,640.71 False 0 12/23/2024 610-000-2187-00000 PR Batch 00072.12.2024 Survivor Benefit 0.93 False 0 12/23/2024 610-000-2187-00000 PR Batch 77722.12.2024 ER PERS Contribution 1,641.90 False 0 12/23/2024 610-000-2187-00000 PR Batch 77722.12.2024 Survivor Benefit 0.93 False 0 12/23/2024 610-000-2187-00000 PR Batch 00072.12.2024 EE PERS Contribution 416.37 False 0 12/23/2024 610-000-2187-00000 PR Batch 00072.12.2024 ER PERS Contribution 416.67 False 0 12/23/2024 610-000-2185-00000 PR Batch 07222.12.2024 State Income Tax 21.61 False 0 12/23/2024 610-000-2185-00000 PR Batch 00772.12.2024 State Income Tax 2,747.97 False 0 12/23/2024 610-000-2185-00000 PR Batch 00722.12.2024 State Income Tax 2,308.64 False 0 12/23/2024 610-000-2188-00000 PR Batch 00772.12.2024 Medicare Employer Portion 1,614.43 False 0 12/23/2024 610-000-2188-00000 PR Batch 00722.12.2024 Medicare Employer Portion 1,024.98 False 0 12/23/2024 610-000-2189-00000 PR Batch 00722.12.2024 Federal Income Tax 6,366.07 False 0 12/23/2024 610-000-2188-00000 PR Batch 07222.12.2024 Medicare Employee Portion 166.46 False 0 12/23/2024 610-000-2188-00000 PR Batch 07222.12.2024 Medicare Employer Portion 166.46 False 0 12/23/2024 610-000-2188-00000 PR Batch 00722.12.2024 Medicare Employee Portion 1,024.98 False 0 12/23/2024 610-000-2189-00000 PR Batch 00772.12.2024 Federal Income Tax 9,350.90 False 0 12/23/2024 610-000-2188-00000 PR Batch 00772.12.2024 Medicare Employee Portion 1,614.43 False 0 12/23/2024 610-000-2189-00000 PR Batch 07222.12.2024 Federal Income Tax 785.19 False 0 12/23/2024 610-000-2172-00000 PR Batch 07222.12.2024 Oregon Paid Leave Tax 32.10 False 0 12/23/2024 610-000-2172-00000 PR Batch 07222.12.2024 Oregon Workers Benefit Tax 3.87 False 0 12/23/2024 610-000-2172-00000 PR Batch 07222.12.2024 Oregon Transit Tax 8.05 False AP - 12-14-24 to 12-27-24 Council (12/31/2024) Page 1 of 4 Check Numbe Check Date Acct 1 Description Amount Selected For Void 0 12/23/2024 610-000-2172-00000 PR Batch 07222.12.2024 Oregon Workers Benefit Tax 3.87 False 0 12/23/2024 610-000-2196-00000 PR Batch 07222.12.2024 Oregon Income Tax 313.16 False 0 12/23/2024 610-000-2172-00000 PR Batch 07222.12.2024 Oregon Paid Leave Tax 48.14 False 0 12/23/2024 610-000-2187-00000 PR Batch 00772.12.2024 ER PERS Contribution 10,715.20 False 0 12/23/2024 610-000-2187-00000 PR Batch 00722.12.2024 EE PERS Contribution 6,947.72 False 0 12/23/2024 610-000-2187-00000 PR Batch 00722.12.2024 ER PERS Contribution 8,863.40 False 0 12/23/2024 610-000-2187-00000 PR Batch 07222.12.2024 ER PERS Contribution 500.24 False 0 12/23/2024 610-000-2187-00000 PR Batch 00722.12.2024 Survivor Benefit 19.24 False 0 12/23/2024 610-000-2187-00000 PR Batch 07222.12.2024 EE PERS Contribution 492.62 False 0 12/23/2024 610-000-2187-00000 PR Batch 00772.12.2024 Service Credit Purchase 413.20 False 0 12/23/2024 610-000-2187-00000 PR Batch 00772.12.2024 EE PERS Contribution 8,274.10 False 0 12/23/2024 610-000-2187-00000 PR Batch 00772.12.2024 Survivor Benefit 35.34 False 0 12/23/2024 610-000-2187-00000 PR Batch 07222.12.2024 Survivor Benefit 2.79 False 0 12/23/2024 610-000-2187-00000 PR Batch 07772.12.2024 EE PERS Contribution 44.41 False 0 12/23/2024 610-000-2187-00000 PR Batch 07772.12.2024 ER PERS Contribution 60.00 False 0 12/23/2024 610-000-2187-00000 PR Batch 07772.12.2024 Survivor Benefit 0.93 False 0 12/24/2024 610-000-2185-00000 PR Batch 79911.12.2024 State Income Tax 328.91 False 0 12/24/2024 610-000-2188-00000 PR Batch 79911.12.2024 Medicare Employee Portion 137.41 False 0 12/24/2024 610-000-2188-00000 PR Batch 79911.12.2024 Medicare Employer Portion 137.41 False 0 12/24/2024 610-000-2189-00000 PR Batch 79911.12.2024 Federal Income Tax 854.97 False 0 12/27/2024 610-000-2188-00000 PR Batch 07911.12.2024 Medicare Employer Portion 202.81 False 0 12/27/2024 610-000-2189-00000 PR Batch 07911.12.2024 Federal Income Tax 204.39 False 0 12/27/2024 610-000-2188-00000 PR Batch 07911.12.2024 Medicare Employee Portion 202.81 False 447267 12/17/2024 610-000-2178-00000 Plan # 300878 256.03 False 447268 12/19/2024 419-000-2110-00000 Refund Check 112280-000, 2510 NICKEL AVE 129.97 False 447269 12/19/2024 419-000-2110-00000 Refund Check 102907-004, 190 E CONDOR ST 193.18 False 447270 12/19/2024 419-000-2110-00000 Refund Check 111405-000, 131 BREAKWATER DR 201.47 False 447271 12/19/2024 419-000-2110-00000 Refund Check 110936-001, 789 DEL NORTE ST 196.23 False 447273 12/19/2024 001-230-4395-00000 Sample Wildland PPE - 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12-14-24 to 12-27-24 Council (12/31/2024) Page 2 of 4 Check Numbe Check Date Acct 1 Description Amount Selected For Void 447275 12/19/2024 001-350-4230-00000 Internet Service -- 12/01/24-12/31/24 10.08 False 447275 12/19/2024 413-111-4230-00000 Internet Service-- 12/01/24-12/31/24 3.99 False 447275 12/19/2024 413-352-4230-00000 broadband for security- 12/01/24-12/31/24 104.98 False 447275 12/19/2024 001-120-4230-00000 Internet Service -- 12/01/24-12/31/24 28.35 False 447275 12/19/2024 001-251-4230-00000 Internet Service -- 12/01/24-12/31/24 6.09 False 447275 12/19/2024 420-115-4230-00000 Internet Service -- 12/01/24-12/31/24 13.64 False 447275 12/19/2024 419-371-4230-00000 Internet Service -- 12/01/24-12/31/24 15.74 False 447275 12/19/2024 001-113-4230-00000 Internet Service -- 12/01/24-12/31/24 13.65 False 447275 12/19/2024 001-250-4230-00000 Internet Service - - 12/01/24-12/31/24 1.68 False 447275 12/19/2024 419-111-4230-00000 Internet Service-- 12/01/24-12/31/24 4.41 False 447275 12/19/2024 001-240-4230-00000 Internet Service - 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AP - 12-14-24 to 12-27-24 Housing (12/31/2024) Page 1 of 1 1 | P a g e
12/16/24 COUNCIL MINUTES

CITY OF CRESCENT CITY
MONDAY DECEMBER 16, 2024 6:00 P.M.

OPEN SESSION
Call to order Mayor Inscore called the meeting to order at 6:00 p.m.

Roll call Council Members present: Council Member Kelly Feola, Council Member Jason Greenough, Council Member Isaiah Wright, Mayor Pro Tem Ray Altman, and Mayor Blake Inscore
Staff members present: City Manager Eric Wier, City Attorney Martha Rice, City Clerk/Administrative Analyst Robin Altman, Housing Authority Executive Director Megan Miller, Fire Captain Beau Smith, Fire Chief Kevin Carey, Firefighter Bill Barlow, Firefighter Becky Barlow, Public Works Director Dave Yeager, Assistant Public Works Manager Wade Mayes, Fire Battalion Chief Darrin Short, Firefighter Jerry Cardenas, Fire Captain Everett Buell, and Police Chief Richard Griffin
Pledge of Allegiance led by Mayor Inscore
REPORTS AND PRESENTATIONS - None

PUBLIC COMMENT PERIOD
The following residents addressed the Council:

Billie Kaye Gavin-Tygart: spoke about the location of the Farmers Market being in the clocktower parking lot and how it’s been hugely successful. Encourages the Council to support this location and speak to more businesses for their opinions.

CONSENT CALENDAR

1. Warrant Claims List
• Recommendation: Receive and file the warrant claims list for the period November 19, 2024 through November 29, 2024.

2. Council Meeting Minutes
• Recommendation: Approve and adopt the December 2, 2024 meeting minutes of the City Council.

3. Payroll Report

MINUTES

REGULAR MEETING OF THE

CITY COUNCIL OF THE CITY OF CRESCENT CITY

AND THE CRESCENT CITY HOUSING AUTHORITY

FLYNN CENTER BOARD CHAMBERS
981 H STREET
CRESCENT CITY, CA 95531
2 | P a g e
12/16/24 COUNCIL MINUTES
• Recommendation: Receive and file the biweekly payroll reports for the period ending November 30, 2024 paid December 6, 2024.

4. Budget-to-Actual Summary as of October 31, 2024
• Recommendation: Receive and file budget-to-actual summary of the City’s major operating funds for Fiscal Year 2024-25 as of October 31, 2024

5. Pebble Beach Drive Slide Emergency Construction
• Recommendation: Declare by a 4/5 vote that there is a need to continue the emergency action for the continuous slide activity along Pebble Beach Drive between 7th and 8th Streets per Public Contract Code § 22050

6. CCPD Canine Transfer Agreement (K9 Lt. Kai)
• Recommendation: Authorize the City Manager to sign the Crescent City Police Department Canine Transfer Agreement for Lt. Kai

7. Bertsch Ocean View Community Service District Tank Access Road Tree Removal and Fence Repair
• Recommendation: Approve and adopt Resolution No. 2024-98, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FY 24- 25 BUDGET OF THE CITY OF CRESCENT CITY

8. Jacobs Amendment No. 8 and Budget Adjustment
• Recommendation: Approve Amendment No. 8 to the Operations Maintenance and Management Services for the Wastewater Treatment Plant

9. Timing of Collection of Water / Sewer Connection Fees • Recommendation: Approve and adopt Resolution No. 2024-99, A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING

REGULATIONS REGARDING THE COLLECTION OF WATER AND SEWER CONNECTION FEES EFFECTIVE JANUARY 1, 2025

10. Certification of Election Results
• Recommendation: Approve and adopt Resolution No. 2024-100, A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF CRESCENT CITY, CALIFORNIA, CERTIFYING THE RESULTS OF THE NOVEMBER 5, 2024 CITY OF CRESCENT CITY ELECTION WHICH WAS CONSOLIDATED WITH THE NOVEMBER 5, 2024

STATEWIDE GENERAL ELECTION
Council Member Feola asked for item 1 to be pulled from the Consent Calendar as she has a conflict of interest with her current employer.

There were no comments from the public on items 2-10 on the consent calendar.

On a motion by Council Member Wright, seconded by Council Member Feola, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City adopted the consent calendar consisting of items 2-10 as presented.

There were no comments from the public on item 1 on the consent calendar.

On a motion by Council Member Wright, seconded by Council Member Greenough, and carried on a 4-0 polled vote with Council Member Feola recusing herself, the City Council of the City of Crescent City adopted item 1 on the consent calendar as presented. 3 | P a g e
12/16/24 COUNCIL MINUTES

ADJOURN TO THE CRESCENT CITY HOUSING AUTHORITY
Mayor Inscore adjourned to the Crescent City Housing Authority at 6:07 p.m.

RECONVENE THE CITY COUNCIL MEETING
Mayor Inscore reconvened the City Council meeting at 6:08 p.m.

CEREMONIAL ITEMS
• Outgoing Council Members Acknowledgement
City Manager Wier gave a PowerPoint Presentation that outlined all of the successes the City has seen since Council Member Feola and Mayor Inscore have been on the Council.

Tamera Leighton: spoke about Mayor Inscore’s long service to the Del Norte Local Transportation Commission.

Cindy Vosburg: spoke about Council Member Feola and Mayor Inscore’s dedication to the community by serving on the Chamber of Commerce and Visitors Bureau.

Billie Kaye Gavin-Tygart: thanked Mayor Inscore and Council Member Feola to their service to the City, the community, and local businesses.

Jorge Galindo: spoke about Mayor Inscore’s service to the community and as Pastor for 16 years at First Baptist Church.

Gerry Hemmingsen: stated that both Mayor Inscore and Council Member Feola have heart and is the reason for the community being served so well.

Kathy Haggard: spoke about Mayor Inscore’s leadership and how it has impacted the City in such a positive way. She further stated that not only did Pastor Blake give 100% to the City, he also did to First Baptist Church.

Kevin Hartwick: stated that one best accomplishments of Mayor Inscore and Council Member Feola’s part in having City Manager Wier lead the City.

Leah Bridgeman: spoke about how much work Mayor Inscore has done with the CIty and how he never neglected his service as Pastor for First Baptist Church.

Chris Howard: spoke about the years of service both Council Member Feola and Mayor Inscore has given the City.

Megan Miller, Housing Authority Executive Director: thanked Council Member Feola and Mayor Inscore and stated how much they will be missed.

Darrin Short: spoke about working with Mayor Inscore on the Planning Commission together.

Susan Daugherty: former member of Border Coast Regional Airport Authority and how prepared Council Member Feola always was for their meetings. Spoke about Mayor Inscore’s incredible work he has done for the City.
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12/16/24 COUNCIL MINUTES
Chief Richard Griffin: stated that the biggest thing he learned about Mayor Inscore is that he was not a “yes man”. Stated Council Member Feola’s service for Measure S has been a great support for first responders.

Chief Carey: stated that the dedication Mayor Inscore and Council Member Feola have for the City has been admirable and what stands out.

Tedd Ward, Director of DNSWMA: thanked Council Member Feola and Mayor Inscore’s service to the City and community as a whole.

Robin Altman: thanked Mayor Inscore and Council Member Feola for their commitment to community service.

Kiyoshi Murikami: thanked the Council for sustaining the Sister City relationship.

Blake Inscore, Jr: stated that Mayor Inscore has always put his family first throughout his whole career.

Lenea Inscore: appreciates all of the work he has done for the City and is so thankful for him coming to Crescent City. Said that Council Member Feola’s work with the City has been impressive.

Council Member Feola stated that when she looks over the room, she sees a bunch of friends and that was one of her greatest accomplishments. She stated that the City is family and is very proud of the work that Mayor Inscore has done for the City. Mayor Inscore stated it has been an honor to work for the City and detailed all of the work that has been accomplished since he has been on the City Council. Both Council Member Feola and Mayor Inscore applauded all of the work the staff has done to make projects come to fruition.

City Manager Wier presented Mayor Inscore and Council Member Feola with framed prints as outgoing Council Members, Mayor Inscore and Council Member Feola left the Board Chambers.

Mayor Pro Tem Altman called for a 5-minute recess at 7:45 and called the meeting back to order at 7:49 p.m.
• Incoming Council Members Oaths of Office
City Clerk Altman administered the Oath of Office to Council Member Daran Dooley, Council Member Jason Greenough, and Council Member Candace Tinkler. Council Member Dooley stated he is looking forward to serving the community and getting to know community members.

Council Member Tinkler stated her appreciation for serving on the Council and looking forward to serving this community. Council Member Greenough stated that he was thankful for the time he has worked with Mayor Inscore and Council Member Feola.

PUBLIC HEARING

12. Cross-Connection Control Regulations
• Recommendation: Open public hearing
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Close public hearing
• Waive full reading, read by title only and adopt, Ordinance No. 851, AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING CHAPTER 5 | P a g e
12/16/24 COUNCIL MINUTES

13.14, CROSS-CONNECTIONS, OF TITLE 13, PUBLIC SERVICES, OF THE

CRESCENT CITY MUNICIPAL CODE
Mayor Pro Tem Altman opened the public hearing at 8:00 p.m.

City Attorney Rice went over the ordinance as introduced at the last meeting by giving a brief history and explained what the ordinance covers.

There were no comments from the public.

Mayor Pro Tem Altman closed the public hearing at 8:03 p.m.

On a motion by Council Member Wright, seconded by Council Member Greenough, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City waived full reading, read by title only and adopted Ordinance No. 851, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING CHAPTER 13.14, CROSS-CONNECTIONS, OF TITLE 13, PUBLIC SERVICES, OF THE CRESCENT CITY MUNICIPAL CODE.

13. Repeal of Duplicate Storm Water Regulations
• Recommendation: Open public hearing
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Close public hearing
• Waive full reading, read by title only and adopt, ORDINANCE NO. 850, AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY REPEALING CHAPTER 12.36, STORM WATER QUALITY MANAGEMENT, OF TITLE 12, STREETS, SIDEWALKS, AND PUBLIC PLACES, OF THE CRESCENT

CITY MUNICIPAL CODE
Mayor Pro Tem Altman opened the public hearing at 8:04 p.m.

City Attorney Rice went over the ordinance as introduced and explained the changes in regulations that required the change in this ordinance. There were duplications in the ordinance and this ordinance being adopted has been cleaned up and does not change any new or different regulations.

There were no comments from the public.

Mayor Pro Tem Altman closed the public hearing at 8:05 p.m.

On a motion by Council Member Greenough, seconded by Council Member Wright and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City waived full reading, read by title only and adopted Ordinance No. 850, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY REPEALING CHAPTER 12.36, STORM WATER QUALITY MANAGEMENT, OF TITLE 12, STREETS, SIDEWALKS, AND PUBLIC PLACES, OF THE CRESCENT CITY MUNICIPAL CODE.

14. Building Code Adoption
• Recommendation: Open public hearing
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Close public hearing
6 | P a g e
12/16/24 COUNCIL MINUTES
• Waive full reading, read by title only and adopt, ORDINANCE NO. 849, AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING TITLE 15, BUILDINGS AND CONSTRUCTION, OF THE CRESCENT

CITY MUNICIPAL CODE TO ADOPT THE CALIFORNIA BUILDING STANDARDS CODES
Mayor Pro Tem Altman opened the public hearing at 8:06 p.m.

City Attorney Rice reported on the ordinance that was introduced at the last meeting and that this ordinance updates the current code. Council Member Tinkler asked if this is about new construction or existing buildings; City Attorney Rice stated the standards would apply to all of the above to include both new construction and any upgrades or reconstruction of current buildings.

Not all buildings have to come up to code. Council Member Dooley asked for the differences in the remedies for this code; City Attorney Rice stated that construction can be stopped by red tags and yellow tags.

No public comments.

Mayor Pro Tem Altman closed the public hearing at 8:11 p.m.

On a motion by Council Member Wright, seconded by Council Member Greenough and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City waived full reading, read by title only and adopted Ordinance No. 849, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING TITLE 15, BUILDINGS AND CONSTRUCTION,

OF THE CRESCENT CITY MUNICIPAL CODE TO ADOPT THE CALIFORNIA BUILDING STANDARDS CODES.

CONTINUING BUSINESS - None

NEW BUSINESS

15. Tolowa Interpretive Walk - Public Art Construction
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to sign a Professional Services Agreement with Sea Reach, Ltd. to design and fabricate Tolowa Interpretive Nodes for the Tolowa Interpretive Walk
City Manager Wier stated that this is one of the next phases of Beachfront Park. A critical piece of the Beachfront Park Design is the Tolowa Interpretive Walk. He gave a history of City staff’s efforts and successes in receiving funding for the Park. He showed images of the Tolowa nodes that will be along the trail. City staff along with the Tolowa Cultural Committee reviewed the RFP received and the only one was Sea Reach, Ltd. Along with the design aspect of the nodes, they have the ability to fabricate the pieces for the Park. Council Member Greenough expressed his appreciation of this piece of the Park.

There were no comments from the public.

On a motion by Council Member Greenough, seconded by Council Member Wright, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City approved and authorized the City Manager to sign a Professional Services Agreement with Sea Reach, Ltd. to design and fabricate Tolowa Interpretive Nodes for the Tolowa Interpretive Walk. 7 | P a g e
12/16/24 COUNCIL MINUTES
Mayor Pro Tem Altman expressed his appreciation for the Tolowa Cultural Committee and the input they have given on this project.

16. Award Acceptance for Explore the Coast Overnight Program • Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to execute a grant agreement with the State Coastal Conservancy’s Explore the Coast Overnight Program for the Lighthouse Cove Lower Cost Accommodations Project at Lighthouse Cove RV Park • Approve and adopt Resolution No. 2024-101, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY
• Approve and adopt Resolution No. 2024-102, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY APPROVING THE GRANT OF

FUNDS FROM THE STATE COASTAL CONSERVANCY FOR THE LIGHTHOUSE

COVE LOWER COST ACCOMMODATIONS PROJECT
City Manager Wier outlined when this was initially presented to the Council. He gave a PowerPoint Presentation to outline exactly what this project entails which includes making accessible units at the Park which includes cabins. City Manager Wier stated that these grant funds along with RV Park funds will allow this project to be finished. Council Member Wright asked if City staff will be doing the work to the apartment; City Manager Wier stated that the work will be outsourced. Council Member Greenough asked who will be doing the housekeeping for these units; City Manager Wier stated that would also be outsourced. Council Member Wright asked if the company that is currently cleaning the bathrooms have been contacted to do the work; City Manager Wier stated they can be contacted when it’s time. Council Member Dooley asked about how likely a cash flow issue is and City Manager Wier went over all of the CIP projects that could create cash flow issues and what the options are for the financial advisor. Mayor Pro Tem Altman stated that we are fortunate to have the grants. City Manager Wier stated that there will be a cost to borrow money for the financial adviser.

There were no comments from the public.

On a motion by Council Member Wright, seconded by Council Member Tinkler, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City approved and authorized the City Manager to execute a grant agreement with the State Coastal Conservancy’s Explore the Coast Overnight Program for the Lighthouse Cove Lower Cost Accommodations Project at Lighthouse Cove RV Park, approved and adopted Resolution No. 2024-101, A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY and approved and adopt Resolution No. 2024-102, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CRESCENT CITY APPROVING THE GRANT OF FUNDS FROM THE STATE COASTAL

CONSERVANCY FOR THE LIGHTHOUSE COVE LOWER COST ACCOMMODATIONS PROJECT.

17. Agreement for Development of a Downtown Specific Plan • Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to execute a Professional Services Agreement with Crandall Arambula, PC for Development of a Downtown Specific Plan; and
8 | P a g e
12/16/24 COUNCIL MINUTES
• Approve the use of $64,000 in defederalized program income funds for the project City Manager Wier stated that this item is a time sensitive project. The City applied for EDA funds and will be applying for CDBG funds soon. If you are under contract, it makes the CDBG more competitive. He went over the experience of the selected consultant. Don Arambula from Crandall Arambula, PC, gave a presentation that includes the project as well as the team that will be responsible for carrying it out. City Manager Wier stated that that this is a $280k project, the EDA grant is more than likely to be received and therefore the project will be funded for $216k through those funds and the City will need to come up with $64k and can be accessed through defederalized program income funds. The City has submitted a CDBG application and the contract with Crandall Arambula will only be able to be entered into if the EDA funds are received.

Mayor Pro Tem Altman asked if December 30th is the date to apply; City Manager Wier stated that is for CDBG funding.

There were no comments from the public.

On a motion by Council Member Wright, seconded by Council Member Greenough, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City approved and authorized the City Manager to execute a Professional Services Agreement with Crandall Arambula, PC for Development of a Downtown Specific Plan; and approved the use of $64,000 in defederalized program income funds for the project.

18. 2025 City Council Regular Meeting Calendar
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and adopt Resolution No. 2024-103, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY ADOPTING THE 2025 CITY

COUNCIL REGULAR MEETING CALENDAR
City Clerk Robin Altman addressed the Council and stated that the calendar shows only one meeting in January, the 13th and there will not be meetings the first and third Monday for the month of January.

On a motion by Council Member Wright, seconded by Council Member Greenough, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City approved and adopted Resolution No. 2024-103, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY ADOPTING THE 2025 CITY COUNCIL REGULAR MEETING CALENDAR.

19. Selection of Mayor and Mayor Pro Tempore
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Select a Mayor and Mayor Pro Tempore to serve for the next year Council Member Wright nominated Mayor Pro Tem Altman to serve as Mayor for 2025; Mayor Pro Tem Altman accepted the nomination.

There were no additional nominations for Mayor.

There were no comments from the public.
9 | P a g e
12/16/24 COUNCIL MINUTES
On a motion by Council Member Wright, seconded by Council Member Greenough, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City selected Mayor Pro Tem Altman to serve as Mayor for the next year.

Mayor Altman nominated Council Member Wright to serve as Mayor Pro Tem for 2025; Council Member Wright accepted the nomination.

There were no additional nominations for Mayor Pro Tem.

There were no comments from the public.

On a motion by Mayor Altman, seconded by Council Member Greenough, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City selected Council Member Wright to serve as Mayor Pro Tem for the next year.

CITY COUNCIL ITEMS
➢ Reports, Concerns, Referrals, Council travel and training reports – None ➢ Legislative Matters – None
➢ City Manager Report and City Council Directives – City Manager Wier stated the Christmas Tree Lighting event was a great success due to the dedication and hard work of City staff. Public Works Director Yeager reported on the upcoming projects. • Pool Rehabilitation & Pebble Beach Stabilization Project Update o Director Yeager showed slides of the Pool Rehabilitation project and gave some details of what is expected.
o Director Yeager outlined the update on the Pebble Beach Stabilization Project. • Report On CCF&R Fire Training Burn
o Chief Carey gave a presentation on the recent training burn that was led by the Battalion Chiefs, completely all volunteer.

ADJOURNMENT
There being no further business to come before the Council, Mayor Altman adjourned the meeting at 9:43 p.m. to the regular meeting of the City Council of the City of Crescent City on Monday, January 13, 2025 at 6:00 p.m. in the Board Chambers of the Flynn Center, 981 H Street, Crescent City, CA 95531.

ATTEST:
____________________________________
Robin Altman, City Clerk/Administrative Analyst
Home Dept. Regular Pay Overtime Gross Pay Employees Notes City Council (110) 3,373.79 - 3,373.79 5
Administration (111) 19,755.45 1,435.97 21,191.42 5
Finance (120) 14,510.81 417.09 14,927.90 6
City Attorney (130) 5,333.21 - 5,333.21 1
Fire (230) 19,475.74 665.70 20,141.44 5
Police (240) 55,212.28 5,866.06 61,078.34 15 Includes Final Check Planning (313) 3,323.72 - 3,323.72 2
Public Works (350) 53,070.83 8,095.78 61,166.61 24
Recreation (450) 2,638.07 - 2,638.07 1
Swimming Pool (480) 10,606.01 - 10,606.01 12
Housing (490) 11,504.81 - 11,504.81 4
198,804.72 16,480.60 215,285.32 80
Payroll summarized above according to employees' home departments. Actual costs of employees are charged to department / fund where work was performed.

City of Crescent City
Biweekly Payroll Report
Payroll Ending 12/28/24
Pay Date 01/03/2025
Check Numbers: 111382, 111402 - 111407 (Plus Direct Deposits)

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: DAVID YEAGER, PUBLIC WORKS DIRECTOR
DATE: JANUARY 13, 2025
SUBJECT: PEBBLE BEACH DRIVE SLIDE EMERGENCY CONSTRUCTION ______________________________________________________________________

RECOMMENDATION
• Declare by a 4/5 vote that there is a need to continue the emergency action for the continuous slide activity along Pebble Beach Drive between 7th and 8th Streets per Public Contract code § 22050

BACKGROUND
The December 2016 storms caused significant beach cliff erosion within the City along Pebble Beach Drive from Preston Island to Sixth Street. This was evidenced by the visible road cracks indicating loss of road foundation and loss of bluff. By August 2021 the design contractor had achieved 30% plans, and the first Coastal Development Permit (CDP) application was submitted. The resulting increase in scope complexity increased the project cost estimate to $32.6 million. The Damage Assessment Form (DAF) was updated and submitted to FHWA in January of 2022 and was approved by Federal Highways Administration (FHWA) on January 26, 2024. This approval authorizes the City to receive funding from FHWA in the amount of 88.53% of the project costs, and California Office of Emergency Services (CalOES) will reimburse the City for 75% of the remaining amount, leaving the City’s local match responsibility at just under 3%.

On January 14, 2024, during a winter rainstorm, a 75-foot section of the bluff supporting Pebble Beach Drive slid down to the beach between 7th and 8th streets undermining the western (ocean side) bicycle lane. On January 31, 2024, during a subsequent winter rainstorm, a second slide occurred just to the north of the January 14th slide.

On June 21, 2024, Governor Gavin Newsom added Del Norte County to the list of counties that suffered extensive storm damage in March 2024 to include the Pebble Beach slide between 7th and 8th Streets. This action makes the project eligible for Emergency Opening (EO) funds, which can be used for minimizing the extent of the damage, opening the roadway to essential traffic, and to protect the remaining facilities from damage. EO funding is 100% reimbursable and must be spent within 270 days of the event causing the emergency (March 4, 2024). Per the Caltrans EO funding allocation, this 270-day window closed November 30, 2024.

PEBBLE BEACH DR SLIDE EMERGENCY CONSTRUCTION
JANUARY 13, 2025
2 The City submitted an Initial Damage Estimate (IDE) for this emergency repair to Caltrans in the amount of $6,680,798 for emergency traffic control, remediation of the existing slide, stabilization wall construction, rock slope protection (RSP) at the toe of the wall, and reconstruction of the road section.

Cal Trans Local Assistance and FHWA requested the City close out the existing bank stabilization project and submit a new DAF with the Emergency Opening project (EO) and the remaining permanent repair (PR) project combined. On July 26, 2024 FHWA approved the finalizing of the old DAF in the amount of $925,000 for costs incurred to date and the new DAF in the total amount of $38,477,798. The new DAF includes the remainder of the previously approved PR funding in the amount $31,672,000 and an updated EO amount of $6,805,798. The new total amount of authorized FWHA funding is $39,402,798.

At the July 15, 2024 City Council meeting, the Council adopted Resolution No. 2024-55, declaring an emergency due to the continuous slide activity and the failure of Pebble Beach Drive and authorizing the City Manager to act pursuant to Public Contract Code § 22050. This specific declaration of emergency allows the City to bypass the normal competitive bidding process in order to procure services and contractors to address the emergency; in this case, the continual slide activity that has undermined a section of Pebble Beach Drive between 7th and 8th Streets. Due to the limited time available to complete the repairs, the City does not have sufficient time to complete the standard procurement process of design-bid build and still get the emergency repairs done before the winter storm season.

At the August 5, 2024 City Council meeting, the Council ratified the City Manager’s execution of the Emergency Force Account (EFA) Agreement between the City of Crescent City and Tidewater Contractors, Inc. for construction of a temporary restoration of Pebble Beach from 7th to 8th Street. Additionally on this date, the Council approved Resolution 2024-59 budgeting $3,750,000 for the Emergency Opening contract. Based on preliminary designs the contract signed with Tidewater Contractors, Inc. was for $3,200,000. Of this contract amount, $1,800,000 was budgeted to pay for the engineering and construction services of Access Limited, a specialist wall contractor hired by Tidewater Contractors with City approval.

Since August, both the COWI engineering team and the Access Limited engineers have finalized a comprehensive wall design, including wall alignment, wall depth, rock revetment, drainage, and the repaired road alignment. Current wall design has a maximum depth at approximately 33 feet deep, with the maximum depth wall length to be approximately 200 feet. This wall length will provide proper embedment into the existing rock at either end of the walls. Based on this current design, the EFA with Tidewater Contractors was amended by Change Order #1 to a total contract amount of $4,600,000.

PEBBLE BEACH DR SLIDE EMERGENCY CONSTRUCTION
JANUARY 13, 2025
3 ITEM ANALYSIS
Continuation of Emergency
The Public Contract Code requires the City to revisit whether an emergency declaration allowing the City to contract without formal bids is still necessary at each regular meeting.

It is necessary to continue the emergency action as the slide has yet to be fixed. At the August 5th meeting, the City Council ratified contracts with COWI (design) and Tidewater (construction) to repair the slide. And at the September 16th meeting, the City Council approved Change Order #1 to the Emergency Force Account Agreement with Tidewater Contractors for the increased wall size.

Current Project Status
A bottom of wall elevation has been established at 15 feet above sea level, 32 feet below the existing road level. A concrete grade beam, vertical micropile and horizontal soil nails have been installed to provide a wall foundation and structural supports. The reinforced shotcrete concrete wall system connecting the vertical and horizontal supports has been completed. The wall has also been sculpted and stained so all exposed portions will match the surrounding exposed bluff sections. Backfilling the wall with a flowable cement grout has completed the scope of work for the wall contractor.

On December 9, 2024, the excavation and installation of rock revetment at the base of the wall began. We anticipate this phase of work shall be completed by the 17th of January. The remaining work will include the reconstruction of road paved and shoulder, clean-up and erosion control plantings. We are anticipating a road opening in late February 2025, weather permitting. Staff continues to work with the Coastal Commission on a design strategy to correspond with the requirements of a Coastal Development Permit, which will need to be obtained once the emergency prescription is achieved.

Financial Assistance
On September 30, 2024, Governor Newsom signed AB 157, an act to amend the Budget Act of 2024. This bill appropriates $7,999,000 for Crescent City to use toward the Pebble Beach Stabilization Project. The City received the full amount in one payment, which will be used to cash flow the project moving forward. This funding makes this emergency construction project possible as the City does not have the cash resources to pay the contractor $4.6 million and await reimbursement from Emergency Opening Funds (FHWA / Caltrans), which are yet to be funded by Congress.

FISCAL ANALYSIS
There is no direct fiscal impact to continuing the emergency. The continuance of the emergency will, however, allow the City to continue to take advantage of the emergency procurement procedures as necessary.

PEBBLE BEACH DR SLIDE EMERGENCY CONSTRUCTION
JANUARY 13, 2025
4 The Funds Transfer Agreement has resulted in the City being awarded $7,999,000 in funds to use toward the Pebble Beach Bank Stabilization Project. This funding was recently received by the City and will be used for cash flow and any project costs not covered by other funding.

The EO repair through the 270-day 100% reimbursement period, concluded on November 30, 2024. The City is billing and is anticipating 100% reimbursement from the Federal Highway Administration for all expenses in this period. After November 30, the City will bill FHWA 88.53%, and CalOES 75% of the balance, or 8.6025%. The remaining

2.8675% of incurred expenses will be paid utilizing the $7,999,000 funding through AB157.

When the reimbursements are received from the FHWA and CalOES, they will be returned to the working capital account for the Pebble Beach Stabilization Project, as described in the FHWA approved DAF. These funds will remain available to the City through June 30, 2030, and may be used for repair costs associated with road damage on Pebble Beach Drive as described in the DAF from Sixth Street to the City Limit on Pebble Beach Drive just north of Ninth Street.

STRATEGIC PLAN ASSESSMENT
GOAL 1: SUPPORT QUALITY SERVICES, COMMUNITY SAFETY, AND HEALTH TO

ENHANCE THE QUALITY OF LIFE AND EXPERIENCE OF OUR RESIDENTS AND

VISITORS
D. Provide and maintain an efficient, adequate infrastructure to provide for both current and future community needs.

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: MARTHA D. RICE, CITY ATTORNEY
DATE: JANUARY 13, 2025
SUBJECT: BUDGET AMENDMENT FOR CODE ENFORCEMENT
______________________________________________________________________

RECOMMENDATION
• Approve and adopt Resolution No. 2025-01, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET FOR THE CITY OF CRESCENT CITY
• Approve and authorize the City Manager to sign Amendment No. 3 to the Legal Services Agreement with Civica Law Group

BACKGROUND
The City has been working with Matthew Silver of Civica Law Group since 2013 to abate nuisance properties in Crescent City. Nuisance abatement using the Health & Safety Code receivership process is time-consuming and labor-intensive work. Mr. Silver and his team have become experts in the field. Some of the successful nuisance abatement’s that Mr. Silver and his firm have performed for the City include the former Townhouse Motel (444 US-101 S), the former Gardenia Motel (119 L Street), the Front Street Seafood Market (400 Front Street), and several abandoned residences. Civica Law Group is currently representing the City in the final stages of the receivership for 200 A Street (former A Street health clinic) and an abandoned residence on W Essex, as well as in the initiation of enforcement actions for two occupied residential nuisance cases, and one building permit dispute (city attorney has a conflict of interest due to the location of the subject property).

ITEM ANALYSIS
The most recent contract with Mr. Silver and his firm was executed in 2023. That contract was amended twice in 2024. The contract set forth an annual expense budget of $60,000 for legal services related to code enforcement / receiverships. At this point in the fiscal year, we have spent 79% of that budget due to the resources required to address the two occupied residences that have created significant health and safety nuisances to their surrounding neighborhoods. Staff is proposing adding $45,000 to the current budget and

CODE ENFORCEMENT BUDGET
JANUARY 13, 2025
2 legal services contract to allow these enforcement efforts to continue. Additionally, the City is need of the services of a professional surveyor to determine the exact location of private property lines and the public right of way. One of the nuisance properties borders a “paper” street (a public right of way on maps that was never developed). Because different procedures apply on private property versus public property, it is necessary to determine on which property parts of the “nuisance” are located in order to properly abate them. The requested budget for the surveying service is $7,500.

FISCAL ANALYSIS
The budget amendment increases expenses in the General Fund by $52,500 for FY 2024-25. The City will seek recovery of these funds from the responsible parties.

However, recovery of those revenues is not anticipated in this fiscal year and therefore they are not included in this budget amendment.

STRATEGIC PLAN ANALYSIS
This item is consistent with the following strategic plan goals:
• Goal 1: Support Quality Services, Community Safety, and Health to Enhance the Quality of Life and Experience of Our Resident and Visitors

ATTACHMENTS

1. Resolution No. 2025-01 (budget amendment)

2. Amendment No. 3 to Civica Law Group legal services
CITY OF CRESCENT CITY RESOLUTION NO. 2025-01 Page 1
RESOLUTION NO. 2025-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY WHEREAS, the budget for the fiscal year beginning July 1, 2024 and ending June 30, 2025, as submitted by the City Manager, has been reviewed by the City Council and a duly-noticed public hearing held thereon the 17th day of June 2024; and
WHEREAS, the City Council adopted said budget by way of Resolution No. 2024-47 and has the authority to amend said budget from time to time; and
WHEREAS, the City is in need of special counsel services for code enforcement / nuisance abatement that exceed the current allocated budget; and WHEREAS, the City is also in need of professional surveying services related to a nuisance abatement case; and
WHEREAS, an amendment to the budget is required to recognize the revenue and authorize the expenses of the grant.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AS FOLLOWS:

1. That the Fiscal Year 2024-25 City of Crescent City Annual Budget is hereby amended and appropriated in the amounts identified below:

Revenue Increase (Decrease) Expenditure Increase (Decrease) General Fund $0 $52,500
APPROVED and ADOPTED and made effective the same day at a regular meeting of the City Council of the City of Crescent City held on the 13th day of January 2025 by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Ray Altman, Mayor
ATTEST:
_____________________________
Robin Altman, City Clerk

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
DATE: JANUARY 13, 2025
SUBJECT: MEASURE S OVERSIGHT COMMITTEE APPOINTMENTS
_____________________________________________________________________

RECOMMENDATION
• Confirm the Mayor’s appointment of Shawna Hyatt and Steve Shamblin to the Measure S Oversight Committee

BACKGROUND
On November 3, 2020, the voters of the City of Crescent City approved a 1.0% local transactions and use (“sales”) tax and shortly thereafter, the City Council formally adopted the Ordinance. Imposition of the sales tax began April 1, 2021. Ordinance No. 824 provides for the appointment of an oversight committee made up of five voting City resident members and two non-voting staff members (City Manager and Finance Director). The Ordinance charges the oversight committee with reviewing and publicly reporting on the expenditure of revenues generated by the tax. In addition, the Bylaws for the Committee task it with also advising on the expenditure of anticipated revenues as part of the annual budget process. Committee Members serve two-year terms.

ITEM ANALYSIS
The Mayor has the duty to appoint members to the Committee, subject to the confirmation of the City Council. Committee members must be residents of the City and at least 18 years of age. The committee currently has three vacancies (two members whose terms expired in December and one vacancy due to the member being elected to the City Council who cannot also serve on the Oversight Committee). The City recently received applications from City residents Shawna Hyatt and Steve Shamblin to fill two of the vacant positions.

Ms. Hyatt’s and Mr. Shamblin’s applications were reviewed by the Mayor, who appointed the applicants to serve on the Measure S Committee and is presented to the Council at tonight’s meeting for confirmation. If Ms. Hyatt and Mr. Shamblin’s appointments are confirmed, there will remain one additional vacancy on the committee. Ms. Hyatt and Mr.

Shamblin’s terms will fill two-year terms through December 2026. The City is still accepting applications for the remaining vacancy until it is filled.

Measure S Oversight Committee Appointment
January 13, 2025
2 FISCAL ANALYSIS
There is no cost to the City to appoint the Measure S Oversight Committee, as its members are volunteers.

STRATEGIC PLAN ASSESSMENT
This action supports the following Strategic Plan Goals:
• Goal 1, empower and utilize Police, Fire and Public Works departments to make Crescent City one of the safest cities in the United States. • Goal 3, maintain responsible fiscal management and accountability.

ATTACHMENTS

1. Shawna Hyatt and Steve Shamblin’s Applications

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: DAVID YEAGER, PUBLIC WORKS DIRECTOR
DATE: JANUARY 13, 2025
SUBJECT: WATER QUALITY LABORATORY HEATING SYSTEM REPAIR ______________________________________________________________________

RECOMMENDATION
• Approve and adopt Resolution No. 2025-02, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY

BACKGROUND
The current Crescent City Water Quality Control Laboratory is located at 195 B Street.

The laboratory is a CA ELAP certified laboratory that provides testing for the Crescent City Wastewater Treatment Plant, the Crescent City Water System, private industrial users, other public water systems, and private well owners.

The lab’s heating system began underperforming in 2023. The budget for FY 2023-24 included the replacement of the air handler unit located in the building’s attic space. That unit was replaced in June of 2024. During the recharging of the system, it was discovered that the air condenser was wearing out and might lose its refrigerant; this has recently occurred. The lab has been utilizing electrical strip heaters within the air handler unit and space heaters. On cold days, we are running the risk of falling out of compliance.

ITEM ANALYSIS
Staff is requesting a minimum of three bids. The analysis of bids will also consider the availability and timeliness of the installation of the replacement parts. The budget amendment request is based on the cost of a similar replacement at City Hall as well as the recent cost of recharging the existing system at the lab in June of 2024.

Because the condenser unit is inside of the heat pump, it will be both cost effective and responsible in terms of preventive maintenance to replace the entire unit at this time.

WATER QUALITY LABORATORY HEATER REPAIR
JANUARY 13, 2025
2 FISCAL ANALYSIS
This failure was not expected nor budgeted for this fiscal year. The attached resolution would increase the budgeted expense in the Sewer Fund by an estimated $12,600.

STRATEGIC PLAN ASSESSMENT
GOAL 1: SUPPORT QUALITY SERVICES, COMMUNITY SAFETY, AND HEALTH TO

ENHANCE THE QUALITY OF LIFE AND EXPERIENCE OF OUR RESIDENTS AND

VISITORS
D. Provide and maintain an efficient, adequate infrastructure to provide for both current and future community needs.

ATTACHMENTS

1. Resolution No. 2025-02 (Budget Amendment)
CITY OF CRESCENT CITY RESOLUTION NO. 2025-02 Page 1
RESOLUTION NO. 2025-02

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2024-25 BUDGET OF THE CITY OF CRESCENT CITY WHEREAS, the budget for the fiscal year beginning July 1, 2024 and ending June 30, 2025, as submitted by the City Manager, has been reviewed by the City Council and a duly-noticed public hearing held thereon the 17th day of June 2024; and
WHEREAS, the City Council adopted said budget and has the authority to amend said budget from time to time; and
WHEREAS, the City of Crescent City owns and maintains the Water Quality Laboratory building located at 195 B Street; and
WHEREAS, the condenser contained within the heat pump has stopped working; and WHEREAS, the City of Crescent City Water Quality Laboratory is certified as a testing facility and must adhere to mandated testing requirements including a stabilized atmospheric temperature, which cannot be satisfactorily achieved without the buildings main source of heating; and WHEREAS, the FY2024-25 Budget does not contain a planned expense to conduct this necessary repair; and
WHEREAS, fulfillment of these priorities requires an amendment to the operating budget.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AS FOLLOWS:

1. That the Fiscal Year 2024-25 City of Crescent City Annual Budget is hereby amended and appropriated in the amounts identified below:

Revenue Increase (Decrease) Expenditure Increase (Decrease) Sewer Fund $12,600
APPROVED and ADOPTED and made effective the same day at a meeting of the City Council of the City of Crescent City held on the 13
th day of January 2025 by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Ray Altman, Mayor
ATTEST:
_____________________________
Robin Altman, City Clerk

SUCCESSOR AGENCY AGENDA REPORT
TO: SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY

OF THE CITY OF CRESCENT CITY
FROM: LINDA LEAVER, CITY OF CRESCENT CITY FINANCE DIRECTOR DATE: JANUARY 13, 2025
SUBJECT: RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) FOR THE PERIOD
JULY 1, 2025 THROUGH JUNE 30, 2026

RECOMMENDATION
• Consider and adopt Resolution SA2025-01, A Resolution of the Successor Agency to the Dissolved Redevelopment Agency of the City of Crescent City Approving a Recognized Obligation Payment Schedule (ROPS) for the Period July 1, 2025 Through June 30, 2026, Pursuant to Health and Safety Code Section 34177(l) and (m)

BACKGROUND
Pursuant to Health and Safety Code Section 34172, the Redevelopment Agency of the City of Crescent City (“Agency”) was dissolved as of February 1, 2012. The City of Crescent City (“RDA Successor Agency”) is the successor agency of the former Redevelopment Agency, and pursuant to Health and Safety Code Section 34173(g), the RDA Successor Agency is a separate legal entity from the City.

The Oversight Board is responsible for approving the actions of the RDA Successor Agency pursuant to Health and Safety Code Section 34179, including the Recognized Obligation Payment Schedule (“ROPS”).

One of the responsibilities of the Successor Agency is to prepare a ROPS, which sets forth the nature, amount, and source(s) of payment of all “enforceable obligations” of the Agency (as defined by law) to be paid by the Successor Agency. This report is for the fiscal period July 1, 2025 through June 30, 2026.

This ROPS, once approved by the Successor Agency, must be submitted to the Oversight Board for approval. The Oversight Board is scheduled to meet January 15, 2025. The approved ROPS is required to be submitted to the Department of Finance, California State Controller, and County Auditor-Controller by February 1, 2025.

Successor Agency Staff Report
ROPS 25-26
January 13, 2025
2 ANALYSIS
Attached is the ROPS for the period July 1, 2025 through June 30, 2026. It is organized into the following sections:

Recognized Obligation Payment Schedule (ROPS 25-26) – Summary and Detail This report shows the estimated amounts to be expended and the funding source for those amounts. The Successor Agency has two potential sources of funding to make payments on recognized obligations and to cover administrative costs:
• Existing assets / fund balance
• Redevelopment Property Tax Trust Fund (RPTTF)
Of these amounts, the Successor Agency is required to use its assets first and then may apply for RPTTF to cover any shortfall to make approved payments toward recognized obligations. RPTTF is collected by the County and distributed to taxing entities pursuant to Health and Safety Code Section 34183. The remaining amount (called the residual) is potentially available to fund Successor Agency obligations. However, the Successor Agency may only request up to 50% of the difference between the projected residual and the actual residual from the base year 2012-13.

The ROPS 25-26 is based on the prior year actual amounts and a projection for the current year. If the actual current year amounts differ from the projection submitted via the ROPS, the State Department of Finance will adjust the ROPS amount. If the State adjusts the ROPS amounts, the Successor Agency will adjust the payment accordingly and no additional action is required from the Successor Agency or the Oversight Board.

The proposed ROPS estimates $89,244 will be available to make recognized obligation payments. The ROPS 25-26 amount is requested to be funded from RPTTF and will be paid toward the Water Fund loan.

The total amount to be repaid each year will depend on the RPTTF residual, which fluctuates from year to year. Prior estimates for the payoff of this final loan show the last payment in FY 2029-30, although this could change depending on actual RPTTF amounts available each year.

Also under AB 1484, 20% of the Water Fund loan repayment each year must be paid into the Successor Housing Fund for affordable housing. Therefore, of the proposed $89,244 payment on the Water Fund loan, $17,848.80 would go to the Successor Housing Fund and $71,395.20 would go to the Water Fund. In order to address what would have otherwise been a loss to the Water Fund, the City Council approved payment in FY 2021- 22 from the General Fund to the Water Fund to cover the full 20% it would have lost over the entire repayment period.

Successor Agency Staff Report
ROPS 25-26
January 13, 2025
3 Cash Balance Report
The Report of Cash Balances tracks Successor Agency cash flow and ending balances across several ROPS periods. This form provides transparency over the continual estimation and tax distribution true-up processes embedded in the State dissolution law.

FISCAL IMPACT
The ROPS 25-26 financial report authorizes the Successor Agency to request $89,244 from RPTTF funds, all of which will go toward the loan payment. This is in accordance with the purpose of the Successor Agency, which is to wind down the affairs of the former Redevelopment Agency and pay its enforceable obligations.

Due to the timing of when final RPTTF information is available compared to the deadline for ROPS submission, the amounts provided are based on estimates only. If necessary, the DOF will make adjustments to the ROPS when final RPTTF amounts are known.

ATTACHMENTS
• Resolution No. SA2025-01
• ROPS 25-26
SUCCESSOR AGENCY RESOLUTION NO. SA2025-01 Page 1
RESOLUTION NO. SA2025-01

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED

REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY,

APPROVING AND ADOPTING A RECOGNIZED OBLIGATION PAYMENT
SCHEDULE COVERING THE PERIOD JULY 1, 2025 THROUGH JUNE 30, 2026, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) AND (m)
WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Crescent City elected to become the successor agency to the Redevelopment Agency of the City of Crescent City (“Successor Agency”) by Resolution No. 2012-03 on January 17, 2012; and
WHEREAS, pursuant to Health and Safety Code Section 34173(g), the Successor Agency is now a separate legal entity from the City; and WHEREAS, Health and Safety Code Section 34177(l) requires the Successor Agency to prepare a recognized obligation payment schedule (“ROPS”) before each fiscal year; and
WHEREAS, Health and Safety Code Section 34177(l)(2) requires the Successor Agency to submit the ROPS to the Successor Agency’s oversight board for its approval, and upon such approval, the Successor Agency is required to submit a copy of the approved ROPS (“Approved ROPS”) to the Del Norte County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and post the Approved ROPS on the Successor Agency’s website; and WHEREAS, Health and Safety Code Section 34177(m) requires that the Approved ROPS for the period July 1, 2025 through June 30, 2026 (“ROPS 25-26”) is required to be submitted to the Department of Finance, California State Controller and the County Auditor-Controller by February 1, 2025; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. CEQA Compliance. The approval of the ROPS 25-26 through this Resolution does not commit the Successor Agency to any action that may have a SUCCESSOR AGENCY RESOLUTION NO. SA2025-01 Page 2
significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. The City Clerk is authorized and directed to file a Notice of Exemption with the appropriate official of the County of Del Norte, California, within five (5) days following the date of adoption of this Resolution.

Section 3. Approval of ROPS. The Successor Agency hereby approves and adopts the ROPS 25-26, covering the period July 1, 2025 through June 30, 2026, in substantially the form attached to this Resolution as Exhibit A, as required by Health and Safety Code Section 34177.

Section 4. Transmittal of ROPS. The Finance Director, Linda Leaver, is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the ROPS 25-26, including submitting the ROPS 25-26 to the Successor Agency’s oversight board for approval, and submission of the Approved ROPS to the Del Norte County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and posting the Approved ROPS on the Successor Agency’s website.

Section 5. Effectiveness. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED at a meeting of the Successor Agency to the former Redevelopment Agency of the City of Crescent City on the 13th day of January 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Raymond Altman, Chairperson
ATTEST:
________________________________
Robin Altman, Secretary
SUCCESSOR AGENCY RESOLUTION NO. SA2025-01 Page 3

EXHIBIT A

RECOGNIZED OBLIGATION PAYMENT SCHEDULE
[Attached behind this page]
Successor Agency: Crescent City
County: Del Norte
25-26A
Total
25-26B
Total
ROPS
Total
A
Obligations Funded as
Follows (B+C+D)
- - -
B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E
Redevelopment Property Tax Trust
Fund (RPTTF) (F+G)
89,244 - 89,244
F RPTTF 89,244 - 89,244
G Administrative RPTTF - - -
H Current Period Obligations (A+E) 89,244 - 89,244
Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 31477 (o) of the Health
and Safety code, I hereby certify that the above
is a true and accurate Recognized Obligation
Payment Schedule for the above named
Successor Agency.

Signature Date
Requested Funding for Obligations
Recognized Obligation Payment Schedule (ROPS 25-26) - Summary Filed for the July 1, 2025 through June 30, 2026 Period ROPS 25-26A (Jul-Dec) ROPS 25-26B (Jan-June)
Fund Sources Fund Sources
Item #
Obligation
Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date Payee Description
Total
Outstanding
Obligation Retired
ROPS 25-
26 Total Bonds Reserves Other RPTTF Admin
25-26 A
Total Bonds Reserves Other RPTTF Admin
25-26 B
Total
1 Water Fund
Loan *
City/County Loan
(Prior 06/28/11),
Other 1/1/1996 6/30/2032
City of Crescent
City Water Utility
Debt to fund nonhousing projects
319,844 N 89,244 89,244 89,244 0

A B C D E F G H
ROPS 22-23 Cash Balances
(07/01/22 - 06/30/23) Reserve Balance Other Funds RPTTF Rent, Non-Admin
Grants, and
Interest, etc. Admin
Beginning Available Cash Balance (Actual 07/01/22) 70,498 1,874 Adjusted to reflect actual cash RPTTF amount should exclude "A" period distribution amount Revenue/Income (Actual 06/30/23) 2,368 87,000
RPTTF amount should tie to the ROPS 22-23 total distribution from the County Auditor-Controller
3 Expenditures for ROPS 22-23 Enforceable Obligations
(Actual 06/30/23) 63,000 87,000
Retention of Available Cash Balance (Actual 06/30/23)
RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
ROPS 22-23 RPTTF Prior Period Adjustment
Certification of Oversight Board Chairman:

Ending Actual Available Cash Balance (06/30/23) 0 0 0 9,866 1,874 C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
1 2
4 5
6 July 1, 2022 through June 30, 2023
(Report Amounts in Whole Dollars)
Fund Sources
Comments
Bond Proceeds
Bonds issued on or
before 12/31/10
Bonds issued on or after
01/01/11
Prior ROPS RPTTF and
Reserve Balances
retained for future

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: LINDA LEAVER, DIRECTOR OF FINANCE
DATE: JANUARY 13, 2025
SUBJECT: FISCAL YEAR 2023-24 FINANCIAL AUDIT
______________________________________________________________________

RECOMMENDATION
• Hear presentation from auditor
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Receive and file Fiscal Year 2023-24 Audited Financial Report for the City of Crescent City

BACKGROUND AND ANALYSIS
The City’s financial statements are provided to give an accurate financial snapshot at a specific point in time. The City Council engages a Certified Public Accountant (CPA) to independently audit these statements to provide users of financial reports with assurance concerning their reliability and that the statements are fairly presented.

The independent auditor (Badawi and Associates, with Mitesh Desai as the engagement partner) tests and reviews the City’s records and policies, interviews City staff, and confirms certain details with outside parties (including banks, the State, the County, the City’s insurance provider, legal firms, local businesses, and others) in order to provide an opinion on whether the financial statements present fairly, in all material respects, the financial position of the City. Audit work begins after the fiscal year ends (June 30) and continues through several phases taking approximately six months. The Fiscal Year 2023-24 audit was completed December 30, 2024.

Mr. Desai’s opinion is that the City’s financial statements do present fairly, in all material respects, the financial position of the City as of June 30, 2024. This is sometimes referred to as a “clean audit”, and it is the City’s goal to achieve this result.

FY 2023-24 AUDIT
JANUARY 13, 2025
2 The financial report contains the Independent Auditor’s Report, the Management Discussion and Analysis (MD&A), government-wide financial statements, fund financial statements, notes to the financial statements, required supplemental information, combining financial statements and the single audit report.

The auditor will present the audit report to the Council this evening and discuss the responsibilities of the auditor, how the audit was planned and performed, and the limitations that are inherent in any audit process. On a separate agenda item tonight, staff will present an analysis of the budget-to-actual results of Fiscal Year 2023-24 for the City’s main operating funds.

FISCAL ANALYSIS
Receiving and filing the annual audit reports does not have a direct fiscal impact. The City’s is required to use an independent auditor each year, and the cost associated with the audit contract is included in each annual budget.

STRATEGIC PLAN ASSESSMENT
This report is consistent with Strategic Plan Goal #3B: Maintain responsible fiscal management and accountability.

ATTACHMENTS
• Fiscal Year 2023-24 Audited Financial Report
Crescent City, California
Annual Audit Report and Financial Statements
For the year ended June 30, 2024

City of Crescent City
Annual Audit Report and Financial Statements
For the year ended June 30, 2024
Table of Contents
Page

INTRODUCTORY SECTION
City Officials .............................................................................................................................................................. 5

FINANCIAL SECTION
Independent Auditors’ Report ............................................................................................................................... 9 Management Discussion and Analysis .............................................................................................................. 15 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................. 41 Statement of Activities ................................................................................................................................... 42 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................... 50 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... 51 Statement of Revenues, Expenditures and Changes in Fund Balances .............................................. 52 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................................................................................................ 53 Proprietary Fund Financial Statements:

Statement of Net Position .......................................................................................................................... 58 Statement of Revenues, Expenses, and Changes in Net Position ........................................................ 59 Statement of Cash Flows ............................................................................................................................ 60 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................ 66 Statement of Changes in Fiduciary Net Position.................................................................................... 67 Notes to Basic Financial Statements ................................................................................................................... 71 1 City of Crescent City
Annual Audit Report and Financial Statements
For the year ended June 30, 2024
Table of Contents, Continued
Required Supplementary Information:

Other Post Employment Benefits:

Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Years ............................ 106 Schedule of Contributions Last Ten Fiscal Years ....................................................................................... 108 Defined Benefit Pension Plan:

Schedule of the City’s Proportionate Share of the Net Pension Liability Last Ten Years ..................... 110 Schedule of Contributions Last Ten Years ................................................................................................... 112 Budgetary Information:

Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual - General Fund ........................................................................................................... 115 Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual - Housing Authority Section 8 Fund ...................................................................... 116 Supplementary Information:

Combining Balance Sheets – Nonmajor Governmental Funds .................................................................... 120 Combining Statements of Revenues, Expenditures, and Changes in Fund Balance– Nonmajor Governmental Funds .................................................................................... 124 Combining Balance Sheets – Internal Service Funds ..................................................................................... 128 Combining Statements of Revenues, Expenses, and Changes in Net Position– Internal Service Funds ....................................................................................................... 130 Combining Statements of Cash Flows – Internal Service Funds ................................................................. 132

SINGLE AUDIT SECTION
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................................... 137 Independent Auditors’ Report on Compliance For Each
Major Program and on and Internal Control Over
Compliance Required By The Uniform Guidance ......................................................................................... 139 Schedule of Expenditures of Federal Awards ................................................................................................... 143 Notes to Schedule of Expenditures of Federal Awards.................................................................................... 144 Schedule of Findings and Questioned Costs ..................................................................................................... 145 2 INTRODUCTORY SECTION
3 This page intentionally left blank
4 City of Crescent City
City Officials
For the year ended June 30, 2024
Name Office
Blake Inscore Mayor
Ray Altman Mayor Pro Tem
Jason Greenough Council Member
Kelly Schellong Council Member
Isaiah Wright Council Member
5 This page intentionally left blank
6 FINANCIAL SECTION
7 This page intentionally left blank
8 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Crescent City
Crescent City, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Crescent City, California (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 9 To the Honorable Mayor and Members of the City Council of the City of Crescent City
Crescent City, California

Page 2 ends

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

In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, other post-employment benefit plans information, and pension plan information on pages 15-36 and 106-116 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
10 To the Honorable Mayor and Members of the City Council of the City of Crescent City
Crescent City, California

Page 3 ends

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards on pages 120-133, and 143 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information Included in the Annual Audit Report and Financial Statements Management is responsible for the other information included in the Annual Audit Report and Financial Statements. The other information comprises the introductory section but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
December 30, 2024
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12 MANAGEMENT DISCUSSION AND

ANALYSIS
13 This page intentionally left blank
14 CITY OF CRESCENT CITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2024
As management of the City of Crescent City (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with the City’s basic financial statements (beginning on page 41).

The Management’s Discussion and Analysis (MD&A) presents financial highlights: an overview of the accompanying financial statements, an analysis of financial position and results of operations, a currentto-prior year analysis, a discussion on restrictions and commitments, and a discussion of significant activity involving capital assets and long-term debt. The MD&A is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditor’s report.

Financial Highlights
Government-Wide Financial Statements
The government-wide financial statements (pages41-43) report information about the City as a whole, using the economic resources measurement focus and accrual basis of accounting. This means that all assets and liabilities (both short-term and long-term) are presented, revenues are recorded when they are earned, and expenditures or expenses are recorded when they are incurred, regardless of the timing of related cash flows. For the most part, transactions between funds have been removed, except when eliminating the interfund transactions would obscure the costs of providing services.

Total assets and deferred outflows of resources of the City were $95,776,822 and total liabilities and deferred inflows of resources were $48,388,421 on June 30, 2024. The City’s assets and deferred outflows exceeded its liabilities and deferred inflows by $47,388,401 (net position) for the fiscal year reported. This is an increase of $5,865,768 from the previous year when assets exceeded liabilities by $41,522,633.

The increase includes:
 $2,872,769 increase in net investment in capital assets (capital assets less depreciation and outstanding debt related to the assets) due to capital improvement projects and asset purchases, including grant-funded projects, and debt payments.
 ($70,115) decrease in restricted net position, which includes balances for capital projects, grantfunded projects, and low-income housing programs.  $3,063,114 increase in unrestricted net position.

Total net position is the difference between (1) total assets and deferred outflows of resources and (2) total liabilities and deferred inflows of resources. Net position includes both short-term and long-term assets and liabilities, and is comprised of the following:
 Capital assets, net of related debt and accumulated depreciation, of $33,709,801 includes real property, construction-in-progress, structures and improvements, equipment, and infrastructure.  Net position of $1,652,198 is restricted for capital projects, community development, low-income housing, and other purposes.
 Unrestricted net position of $12,026,402 represents the resources available to meet the City’s ongoing obligations to citizens and creditors.
15 Fund Financial Statements
The fund financial statements (pages 50-67) present information about each major fund of the City and the aggregate of all non-major funds. A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

All of the funds of the City can be divided into three categories:
 Governmental funds: These funds are used to account for activities primarily supported by taxes, grants, and similar revenue sources. These are essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the current financial resources measurement focus (near-term inflows and outflows of spendable resources).

This information may be useful in evaluating a government’s near-term financing requirements.  Proprietary funds: These funds are used to account for activities which are primarily supported by fees and charges for services. Proprietary funds, like the government-wide financial statements, use the economic resources measurement focus. The City maintains two types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide statements. Internal service funds are used to allocate the costs of centralized activities and services performed by certain departments of the City for other departments of the City.  Fiduciary funds: These funds are used to account for resources that the City holds as a trustee or agent on behalf of another party. These funds are not included in the government-wide statements, as the resources cannot be used to support the City’s own programs.

Governmental Funds
Governmental funds include the General Fund, special revenue funds, and capital projects funds.

The City currently has three major governmental funds (General Fund, Housing Authority Fund, and General CIP Fund) and twelve non-major governmental funds. Financial statements for each major fund and the aggregate of all non-major funds are presented on pages50-53. Individual fund data for each non-major fund is provided in the form of combining statements on pages 120-126.

The City’s governmental funds reported total ending fund balance of $9,407,143 this year. This compares to the prior year ending fund balance of $6,832,623 and is an increase of $2,574,520 which includes:
 $600,805 net increase in the General Fund balance due to total revenues exceeding total expenditures. (See the section on General Fund budget comparison for more details.)  $87,152 net increase in the Housing Authority fund balance due to revenues exceeding expenditures. The fund balance is restricted to low and moderate-income housing programs.  $871,285 net increase in the General CIP Fund due to revenues exceeding expenditures.

This fund is used to account for most capital improvement projects that are not related to enterprise funds.
 $1,015,278 net increase in other governmental funds, including an increase of $565,619 in the CDBG Fund for the receipt of grant funds reimbursing expenditures of the prior year, an increase of $259,133 in the Fire Vehicle and Equipment Replacement Fund of funds transferred for future replacements of vehicles and equipment, $148,539 increase in the 16 RMRA Fund for RMRA (also referred to as SB1) gas tax revenues received but not yet expended, and small increases and decreases in other minor funds.

The major governmental funds are discussed in greater detail below in the section “Financial Analysis of the City’s Funds.”
Proprietary Funds
The City’s proprietary funds include three enterprise funds (Sewer Fund, Water Fund, and Recreational Vehicle (RV) Park Fund) and six internal service funds. Financial statements for each enterprise fund and the aggregate of all internal service funds are presented on pages58-61.

Individual fund data for each internal service fund is provided in the form of combining statements on pages 128-133.

The enterprise funds reported total ending net position of $21,681,186 as of June 30, 2024. This compares to net position as of the prior year of $20,090,086 and is an increase of $1,591,100 which includes:
 $1,003,554 net increase in the Sewer Fund net position.  $584,450 net increase in the Water Fund net position.  $3,096 net increase in the RV Park Fund net position.

The internal service funds reported total ending net position of $2,027,056 as of June 30, 2024. This represents a net increase of $307,711 from the prior year net position of $1,719,345.

The proprietary funds are discussed in greater detail below in the section “Financial Analysis of the City’s Funds.”
Fiduciary Funds
The City maintains one fiduciary fund: the Successor Agency RDA Fund represents the wind-down activities of the Successor Agency to the dissolved former Redevelopment Agency. The fiduciary fund financial statements are presented on pages66-67.

17 Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction of the City’s basic financial statements. The basic financial statements include: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The government-wide financial statements present both long-term and short-term information about the City’s overall financial picture. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis of full accrual accounting and elimination or reclassification of internal activities.

The Statement of Net Position is measured as the difference between (a) assets and deferred outflow of resources and (b) liabilities and deferred inflow of resources. This is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position may serve as an indicator of whether its financial health is improving or deteriorating.

The Statement of Activities presents information on how the City’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that only result in cash flows in future periods (e.g. earned but unused vacation leave).

In both the Statement of Net Position and Statement of Activities, we divide the City into two kinds of activities:

Governmental Activities – Most of the City’s basic services are reported here, including General Government (City Council, City Clerk, City Manager’s Department, Finance, Attorney, Economic Development, etc.), Public Safety (Police and Fire), Community Development, Planning, Swimming Pool, Parks and Public Works. Revenues from property taxes, transient occupancy taxes (TOT), sales tax, business license tax, etc. finance most of these activities. In the government-wide statements, internal service funds are included here as well.

Business-type Activities – The City charges a fee to customers to recover all or most of certain services it provides. The City’s water, sewer, and recreational vehicle park are included in this category.

Fund Financial Statements
The Fund Financial Statements are designed to report information about groupings (funds) of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. The City uses all three types, each using different accounting methods.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial 18 statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City adopts an annual appropriated budget for the General Fund. A budgetary comparison statement has been provided in the Required Supplementary Information section of this report.

Proprietary Funds – Proprietary funds are primarily used to account for when the City charges for the services it provides, whether to outside customers or to other units of the City. These funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities, using an accrual basis of accounting. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities that are reported in the government-wide financial statements but provide more detailed information, such as the statement of cash flows. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities, such as Building Maintenance, Equipment Services, Insurance, and Information Technology. Since these activities predominantly benefit governmental rather than business-type functions, they are included with the governmental activities in the governmentwide financial statements. However in the fund financial statements, internal service funds are reported with the proprietary funds because they use the same basis of accounting.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In these cases, the City has a fiduciary responsibility and is acting as a trustee.

The Statement of Fiduciary Net Position separately reports all of the City’s fiduciary activities. The City excludes those activities from the City’s other financial statements because the City cannot use these assets to finance its operations. However, the City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Notes to the financial statements
The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin immediately following the basic financial statements on page71. The notes include information on the City’s accounting policies, cash and investments, receivables, capital assets, long-term debts, interfund activity, employee retirement plans and other post-employment benefits, risk management, contingencies, pledged revenues, the successor trust for the former redevelopment agency, and changes from the prior year reporting.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents Required Supplementary Information beginning on page106. Information regarding the City’s contributions to Other Post-Employment Benefits and the Defined Benefit Pension Plan is included here. Statements of 19 Revenues, Expenditures, and Changes in Fund balances – Budget and Actual for the General Fund and the Housing Authority Fund are also included here.

Supplementary Information
This section, beginning on page 120, includes the individual fund statements for the nonmajor governmental funds and the internal service funds.

Financial Analysis of the City as a Whole
This analysis will focus on the City’s net position (Table 1) and changes in net position (Table 2) of the governmental and business-type activities for the fiscal year ending June 30, 2024. This information is shown in greater detail in the government-wide financial statements on pages 41-43.

FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 Assets:

Current and other 13,148,542 11,845,936 14,287,863 12,930,714 27,436,405 24,776,650 Capital assets 21,291,163 18,895,099 41,394,509 42,803,907 62,685,672 61,699,006 Total assets 34,439,705 30,741,035 55,682,372 55,734,621 90,122,077 86,475,656 Deferred outflow of
resources 3,560,974 3,484,741 2,093,771 2,114,646 5,654,745 5,599,387 Total assets and
deferred outflows
of resources 38,000,679 34,225,776 57,776,143 57,849,267 95,776,822 92,075,043 Liabilities
Current and other 2,540,725 3,214,065 2,785,581 2,726,258 5,326,306 5,940,323 Long-term
liabilities 8,891,328 8,490,440 32,574,148 34,049,615 41,465,476 42,540,055 Total liabilities 11,432,053 11,704,505 35,359,729 36,775,873 46,791,782 48,480,378 Deferred inflow of
resources 1,088,724 861,411 735,228 983,308 1,596,639 2,072,032 Total liabilities and
deferred inflows of
resources 12,293,464 12,793,229 36,094,957 37,759,181 48,388,421 50,552,410 Net Position
Net investment in
capital assets 21,175,557 18,766,053 12,534,244 12,070,979 33,709,801 30,837,032 Restricted 1,652,198 1,371,769 - 350,544 1,652,198 1,722,313 Unrestricted 2,879,460 1,294,725 9,146,942 7,668,563 12,026,402 8,963,288 Total Net Position,
as restated 25,707,215 21,432,547 21,681,186 20,090,086 47,388,401 41,522,633 Table 1 - Net Position
Governmental Activities Business-Type Activities Government-Wide Totals 20 In fiscal year 2023-24, governmental activities increased the City’s net position by $4,274,668 and business-type activities increased the City’s net position by $1,591,100 as compared to the prior fiscal year. In fiscal year 2023-24 government-wide revenues increased by $5,138,141 and total expenses increased by $4,259,200 compared to the prior year.

Revenues in governmental activities increased by $3,154,082 and expenses increased by $2,714,258 compared to the prior year. In business-type activities, revenues increased by $1,984,059 and expenses increased by $1,544,942. There were significant increases in revenues related to grants as well as charges for services. More detailed information for the major funds is provided below. A large portion of the increase in expenses was related to the complex pension liability adjustments required by GASB 68.

In fiscal year 2023-24, these calculations resulted in a large adjustment to pension expense. In future years, current balances of deferred outflows and deferred inflows required by GASB 68 will continue to be amortized and recognized as pension expenses. See the section Notes to Basic Financial Statements (Note 8) for additional information about long-term pension liabilities. 21 2024 2023 2024 2023 2024 2023
Revenues:

Program revenues: - -
Charges for services 1,771,643 948,765 8,350,879 10,122,243 9,299,644 11,893,886 Operating
grants/contributions 7,375,867 5,644,986 233,395 358,442 7,609,262 6,003,428 Capital
grants/contributions 523,734 490,880 - 523,734 - 490,880 General revenues:

Sales tax 2,375,421 2,230,286 - 2,230,286 - 2,375,421
Measure S 2,319,969 2,345,019 - 2,345,019 - 2,319,969
Transient occupancy
tax 1,822,738 2,028,328 - 2,028,328 - 1,822,738
Property taxes 968,171 886,639 - 968,171 - 886,639
Other 848,646 448,214 547,065 209,323 1,395,711 657,537 Total Revenues 18,091,694 14,937,612 10,902,703 8,918,644 23,856,256 28,994,397 Expenses:

General government 1,102,525 685,398 - 1,102,525 - 685,398 Public safety 2,695,080 4,837,435 - 4,837,435 - 2,695,080 Community
development 783,437 - 1,067,127 783,437 - 1,067,127
Human services and
recreation 5,035,660 5,259,643 - 5,259,643 - 5,035,660
Public works 1,287,898 1,471,012 - 1,471,012 - 1,287,898 Admin overhead
allocation 506,316 474,947 - 506,316 - 474,947
Sewer - 5,818,499 - 5,066,026 5,818,499 5,066,026
Water - 2,793,526 - 1,969,710 2,793,526 1,969,710
RV park - - 556,236 526,428 556,236 526,428
Total Expenses 13,960,368 11,246,110 9,168,261 7,562,164 18,808,274 23,128,629 Excess (Deficiency)
before other items 4,131,326 3,691,502 1,734,442 1,356,480 5,865,768 5,047,982 Transfers 143,342 96,446 (143,342) (96,446) - -
Increase (Decrease)
in net position 4,274,668 3,787,948 1,591,100 1,260,034 5,865,768 5,047,982 Net position -
beginning of year 21,432,547 17,599,059 20,090,086 18,830,052 41,522,633 36,429,111 Restatement 45,540 - - - - 45,540
Net position -
beginning of year as
restated 21,432,547 17,644,599 20,090,086 18,830,052 41,522,633 36,474,651 Net position - end of
year 25,707,215 21,432,547 21,681,186 20,090,086 47,388,401 41,522,633 Table 2 - Changes in Net Position
For the periods ending June 30
Governmental Activities Business-Type Activities Government-Wide Totals 22 23
Financial Analysis of the City’s Funds
As noted earlier, the City of Crescent City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Under the Government Accounting Standards Board Statement 54 (GASB 54), fund balances are classified as Nonspendable, Restricted, and Unassigned.

Nonspendable fund balances are amounts that are inherently nonspendable, i.e. cannot be spent because of their form (such as inventories or prepaid expenses) or because they must be maintained intact. Restricted fund balances are amounts with externally enforceable limitations on use, such as limitations imposed by creditors or grantors, and limitations imposed by other governments. Unassigned fund balances (residual net resources) are the amount in excess of Nonspendable and Restricted amounts.

Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the City’s financial requirements.
24 The following discussion focuses on the City’s three major governmental funds. The non-major governmental funds are reported in aggregate in the governmental fund financial statements beginning on page50, and in detail in the combining statements beginning on page 120.

General Fund. The General Fund is the chief operating fund of the City of Crescent City. The General Fund experienced an excess of revenues over expenditures in the amount of $1,695,252; transfers in and out and proceeds from the sale of assets netted to a negative ($1,094,447). This resulted in a net increase in Fund Balance of $600,805.

The following tables, Revenues by Source (Table 3) and Expenditures by Function (Table 4), provide a two-year comparison of General Fund activity. Accompanying the tables are brief explanations of significant changes. Fiscal year 2023-24 General Fund revenue increased by $1,380,606 (approximately 15%), most of which was in charges for services, grant revenues, taxes, and interest. Primary variations from the prior fiscal year include:
 Charges for services increased $755,633 from $739,361 in fiscal year 2022-23 to $1,494,994 in fiscal year 2023-24. The increases were the result of higher fire service fees (largely due to reimbursements for mutual aid provided during large fire events) and increased plan check and building permit fees related to increased development.
 Intergovernmental or grant revenues increased $231,912 from $305,099 in fiscal year 2022-23 to $537,011 in fiscal year 2023-24. This was largely due to grant revenues to fund police programs and planning activities.
 Tax revenue increased $165,085 from $7,459,608 in fiscal year 2022-23 to $7,624,693 in fiscal year 2023-24. Nearly all of the increase was in transient occupancy tax.  Interest revenues increased $137,970 from $87,930 in fiscal year 2022-23 to $225,900 in fiscal year 2023-24. This reflects the recovery of interest revenues from the prior downturn during and after the COVID pandemic.

Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total
Taxes and assessments 7,624,693 72.2% 7,459,608 81.2% 165,085 12.0% Use of money and property:

Interest 225,900 2.1% 87,930 1.0% 137,970 10.0%
Rental Income 49,462 0.5% 71,537 0.8% (22,075) -1.6%
Licenses and permits 395,868 3.7% 291,245 3.2% 104,623 7.6% Fines and penalties 12,275 0.1% 80,009 0.9% (67,734) -4.9% Intergovernmental revenue 5.1% 305,099 537,011 3.3% 231,912 16.8% Charges for services 1,494,994 14.2% 739,361 8.1% 755,633 54.7% Gifts and donations 29,412 0.3% 20,761 0.2% 8,651 0.6%
Other revenue 194,394 1.8% 127,853 1.4% 66,541 4.8%
Total 10,564,009 100.0% 9,183,403 100.0% 1,380,606 15.0% Table 3 - General Fund Revenues by Source
For the periods ending June 30
2024 2023 Increase/(Decrease)
25 General Fund expenditures are grouped into the following categories:
 General Government includes City Council, City Manager, City Attorney, City Clerk, Finance, Human Resources, Community Support, Economic Development, and payments made under agreements with other agencies, such as revenue sharing agreements with the County.  Public Safety includes Police and Fire.
 Community Development includes Building Inspection, Code Enforcement, and Planning.  Human Services and Recreation includes the Cultural Center and Fred Endert Municipal Swimming Pool.
 Public Works includes Engineering, Streets, and Parks.  Administrative Overhead includes charges for services provided to the General Fund by other City departments (Information Technology, Building Maintenance, Equipment, and Insurance).

Total General Fund expenditures, not including transfers, increased by $1,387,265 (approximately

18.5%) from the prior fiscal year. Most of the increase was in public safety and included:
 Increase of $805,364 in Fire expenses, including the implementation of three new full-time paid Fire Captain positions, equipment purchases, and increased mutual aid provided to CalFire (offset by revenues).
 Increase of $376,508 in Police expenses, mostly related to staffing.

Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total
General government 1,065,221 12.0% 999,508 13.4% 65,713 4.7% Public safety 4,581,613 51.7% 3,399,741 45.4% 1,181,872 85.2% Community development 699,453 7.9% 561,464 7.5% 137,989 9.9% Human services and recreation 1,001,539 11.3% 924,236 12.4% 77,303 5.6% Public works 1,043,574 11.8% 1,146,534 15.3% (102,960) -7.4% Admin overhead allocation 477,357 5.4% 450,009 6.0% 27,348 2.0% Total 8,868,757 100.0% 7,481,492 100.0% 1,387,265 18.5% Table 4 - Expenditures by Type
General Fund
For the periods ending June 30
2024 2023 Increase/(Decrease)
For the fiscal year ending June 30, 2024, the fund balance of the General Fund was $5,176,051. Of this amount $4,037,817 is unassigned.

Housing Fund. The Housing Authority revenues are provided by the Department of Housing and Urban Development (HUD) on a calendar year basis. They are provided to the Housing Authority (HA) through Housing Assistance Payments (HAP) and Administrative funds. The HAP payments are designated for rental assistance for tenants and are paid to property owners through the Housing Choice Vouchers (HCV) program and other programs. Administrative funds are designated for any costs associated with administering the programs.

The Housing Authority is included in these financials as a governmental fund. It is a Basic Component Unit of the City of Crescent City and, as such, it is more fully reported on in its stand-alone financial statement, also issued as of June 30, 2024. In fiscal year 2023-24, the Housing Authority experienced a 26 surplus of revenues over expenditures and other financing uses in the amount of $87,152. This increased the Housing Authority’s fund balance from $379,755 to $466,907. As described above, the Housing Authority’s fund balance fluctuates year to year due to timing differences between the City’s fiscal year reporting and the Federal funding, which operates on a calendar year basis. In addition, in order to maintain or increase its funding, the Housing Authority must spend the HAP funds it receives without building up an excessive reserve.

General CIP Fund. The General CIP Fund qualifies as a major fund this year. This fund includes most of the capital improvement projects that are not included in the enterprise funds. These include capital improvement projects relating to governmental facilities (such as City Hall and the Police Department), parks, streets, and the swimming pool. These projects are funded with a combination of grants and transfers from other City funds (such as the General Fund). General CIP Fund revenues and transfers in exceeded expenditures by $871,285 this year, which increased the fund balance from $1,385,238 to $2,256,523.

Proprietary funds. Proprietary funds operate in a business-type environment. The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long-term information about financial status. The City’s proprietary funds include the Sewer and Water utilities and the Recreational Vehicle (RV) Park. A two-year comparison of change in net assets for these funds is in the following tables.

Sewer Fund. In fiscal year 2023-24, the change in net position was a positive $1,003,554. The increase in net position was due to operating expenses exceeding operating revenues plus interest and transfers. The largest change in revenue from the prior year was in sewer connections, which increase by $1,233,582 due to significant development projects. Expenses increased by $752,473, which includes the pension expense adjustment required by GASB 68. This year the GASB 68 adjustment was an increase of $345,298, while the required adjustment in fiscal year 2022-23 was a decrease of ($795,117).

In future years, current balances of deferred outflows and deferred inflows required by GASB 68 will be amortized and recognized as pension expenses. See the section Notes to Basic Financial Statements (Note 8) for additional information about long-term pension liabilities. 27 2024 2023
Amount Amount Amount Percent
Sewer Fund
Operating revenues
Sewer treatment 4,570,412 4,580,643 (10,231) -0.2%
External lab revenues 51,004 51,169 -0.3% (165)
Sewer connections 1,483,378 249,796 1,233,582 493.8%
Other 296,599 219,403 77,196 35.2%
Grants 152,565 358,442 (205,877)
Expenses (5,818,499) (5,066,026) (752,473) 14.9%
Non-operating revenue (expense) 290,291 124,116 166,175 133.9% Net changes before transfers and capital
contributions 1,025,750 517,542 508,208 98.2%
Net transfers and capital contributions (22,196) (35,470) -37.4% 13,274 Change in net position 1,003,554 482,072 521,482 108.2% Table 5 - Sewer Fund
For the periods ending June 30
Variance
The increase in net position of $1,003,554 is comprised of an increase in net investment in capital assets of $184,002 and an increase of $819,552 in unrestricted net position. Unrestricted net position represents the total net assets available to meet ongoing operations. This is not the same as available cash, as not all assets are cash, and also not the same as working capital. Working capital is the difference between current assets (cash plus receivables expected to be collected within one year) and current liabilities (liabilities due within one year) and can be used as an indication of the fund’s ability to meet its near-term obligations. This should be considered in the context of the enterprise fund’s capital improvement plan. When capital assets are purchased or constructed with cash, the current asset (cash) is converted to a non-current asset (capital asset) and is no longer available working capital. 28 2024 2023
Amount Amount Amount Percent
Sewer Fund
Assets
Current assets 7,313,255 6,677,521 635,734 9.5%
Capital assets (net of depreciation) 32,152,440 33,666,101 (1,513,661) -4.5% Other non-current assets 542,313 211,271 331,042
Total assets 40,008,008 40,554,893 (546,885) -1.3%
Deferred outflows of resources 1,292,802 1,305,330 (12,528) -1.0% Liabilities
Current liabilities 2,345,338 2,212,380 132,958 6.0%
Long-term liabilities 30,502,794 32,055,360 (1,552,566) -4.8% Total liabilities 32,848,132 34,267,740 (1,419,608) -4.1% Deferred inflows of resources 334,223 477,582 (143,359) -30.0% Net position 8,118,455 7,114,901 1,003,554 14.1%
Net investment in capital assets (net
of depreciation and related debt) 3,292,175 3,108,173 184,002 5.9% Unrestricted 4,826,280 4,006,728 819,552 20.5%
Total net position 8,118,455 7,114,901 1,003,554 14.1%
Current assets 7,313,255 6,677,521 635,734 9.5%
Current liabilities 2,345,338 2,212,380 132,958 6.0%
Working capital 4,967,917 4,465,141 502,776 11.3%
Table 6 - Sewer Fund
For the periods ending June 30
Variance
29 Water Fund. In fiscal year 2023-24, the change in net position was an increase of $584,450 due to revenues exceeding expenses.
2024 2023
Amount Amount Amount Percent
Water Fund
Operating revenues
Water service 2,642,970 2,576,657 66,313 2.6%
Water connections 476,461 90,789 385,672 424.8%
Other 69,614 60,939 8,675 14.2%
Grants - - -
Expenses (2,793,526) (1,969,710) (823,816) 41.8%
Non-operating revenue (expense) 310,077 76,070 234,007 307.6% Net changes before transfers and
capital contributions 705,596 834,746 (129,150) -15.5%
Net transfers and capital
contributions (121,146) (60,976) (60,170) 98.7%
Change in net position 584,450 773,770 (189,320) -24.5% Table 7 - Water Fund
For the periods ending June 30
Variance
Water operating revenues increased slightly while connection revenue increased by $385,672 due to significant development projects. Expenses increased by $823,816, which includes the pension expense adjustment required by GASB 68. This year the GASB 68 adjustment was an increase of $214,899, while the required adjustment in fiscal year 2022-23 was a decrease of ($494,847).

In future years, current balances of deferred outflows and deferred inflows required by GASB 68 will be amortized and recognized as pension expenses. See the section Notes to Basic Financial Statements (Note 8) for additional information about long-term pension liabilities.

The increase in net position of $584,450 is comprised of an increase in net investment in capital assets of $335,561, a decrease of ($350,544) in restricted net position (because the loan requiring these funds to be restricted was paid off in fiscal year 2023-24 and the restriction was removed), and an increase of $599,433 in unrestricted net position (including the reclassification of $350,544 that was previously restricted). Unrestricted net position represents the total net assets available to meet ongoing operations. This is not the same as available cash, as not all assets are cash, and also not the same as working capital. Working capital is the difference between current assets (cash plus receivables expected to be collected within one year) and current liabilities (liabilities due within one year) and can be used as an indication of the fund’s ability to meet its near-term obligations. This should be considered in the context of the enterprise fund’s capital improvement plan. When capital assets are purchased or constructed with cash, the current asset (cash) is converted to a non-current asset (capital asset) and is no longer available working capital.

Water fund net position has increased over the last several years due to a series of rate increases implemented in 2013 – 2017. These funds are intended to be used for several large capital improvement projects, including upcoming projects for tank rehabilitation, water main redundancy, and water meter upgrades.

30 2024 2023
Amount Amount Amount Percent
Water Fund
Assets
Current assets 4,658,876 4,377,500 281,376 6.4%
Capital assets (net of depreciation) 8,544,429 8,383,868 160,561 1.9% Other non-current assets 1,141,286 1,137,310 3,976 0.3% Total assets 14,344,591 13,898,678 445,913 3.2%
Deferred outflows of resources 800,969 809,316 (8,347) -1.0% Liabilities
Current liabilities 371,123 490,699 (119,576) -24.4%
Long-term liabilities 2,066,365 1,988,952 77,413 3.9%
Total liabilities 2,437,488 2,479,651 (42,163) -1.7%
Deferred inflows of resources 401,005 505,726 (104,721) -20.7% Net position 12,307,067 11,722,617 584,450 5.0%
Net investment in capital assets (net of
depreciation and related debt) 8,544,429 8,208,868 335,561 4.1% Restricted 350,544 (350,544) -100.0%
Unrestricted 3,762,638 3,163,205 599,433 19.0%
Total net position 12,307,067 11,722,617 584,450 5.0%
Current assets 4,658,876 4,377,500 281,376 6.4%
Current liabilities 371,123 490,699 (119,576) -24.4%
Restricted net position - 350,544 (350,544) -100.0%
Working capital 4,287,753 3,536,257 751,496 21.3%
Table 8 - Water Fund
For the periods ending June 30
Variance

31 Lighthouse Cove Recreational Vehicle (RV) Park. The RV Park Fund revenues exceeded expenses by $3,096 in fiscal year 2023-24.
2024 2023
Amount Amount Amount Percent
RV Park Fund
Operating revenues 531,805 519,712 12,093 2.3%
Other - 1,771 (1,771) -100.0%
Expenses (556,236) (526,428) (29,808) 5.7%
Non-operating revenue (expense) 27,527 9,137 201.3% 18,390 Change in net position 3,096 4,192 (1,096) -26.1%
Table 9 - RV Park Fund
For the periods ending June 30
Variance
The increase in net position of $3,096 is a combination of a decrease of $56,298 in net investment in capital assets and an increase of $59,394 in unrestricted net position due to operations. 2024 2023
Amount Amount Amount Percent
RV Park Fund
Assets
Current assets 632,133 527,112 105,021 19.9%
Capital assets (net of depreciation) 697,640 753,938 (56,298) -7.5% Total assets 1,329,773 1,281,050 48,723 3.8%
Liabilities
Current liabilities 69,120 23,179 198.2% 45,941
Long-term liabilities 4,989 - 4,989
Total liabilities 74,109 23,179 50,930 219.7%
Net position 1,255,664 1,257,871 (2,207) -0.2%
Net investment in capital assets (net
of depreciation and related debt) 697,640 753,938 (56,298) -7.5% Unrestricted 558,024 498,630 59,394 11.9%
Total net position 1,255,664 1,252,568 3,096 0.2%
Current assets 632,133 527,112 105,021 19.9%
Current liabilities 69,120 23,179 198.2% 45,941
Working capital 563,013 503,933 59,080 11.7%
Table 10 - RV Park Fund
For the periods ending June 30
Variance
32 General Fund Budgetary Highlights. In preparing its annual budgets, the City attempts to estimate revenues using realistic and conservative methods and budgets its expenditure activities in a prudent manner. The City Council adopts budget adjustments during the fiscal year to reflect changed priorities and availability of additional revenues.

The final General Fund budget for FY 2023-24 included a projected deficit of $1,392,165, which would decrease the General Fund reserve balance. Actual results were a surplus of $600,805.

Actual General Fund revenues (not including transfers) were over budget by $437,136. Revenues with significant variances are listed below:
 Transient Occupancy Tax was over budget by $135,782.
 Interest (including adjustment to fair market value) was over budget by $165,900.  Property tax in-lieu of VLF was over budget by $82,367.  Building permits were over budget by $110,487.
 Gifts and donations were under budget by ($99,579) due to a donation that will not be recognized until the next fiscal year.

Actual General Fund expenditures (not including transfers out) were under budget by ($1,589,178.) There were a variety of factors affecting these variances:
 Wages and benefits were under budget by ($313,012) due to vacancies and unused benefits.  Contract services were under budget by ($612,175), including $293,000 for a sidewalk maintenance project that was not completed and was re-budgeted in the next year.  Materials and supplies were under budget by ($328,424), including $100,000 for equipment for the Fire department that was not purchased and was re-budgeted in the next year.

As discussed above, the City budgets expenditures conservatively, with all authorized positions funded as well as all anticipated operational needs and projects. Actual expenditures will be under budget when positions are unfilled for all or a portion of the fiscal year, employees do not utilize all of their allowed benefits, projects are deferred, or operational needs come in lower than anticipated.

Table 8 shows a two-year comparison of General Fund budgets and actual results.

Budget Actual Variance Budget Actual Variance
Revenues 10,361,097 10,798,233 437,136 9,565,726 9,399,402 (166,324) Expenditures (10,692,159) (9,102,981) 1,589,178 (9,795,474) (7,697,491) 2,097,983 Operating results (331,062) 1,695,252 (229,748) 2,026,314 1,701,911 1,931,659 Transfers in 312,797 273,422 (39,375) 323,796 279,581 (44,215) Transfers out (1,373,900) (1,369,479) 4,421 (1,507,094) (1,501,303) 5,791 Other 1,610 1,610 -
Net change in Fund
Balance (1,392,165) 1,992,970 600,805 (1,413,046) 480,189 1,893,235 Table 11 - General Fund Budget-to-Actual
For the periods ending June 30
2024 2023
The Fund Balance Reserve Policy states the City Council’s goal is to achieve and maintain a minimum of 25% of the annual general fund appropriations for operations (not including capital expenditures or grant-funded programs), including an assumption that 5% of the adopted budget will not be spent. The 33 original adopted General Fund budget (expenditures plus transfers out) for the next fiscal year 2024-25 was $11,522,001, of which $10,025,296 is considered operational, resulting in a required reserve of $2,506,324. The unassigned fund balance at June 30, 2024 was $3,551,643. The difference between the required reserve and the unassigned fund balance may be used for additional city priorities, and most of this difference has already been budgeted to be spent in fiscal year 2024-25.

Capital Asset and Debt Administration
Capital assets. As of June 30, 2024, the City had a total net investment in capital assets of $33,709,801 (original value of assets less accumulated depreciation and associated debt). This is an increase of $2,872,769 over the net investment in capital assets as of June 30, 2023. The increase is due to the City’s increased investment in capital projects, both City-funded and grant-funded, which more than offset the decrease in net investment due to depreciation. The most significant of these additions in fiscal year 2023-24 included:
 Construction-in-progress for reconstruction of Front Street  Construction-in-progress for improvements in Beachfront Park  Construction-in-progress for a water meter project to replace and upgrade all meters to an automatic read system
 Purchase of vehicles and equipment for Police and Public Works 2024 2023 Variance $ Variance %
21,175,557 18,766,053 2,409,504 12.8%
2024 2023 Variance $ Variance %
12,534,244 12,070,979 463,265 3.8%
2024 2023 Variance $ Variance %
33,709,801 30,837,032 2,872,769 9.3%
Table 12 - Net Investment in Capital Assets
Governmental Funds
Business-type Funds
Total
Long-term debt. As of June 30, 2024, the City had total debt outstanding of $29,387,633; this is a decrease of ($1,843,093) from the total debt outstanding on June 30, 2023. This reduction is due to loan principal payments totaling $1,872,663 and small increases in other long-term obligations (compensated absences payable and subscriptions payable).
34 2024 2023 2024 2023 2024 2023
Compensated
absences 309,016 260,693 102,746 108,059 411,762 368,752 Subscriptions
payable 115,606 129,046 - 115,606 - 129,046
Safe Drinking Water
Loan - - - 175,000 175,000 -
State Revolving Loan - 28,860,265 - 30,557,928 28,860,265 30,557,928 Total 424,622 389,739 28,963,011 30,840,987 29,387,633 31,230,726 Table 13 - Total Debt
For the periods ending June 30
Governmental Activities Business-Type Activities Government-Wide Totals Currently Known Facts, Decisions, or Conditions
The City Council, working with City staff, continues to evaluate revenues and expenses closely as well as future economic trends and capital improvement needs. One strategy the City continues to implement is to actively seek grant funding for projects to maximize the availability of ongoing revenues to meet ongoing expenses. Current and upcoming grant-funded projects include Prop 68 grants for Beachfront Park improvements, street reconstruction, economic development projects, and planning grants.

In November 2020, city voters approved a 1% transactions and use tax to fund essential city services.

This tax (called Measure S) became effective April 1, 2021 and is projected to increase General Fund revenues by $2.3 million annually. The City Council established an oversight committee made up of five City residents and two non-voting City staff members to review the revenues and expenditures of the Measure S tax and make recommendations to the City Council for future spending. Measure S spending is directed toward streets, police, fire, and the swimming pool and contributes to both ongoing operational needs and capital improvements. There was a local initiative to repeal Measure S, which was on the November 8, 2022 ballot. City voters overwhelmingly rejected the repeal and kept Measure S in place to continue funding these priorities.

Increasing pension costs in addition to general inflation will continue to put pressure on City budgets, and the City is committed to maintaining prudent financial policies to meet these obligations.

The City is experiencing significant housing development, with several multi-family projects currently in the permitting and/or construction stage. The City has used internal resources as well as obtained several grants to assist these projects with loans.

The City is currently finalizing design work on improvements to the Police Department facility. Design is anticipated to be completed in fiscal year 2024-25, and the City is in the process of exploring USDA financing for construction.

Multiple large grant-funded projects are either underway or scheduled to begin within the next two years, including major projects to reconstruct Front Street, repair storm damage to Pebble Beach Drive, and construct improvements in Beachfront Park. The City is currently in discussions with its financial advisor and banking institution regarding short-term borrowing to provide for cash flow needs for these projects which are largely on a reimbursement basis (the City will pay the contractors and then wait for reimbursement from the granting agency.)
35 Sewer Fund net position and working capital increased in fiscal year 2023-24, largely due to one-time connection fees. Projections for this fund show that ongoing revenues are not sufficient to support the operational needs, debt service, and future capital improvements of the utility. In addition to the City’s successful request for interest relief on the State Revolving Fund loan, the City completed a sewer revenue sufficiency study to determine the rate structure necessary to address the ongoing needs of the Sewer Fund. Although the resulting rate increase was defeated in a referendum, the City remains committed to addressing the long-term health of this fund. The City was also successful in negotiating an amendment to its loan contract with the State Water Resources Control Board, eliminating the requirement for a Capital Reserve Fund. This allows the City to invest those funds in needed capital improvements. In August 2019, the City entered into a contract with Operations Maintenance International, Inc. (also known as Jacobs Engineering) to provide the operations, maintenance, and management of the City’s Wastewater Treatment Plant. This contract will ensure staffing is maintained and needed projects are completed. This also means the City will have the resources to implement deferred projects, which will improve the reliability and efficiency of the facilities but will also reduce available working capital as reserves are spent on these projects. The City continues to examine ways to reduce costs, increase efficiencies, obtain grants, and finally increase revenues. The City is currently in the process of developing a new rate study.

The Water Fund net position has increased significantly in recent years, due to successful implementation of rate increases in anticipation of capital improvement needs. The final rate increase was effective July 1, 2017. The City has plans for several major capital projects (water tank rehabilitation, additional water main redundancy, and new water meters) and is evaluating the best approach to fund those improvements. The City is currently in the process of an updated rate study.

Contacting the City’s Financial Management
This financial report is designed to provide a general overview of the City’s finances, comply with financerelated laws and regulations, and demonstrate the City’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City’s Finance Department, 377 J Street, Crescent City, CA 95531, (707) 464-7483. 36 BASIC

FINANCIAL STATEMENTS
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38 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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40 Governmental Business-type
Activities Activities Total
Assets
Cash and investments 8,788,213 $ $ 11,453,556 $ 20,241,769 Receivables (net) 749,102 1,132,906 1,882,008
Due from other governments 2,344,935 - 2,344,935
Prepaid items 78,400 17,802 96,202
Due from RDA Successor Agency 88,198 351,992 440,190
Notes receivable 1,290,291 663,059 1,953,350
Leases receivable 265,624 212,327 477,951
Internal balances (456,221) 456,221 -
Nondepreciable capital assets 8,413,830 2,243,838 10,657,668 Depreciable capital assets, net 12,877,333 39,150,671 52,028,004 Total Assets 34,439,705 55,682,372 90,122,077
Deferred outflow of resources
Pension related amounts 3,394,755 1,988,087 5,382,842
OPEB related amounts 166,219 105,684 271,903
Total deferred outflow of resources 3,560,974 2,093,771 5,654,745 Liabilities
Accounts payable 1,481,060 465,154 1,946,214
Accrued wages 172,817 - 172,817
Deposits 18,398 492,853 511,251
Unearned revenue 568,089 36,839 604,928
Long term liabilities
Compensated absences - due within one year 243,691 93,072 336,763 Compensated absences - due in more than one year 65,325 9,674 74,999 Net pension liability 8,329,888 5,123,925 13,453,813
Net OPEB liability 437,179 277,947 715,126
Long-term debt - due within one year 56,670 1,697,663 1,754,333 Long-term debt - due in more than one year 58,936 27,162,602 27,221,538 Total Liabilities 11,432,053 35,359,729 46,791,782
Deferred inflow of resources
Pension related amounts 465,518 435,287 900,805
OPEB related amounts 155,441 98,826 254,267
Leases 240,452 201,115 441,567
Total deferred inflow of resources 861,411 735,228 1,596,639 Net Position
Net Investment in capital assets 21,175,557 12,534,244 33,709,801 Restricted for:

Capital projects and community development 1,110,803 - 1,110,803 Other purposes 541,395 - 541,395
Unrestricted 2,879,460 9,146,942 12,026,402
Total Net Position $ 25,707,215 $ 21,681,186 $ 47,388,401 City of Crescent City
Statement of Net Position
June 30, 2024
See accompanying Notes to Basic Financial Statements
41 Charges Operating Capital
for Grants and Grants and
Functions/Programs: Expenses Services Contributions Contributions Primary Government:

Governmental activities:

General government $ 1,102,525 $ 22,604 $ 1,423 $ 543
Public safety 4,837,435 1,000,660 438,273 -
Community development 783,437 488,650 2,218,037 -
Human services and recreation 5,259,643 251,686 4,054,629 - Public works 1,471,012 8,043 663,505 523,191
Administrative overhead allocation 506,316 ---
Total governmental activities 1,771,643 13,960,368 7,375,867 523,734 Business-type activities:

Sewer 5,818,499 6,401,393 152,565 -
Water 2,793,526 3,189,045 80,830
RV Park 556,236 531,805 - -
Total business-type activities 9,168,261 10,122,243 233,395 - Total primary government 23,128,629 $ 11,893,886 $ 7,609,262 $ 523,734 $ General Revenues and Transfers:

Taxes:

Property
Sales tax and Sales Tax in-lieu
Property tax in lieu of VLF
Franchise fees
Transient occupancy taxes
Business Licenses
Total taxes
Unrestricted investment earnings
Other
Transfers
Change in net position
Net position - beginning of year
Net position - end of year
Total general revenues and transfers
Program Revenues
City of Crescent City
Statement of Activities
For the year ended June 30, 2024
See accompanying Notes to Basic Financial Statements
42 Business
Governmental -Type
Total Activities Activities Total
$ 24,570 $ (1,077,955) $ (1,077,955) - $
1,438,933 (3,398,502) - (3,398,502)
2,706,687 1,923,250 - 1,923,250
4,306,315 (953,328) - (953,328)
1,194,739 (276,273) - (276,273)
- (506,316) - (506,316)
9,671,244 (4,289,124) (4,289,124) -
6,553,958 - 735,459 735,459
3,269,875 - 476,349 476,349
531,805 - (24,431) (24,431)
10,355,638 1,187,377 - 1,187,377
$ 20,026,882 (4,289,124) 1,187,377 (3,101,747)
299,652 - 299,652
4,575,306 4,575,306 -
668,519 - 668,519
198,759 - 198,759
2,028,328 2,028,328 -
52,888 - 52,888
7,823,452 7,823,452 -
453,727 527,933 981,660
143,271 19,132 162,403
143,342 (143,342) -
8,563,792 403,723 8,967,515
4,274,668 1,591,100 5,865,768
21,432,547 20,090,086 41,522,633
$ 25,707,215 $ 21,681,186 $ 47,388,401
Net Position
Net (Expense) Revenue and Changes in
See accompanying Notes to Basic Financial Statements
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44 FUND

FINANCIAL STATEMENTS
Governmental Funds Financial Statements
Propietary Funds Financial Statements
Fiduciary Funds Financial Statements
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46 GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
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48 GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Housing Authority - is the fund that accounts for the City's low income housing activities.

Capital Improvement Projects - this is a capital project fund that accounts for all governmental capital projects at the City.

Non-Major Governmental Funds is the aggregate of all the non-major governmental funds. 49 Housing Capital Non-Major Total
Authority Improvement Governmental Governmental
General Section 8 Projects Funds Funds
ASSETS
Cash and investments 4,658,92 $ 2 $ 466,996 $ 1,847,635 $ 1,129,201 $ 8,102,754 Receivables:

Consumers and others 564,275 - - -564,275
County/State/Federal Government 1,396,701 - 790,749 157,485 2,344,935 Interest receivable 55,640 2,207 18,086 25,466 101,399
Due from RDA Successor Agency - - -88,198 88,198
Due from other funds 256,000 - - -256,000
Prepaid items 51,138 - - -51,138
Note receivable 750,000 - - 540,291 1,290,291
Leases receivable 265,624 - - - 265,624
Total assets $ 7,998,300 $ 469,203 $ 2,656,470 $ 1,940,641 $ 13,064,614

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 734,452 1,463 365,347 139,193 1,240,45 $ 5 Unearned revenue 489,000 833 34,600 43,656 568,089
Deposits 18,398 - - -18,398
Advance from other funds 456,221 - - -456,221
Due to other funds - - -225,000 225,000
Total liabilities 2,296 1,698,071 399,947 407,849 2,508,163 Deferred inflows of resources:

Unavailable revenues 883,726 - -25,130 908,856
Leases 240,452 - - -240,452
Total deferred inflow of resources - 1,124,178 - 25,130 1,149,308 Fund balances:

Nonspendable 51,138 - - -51,138
Restricted:

Low and moderate income housing - 466,907 - 643,896 1,110,803 Other purposes 15,949 - - 578,175 594,124
Assigned:

Capital improvement and vehicle
replacement - 486,174 2,256,523 463,860 3,206,557
Safety programs 7,108 - -6,690 13,798
Business improvement district 946 - - -946
Measure S 1,063,093 - - - 1,063,093
Unassigned 3,551,643 - - (184,959) 3,366,684
Total fund balances 5,176,051 466,907 2,256,523 1,507,662 9,407,143 Total liabilities, deferred inflows of
resources, and fund balances $ 7,998,300 $ 469,203 $ 2,656,470 $ 1,940,641 $ 13,064,614 Major Funds
City of Crescent City
Balance Sheet
Governmental Funds
June 30, 2024
See accompanying Notes to Basic Financial Statements
50 Total Fund Balance - Governmental Funds $ 9,407,143
Amounts reported for governmental activities in the statement of net positions are different because:

Internal Service Funds are used by the City to charge the cost of information technology and communications, building maintenance, fleet services, insurance, and OPEB contributions to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: 2,027,056 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. This amount is all capital assets net of internal service funds capital assets of $1,746,949. 19,544,214
Revenues from Grants, Taxes, and Miscellaneous Revenue that are funded in this fiscal year that will not be collected for several months after the City's fiscal year ends are not considered "available" revenue and are classified as deferred inflow of resources in the governmental funds 908,856 Employer contributions for pension and OPEB were recorded as expenditures in the governmental funds. However, in the Government-Wide Financial Statements these contributions are recorded as deferred outflows of resources.

Pension contributions 996,699
OPEB contributions 67,056
In the Government-Wide Financial Statements certain differences between actuarial estimates and actual results, changes in assumptions, differences between actual and projected investment earnings, and differences resulting from changes in allocation percentages are deferred and amortized over a period of time, however in the governmental funds no transactions are recorded.

Deferred outflows of resources - pension 2,398,056
Deferred outflows of resources - OPEB 99,163
Deferred inflows of resources - pension (465,518)
Deferred inflows of resources - OPEB (155,441)
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.

Compensated absences - due within one year (243,691)
Compensated absences - due in more than one year (65,325) Long-term debt - due within one year , net of internal service funds debt of $35,108 (21,562) Long-term debt - due in more than one year, net of internal service funds debt of $36,512 (22,424) Net pension liability (8,329,888)
Net OPEB Liability (437,179)
Net position of governmental activities $ 25,707,215
June 30, 2024
City of Crescent City
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
See accompanying Notes to Basic Financial Statements
51 Housing Capital Non-Major Total
Authority Improvement Governmental Governmental
General Section 8 Projects Funds Funds
REVENUES:

Taxes $ 7,624,693 $ - $ - - 7,624,693 $
Use of money and property:

Interest 225,900 10,967 69,721 97,715 404,303
Rental income 49,462 - - -49,462
Licenses and permits 395,868 - - -395,868
Fines and forfeitures 12,275 - - -12,275
Intergovernmental 537,011 4,010,734 1,194,282 2,615,593 8,357,620 Charges for services 1,494,994 - - - 1,494,994
Gifts and donations 29,412 - - -29,412
Other reimbursements 175,085 - - -175,085
Other revenue 19,309 24,032 - -43,341
Total revenues 4,045,733 10,564,009 1,264,003 2,713,308 18,587,053 EXPENDITURES:

Current:

General government 1,065,221 - - - 1,065,221
Public safety 4,581,613 - 76,042 100,156 4,757,811
Community development 699,453 - - 74,503 773,956
Human services and recreation 3,994,340 1,001,539 70,385 214,156 5,280,420 Public works 1,043,574 - 2,445,483 177,438 3,666,495
Administrative overhead allocation 28,959 477,357 - - 506,316 Total expenditures 4,023,299 8,868,757 2,591,910 566,253 16,050,219

REVENUES OVER (UNDER)
EXPENDITURES 1,695,252 22,434 (1,327,907) 2,147,055 2,536,834

OTHER FINANCING SOURCES
(USES):

Transfers in 273,422 2,199,192 - 359,077 2,831,691
Transfers out (1,369,479) - (1,561,102) - (2,930,581)
Proceeds from long-term debt - 64,718 - - 64,718
Proceeds from sale of assets 1,610 - - 70,248 71,858
Total other financing sources
(uses) (1,094,447) 64,718 2,199,192 (1,131,777) 37,686
Net change in fund balances 600,805 87,152 871,285 1,015,278 2,574,520 FUND BALANCES:

Beginning of year 4,575,246 379,755 - 1,877,622 6,832,623 Reclassification from nonmajor to major - - 1,385,238 (1,385,238) - Beginning of the year, as restated 4,575,246 379,755 1,385,238 492,384 6,832,623 End of year $ 5,176,051 $ 466,907 $ 2,256,523 $ 1,507,662 $ 9,407,143 Major Funds
Statement of Revenues, Expenditures, and Changes in Fund Balance City of Crescent City
For the Year Ended June 30, 2024
See accompanying Notes to Basic Financial Statements
52 Net change in fund balance - governmental funds $ 2,574,520 Amounts reported for governmental activities in the statements of activities are different because:

Governmental funds reported additions of capital assets as program expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period (net of Internal Service Funds, $433,209). 2,832,695 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds (net of Internal Services Funds, $250,916). (600,373)
In the Statement of Activities, only the gain or (loss) on the sale of capital assets is reported, whereas in the governmental funds proceeds from sales increases financial resources. This is the loss on disposal of capital assets. (18,551)
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of the internal service funds is reported with governmental activities. 307,711
Revenues from Grants, Taxes, and Miscellaneous Revenue that are funded in this fiscal year that will not be collected for several months after the City's fiscal year ends are not considered "available" revenue and are classified as deferred inflow of resources in the governmental funds.

This is the change in unavailable revenues for the year. (636,871) Loan proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of activities, however, issuing debt increases longterm liabilities and does not affect the statement of activities. (64,718) Principal payments on long-term debt is an expense in the governmental funds, but on the Statement of Activities, it reduces the debt instead. 20,732 Current year employer pension and OPEB contributions are recorded as expenditures in the governmental funds, however these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position.

Pension contributions 996,699
OPEB contributions 67,056
Pension and OPEB expenses are recorded as incurred in the Government-Wide Statement of Activities, however these expenses are not recognized in the governmental funds. (1,155,909) Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

In addition, some expenditures recorded in the governmental funds have already been expensed in the government-wide financial statements in prior years. (48,323) Change in net position of governmental activities $ 4,274,668 For the Year Ended June 30, 2024
City of Crescent City
Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statements of Activities See accompanying Notes to Basic Financial Statements
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54 PROPRIETARY FUND FINANCIAL STATEMENTS
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56 PROPRIETARY FUNDS FINANCIAL STATEMENTS
The Water Utility Fund accounts for the operations of the City’s water utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses The Sewer Utility Fund accounts for the operations of the City’s wastewater utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

The RV Park Fund accounts for the operations of the City-owned recreational vehicle park, a selfsupporting activity which renders a service on a user-charge basis to residents and travelers Internal Service Funds Account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis.
57 City of Crescent City
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Internal
Sewer Water RV Park Total Service Funds
ASSETS
Current assets:

Cash and investments $ 4,276,098 6,556,520 $ 620,938 $ $ 685,459 11,453,556 $ Accounts receivable 302,456 691,425 11 80,582 993,892
Interest receivable 68,385 64,550 6,079 2,846 139,014
Prepaid items 11,937 760 5,105 27,262 17,802
Total current assets 7,313,255 4,658,876 632,133 12,604,264 796,149 Noncurrent assets:

Notes receivable 120,746 542,313 - - 663,059
Leases receivable 212,327 - - - 212,327
Advance to RDA Successor Agency 351,992 - - - 351,992
Advance to other funds 456,221 - - - 456,221
Capital assets:

Non-depreciable 2,074,422 161,790 7,626 42,525 2,243,838 Depreciable, net 6,470,007 31,990,650 690,014 1,704,424 39,150,671 Total capital assets 32,152,440 8,544,429 697,640 41,394,509 1,746,949 Total noncurrent assets 32,694,753 9,685,715 697,640 43,078,108 1,746,949 Total assets 14,344,591 40,008,008 1,329,773 55,682,372 2,543,098

DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 762,655 1,225,432 - - 1,988,087 OPEB related amounts 38,314 67,370 - 105,684 -
Total deferred outflows of resources 1,292,802 800,969 2,093,771 - -

LIABILITIES
Current liabilities:

Accounts payable 269,243 167,380 28,531 465,154 240,605 Accrued wages - - - - 172,817
Deposits 339,171 153,682 - 492,853 -
Due to other funds - - - - 31,000
Unearned revenue (2,946) 4,956 34,829 36,839 -
Current maturities of long term debt:

Compensated absences payable 42,207 45,105 5,760 93,072 - Current portion of loans payable 1,697,663 - - 1,697,663 35,108 Total current liabilities 2,345,338 371,123 69,120 2,785,581 479,530 Noncurrent liabilities:

Compensated absences payable 4,685 - 4,989 9,674 -
Net pension liability 3,158,322 1,965,603 - 5,123,925 - Net OPEB liability 177,185 100,762 - 277,947 -
Loans payable - due in more than one year 27,162,602 - - 27,162,602 36,512 Total noncurrent liabilities 30,502,794 2,066,365 4,989 32,574,148 36,512 Total liabilities 32,848,132 2,437,488 74,109 35,359,729 516,042

DEFERRED INFLOWS OF RESOURCES
Pension related amounts 271,222 164,065 - 435,287 -
OPEB related amounts 63,001 35,825 - 98,826 -
Leases - 201,115 - 201,115 -
Total deferred inflows of resources 334,223 401,005 - 735,228 -

NET POSITION
Net investment in capital assets 3,292,175 8,544,429 697,640 12,534,244 1,675,329 Unrestricted 4,826,280 3,762,638 558,024 9,146,942 351,727 Total net position $ 8,118,455 $ 12,307,067 $ 1,255,664 $ 21,681,186 $ 2,027,056 Enterprise Funds
58 Governmental
Activities
Internal
Sewer Water RV Park Total Service Funds
OPERATING REVENUES:

Charges for services $ 3,155,506 6,367,769 $ 531,805 $ $ 1,661,765 10,055,080 $ Other 33,539 33,624 - 78,542 67,163
Total operating revenues 3,189,045 6,401,393 531,805 10,122,243 1,740,307 OPERATING EXPENSES:

Personnel services 1,101,460 1,079,445 190,981 642,121 2,371,886 Materials, supplies, rent, and services 559,927 2,029,407 176,027 699,824 2,765,361 Repair and maintenance 214,670 417,431 47,451 271,010 679,552 Administrative overhead 610,123 577,511 80,067 - 1,267,701 Depreciation 307,346 1,714,705 61,710 250,916 2,083,761 Total operating expenses 2,793,526 5,818,499 556,236 9,168,261 1,863,871 OPERATING INCOME (LOSS) 395,519 582,894 (24,431) 953,982 (123,564) NONOPERATING REVENUES (EXPENSES):

Interest income 290,291 210,115 27,527 527,933 13,205
Rental revenue -19,132 - 19,132 -
Grant revenue 152,565 80,830 - 233,395 -
Interest expense - - - - (5,138)
Total nonoperating revenues (expenses) 442,856 310,077 27,527 780,460 8,067

INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 1,025,750 705,596 3,096 1,734,442 (115,497) Contributions - - - - 180,976
Transfers in 27,087 26,707 - 53,794 267,982
Transfers out (49,283) (147,853) - (197,136) (25,750)
Total contributions and transfers (22,196) (121,146) (143,342) - 423,208 Change in net position 1,003,554 584,450 3,096 1,591,100 307,711

NET POSITION
Beginning of year 7,114,901 11,722,617 1,252,568 20,090,086 1,719,345 End of year $ 8,118,455 $ 12,307,067 $ 1,255,664 $ 21,681,186 $ 2,027,056 City of Crescent City
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2024
Enterprise Funds
See accompanying Notes to Basic Financial Statements
59 City of Crescent City
Statement of Cash Flows
Proprietary Funds
Governmental
Activities
Internal
Sewer Water RV Park Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 6,382,158 $ 3,236,857 $ 568,394 $ 10,187,409 $ - $ Cash received from other funds - - - - 1,724,854
Cash payments to suppliers for goods and services (2,919,365) (1,316,028) (300,353) (4,535,746) (931,702) Cash paid to employees (1,067,996) (1,104,803) (188,480) (2,361,279) (642,121) Net cash provided (used) by operating activities 2,394,797 816,026 79,561 3,290,384 151,031

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Grant cash receipts 152,565 80,830 233,395 - -
Cash received from other funds 27,087 47,444 - 74,531 290,114 Cash disbursements to other funds (49,283) (147,853) (197,136) - (21,882) Net cash provided (used) by noncapital
financing activities 130,369 (19,579) 110,790 - 268,232

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Cash capital contributions - - - 180,976 -
Cash received from leasing assets - 15,878 - 15,878 -
Acquisition of capital assets (201,044) (467,907) (5,412) (674,363) (433,209) Long-term debt repayments (1,697,663) (175,000) (1,872,663) - (57,426) Interest paid and fiscal charges - - - - (5,138)
Net cash provided (used) by capital and related
financing activities (1,898,707) (627,029) (5,412) (2,531,148) (314,797) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment revenue/gains 267,802 196,474 25,053 489,329 12,094 Net cash provided (used) by investing activities 267,802 196,474 25,053 489,329 12,094

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 894,261 365,892 99,202 1,359,355 116,560 CASH AND CASH EQUIVALENTS - Beginning of year 5,662,259 3,910,206 521,736 10,094,201 568,899 CASH AND CASH EQUIVALENTS - End of year $ 6,556,520 $ 4,276,098 $ 620,938 $ 11,453,556 $ 685,459 For the year ended June 30, 2024
Enterprise Funds
See accompanying Notes to Basic Financial Statements
60 City of Crescent City
Statement of Cash Flows
Proprietary Funds
Governmental
Activities
Internal
Sewer Water RV Park Total Service Funds

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) 582,894 $ 395,519 $ (24,431) $ 953,982 $ (123,564) Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 1,714,705 307,346 61,710 2,083,761 250,916 Changes in assets, deferred outflows and inflows
of resources, and liabilities
Receivables (50,166) 60,846 1,760 12,440 (11,911)
Prepaid items 140 78 (5,105) (4,887) (16,681)
Deferred outflows of resources - pension 22,787 14,182 - 36,969 - Deferred outflows of resources - OPEB (10,259) (5,835) - (16,094) - Accounts payable 104,844 68,614 8,297 181,755 41,740
Accrued wages - - - - 10,531
Deposits payable 33,877 (17,990) - 15,887 -
Unearned revenue (2,946) 4,956 34,829 36,839 -
Compensated leaves payable 1,868 (9,682) 2,501 (5,313) - Net pension liability 132,074 82,197 - 214,271 -
Net OPEB liability 8,338 4,742 - 13,080 -
Deferred inflows of resources - pension (137,146) (85,414) - (222,560) - Deferred inflows of resources - OPEB (6,213) (3,533) - (9,746) - Total adjustments 420,507 1,811,903 103,992 2,336,402 274,595 Net cash provided (used) by operating activities $ 816,026 2,394,797 $ 79,561 $ 3,290,384 $ 151,031 $ For the year ended June 30, 2024
Enterprise Funds
See accompanying Notes to Basic Financial Statements
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62 FIDUCIARY FUND FINANCIAL STATEMENTS
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64 FIDUCIARY FUNDS FINANCIAL STATEMENTS
Successor Agency RDA Fund is a fiduciary fund type used to report activities of the former dissolved Redevelopment Agency
65 City of Crescent City
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Successor
Agency
RDA
ASSETS
Cash and investments 181,763 $
Interest receivable 167
Total assets 181,930

LIABILITIES
Interest payable 43,252
Due to the City of Crescent City 88,198
Due to the City of Crescent City (Water Utility Fund) 351,992 Total liabilities 483,442

NET POSITION
Restricted for dissolution of RDA (301,512)
Total net position $ (301,512)
See accompanying Notes to Basic Financial Statements
66 City of Crescent City
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the year ended June 30, 2024
Successor
Agency
RDA
ADDITIONS:

Taxes $ 165,419
Use of money and property:

Interest 3,196
Total additions 168,615
DEDUCTIONS:

Payroll 1,660
Other 5,100
Total deductions 6,760
Change in net position 161,855
NET POSITION:

Beginning of year (463,367)
End of year (301,512) $
See accompanying Notes to Basic Financial Statements
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68 NOTES TO BASIC

FINANCIAL STATEMENTS
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70 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES
The following is a summary of the more significant accounting policies of the City of Crescent City (City), all of which conform to generally accepted accounting principles as applicable to governmental units.

The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

Reporting Entity
The financial reporting entity (the government) includes all the funds of the primary government (i.e., the City as legally defined), as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. The government provides a full range of services including police and fire protection; water, and wastewater services; the construction and maintenance of streets and infrastructure; recreational activities and cultural events.

As required by GAAP, the accompanying basic financial statements present the City and its component units. Component units are entities for which the City is considered to be financially accountable. GASB defines component units as legally separate entities that meet any one of the following tests:

The City appoints the voting majority of the board of the entity and:
is able to impose its will on the entity and/or
is in a relationship of financial benefit or burden with the entity.

The entity is fiscally dependent upon the City.

The financial statements of the City would be misleading if data from the entity were omitted.

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

Crescent City Housing Authority
Crescent City Public Financing Corporation – Inactive
These component units are included in the primary government because of the significance of their financial or operational relationship and the same City governing body.

Each of the blended component units in the accompanying basic financial statements of the City are described below:

Crescent City Housing Authority (Authority) manages certain programs which are funded by the U.S Department of Housing and Urban Development, primarily to provide services under the Housing Assistance Payments Program.

The five City Council members, in a separate session, serve as the governing board of the Authority. There is also a Housing Advisory Commission made up of 3 tenant participants and 4 community members.

The Commission makes recommendations to the Board. The financial activity of the Authority has been included in the City’s financial statements as a special revenue fund. 71 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
Crescent City Public Financing Corporation was created with the purpose of financing public capital improvements. City Council members, in a separate session, serve as the governing board of the Corporation. The financing corporation is not active at this time.

Financial statements for the Crescent City Housing Authority may be obtained from the Finance Department of the City at 377 J. Street, Crescent City, California 95531.

Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.

Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.
72 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
The City considers all revenues as available if they are collected within sixty days of the end of the current fiscal period, except for sales tax which has a ninety-day availability period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach of GASB Statement No. 34.

Property taxes, sales taxes, transient occupancy tax, grants, licenses, fees, charges and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Fiduciary funds financial statements include a statement of fiduciary net position and statement of changes in fiduciary net position. The City’s fiduciary fund represent a Private-purpose Trust Fund, which is accounted for on the accrual basis of accounting.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate self-balancing set of accounts for its assets, other debits, liabilities, other credits, equity, revenue and expenditures or expenses, as appropriate.

Governmental Funds – Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Enterprise Funds – account for operations (1) that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (2) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. 73 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
Internal Service Funds – Account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. Internal service funds used by the City are:

Equipment Fund – This fund is used to account for vehicle maintenance.

Information Technology Fund – This fund is used to provide computer technology services as well as providing programming and general information systems support services.

General Building Maintenance Fund – This fund is used to account for general government building and maintenance services.

Insurance Reserve Fund – This fund is used to account for the accumulation of monies necessary to pay for liability insurance claims and retentions under a self-insurance program.

Payroll Trust Fund – This fund is used to account for the various payroll disbursements related to providing benefits City wide.

Retired Employees Health Care Plan Trust Fund – This fund is used to accumulate the costs associated with providing funding of the City’s liability for Other Post-Employment Benefits.

Fiduciary Funds
Private-purpose Trust Fund – is a fiduciary fund type used to report all trust arrangements, other than those properly reported in pension trust funds or investment trust funds, under which principal and interest benefit individuals, private organizations, or other governments.

Major Governmental Funds
The City reports the following major governmental funds:

General Fund – is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Housing Authority – is the fund that accounts for the City’s low income housing activities.

Capital Improvement Fund – is a capital projects fund that accounts for the majority of the City’s governmental fund capital projects.
74 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
The City reports the following major proprietary funds:

The Water Utility Fund accounts for the operations of the City’s water utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

The Sewer Utility Fund accounts for the operations of the City’s wastewater utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

The Lighthouse Cove Recreational Vehicle Park Fund (RV Park) accounts for the operations of the City-owned recreational vehicle park, a self-supporting activity which renders a service on a usercharge basis to residents and travelers.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s business-type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues included 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the government’s internal services funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 75 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
Assets, Liabilities and Net Position or Equity
Cash and Investments
The City pools cash and investments of all funds except the Housing Authority and a portion of the CDBG and Water Funds. Each participating fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. State statutes authorize the City to invest its cash surplus in obligations of the U.S. Treasury, agencies and instrumentalities, corporate bonds, medium term notes, bankers’ acceptances, certificates of deposit, commercial paper, repurchase agreements, and the State of California Local Agency Investment Fund. Investment income from pooled investments is allocated to all funds in the pool. Interest is allocated on the basis of average monthly cash balance at quarter end in relation to the total pool investments. The interest income is recorded in the fund that earned the interest, except for those funds which have a negative cash balance and are excluded from the interest apportionment.

Investments are reported in the accompanying balance sheet at fair value which is determined using selected bases annually. Short term investments are reported at cost, which approximates fair value. All other investments are reported at fair value.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

General Receivables and Property Taxes Receivable
The City records an allowance for doubtful accounts on general accounts receivable based on the experience method.

Del Norte County assesses properties, bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.

Secured and unsecured property taxes are levied on July 1. Secured property taxes become a lien on real property on January 1 of the preceding fiscal year.

Secured property taxes are due in two installments, on November 1 and March 1. Property taxes become delinquent after December 10 and April 10, respectively. Unsecured property taxes are due on July 1, and becomes delinquent on August 31. The term “unsecured’ refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. 76 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
Leases
The City is a lessor for several long-term leases and recognizes a lease receivable and deferred inflow of resources in the government-wide and fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The City uses its estimated incremental borrowing rate at the discount rate for leases.

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

Inventories
Inventories are physically counted at year-end and valued at their average cost. All inventories consist of expendable supplies held for consumption. The cost is recorded as inventory when items are purchased and as expenditures when the items are used (the consumption method of accounting for inventories). The weighted average method is used for establishing the cost of inventory consumed.

Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 and an estimated useful life in excess of three years. Such depreciation has been provided over the estimated useful lives using the straight-line method.

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

Assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. 77 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

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

Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Authority’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023
Vacation and Sick Pay
Vacation pay is vested to the employees as it accrues and is payable upon retirement or termination. Sick leave, however, does not vest to the employees and is payable only when sick leave is taken. Unused vacation has been accrued in the accompanying government-wide financial statements and the accompanying proprietary fund financial statements.
78 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then.

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

Long-Term Obligations
In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Fund Equity
In the fund financial statements, governmental funds aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The non-spendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories; or (b) legally or contractually required to be maintained intact.

The spendable portion of the fund balance comprises the remaining four classifications; restricted, committed, assigned, and unassigned.

Restricted fund balance. This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed fund balance. These amounts can only be used for specific purposes pursuant to constraints imposed by the City Council, the government’s highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the City Council removes the specified use by taking the same type of action imposing the commitment. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for the use in satisfying those contractual requirements. 79 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
Assigned fund balance. This classification reflects the amounts constrained by the City Council’s “intent” to be used for specific purposes, but are neither restricted nor committed. The City Council and City Manager have the authority to assign amounts to be used for specific purposes. Assigned fund balances include all remaining amounts (except negative balances) that are reported in governmental funds, other than the General Fund, that are not classified as non-spendable and are neither restricted nor committed.

Unassigned fund balance. This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources-committed, assigned, and unassigned-in order as needed.

Net Position
Net position is comprised of three categories: (1) net investment in capital assets (2) restricted net position, and (3) unrestricted net position. Each component of net position is reported separately on the statements of net position.

Net investment in capital assets represents the balance of capital assets less accumulated depreciation, net of outstanding related debt.

Restricted net position is subject to constraints externally imposed by funding agencies or legislation. The amount of restricted net position is calculated by reducing the carrying value of restricted assets by their related liabilities. These items are restricted by agreements that detail specific purpose and use.

The unrestricted component of net position represents the portion remaining after the “invested in capital assets” and “restricted” amounts have been determined. The City’s positive value of unrestricted net position may be used to meet ongoing obligations.

Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
80 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

1. FINANCIAL REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES, CONTINUED
New Pronouncements
In 2024, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statement:
¾ GASB Statement No. 100, Accounting Changes and Error Corrections – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. For the year ended June 30, 2024, the City added a line item showing the aggregated restatements when moving a fund from nonmajor to major as a result of this Statement.

2. CASH AND INVESTMENTS
As of June 30, 2024, the City's cash and investments are reported in the financial statements as follows:

At year end, the carrying amount of the City's cash deposits (including amounts in checking accounts and money market accounts) was $1,815,615 and the bank balance was $2,131,374. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit. 81 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, CONTINUED
Custodial Credit Risk For Deposits - Custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The City's investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 110 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City's deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits of more than the $250,000 insured amount are collateralized. The City's investment policy does not further limit its deposits.

Interest Rate Risk - Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. All investments of the City are pooled with the State of California Local Agency Investment Fund.

The City's investment policy generally limits investment maturities as needed to maintain adequate liquidity to meet the City's cash flow requirements and to limit its exposure to fair value losses arising from increasing interest rates.

Credit Risk - Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. State law and City investment policy limits investments in commercial paper to the rating of A or better by Standards & Poor's or P-1 or better by Moody's Investors Service; corporate bonds to the rating of A or better by both Standards & Poor's and Moody's Investors Service. No limits are placed on U.S. government agency securities and U.S. Treasuries. The City's investment policy does not further limit its investment choices.

Concentration of Credit Risk - Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. State law restricts the City's investments in commercial paper to 40% of its investment pool and to 10% per issuer and corporate bonds and medium term notes to 30% of its investment pool and to 10% per issuer, and banker's acceptances to 15% of its investment pool and to 10% per issuer. The City has invested all cash, other than deposits and imprest cash, in the California Local Agency Investment Fund (LAIF). At June 30, 2024, the City's investments were in compliance with concentration of credit risk per State law. 82 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, CONTINUED
Investment in Local Agency Investment Fund - Investment in Local Agency Investment Fund - The City of Crescent City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code Section 16429 and is managed by the Treasurer of the State of California. The Local Investment Advisory Board, which consists of five members as designed by State statute, has oversight responsibility for LAIF. Investments in LAIF are available upon demand. The City’s investment with LAIF at June 30, 2024 includes a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as collateralized mortgage obligations) or credit card receivables.

As of June 30, 2024, the City had $18,606,317 invested in LAIF, which had 3.00% of the pool investment funds in Structured Notes and Asset-Backed Securities. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 0.996316042 to the total investments held by LAIF.

Investments - The City reports its investments in accordance with GASB Statement 31. This standard requires that the City's investments be reported at fair value with realized and unrealized gains or losses reported in the statement of operations.

3. NOTES RECEIVABLE
The City engages in programs designed to encourage business enterprises, construction or improvement in low-to-moderate income housing, or other projects. Under these programs, grants or loans are provided with favorable terms to businesses, homeowners or developers who agree to spend these funds in accordance with the City's terms. The notes carry various interest rates and payment dates.

Outstanding notes receivable for the year ended June 30, 2024 were as follows:
83 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

3. NOTES RECEIVABLE, CONTINUED
Business enterprise notes represent loans made to businesses, homeowners, or developers to finance the water and/or sewer connection charges associated with new developments.

Rehab & sidewalk notes represent the balances of loans made under previous programs to finance sidewalk improvements or home improvements to bring houses up to code. These programs are currently closed to new applicants.

CDBG loans represent balances of loans made under a previous CDBG program to allow low-income homeowners to bring their houses up to code.

Successor Housing notes represent balances of one loan made to a housing developer for the rehab of existing housing units and one loan for the sale of a parcel of property to a housing developer for the construction of a new housing development. These notes are to be repaid from residual receipts (profits) of the development once finished, over a 55-year payment term. Payments are to be retained in the Successor Housing fund for future low-income housing development projects.

Crescent City developer note represents the balance of a note to be paid by a developer of housing units to be paid from residual receipts (profits) of the development once finished, over a 55-year payment term.

Payments are to be deposited into the General Fund to help offset increased costs of providing services.

4. LEASES RECEIVABLE
In implementing GASB Statement 87 - Leases, the City recognized lease receivables and deferred inflows of resources for the leasing of attachment space for cellular communications and part of a parking lot for electric vehicle charging. In the fiscal year ended June 30, 2024, the City recognized $46,514 in revenues for these leases.

The follow is a summary of the City’s lease receivables:

City Cell Tower
The City entered into an agreement with a telecommunications company in 2010 to lease space on a tower at a City-owned building. The lease term is 30 years, made up of 5 years plus five 5-year options. The City considers each term to likely be exercised by the lessee. The monthly payments started at $1,000 and increase by 15% each 5-year renewal term. The interest rate on the lease is 4%. Monthly lease receipts were $1,322.50 for the fiscal year ended June 30, 2024. 84 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

4. LEASES RECEIVABLE, CONTINUED
City Parking Lot
In January of 2022, the City signed a 10-year lease with a company to lease space in a City-owned parking lot for electric vehicle charging. The City received a signing payment of $1,000 in the fiscal year ended June 30, 2022. Monthly payments of $300 commenced in August 2022. The interest rate on the lease is 4%.

In the fiscal year ended June 30, 2024, additional inflows of resources due to the change in the number of parking spaces rented were $2,400.

Water Cell Tower
In 2007, the City entered into an agreement with a telecommunications company to lease space on a Cityowned water tower. The lease term is 30 years, made up of 5 years plus five 5-year options. The City considers each term to likely be exercised by the lessee. The monthly payments started at $1,500 and increase by the change in the Consumer Price Index (CPI) each 5-year renewal term. The interest rate on the lease is 4%. The change in CPI is not included in the measurement of the lease receivable. In the fiscal year ended June 30, 2024, additional inflows of resources due to the change in the CPI were $3,358. 85 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

5. CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2024 was as follows:

Balance
June 30, 2023 Additions
Transfers/
Retirements
Balance
June 30, 2024
Governmental Activities
Capital Assets, Not Being Depreciated:

Land 2,823,819 $ - $ - $ 2,823,819 $
Other non-depreciable 694,500 - - 694,500
Construction in progress 2,276,444 2,619,067 - 4,895,511 Total Capital Assets,
Not Being Depreciated 5,794,763 2,619,067 8,413,830 -
Capital Assets, Being Depreciated:

Building and improvements 8,718,523 97,003 (13,002) 8,802,524 Machinery and equipment 4,192,421 485,116 (9,257) 4,668,280 Right-to-use software 145,471 64,718 210,189 -
Infrastructure 9,574,632 - 9,574,632 -
Total Capital Assets, Being Depreciated: 22,631,047 646,837 (22,259) 23,255,625 Less Accumulated Depreciation for:

Building and improvements (5,216,791) (144,820) (5,361,611) - Machinery and equipment (2,724,703) (233,811) (2,954,806) 3,708 Right-to-use software (25,038) (66,935) (91,973) -
Infrastructure (1,564,179) (405,723) (1,969,902) -
Total Accumulated Depreciation (9,530,711) (851,289) (10,378,292) 3,708 Total Capital Assets, Being
Depreciated, Net 13,100,336 (204,452) (18,551) 12,877,333 Total Governmental Activities, Net $ 18,895,099 $ 2,414,615 $ (18,551) $ 21,291,163 86 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

5. CAPITAL ASSETS, CONTINUED
Depreciation
Depreciation expense was charged to governmental functions as follows:

Depreciation expense was charged to the business-type functions as follows:
87 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

6. LONG-TERM DEBT
Long-term debt for the year ended June 30, 2024 was as follows:

Compensated Absences
Vacation pay is vested to the employees as it accrues and is payable upon retirement or termination. Sick leave, however, does not vest to the employees and is payable only when sick leave is taken. Employees accrue vacation up to certain maximums based on the employee’s bargaining unit or employee contract.

The City accrues the liability for compensated leave as it is earned by employees. The amount of compensated leaves payable outstanding was $411,762 at June 30, 2024. Compensated absences will be paid from: General Fund, Housing Authority Fund, RV Park Fund, Sewer Fund, Water Fund, Equipment Fund, Building Maintenance Fund, and IT Fund.

Subscriptions Payable
In fiscal year 2023, the City implemented GASB 96, Subscription-based Information Technology Arrangements. The City has three such arrangements that meet the GASB 96’s definition of a long-term subscription: Office365, the City’s ERP system, and the software used for the Housing Authority. Interest on all subscriptions is 4%.

Office365: The City entered into a 3-year contract to obtain licenses to Office 365 through December 2023. Annual payments are $16,492. In the fiscal year ended June 30, 2024, the City paid off the remainder of the payable.

Balance Adjustments/ Balance Due Within More Than
June 30, 2023 Additions Retirements June 30, 2024 One year One year Governmental Activities
Compensated Absences (Note 1) $ 260,693 $ 274,001 $ (225,678) $ 309,016 $ 243,691 $ 65,325 Subscriptions Payable 129,046 64,718 (78,158) 115,606 56,670 58,936 Total Governmental Activities $ 389,739 $ 338,719 $ (303,836) $ 424,622 $ 300,361 $ 124,261 Amounts
Amounts Due in
Balance Adjustments/ Balance Due Within More Than
June 30, 2023 Additions Retirements June 30, 2024 One year One year Business-Type Activities
Loans Payable:

Safe Water Revolving Loan $ 175,000 $ (175,000) - $ $ - $ - $ - State Water Resources - Safe Water Loan 30,557,928 (1,697,663) - 28,860,265 1,697,663 27,162,602 Subtotal Loans Payable 30,732,928 (1,872,663) - 28,860,265 1,697,663 27,162,602 Compensated Absences (Note 1) 108,059 90,847 (96,160) 102,746 93,072 9,674 Total Business-Type Activities $ 30,840,987 $ 90,847 $ (1,968,823) $ 28,963,011 $ 1,790,735 $ 27,172,276 88 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

6. LONG-TERM DEBT, CONTINUED
ERP system: In April 2024, the City entered into a 3-year agreement to obtain access to the cloud-based version of the City’s ERP system. Annual payments are due every July in the amount of $37,973. An additional implementation payment in July 2023 of $15,750 was included in the liability.

Housing Authority Software: In July 2023, the City entered into a 3-year contract to obtain access to the cloud-based version of the Housing Authority’s software. Payments are annual every July 1 at $23,321.

Below are the principal and interest payments through the end of the subscription terms:

California Water Resources Control Board, Safe Drinking Water Revolving Loan On June 10, 2011, the City entered into a 30 year loan with the California Water Resources Control Board in the amount of $45,407,931. The interest is 0% and the debt matures in fiscal year 2041. The loan proceeds were used for wastewater system improvements. At June 30, 2024, the remaining balance on the loan was $28,860,265.

The annual aggregate maturities for the years subsequent to June 30, 2024 are as follows:
89 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. INTERFUND TRANSACTIONS
Due To/From Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds. The following are due from and due to balances as of June 30, 2024:

Advance To/From Other Funds
Advances to and from funds represent longer term loans between those funds. The City had one such loan between the Water Fund and the General Fund as of June 30, 2024 totaling $456,221.

This loan was originally part of a loan from the Water Fund to the RDA. The State disallowed $518,433 of the loan from being a recognized obligation of the Successor Agency. The Council approved the General Fund assuming the disallowed portion. Commencing in fiscal year 2022, the General Fund pays the principal of the loan in equal payments of $20,737 over 25 years, with the final payment in fiscal year 2046. 90 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

7. INTERFUND TRANSACTIONS, CONTINUED
Transfers
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations and re-allocations of special revenues. The schedule on the following page presents the interfund transfers for fiscal year ended June 30, 2024:
x The purpose of the transfer from Non-Major Governmental Funds (Gas Tax Fund and ARPA Fund) to the General Fund was to allocate gas tax revenues to fund street maintenance and support the Economic Development / Community Support / Grants department, respectively. x The purpose of the transfer from the General Fund and Non-Major Governmental Funds to the Capital Improvement Fund was to fund various capital projects. x The General fund transfer to Non-Major Governmental Funds was to fund the purchase of safety vehicles.
x The Sewer and Water funds transferred money to the Internal Service Funds to purchase new equipment.
x The Internal Service Funds transferred insurance amounts to the General fund for safety expenses. 91 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

8. EMPLOYEE RETIREMENT PLANS
A. Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency CostSharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors six rate plans (miscellaneous classic, miscellaneous PEPRA, safety police classic, safety police PEPRA, safety fire classic, and safety fire PEPRA). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 to 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the contracting agency’s contract.

The Plans’ provisions and benefits in effect at June 30, 2024 are summarized as follows:
92 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

8. EMPLOYEE RETIREMENT PLANS, CONTINUED
B. Benefits Provided, Continued
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are to be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the measurement period ended June 30, 2023, the contributions recognized against net pension liability for the Plan were $1,432,963.

C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Plan of $13,453,813.

The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportionate share of the net pension liability was based on the City’s plan liability and assetrelated information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

Safety (Fire)
Prior to On or after Prior to
Hire date January 1, 2013 January 1, 2013 January 1, 2013 Benefit formula 2% @ 50 2.7% @ 57 2% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50-57 50
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% 2.0% Required employee contribution rates 9.00% 13.00% 9.00% Required employer contribution rates 19.95% 13.54% 19.95% Required employer dollar UAL payment (annual) $248,523 $522 $16,293 Safety (Police)
93 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

8. EMPLOYEE RETIREMENT PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The City’s proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2023 and June 30, 2022 were as follows:

For the year ended June 30, 2024, the City recognized pension expense (income) of $1,668,890. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$1,527,993 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date $ 1,527,993 $ -
Changes of assumptions 804,392 -
Differences between expected and actual
experience 774,661 100,203
Changes in employer's proportion - 629,038
Differences between the employer's
contribution and the employer's
proportionate share of contributions 195,535 171,564
Net differences between projected and
actual earnings on plan investments 2,080,261 -
Total $ 5,382,842 $ 900,805
94 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

8. EMPLOYEE RETIREMENT PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Actuarial Assumptions – The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Discount Rate – The discount rate used to measure the total pension liability as of the measurement date of June 30, 2023 for the Plan was 6.90. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined.

Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. A detailed report testing these projections can be obtained from the CalPERS website.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by entry age and service
Investment rate of return 6.90%
Maturity Rate Table (1) Derived using CalPERS membership data for all funds Post Retirement Benefit
Increase
Contract COLA up to 2.3% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies.'
(1) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Morality to capture ongoing mortality improvement using 80% of Scale MP2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report that can be found on the CalPERS website.
95 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

8. EMPLOYEE RETIREMENT PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The expected real rates of return by asset class are as follows:

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following schedule presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

D. Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

Assumed Asset
Asset Class Allocation Real Return(a,b)
Global Equity - cap-weighted 30.00% 4.54%
Global Equity - non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study 1% Decrease 5.90%
Net Pension Liability $ 19,142,786
Current Discount Rate 6.90%
Net Pension Liability $ 13,453,813
1% Increase 7.90%
Net Pension Liability $ 8,780,610
96 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

9. OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. Plan Description
The City has established an Other Postemployment Benefit plan (OPEB Plan) and participates in an agent multiple-employer defined benefit retiree healthcare plan. The City participates in the CalPERS medical program as permitted under the Public Employees' Medical and Hospital and Care Act (PEMHCA). As such, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree's lifetime or until coverage is discontinued. Based on CalPERS' requirements and the terms of the PEMHCA resolutions, the City is currently obligated to provide the greater of the following amounts to its retirees:
a) The minimum required contribution under PEMHCA ($157 per month for calendar year 2024) b) The amounts shown in the table below (pursuant to collective bargaining or other employee agreements)
B. Employees Covered
As of the July 1, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB Plan:

C. Contributions
The contribution requirements of plan members and the City are established and may be amended by the City’s governing board. The annual contribution is based on the actuarially determined contribution. For the measurement period ended June 30, 2023, the City’s cash contribution was $89,800 in payments to the trust and direct benefit payments, and the estimated implicit subsidy was $16,581 resulting in total contributions of $106,381.
97 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

9. OTHER POST-EMPLOYMENT BENEFITS (OPEB), CONTINUED
D. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated July 1, 2023 that was used to determine the June 30, 2023 total OPEB liability, based on the following actuarial methods and assumptions:

The long-term expected rate of return on OPEB plan investments was determined using a building block method and best-estimate ranges of expected future real rates of return for each major asset class (expected returns, net of OPEB plan investment expense and inflation). These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:
98 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

9. OTHER POST-EMPLOYMENT BENEFITS (OPEB), CONTINUED
D. Net OPEB Liability, Continued
At the time the valuation was prepared, the City was invested in the Balanced Portfolio, which had an expected return of 6.88% over 5 years and 6.45% over 30 years. Based on the City’s OPEB trust balance, the City assumed 10 basis points in non-imbedded fees and inflation adjustments for a net expected return of

6.35%. The City approved 6.35% as the assumed long-term return on trust assets.

E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.35 percent. The projection of cash flows used to determine the discount rate assumed that District contributions will be made at rates equal to or exceeding the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

F. Changes in the OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:
99 City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

9. OTHER POST-EMPLOYMENT BENEFITS (OPEB), CONTINUED
G. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate H. Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates I. OPEB Plan Fiduciary Net Position
PARS issues a publicly available financial report that may be obtained from the Public Agency Retirement Services, 4350 Von Karman Ave, Newport Beach, CA 92660.

J. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss and is calculated using the 4 different employee groups’ Expected Average Remaining Service Life (EARSL). For the measurement period ended June 30, 2023, the EARSL was 10.65 years. The recognition periods for various gains and losses created in the June 30, 2023 measurement are as follows:
100
City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

9. OTHER POST-EMPLOYMENT BENEFITS (OPEB), CONTINUED
K. OPEB Expense and Deferred Outflows/ (Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $76,864. For the fiscal year ended June 30, 2024, the City reported deferred inflows of resources related to OPEB from the following sources:
$109,690 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June, 30, 2025. Other amounts reported as deferred inflows and outflows of resources related to OPEB will be recognized as expense as follows:

10. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions, and natural disasters. The City manages risk by participating in the public entity risk pools described below and by retaining certain risks.

Public entity risk pools are formally organized separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these risk pools exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued.

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 109,690 $ - Differences Between Expected and Actual Experience 87,921 185,738 Changes of Assumptions 35,241 68,529
Net differences between projected and actual earnings
on plan investments 39,051 -
Total 271,903 $ 254,267 $
101
City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

10. RISK MANAGEMENT, CONTINUED
Each risk pool is governed by a board consisting of representatives from member agencies. Each board controls the operations of the respective risk pool, including selection of management and approval of operation budgets, independent of any influence by member agencies. Obligations and liabilities of these risk pools are not the City's responsibility.

Golden State Risk Management Authority (GSRMA) covers general liability up to $250,000 per occurrence. GSRMA purchases excess general liability coverage from the CSAC Excess Insurance Authority (EIA) that provides $49,750,000 limits in excess of GSRMA's $250,000 for total limits of $50,000,000 per occurrence. The City has no deductible for general liability.

The City is a participant in the GSRMA workers' compensation risk pool, which provides up to $5,000,000 in per occurrence limits for employers' liability. The City has no deductible for workers' compensation.

During the fiscal year ended June 30, 2024, the City contributed $936,344 to GSRMA for general liability, property, and workers compensation.

There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.

11. CONTINGENCIES
Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial.

12. PLEDGED REVENUE
102
City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

12. PLEDGED REVENUE, CONTINUED
The City has pledged future revenues derived from the operation of the Crescent City Wastewater System, net of operating and maintenance expenses, to repay a $45,407,931 loan payable to the State Water Resources Control Board. Proceeds from the loan provided financing for improvements to the Wastewater System. The loan is payable solely from the net earnings of the Wastewater System and are payable through 2041. The total principal and interest remaining to be paid on the loan is 28,860,265.

Principal and interest paid for the current year and net system revenues were $1,697,663 and $2,801,610 respectively.

13. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Crescent City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-03.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies are only allocating revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. 103
City of Crescent City
Notes to Basic Financial Statements
For the year ended June 30, 2024

13. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, CONTINUED Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the time line set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

Cash and investments
As of June 30, 2024, cash and investments in the amount of $181,833 were reported in the accompanying financial statements in the Fiduciary funds.

Long-Term Debt
The Successor Agency is obligated to the Successor Housing Agency and the City Water Fund in the amounts of $88,198 and $351,992 respectively. All of these amounts were advanced to the Crescent City Redevelopment Agency prior to its dissolution under State law. Activity relating to these obligations were as follows for the fiscal year ended June 30, 2024:

14. CHANGE WITHIN FINANCIAL REPORTING ENTITY
In fiscal year 2024, the City’s Capital Improvement Projects Capital Projects Fund (previously reported with nonmajor funds) met the criteria to be reported as a major fund. Below is the effect on fund balance.

Capital
Improvement
Projects
Nonmajor
Governmental
Funds
June 30, 2023, as previously reported - $ 1,877,622 $
Change from nonmajor to major fund 1,385,238 (1,385,238) June 30, 2023, as restated $ 1,385,238 $ 492,384
104

REQUIRED

SUPPLEMENTARY INFORMATION
105
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

1. OTHER POST EMPLOYMENT BENEFITS
A. Schedule of Changes in the Net OPEB Liability and Related Ratios* 106
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

1. OTHER POST EMPLOYMENT BENEFITS, CONTINUED
A. Schedule of Changes in the Net OPEB Liability and Related Ratios, Continued 107
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

1. OTHER POST EMPLOYMENT BENEFITS, CONTINUED
B. Schedule of Contributions Last Ten Fiscal Years *
2024 2023 2022 2021
Actuarially Determined Contribution (ADC) $ 109,690 $ 106,381 $ 140,237 $ 136,471 Contributions in relation to the ADC (109,690) (106,381) (140,237) (136,471) Contribution deficiency (excess) $ - $ - $ - $ -
Covered-employee payroll $ 4,822,816 $ 3,815,841 $ 3,702,370 $ 3,594,534

2.27% 2.79% 3.79% 3.80%
Notes to Schedule:

Methods and assumptions used to determine contributions:

Valuation Date used to determine ADC 6/30/2021 6/30/2021 6/30/2019 6/30/2019 Discount rate used to determine ADC 5.90% 5.90% 6.30% 6.30% Actuarial Cost Method Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Amortization Method Level % of Pay Level % of Pay Level % of Pay Level % of Pay Amortization Period 30 Years Closed 30 Years Closed 30 Years Closed 30 Years Closed Asset Valuation Method Market Value Market Value Market Value Market Value Inflation 2.50% 2.50% 2.50% 2.50%
Payroll Growth 3.00% 3.00% 3.00% 3.00%
Healthcare cost-trend rates 5.8% in 2023 to

3.9% by 2076

5.8% in 2023 to

3.9% by 2076

8.0% in 2018 to

5.0%

8.0% in 2018 to

5.0%
Retirement Age 50 to 75 50 to 75 50 to 75 50 to 75
Mortality Improvement
MW Scale 2017
generationally
MW Scale 2017
generationally
MW Scale 2017
generationally
MW Scale 2017
generationally
Contributions as a percentage of coveredemployee payroll * Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. 108
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

1. OTHER POST EMPLOYMENT BENEFITS, CONTINUED
B. Schedule of Contributions Last Ten Fiscal Years, Continued 109
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

2. DEFINED BENEFIT PENSION PLAN
A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years Fiscal Year 2024 2023 2022 2021 2020 2019
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Proportion of the net pension liability 0.10784317% 0.11151406% 0.13907182% 0.10398944% 0.10353226% 0.10454965% Proportionate share of the net pension
liability $ 12,880,772 13,453,813 $ 7,521,405 $ $ 10,608,990 11,314,498 $ 10,074,682 $ Covered payroll $ 3,784,091 $ 3,520,793 $ 3,381,533 $ 3,272,924 $ 3,466,680 $ 3,217,205 Proportionate Share of the net pension
liability as percentage of covered
payroll 355.54% 365.85% 222.43% 345.70% 306.03% 313.15% Plan fiduciary net position as a
percentage of the total pension liability 76.21% 76.68% 88.29% 75.10% 75.26% 75.26% Notes to Schedule:

The CalPERS discount rate increased from 7.5% to 7.65% in fiscal year 2016 The CalPERS discount rate decreased from 7.65% to 7.15% in fiscal year 2018.

The CalPERS discount rate decreased from 7.15% to 6.90% in fiscal year 2023.

The CalPERS mortality assumptions were adjusted in fiscal year 2019. 110
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

2. DEFINED BENEFIT PENSION PLAN, CONTINUED
A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years, Continued 2018 2017 2016 2015
6/30/2017 6/30/2016 6/30/2015 6/30/2014

0.10411817% 0.10614935% 0.10970704% 0.10061430%
$ 9,185,205 10,325,662 $ 7,530,194 $ 6,260,676 $
$ 2,979,180 3,045,658 $ 2,915,615 $ 2,782,613 $
339.03% 308.31% 258.27% 224.99%

73.31% 74.06% 78.40% 79.82%
111
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

2. DEFINED BENEFIT PENSION PLAN, CONTINUED
B. Schedule of Contributions – Last 10 Years
2024 2023 2022 2021 2020 2019
Contractually required contribution 1,452,993 $ 1,362,963$ $ 1,239,641 $ 1,046,884 1,140,497 $ 935,710 $ Contribution in relation to the
contractually required contribution (1,527,993) (1,432,963) (1,314,641) (1,140,497) (1,108,169) (968,710) Contribtion deficiency (excess) $ (75,000) $ (70,000) $ (75,000) $ (61,285) - $ $ (33,000) Covered payroll $ 4,553,819 3,784,091$ $ 3,520,793 $ 3,381,533 $ 3,272,924 3,466,680$ Contributions as a percentage of covered
payroll 33.55% 37.87% 37.34% 33.73% 31.99% 26.99%
Notes to Schedule
Valuation date: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Market Value Market Value Inflation: 2.50% 2.50% 2.50% 2.50% 2.63% 2.75%
Salary increases: (2) (2) (2) (2) (2) (2)
Investment rate of return: 7.00% 7.00% 7.00% 7.00% 7.25% 7.375% Retirement age: (3) (3) (3) (3) (3) (3)
Mortality: (4) (4) (4) (4) (4) (4)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62 (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
112
City of Crescent City
Required Supplementary Information
For the year ended June 30, 2024

2. DEFINED BENEFIT PENSION PLAN, CONTINUED
B. Schedule of Contributions – Last 10 Years, Continued 113
City of Crescent City
Notes to the Required Supplementary Information
For the year ended June 30, 2024

3. BUDGETARY INFORMATION
The City Council has the responsibility for adoption of the City’s budgets. Budgets are adopted for governmental and proprietary funds. From the effective date of the budget, the amounts stated as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during each fiscal year. The City Manager is authorized to transfer funds from one major expenditure category to another within the same department and fund. Any revisions that alter the total expenditures of any fund must be approved by the City Council.

All appropriations lapse at the end of the fiscal year to the extent that they have not been expended.

Budgetary comparisons are provided in the accompanying financial statements for the General Fund and Major Special Revenue Funds that have legally adopted budgets. Budget amounts are adopted on a basis consistent with accounting principles accepted in the United States of America, except for cost allocation charges that are budgeted as revenues in the General Fund and not netted against expenses.

Reconciliation of Budgetary Basis to GAAP – General Fund 114
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 7,344,346 7,076,346 $ 7,624,693 $ 280,347 $
Use of money and property:

Interest 7,000 60,000 225,900 165,900
Rental income 47,582 47,582 49,462 1,880
Licenses and permits 292,100 292,100 395,868 103,768
Fines and forfeitures 7,050 7,050 12,275 5,225
Intergovernmental 386,990 579,571 537,011 (42,560)
Charges for services 1,010,075 1,545,218 1,494,994 (50,224) Gifts and donations 123,340 128,991 29,412 (99,579)
Other reimbursements 127,840 94,199 175,085 80,886
Other revenue 20,800 20,800 19,309 (1,491)
Interfund services provided 246,777 241,240 234,224 7,016 Total revenues 9,345,900 10,361,097 10,798,233 437,136
EXPENDITURES:

Current:

General government 1,616,115 1,582,027 1,299,445 282,582 Public safety 4,615,001 5,017,608 4,581,613 435,995
Community development 501,068 771,279 699,453 71,826
Human services and recreation 1,014,091 1,155,090 1,001,539 153,551 Public works 1,438,938 1,602,686 1,043,574 559,112
Administrative overhead allocation 521,135 498,469 477,357 21,112 Debt Service:

Interest on advances from other funds 65,000 65,000 - 65,000 Total expenditures 9,771,348 10,692,159 9,102,981 1,589,178 REVENUES OVER (UNDER) EXPENDITURES (425,448) (331,062) 1,695,252 2,026,314

OTHER FINANCING SOURCES (USES)
Transfers in 334,860 312,797 273,422 (39,375)
Transfers out (1,221,500) (1,373,900) (1,369,479) 4,421 Proceeds from sale of assets - - 1,610 1,610
Total other financing sources (uses) (886,640) (1,061,103) (1,094,447) (33,344) Net change in fund balance $ (1,312,088) $ (1,392,165) 600,805 $ 1,992,970 FUND BALANCE:

Beginning of year 4,575,246
End of year $ 5,176,051
* Refer to Budgetary Information for reconciliation of revenues and expenditures to GAAP basis.

Budgeted Amounts
City of Crescent City
Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund (Budgetary Basis)
For the year ended June 30, 2024 (Unaudited)
115
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property:

Interest $ 140 140 $ 10,967 $ 10,827 $
Intergovernmental 4,251,856 4,251,856 4,010,734 (241,122) Other revenue 30,000 30,000 24,032 (5,968)
Total revenues 4,281,996 4,281,996 4,045,733 (236,263)
EXPENDITURES:

Current:

Human services and recreation 4,283,193 4,290,793 3,994,340 296,453 Administrative overhead allocation 31,449 30,337 28,959 1,378 Total expenditures 4,314,642 4,321,130 4,023,299 297,831 REVENUES OVER (UNDER) EXPENDITURES (32,646) (39,134) 22,434 61,568

OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt - - 64,718 64,718
Total other financing sources (uses) - 64,718 - 64,718
Net change in fund balance $ (32,646) $ (39,134) 87,152 $ 126,286 FUND BALANCE:

Beginning of year 379,755
End of year $ 466,907
Budgeted Amounts
City of Crescent City
Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Section 8 Special Revenue Fund
For the year ended June 30, 2023 (Unaudited)
116

SUPPLEMENTARY INFORMATION
117
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118
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119
Nonmajor Governmental Funds
CDBG
Funds
89-93 Rehab
& Sidewalk
Funds
Gas Tax
Fund
Successor
Housing
Fund RMRA Fund
ASSETS
Cash and investments $ 21,585 27,672 $ 16,425 $ 81,395 $ 396,011 $ Receivables:

County/State/Federal Government 86,344 - 15,842 - 30,349 Interest receivable 5 218 357 14,303 3,866
Due from RDA Successor Agency - - -88,198-
Note Receivable 34,876 45,415 - 460,000 -
Total assets $ 148,897 $ 67,218 $ 32,624 $ 643,896 $ 430,226

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 80,257 - 3,723 - 8,930
Unearned revenue -----
Due to other funds 194,000 - - - -
Total liabilities 274,257 3,723 - 8,930 -
Deferred inflows of resources:

Unavailable revenue 180----
Total deferred inflows of resources 180 - - - -
Fund Balances:

Restricted
Low and moderate income housing - - -643,896 -
Other Purposes - 67,218 28,901 - 421,296
Assigned
Capital improvement and vehicle
replacement - - - - -
Safety programs -----
Unassigned (125,540) - - - -
Total fund balances (125,540) 67,218 28,901 643,896 421,296 Total liabilities, deferred inflows
of resources, and fund balances $ 148,897 $ 67,218 $ 32,624 $ 643,896 $ 430,226 City of Crescent City
Combining Balance Sheets
June 30, 2024
Special Revenue Funds
120
ARPA Fund
Volunteer
Firefighter
Support
Clean CA
Grant Fund
CPLHA
Grant Fund
Capital
Improvement
Fund
Beachfront
Park CIP
Fund
Fire Vehicle
Replacement
Fund
$ 102,579 $ 6,623 $ - $ 382 $ - $ 9,113 $ 446,686
- -24,950----
1,837 67 - - - 92 4,512
-------
-------
$ 104,416 $ 6,690 $ 24,950 $ 382 $ - $ 9,205 $ 451,198
- - 24,950 3,851 - - -
43,656------
- - -31,000---
43,656 24,950 - 34,851 - - -
- -24,950----
- 24,950 - - - - -
-------
60,760------
- - - - 9,205 - 451,198
- 6,690-----
- - (24,950) (34,469) - - -
60,760 6,690 (24,950) (34,469) 9,205 - 451,198
$ 104,416 $ 6,690 $ 24,950 $ 382 $ - $ 9,205 $ 451,198
Special Revenue Funds Capital Projects Funds
121
Nonmajor Governmental Funds
Capital
Projects
Funds
Vehicle
Replacement
Funds
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 1,129,201 20,730 $
Receivables:

County/State/Federal Government - 157,485
Interest receivable 209 25,466
Due from RDA Successor Agency - 88,198
Note Receivable - 540,291
Total assets $ 1,940,641 20,939 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 17,482 139,193
Unearned revenue - 43,656
Due to other funds - 225,000
Total liabilities 407,849 17,482
Deferred inflows of resources:

Unavailable revenue - 25,130
Total deferred inflows of resources 25,130 -
Fund Balances:

Restricted
Low and moderate income housing - 643,896
Other Purposes - 578,175
Assigned
Capital improvement and vehicle
replacement 463,860 3,457
Safety programs -6,690
Unassigned - (184,959)
Total fund balances 1,507,662 3,457
Total liabilities, deferred inflows
of resources, and fund balances $ 1,940,641 20,939 $
City of Crescent City
Combining Balance Sheets
June 30, 2024
122
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123
Combining Statements of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds
CDBG
Funds
89-93 Rehab
& Sidewalk
Funds
Gas Tax
Fund
Successor
Housing
Fund RMRA Fund
REVENUES:

Use of money and property
Interest $ 35 $ 1,041 $ 1,581 $ 18,383 $ 15,140
Intergovernmental 897,395 184,854 - 174,139 -
Total revenues 897,430 1,041 186,435 18,383 189,279
EXPENDITURES:

Current:

Public safety -----
Community development 74,503----
Human services and recreation 179,687 - - - -
Public works 99,714 - 12,034 - 40,740
Total expenditures 353,904 12,034 - 40,740 -

REVENUES OVER
(UNDER) EXPENDITURES 543,526 1,041 174,401 18,383 148,539

OTHER FINANCING
SOURCES (USES):

Transfers in 25,693 - - - -
Transfers out (3,601) (23,893) (174,402) - -
Proceeds from sale of assets - - -70,248 -
Total other financing sources (uses) 22,092 (23,893) (174,402) 70,248 - Net change in fund balance 565,618 (22,852) 88,631 (1) 148,539 FUND BALANCES:

Beginning of year (691,158) 90,070 28,902 555,265 272,757 Reclassification from nonmajor to major - - - - -
Beginning of year, as restated (691,158) 90,070 28,902 555,265 272,757 End of year $ (125,540) $ 67,218 $ 28,901 $ 643,896 $ 421,296 City of Crescent City
For the Year Ended June 30, 2024
Special Revenue Funds
124
ARPA Fund
Volunteer
Firefighter
Support
Clean CA
Grant Fund
CPLHA
Grant Fund
Capital
Improvement
Fund
Beachfront
Park CIP
Fund
Fire Vehicle
Replacement
Fund
$ 46,603 $ 131 $ - $ - $ - $ 440 $ 13,632
1,359,205 - - - - - -
1,405,808 131 - - - 440 13,632
- 1,325-----
-------
- - -34,469---
- -24,950----
1,325 - 24,950 34,469 - - -
1,405,808 (1,194) (24,950) (34,469) - 440 13,632
7,884 - - - - 245,500 -
(1,359,206)- - - - - -
-------
(1,359,206) 7,884 - - - 245,500 -
46,602 6,690 (24,950) (34,469) - 440 259,132
14,158 - - - 1,385,238 8,765 192,066
- - - -(1,385,238)- -
14,158 - - - -8,765 192,066
$ 60,760 $ 6,690 $ (24,950) $ (34,469) $ - $ 9,205 $ 451,198 Special Revenue Funds Capital Projects Funds
125
Combining Statements of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds
Capital
Projects
Funds
Police
Vehicle
Replacement
Funds
Total Nonmajor
Governmental
Funds
REVENUES:

Use of money and property
Interest 729 $ 97,715 $
Intergovernmental - 2,615,593
Total revenues 729 2,713,308
EXPENDITURES:

Current:

Public safety 98,831 100,156
Community development -74,503
Human services and recreation - 214,156
Public works - 177,438
Total expenditures 98,831 566,253

REVENUES OVER
(UNDER) EXPENDITURES (98,102) 2,147,055

OTHER FINANCING
SOURCES (USES):

Transfers in 80,000 359,077
Transfers out - (1,561,102)
Proceeds from sale of assets -70,248
Total other financing sources (uses) 80,000 (1,131,777) Net change in fund balance (18,102) 1,015,278
FUND BALANCES:

Beginning of year 21,559 1,877,622
Reclassification from nonmajor to major - (1,385,238)
Beginning of year, as restated 21,559 492,384
End of year $ 3,457 $ 1,507,662
City of Crescent City
For the Year Ended June 30, 2024
126
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127
City of Crescent City
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Information Maintenance
Tech Building Equipment
Fund Fund Fund
ASSETS
Current assets:

Cash and investments $ 48,270 124 $ 152,089 $
Accounts receivable 5,582 - -
Interest receivable - -1,434
Prepaid items 27,262 - -
Total current assets 32,968 48,270 153,523
Noncurrent assets:

Capital assets:

Non-depreciable - -42,525
Depreciable, net 75,070 - 1,629,354
Total capital assets 75,070 - 1,671,879
Total noncurrent assets 75,070 - 1,671,879
Total assets 108,038 48,270 1,825,402

LIABILITIES
Current liabilities:

Accounts payable 3,202 48,821 10,377
Accrued wages ---
Due to other funds 31,000 - -
Current portion of subscriptions payable 35,108 - -
Total current liabilities 69,310 48,821 10,377
Noncurrent liabilities:

Subscriptions payable - due in more than one year 36,512 - - Total noncurrent liabilities 36,512 - -
Total liabilities 105,822 48,821 10,377

NET POSITION
Net investment in capital assets 3,450 - 1,671,879
Unrestricted (1,234) (551) 143,146
Total net position $ 2,216 $ (551) $ 1,815,025
128
Payroll Insurance OPEB Trust
Trust Reserve Contributions
Fund Fund Fund Total
$ 133,954 349,822 $ 1,200 $ $ 685,459
- 75,000 - 80,582
- 1,353 59 2,846
-- - 27,262
349,822 210,307 1,259 796,149
-- - 42,525
-- - 1,704,424
- - - 1,746,949
- - - 1,746,949
349,822 210,307 1,259 2,543,098
177,005 - 1,200 240,605
172,817 - - 172,817
-- - 31,000
-- - 35,108
349,822 - 1,200 479,530
-- - 36,512
- - - 36,512
349,822 - 1,200 516,042
- - - 1,675,329
- 210,307 59 351,727
$ 210,307 - $ 59 $ 2,027,056 $
129
Information Maintenance
Tech Building Equipment
Fund Fund Fund
OPERATING REVENUES:

Charges for services $ 275,698 404,892 $ 300,324 $
Other - -3,542
Total operating revenues 404,892 275,698 303,866
OPERATING EXPENSES:

Personnel services 254,766 129,526 148,139
Materials, supplies, rent, and services 44,959 8,801 74,537 Repair and maintenance 59,587 137,922 73,501
Depreciation 45,363 - 205,553
Total operating expenses 404,675 276,249 501,730
OPERATING INCOME (LOSS) 217 (551) (197,864)
NONOPERATING REVENUES (EXPENSES):

Interest income -- 6,470
Interest expense (5,138) --
Total nonoperating revenues (expenses) (5,138) -6,470

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (4,921) (551) (191,394)
Capital contributions - - 180,976
Transfers in 15,750 - 252,232
Transfers out ---
Total contributions and transfers 15,750 - 433,208
Change in net position 10,829 (551) 241,814

NET POSITION
Beginning of year (8,613) - 1,573,211
End of year $ 2,216 $ (551) $ 1,815,025
City of Crescent City
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the year ended June 30, 2024
130
Payroll Insurance OPEB Trust
Trust Reserve Contributions
Fund Fund Fund Total
$ 567,046 - $ 113,805 $ $ 1,661,765
- 75,000 - 78,542
- 642,046 113,805 1,740,307
- - 109,690 642,121
- 567,047 4,480 699,824
-- - 271,010
-- - 250,916
- 567,047 114,170 1,863,871
- 74,999 (365) (123,564)
- 6,611 124 13,205 -- - (5,138)
- 6,611 124 8,067
81,610 - (241) (115,497)
-- - 180,976
-- - 267,982
- (25,750) - (25,750)
- (25,750) - 423,208
- 55,860 (241) 307,711
- 154,447 300 1,719,345
$ 210,307 - $ 59 $ 2,027,056 $
131
City of Crescent City
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
Information Maintenance
Tech Building
Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds $ 399,310 $ 275,698
Cash payments to suppliers for goods and services (124,415) (128,368) Cash paid to employees (254,766) (129,526)
Net cash provided (used) by operating activities 20,129 17,804 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Grant cash receipts - -
Cash received from other funds 41,750 -
Cash disbursements to other funds - -
Net cash provided (used) by noncapital financing activities 41,750 -

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Cash capital contributions - -
Acquisition of capital assets - -
Long-term debt repayments (57,426) -
Interest paid and fiscal charges (5,138) -
Net cash provided (used) by capital and related financing activities (62,564) - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received - -
Net cash provided (used) by investing activities - -

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (685) 17,804
CASH AND CASH EQUIVALENTS - Beginning of year 809 30,466 CASH AND CASH EQUIVALENTS - End of year $ 124 $ 48,270

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) $ 217 $ (551)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 45,363 -
Changes in assets, deferred outflows and inflows
of resources, and liabilities
Accounts receivable, net (5,582) -
Prepaid items (16,681) -
Accounts payable (3,188) 18,355
Accrued wages - -
Total adjustments 19,912 18,355
Net cash provided (used) by operating activities $ 20,129 $ 17,804 132
Payroll Insurance OPEB Trust
Equipment Trust Reserve Contributions
Fund Fund Fund Fund Total
$ - 302,461 $ 633,580 $ 113,805 $ 1,724,854 $
(152,597) 44,305 (567,047) (3,580) (931,702)
(148,139) - (109,690) - (642,121)
1,725 44,305 66,533 151,031 535
- - - - -
252,232 (3,868) - 290,114 -
- (21,882) - (21,882) -
252,232 (25,750) - 268,232 -
180,976 - - 180,976 -
(433,209) - - (433,209) -
- - - (57,426) -
- - - (5,138) -
(252,233) - - (314,797) -
5,850 6,034 - 210 12,094
5,850 6,034 - 210 12,094
7,574 44,305 46,817 116,560 745
144,515 305,517 87,137 568,899 455
$ 152,089 $ 349,822 $ 133,954 $ 1,200 $ 685,459
$ (197,864) $ 74,999 - $ $ (123,564) (365) $
205,553 - - 250,916 -
2,137 (8,466) - (11,911) -
- - - (16,681) -
(8,101) 33,774 - 900 41,740
10,531 - - 10,531 -
199,589 44,305 (8,466) 274,595 900
$ 1,725 $ 44,305 $ 66,533 $ 151,031 535 $
133
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134

SINGLE AUDIT SECTION
135
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136

INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Crescent City
Crescent City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Crescent City, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 30, 2024.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
137
To the Honorable Mayor and Members of the City Council
of the City of Crescent City
Crescent City, California

Page 2 ends

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

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

Badawi & Associates, CPAs
Berkeley, California
December 30, 2024
138
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM

GUIDANCE
To the Honorable Mayor and Members of the City Council
of the City of Crescent City
Crescent City, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Crescent City, California (City)’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
139
To the Honorable Mayor and Members of the City Council
of the City of Crescent City
Crescent City, California

Page 2 ends

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
140
To the Honorable Mayor and Members of the City Council
of the City of Crescent City
Crescent City, California

Page 3 ends

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
December 30, 2024
141
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142
City of Crescent City
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2024
Assistance Agency or
Federal Grantor/Pass-Through Listing Pass-Through Federal Subrecipient Grantor Program Title Number Number Expenditures Payment U.S. Department of Housing and Urban Development:

Housing Voucher Cluster:

Direct Programs:

Section 8 Housing Choice Vouchers 14.871 N/A $ - 3,959,422 $ Housing Voucher Cluster Total 3,959,422 -
CDBG State Administered Program:

Passed through State of California Department of Housing And Community Development:

Community Development Block Grant 14.228 20-CDBG-12011 22,420 21,073 Community Development Block Grant 14.228 20-CDBG-12012 58,525 58,345 Community Development Block Grant 14.228 20-CDBG-12056 74,502 - COVID-19 Community Development Block Grant 14.228 20-CDBG-CV2-3-00230 98,743 98,045 Community Development Block Grant 14.228 22-CDBG-PL-20041 99,714 - CDBG State Administered Program Total 353,904 177,463
Total U.S. Department of Housing and Urban Development 177,463 4,313,326 Department of Transportation
Passed through California Department of Transportation:

Highway Planning and Construction 20.205 ER-32D0(013) - 82,665 Total Department of Transportation - 82,665
U.S. Department of Treasury
Direct Programs:

COVID-19 State and Local Fiscal Recovery Funds (ARPA) 21.027 N/A - 1,359,205 Passed through State of California Water Resources Control Board:

COVID-19 State and Local Fiscal Recovery Funds (ARPA) 21.027 A00152 - 186,837 State and Local Fiscal Recovery Funds (ARPA) Total 1,546,042 - Total Department of Treasury - 1,546,042
Department of Homeland Security
Passed through California Office of Emergency Services
Emergency Management Performance Grants 97.042 2022-075 - 21,027 Passed through Del Norte Office of Emergency Services
Investments for Public Works and Economic Development Facilities 97.067 2022-15 - 17,873 Total Department of Homeland Security - 38,900
Total Federal Expenditures $ 177,463 5,980,933 $
143
City of Crescent City
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2024
A. Basis of Accounting
Funds received under the various grant programs have been recorded within the general fund, special revenue funds and enterprise funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds and full accrual basis of accounting for the enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of U.S. code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City’s basic financial statements.

B. Indirect Costs
The City did not elect to use the 10% de minimis indirect cost rate. 144
City of Crescent City
Schedule of Findings and Questioned Costs
For the year ended June 30, 2024
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Types of auditors’ report issued: Unmodified
Internal control over financial reporting:
x Material weakness identified? No
x Significant deficiency identified? None noted
Any noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
x Material weakness identified? No
x Significant deficiencies identified? None noted
Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 200.516 (a) of the Uniform Guidance? No Identification of major programs:

Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low-risk auditee under
Section 200.520? Yes
145
City of Crescent City
Schedule of Findings and Questioned Costs
For the year ended June 30, 2024
SECTION II – CURRENT YEAR FINDINGS
A. Current Year Findings- Financial Statement Audit
No current year financial statement audit finding.

B. Current Year Findings and Questioned Costs- Major Federal Award Program Audit No current year federal award program finding.

SECTION III – PRIOR YEAR FINDINGS
A. Prior Year Findings- Financial Statement Audit
No prior year financial statement audit finding.

B. Prior Year Findings and Questioned Costs- Major Federal Award Program Audit No prior year federal award program finding.
146

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: LINDA LEAVER, DIRECTOR OF FINANCE
DATE: JANUARY 13, 2025
SUBJECT: BUDGET-TO-ACTUAL OPERATING RESULTS FOR FISCAL YEAR 2023-24
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Receive and file budget-to-actual financial report of the City’s major operating funds for Fiscal Year 2023-24

BACKGROUND
The Fiscal Year 2023-24 annual budget (for July 1, 2023 through June 30, 2024) was adopted by the City Council on June 17, 2023 by way of Resolution No. 2023-39. City staff provides budget-to-actual financial reports throughout the year, and the Council approves budget amendments as needs and priorities change. A mid-year budget update was approved on March 4, 2024 by way of Resolution No. 2024-16.

This report provides the budget-to-actual results for FY 23-24 as of June 30, 2024 for the City’s five major operating funds (General Fund, Housing Authority Fund, RV Park Fund, Sewer Fund, and Water Fund) plus an analysis of Citywide wages and benefits.

It is important to note this report presents the operating activities of the five major funds.

Items such as depreciation, GASB 68 pension adjustments, GASB 75 OPEB adjustments, and certain long-term debt and capital asset transactions are not classified as operating activities. The report attached to this staff report provides a summary of the differences between these operating results and the total net position / fund balance results which are shown in the City’s audit.

The City also has a variety of other funds including special revenue funds, internal service funds, capital improvement funds, and fiduciary funds which are not included in this BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
2 report. All of the City’s activities and funds are included in the audit report which was finalized in December 2024 and which the auditor will be presenting to the Council at this meeting.

ITEM ANALYSIS
Budgets are estimates of future revenues and expenses, based on experience and anticipated trends. Extensive staff time is devoted to developing the annual budget, reevaluating the budget at mid-year, and presenting periodic updates to the Council. Even with this analysis, actual results will always vary from budgeted estimates for a variety of reasons.

City-Wide Wages and Benefits
The majority of City employees are represented by four employee associations which bargain with the City on behalf of employees regarding wages, benefits, and other working conditions. The agreements are formalized in a Memorandum of Understanding (MOU) with each employee association. The current MOUs are effective through June 30, 2025. The City is currently working on a compensation study which will provide comparisons between the City’s wages and benefits and comparable agencies, which will be used to help guide the next MOU negotiations.

Actual wage and benefit costs are shown below with the prior three fiscal years for comparison.

Total wages and benefits (City-wide) – actual expenses:

FY 20-21 FY 21-22 FY 22-23 FY 23-24
Year-overyear $
Variance
Year-overyear %
Variance
Wages 3,909,557 4,348,962 4,829,703 5,763,418 933,715 19% Benefits 2,405,162 2,548,499 2,835,187 3,226,704 391,517 14% Total 6,314,718 6,897,461 7,664,890 8,990,122 1,325,232 17% BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
3 FY 2023-24 increased over the prior year due to planned increases in staffing as well as negotiated wage increases and increases in benefit costs but was still under the authorized budget due to vacancies and unused benefits.

In accordance with Council direction, the City budgets for all authorized positions to be filled and uses a conservative estimate for the use of benefits. Budget-to-actual variances are caused when positions are vacant, positions are filled at a lower step/rate than budgeted, and/or employees do not use their full budgeted benefit allowance.

In the area of benefits, those benefits which are calculated as a percentage of payroll (normal pension cost, employer’s Medicare contribution, and PTS) are budgeted for all positions to be filled and the corresponding benefits earned. The City’s contributions toward the pension unfunded liability and retiree health liability (OPEB) are budgeted for the actuarially determined contribution, plus any additional payments (if authorized by Council). Flex benefits (health, dental, vision, life, long-term disability, and ambulance) are budgeted based on prior year actual premium costs plus estimated inflation (most insurance benefits increase in cost in January, or halfway through the City’s fiscal year) and allowance for employee changes, plus vacant positions to be filled and those benefits to be used.

BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
4 Wages and benefits (City-wide) – budget to actual:

Staffing continues to be a challenge. During the fiscal year, five full-time employees left the City and seven new full-time employees were hired. However, even with bringing in more new full-time employees than we lost, there were still five vacant full-time jobs at the end of the fiscal year.

Full-time positions that were vacant for some part of FY 23-24 include • Economic Development and Recreation Director
• Human Resources Manager
• Finance Analyst
• Police Officers / Recruits
• Public Works Maintenance Manager
• Engineering Project Manager
• Electrical Mechanical Operations Technician
• Mechanic
• Equipment Operator / Maintenance Worker
• Utility Mechanic
General Fund
General Fund total revenues were budgeted for $10,673,894 and actual revenue was $11,073,65 for a variance of $399,371 over the final budget. Sales tax and Measure S were very close to budget, Transient Occupancy Tax was $133,524 higher than budget, interest revenue was $165,900 over budget, property tax in-lieu was $82,367 over budget, and building permits were $110,487 over budget. Various other revenues came in under or over budget to a lesser degree.

FY 23-24
Budget
FY 23-24
Actual
Over
(Under)
Budget
Regular wages 4,854,295 4,514,160 (340,136) -7%
Temp and PT wages 493,312 439,013 (54,299) -11%
Overtime 383,434 367,649 (15,785) -4%
FF Stipends 480,088 442,597 (37,491) -8%
PERS 1,551,960 1,511,235 (40,725) -3%
Medicare 90,882 83,483 (7,399) -8%
Workers Comp 381,545 369,304 (12,242) -3%
Unemployment 33,000 6,175 (26,825) -81%
Flex Benefits 1,327,735 1,132,334 (195,401) -15%
OPEB 116,242 112,872 (3,370) -3%
PTS 11,856 11,301 (555) -5%
Total 9,724,350 8,990,122 (734,227) -8%
BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
5 Expenditures in the General Fund were much lower than budgeted, which was anticipated and discussed at the budget workshop for the FY 2024-25 budget. The final FY 2023-24 approved budget was $12,066,059 of which the City spent $10,472,460 for a variance of ($1,593,599) under budget. When the City held the budget workshop to plan the current year (FY 24-25) budget, estimated expenditures for FY 23-24 were $11,113,825. These are total General Fund expenses, which include both Measure S and all other expenses.

Both Measure S and non-Measure S expenses came in under the projection. The breakdown is shown below.

Note that unspent Measure S funds are retained in the Measure S balance, to be used for future Measure S expenses (fire, police, streets, and swimming pool). Also note that some of the unspent budget has been re-budgeted in FY 2024-25. For example, the majority of the Measure S variance (related to street maintenance projects) has been carried over to be completed this year.

The City uses a conservative approach to budgeting. The budget includes full funding for every authorized position and project. When positions are vacant or projects are deferred, actual expenditures will be under budget. In addition, operational expenses such as utilities, supplies, and contract services are estimated to ensure departments have sufficient budget to provide services for the entire year even if supplier prices increase or additional needs arise. Actual department usage and vendor prices will vary from the estimates, resulting in budget-to-actual differences. A summary of these variances is listed below, showing all expenditures (Measure S and non- Measure S).

Measure S
Expenses
All Other
Expenses
Total
General
Fund
Expenses
Budget 3,257,813 8,808,246 12,066,059
Actual 2,771,394 7,701,066 10,472,460
Variance to budget (486,419) (1,107,180) (1,593,599)
Projected at FY 24-25 budget workshop 3,117,081 7,996,744 11,113,825 Actual 2,771,394 7,701,066 10,472,460
Variance to workshop projection (345,687) (295,678) (641,365) BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
6 Fund balance as of June 30, 2023 was $4,575,246. With the FY 23-24 results, the fund balance as of June 30, 2024 is $5,176,051. The FY 2024-25 budget as amended through December 2024 would result in an ending fund balance of $2,980,512 if 100% of the budget were to be spent. Under the General Fund reserve policy adopted by the City Council in 2022, when calculating projected fund balance, we include an estimate that 5% of the operational budget will not be spent. With this estimate, the projected fund balance at the end of the current fiscal year would be $3,511,857.

However, not all of the fund balance is available for new spending. Of the total fund balance, a portion is required to be held in reserve by Council policy (25% of the budgeted operating expenses, not including grant-funded projects and CIP). Based on the current budget for FY 24-25, the required reserve for the end of FY 24-25 would be $2,656,724.

In addition, a portion of the fund balance is unspent Measure S funds. Those funds are set aside for Measure S activities, per Council direction; that balance is $1,063,092 as of June 30, 2024 and is projected to be $337,420 at the end of FY 2024-25. With these factors included, there is currently estimated to be $517,713 in unallocated reserves projected for the end of FY 24-25.

Budget -
Total
Actual -
Total
Variance -
Total
Wages 3,901,461 3,710,102 (191,359)
Benefits 1,992,699 1,871,048 (121,651)
Utilities 351,246 319,780 (31,466)
Materials and Supplies 1,214,586 886,162 (328,424)
Contract Services 1,949,847 1,337,671 (612,175)
Travel and Training 254,532 152,214 (102,318)
Contributions 450,269 338,112 (112,157)
Transfers 1,373,900 1,369,479 (4,421)
ISF 498,469 477,357 (21,112)
Other 79,050 10,535 (68,515)
Total 12,066,059 10,472,460 (1,593,599)
Fund balance at 6/30/24 5,176,051
FY 24-25 budgeted revenues 10,268,988
FY 24-25 budgeted expenditures (12,464,527)
Budgeted fund balance at 6/30/25 2,980,512
Plus estimated 5% operational budget-to-actual savings 531,345 Projected fund balance at 6/30/25 3,511,857
BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
7 The current year’s budget is under review, and staff will be presenting a mid-year update at an upcoming meeting. Budgeted revenues for FY 24-25 are anticipated to increase due to building permit revenue for housing development; other revenues will be evaluated to determine if any other increases (or decreases) are warranted. In addition, staff is working on updated expense projections for wages and benefits due to known vacancies.

Departments are also reviewing their current year expenses and priorities and may have additional requests to present to the Council. At the mid-year budget update, the Council will be provided updated projections to inform decision-making about the status of the General Fund and plans for the future.

Housing Authority Fund
The Housing Authority is funded by the Federal Department of Housing and Urban Development (HUD). Housing Authority revenues were under budget by ($236,263) and expenditures were also under budget by ($362,549), mostly due to lower utilization of housing vouchers and some admin expenditures.

Revenues for the Housing Authority are difficult to project, as the City operates on a July through June fiscal year, and HUD funds the program based on the calendar year. In addition, the Federal government is often delayed in approving the budget factors for Housing; when the City adopts its budget, the actual level of federal funding is unknown.

Another factor is the timing of revenue reimbursements; HUD issues monthly payments to the Housing Authority for the anticipated expenses of that month and then adjusts to actual some time later. When those adjustments occur months after the fiscal year has already ended, the revenues for the fiscal year may appear low and then “catch up” the following year. The Housing Authority Director watches these numbers closely throughout the year and adjusts expenditures as needed. In addition to the fund balance held by the City, the Housing Authority has a reserve that is held by HUD. The Housing Authority draws on this reserve as necessary to ensure the smooth operation of the program.

Finally, HUD regulations prevent the Housing Authority from building up a large fund balance in the HAP reserve; in fact, if the HAP fund balance held by the City is too high, HUD will reduce its funding until the fund balance is lowered. Therefore, fluctuation in fund balance from year to year is anticipated.

The Housing Authority fund balance increased from $379,755 to $466,907. Of this total, the HAP reserve held by the City was a negative ($12,568) to be funded from the HAP balance held by HUD, and $479,475 is admin reserve.

Projected fund balance at 6/30/25 3,511,857
Budgeted Measure S balance (337,420)
Required reserve (25% of operational expenses) (2,656,724) Unallocated fund balance projected at 6/30/25 517,713
BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
8 RV Park Fund
Revenues for the RV Park were $29,332 over budget, almost all of which was in interest earnings. Operating expenses were ($100,683) lower than budgeted. Items under budget include parts and supplies (including new signage which was re-budgeted in FY 24-25, merchandise, bike lockers, and other supplies), and contracts (including bathroom design which is now expected to be handled in-house.

The RV Park has a working capital balance of $563,013 as of June 30, 2024. The current FY 24-25 budget is projected to decrease working capital by approximately $9,000 and the rest of the working capital balance will be utilized to assist with cash flow for a large grant project.

Sewer Fund
Sewer Fund revenues came in a total of $572,220 over budget. Sewer connections were $1,138,378 over budget due to large one-time developments. Interest and service revenues were over budget by lesser amounts ($98,644 and $148,606 respectively), partially offset by CSA and grant revenues coming in under budget. CSA revenues are directly tied to CSA expenses, which were also under budget. The grant revenue was under budget due to grant expenses that rolled over to the next fiscal year.

Operating expenses were ($946,696) under budget, spread across multiple departments.

The largest variance was ($631,773) was due to the remaining balance of a capital planning grant that was re-budgeted in FY 24-25.

Most of these variances were anticipated at the time the FY 24-25 budget workshop was held. Actual revenues came in $116,544 higher than the total projected at the budget workshop, and actual expenses came in ($274,895) lower than projected at the workshop.

The following table shows the budget variances by category for expenses:

Working capital (for the Sewer Fund and Sewer CIP Fund combined) increased from $4,465,141 to $4,967,917. The increase (rather than the budgeted decrease) is largely due to the one-time revenues in connection fees and delayed capital improvements.

Category Over (Under) Budget
Wages and benefits (102,067)
Utilities (2,459)
Parts and supplies (103,873)
Contracts (803,527)
Travel, training, dues etc (9,573)
Other 101,369
ISF (26,567)
Total (946,696)
BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
9 Working capital is a calculation to estimate short-term available funds (not the same as total fund balance). Total net position for the fund increased, partly because of pension liability adjustments required by GASB 68 (which will be expensed in future years), and partly because of the investment in capital assets. For operating purposes, the outlay for capital improvements is a reduction in working capital because it reduces the cash available to fund other obligations. However, for net position (fund balance) purposes, the capital asset is depreciated over time rather than expensed immediately.

As the Sewer Fund continues to invest in planned capital improvements, the fund’s cash balance (and working capital) will continue to decrease. The current FY 24-25 budget includes planned net expenditures of ($1,937,046) out of working capital, which if fully spent would reduce the working capital to $3,030,871. As discussed in several previous meetings and workshops, working capital is projected to decrease significantly over the next several years as priority capital improvements are made. Capital improvement needs as well as the annual debt service payment in addition to normal operating costs show the fund is on a downward trajectory.

The City is currently working on a sewer rate study, which will provide updated information on the needs of the Sewer Fund to fund ongoing operational costs plus capital improvement needs while maintaining a healthy working capital balance in reserve.

Water Fund
Water Fund revenues came in a total of $513,589 over budget. The majority of this was in connection fee revenue ($326,461 over budget) due to large one-time developments.

Interest revenue was $65,102 over budget and service revenues were $75,579 over budget.

Operating expenses were ($172,71) under budget, with the largest variances being staffing and contract services.

Most of these variances were anticipated at the time the FY 24-25 budget workshop was held. Actual revenues came in $200,427 higher than the total projected at the budget workshop, and actual expenses came in $40,086 higher than projected at the workshop.

Category Over (Under) Budget
Wages and benefits (55,648)
Utilities (8,253)
Parts and supplies (69,453)
Contracts (71,119)
Travel, training, dues etc (14,182)
Other 73,400
ISF (27,516)
Total (172,771)
BUDGET-TO-ACTUAL OPERATING RESULTS FY 2023-24
January 13, 2025
10 Working capital (for the Water Fund and Water CIP Fund combined) increased from $3,536,257 to $4,287,753. The increase (rather than the budgeted decrease) is largely due to the one-time revenues in connection fees and delayed capital improvements.

Working capital is a calculation to estimate short-term available cash (not the same as total fund balance). As the Water Fund continues to invest in planned capital improvements, the fund’s cash balance (and working capital) will decrease. The current FY 24-25 budget includes planned expenditures of ($1,796,388) out of working capital, which if fully spent would reduce the working capital to $2,491,365.

As discussed in several previous meetings and workshops, working capital is projected to decrease significantly over the next several years as priority capital improvements are made. Capital improvement needs in addition to normal operating costs show the fund is on a downward trajectory.

The City is currently working on a water rate study, which will provide updated information on the needs of the Water Fund to fund ongoing operational costs plus capital improvement needs while maintaining a healthy working capital balance in reserve.

FISCAL ANALYSIS
Preparation of this report is informational in nature and has no direct fiscal impact.

STRATEGIC PLAN ASSESSMENT
This report is consistent with Strategic Plan Goal 3 to “Maintain responsible fiscal management and accountability.”

ATTACHMENT

1. Budget-to-Actual Report as of June 30, 2024
Description Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget
Non-departmental revenue
Tax revenue 2,300,000 2,345,019 45,019 2% 4,994,346 5,226,785 232,439 5% 7,294,346 7,571,805 277,459 4% Licenses & permits 259,650 264,255 4,605 2% 259,650 264,255 4,605 2% Interest income 60,000 225,900 165,900 276% 60,000 225,900 165,900 276% Lease-rental income 30,182 35,494 5,312 18% 30,182 35,494 5,312 18% Other revenue 11,150 19,064 7,914 71% 11,150 19,064 7,914 71% Departmental revenue
City council 102,407 101,418 (989) 102,407 101,418 (989) -1% City manager 94,340 1,423 (92,917) -98% 94,340 1,423 (92,917) -98% Econ dev, community support, grants 96,103 89,563 (6,540) -7% 96,103 89,563 (6,540) -7% City clerk 98,693 100,237 1,544 98,693 100,237 1,544 2% Human resources 55,857 37,569 (18,288) -33% 55,857 37,569 (18,288) -33% Finance - 900 900 - 900 900
Fire 401,260 347,957 (53,303) -13% 748,164 786,895 38,731 5% 1,149,424 1,134,852 (14,572) -1% Police 422,360 305,559 (116,801) -28% 422,360 305,559 (116,801) -28% Code enforcement 64,000 316 (63,684) -100% 64,000 316 (63,684) -100% Building inspection 317,200 475,956 158,756 50% 317,200 475,956 158,756 50% Planning 104,750 228,943 124,193 119% 104,750 228,943 124,193 119% Streets 215,977 214,165 (1,812) -1% 215,977 214,165 (1,812) -1% Parks 5,000 4,044 (956) -19% 5,000 4,044 (956) -19%
Cultural center 76,400 38,113 (38,287) -50% 76,400 38,113 (38,287) -50% Swimming pool 216,055 223,689 7,634 4% 216,055 223,689 7,634 4% Revenue total 2,701,260 2,692,976 (8,284) 0% 7,972,634 8,380,289 407,655 5% 10,673,894 11,073,265 399,371 4% Non-departmental expenditures 251,646 109,702 (141,944) -56% 251,646 109,702 (141,944) -56% City council 158,443 149,258 (9,185) -6% 158,443 149,258 (9,185) -6% City manager 187,392 89,536 (97,856) -52% 187,392 89,536 (97,856) -52% Econ dev, community support, grants 438,188 390,736 (47,452) -11% 438,188 390,736 (47,452) -11% City clerk 152,629 154,524 1,895 1% 152,629 154,524 1,895 1% Human resources 157,660 133,007 (24,653) -16% 157,660 133,007 (24,653) -16% Finance 7,500 5,317 (2,183) -29% 267,580 244,992 (22,588) -8% 275,080 250,310 (24,770) -9% City attorney 82,535 76,130 (6,405) -8% 82,535 76,130 (6,405) -8% Fire 1,096,829 920,879 (175,950) -16% 1,162,269 1,092,614 (69,655) -6% 2,259,098 2,013,493 (245,605) -11% Police 489,811 463,279 (26,532) -5% 2,920,948 2,745,559 (175,389) -6% 3,410,759 3,208,838 (201,921) -6% Code enforcement 136,155 130,873 (5,282) -4% 136,155 130,873 (5,282) -4% Building inspection 242,468 214,011 (28,457) -12% 242,468 214,011 (28,457) -12% Planning 402,746 364,148 (38,598) -10% 402,746 364,148 (38,598) -10% PW admin / engineering 112,731 107,071 (5,660) -5% 112,731 107,071 (5,660) -5% Streets 1,088,673 836,453 (252,220) -23% 694,146 513,419 (180,727) -26% 1,782,819 1,349,872 (432,947) -24% Parks 532,204 402,942 (129,262) -24% 532,204 402,942 (129,262) -24% Cultural center 272,733 200,277 (72,456) -27% 272,733 200,277 (72,456) -27% Swimming pool 575,000 545,466 (29,534) -5% 635,773 582,267 (53,506) -8% 1,210,773 1,127,733 (83,040) -7% Expenditure total 3,257,813 2,771,394 (486,419) -15% 8,808,246 7,701,066 (1,107,180) -13% 12,066,059 10,472,460 (1,593,599) -13% Net operating results (556,553) (78,418) (835,612) 679,223 (1,392,165) 600,805 Fund balance 6/30/19 - 2,598,700 2,598,700
Fund balance 6/30/20 - 1,427,571 1,427,571
Fund balance 6/30/21 332,467 3,165,056 3,497,523
Fund balance 6/30/22 405,485 3,689,572 4,095,057
Fund balance 6/30/23 1,141,510 3,433,736 4,575,246
Fund balance 6/30/24 1,063,092 4,112,959 5,176,051
City of Crescent City
FY 2023-24 General Fund Operating Report
June 30, 2024 Year End Results
Measure S All Other Total General Fund
Description Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget
Revenue
Interest 140 10,966 10,826 7733%
Recovery - admin 50% 15,000 9,069 (5,931) -40%
Recovery - HAP 50% 15,000 9,069 (5,931) -40%
HCV admin revenue 550,639 593,288 42,649 8%
HCV housing assistance 3,346,764 3,042,324 (304,440) -9% EHV admin revenue 15,665 16,267 602 4%
EHV housing assistance 108,000 82,648 (25,352) -23%
MSV admin revenue 36,988 46,511 9,523 26%
MSV housing assistance 193,800 229,696 35,896 19%
HAP owner reimbursement - 5,894 5,894
Revenue total 4,281,996 4,045,733 (236,263) -6%
Expenditures by department
Administration 5,120 2,390 (2,730) -53%
Finance 9,115 8,001 (1,114) -12%
City attorney 2,086 1,073 (1,013) -49%
Housing Authority
HCV housing assistance 3,346,764 3,049,316 (297,448) -9% EHV housing assistance 112,500 83,311 (29,189) -26%
MSV housing assistance 193,800 218,544 24,744 13%
All other 651,745 595,946 (55,799) -9%
Expenditure total 4,321,130 3,958,581 (362,549) -8%
Net operating results (39,134) 87,151
Fund balance 6/30/19 132,719
Fund balance 6/30/20 330,292
Fund balance 6/30/21 439,847
Fund balance 6/30/22 399,015
Fund balance 6/30/23 379,755
Fund balance 6/30/24 466,907
HAP balance 6/30/24 (12,568)
Admin balance 6/30/24 479,475
Total fund balance 466,907
City of Crescent City
FY 2023-24 Housing Fund Operating Report
June 30, 2024 Year End Results
Description Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget
Revenue
Interest - 27,527 27,527
Misc sales 12,000 11,021 (979) -8%
Rental revenue 518,000 520,784 2,784 1%
Revenue total 530,000 559,332 29,332 6%
Expenses by department
RV Park 527,148 436,502 (90,646) -17%
Administration 12,485 11,653 (832) -7%
Finance 50,829 41,853 (8,976) -18%
City attorney 10,160 9,931 (229) -2%
Expense total 600,622 499,939 (100,683) -17%
Net operating results (70,622) 59,393
Reconcile to audit
Net operating results 59,393
Capitalized asset expenses 5,412
Depreciation expense (61,710)
Change in net position 3,096
Net position 6/30/19 1,108,042
Net position 6/30/20 1,112,129
Net position 6/30/21 1,195,642
Net position 6/30/22 1,248,376
Net position 6/30/23 1,252,568
Net position 6/30/24 1,255,664
Working capital 6/30/19 157,997
Working capital 6/30/20 224,882
Working capital 6/30/21 369,164
Working capital 6/30/22 433,197
Working capital 6/30/23 503,933
Working capital 6/30/24 563,013
City of Crescent City
FY 2023-24 RV Park Fund Operating Report
June 30, 2024 Year End Results
Description Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget
Revenue
Interest 80,000 228,606 148,606
Other income 27,196 33,624 6,428 24%
Charges for services 4,471,768 4,570,412 98,644 2%
Sewer connections 345,000 1,483,378 1,138,378 330%
Sewer lab 118,000 102,581 (15,419) -13%
County collection systems 357,426 211,399 (146,027) -41% Grant revenue 808,145 152,565 (655,580) -81%
Transfers in 29,896 27,088 (2,808) -9%
Revenue total 6,237,431 6,809,651 572,220 9%
Expense
Administration 132,380 121,998 (10,382) -8%
Economic development and grants 55,723 51,282 (4,441) -8% Finance 435,335 403,121 (32,214) -7%
City attorney 64,065 59,469 (4,596) -7%
Sewer lab 565,709 537,295 (28,414) -5%
WWTP operations 2,806,526 2,064,218 (742,308) -26%
City collection systems 466,943 384,581 (82,362) -18%
County collection systems 365,013 253,514 (111,499) -31% WWTP maintenance 242,761 205,865 (36,896) -15%
Other - 106,415 106,415
Operating expense total 5,134,455 4,187,759 (946,696) -18% Debt service 1,697,663 1,697,663
Transfers to Sewer CIP Fund 52,398 52,398
Transfers to Equipment Fund 49,400 49,284
Total 6,933,916 5,987,104
Net operating results
(Sewer Fund only) (696,485) 822,548
City of Crescent City
FY 2023-24 Sewer Fund Operating Report
June 30, 2024 Year End Results
Sewer CIP Fund Activity
Revenue
Interest 25,000 61,684 36,684
Transfers in from Sewer Fund 52,398 52,398 - 0%
Revenue total 77,398 114,082 36,684 47%
Expense
CIP expenses 1,036,802 107,497 (929,305) -90%
Expense total 1,036,802 107,497 (929,305) -90%
Net operating results
(Sewer CIP Fund only) (959,404) 6,586
Net operating results
Sewer Fund and Sewer CIP Fund
combined 829,133
Reconcile to audit
Net operating results - Sewer Fund 822,548
Net operating results - Sewer CIP Fund 6,586
Debt service 1,697,663
Depreciation expense (1,714,705)
Capitalized asset expenses 201,044
GASB 68 pension adjustment (17,715)
GASB 75 OPEB adjustment 8,134
Change in net position 1,003,554
Net position 6/30/19 8,140,401
Net position 6/30/20 7,747,435
Net position 6/30/21 7,531,480
Net position 6/30/22 6,632,829
Net position 6/30/23 7,114,901
Net position 6/30/24 8,118,455
Working capital 6/30/19 6,305,740
Working capital 6/30/20 6,111,421
Working capital 6/30/21 5,687,894
Working capital 6/30/22 5,429,739
Working capital 6/30/23 4,465,141
Working capital 6/30/24 4,967,917
Description Budget Actual
$ Over
(Under)
Budget
% Over
(Under)
Budget
Revenue
Interest 48,000 138,996 90,996
Rental revenue 24,648 19,132 (5,516) -22%
Other revenue 27,196 33,539 6,343 23%
Charges for services 2,575,421 2,656,015 80,594 3%
Water connections 175,000 495,986 320,986 183%
Water CSD admin revenue 3,300 3,505 205 6%
Reimbursements 53,200 - (53,200)
Grant revenue 4,464 78,625 74,161
Transfers in 463,314 462,334 (980) 0%
Revenue Total 3,374,543 3,888,132 513,589 15%
Expense
Administration 129,960 117,538 (12,422) -10%
Economic development and grants 49,962 45,253 (4,709) -9% Finance 409,679 378,725 (30,954) -8%
City attorney 57,275 52,425 (4,850) -8%
Water operations 1,881,301 1,724,082 (157,219) -8%
Water CSD 123,971 83,935 (40,036) -32%
Other - 77,419 77,419
Expense Total 2,652,148 2,479,377 (172,771) -7%
Debt service 175,000 175,000
Transfers to Water CIP Fund 549,000 549,000
Transfers to Equipment Fund 148,200 147,852
Total Expenditures 3,524,348 3,351,229
Net operating results
(Water Fund only) (149,805) 536,903
City of Crescent City
FY 2023-24 Water Fund Operating Report
June 30, 2024 Year End Results
Water CIP Fund Activity
Revenue
Interest 30,000 71,119 41,119
Transfers in from Water Fund 549,000 549,000 - 0%
Grant revenue 700,000 2,205 (697,795)
Other 32,167 - (32,167)
Revenue Total 1,311,167 622,324 (688,843) -53%
Expense
CIP expenses 2,389,571 468,370 (1,921,201) -80%
Transfers out to Water Fund 433,418 435,628 2,210
Expense Total 2,822,989 903,998 (1,918,991) -68%
Net operating results
(Water CIP Fund only) (1,511,822) (281,674)
Net operating results
Water Fund and Water CIP Fund combined 255,228
Reconcile to audit
Net operating results - Water Fund 536,903
Net operating results - Water CIP Fund (281,674)
Debt service 175,000
Depreciation expense (307,346)
Capitalized asset expenses 467,907
GASB 68 pension adjustment (10,965)
GASB 75 OPEB adjustment 4,626
Change in net position 584,450
Net position 6/30/19 9,631,711
Net position 6/30/20 10,234,212
Net position 6/30/21 10,980,479
Net position 6/30/22 10,948,847
Net position 6/30/23 11,722,617
Net position 6/30/24 12,307,067
Working capital 6/30/19 2,580,622
Working capital 6/30/20 2,345,977
Working capital 6/30/21 3,026,123
Working capital 6/30/22 3,425,465
Working capital 6/30/23 3,536,257
Working capital 6/30/24 4,287,753

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: DAVID YEAGER, PUBLIC WORKS DIRECTOR
DATE: JANUARY 13, 2025
SUBJECT: 2025 DOWNTOWN MARKET LOCATION
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Direct staff regarding a location for the 2025 season for the Downtown Market run by Del Norte & Tribal Lands Community Food Council

BACKGROUND
For many years the Downtown Divas have obtained a permit and operated a Downtown Market on Wednesdays, providing local produce, crafts, and food produced by food vendors to the public. This environment encourages a gathering of both locals and visitors to visit downtown Crescent City. The availability of local products has benefitted the farmers and vendors, as well as providing a convenient source to obtain healthy foods and locally produced products. A successful and engaging downtown farmers market is a benefit to both the City and our residents.

The 2024 season had the market set to be placed in the parking lot at Front and K Streets.

After the first open market day in June, however, it was determined the noise and dust created by the reconstruction of Front Street created too much of a negative effect on the market to continue at that location. The market location was moved to the clock tower parking lot at Third and K Street. This location was deemed a success by most vendors due to the synergy created by bringing more people into the downtown area along the Third Street corridor. However, it recently came to staff’s attention that this location was negatively impactful to the local businesses at the Mason Mall due to the loss of a majority of the public parking lot adjacent to the mall. The Mason Mall businesses staff spoke to articulated they were hopeful that the market location / impacts were a temporary inconvenience, and a new home could be found for the 2025 season.

The 2024 market season was managed under a transitional joint management between the Downtown Divas and the Del Norte and Tribal Lands Community Food Council. For the 2025 season and beyond, the market is to be operated entirely by the DNATL CFC.

The Community Food Council will be responsible to obtain all necessary permitting, 2025 DOWNTOWN MARKET LOCATION
January 13, 2025
2 including certification as a Farmers’ Market. The DNATL CFC objective for the Market is as follows:
“The Downtown Crescent City Farmers Market is a vital cornerstone of Del Norte County, connecting community members with fresh, local produce, artisan goods, and essential food programs. As the only certified farmers’ market in the county, it plays a unique role in fostering a thriving local food economy and promoting food access to fresh, nutritious fruits and vegetables.”
The Del Norte and Tribal Lands Community Food Council will also oversee and administer the EBT and Market Match Program.
“The market’s certified status enables the Farmers Market to accept Food Stamps/EBT payments and participate in the Market Match program, doubling EBT dollars up to $20 for fresh produce, thanks to an Ecology Grant through California Department of Agriculture. Generous local support from Sutter Health and the Health District extends this benefit to WIC, Senior, and Open Door vouchers. On average, $1000 in EBT and Market Match reimbursements are distributed to farmers and food vendors each week, reinforcing food security and supporting local producers.” The Market also includes youth engagement and education through programs like the POP Club (Power of Produce), and other programs to encourage healthy eating habits through tastings and vouchers for fresh fruits and vegetables.

The market is scheduled to run every Wednesday from June through October from 9 a.m. to 2 p.m.

ITEM ANALYSIS
After hearing the concerns a few local Mason Mall businesses, City staff met with representatives with the DNATL CFC regarding the best location for next year’s market.

The current location was discussed as well as several additional options. Following several discussions and review of multiple sites, the Community Food Council has articulated that given some of the concerns of the businesses located in Mason Mall their preferred location for the 2025 Market is the Bank of America parking lot at 240 H Street (building and lot are owned by the City) and the adjoining section of G Street between 2nd Street and the Paragon Coffee parking lot. This site has the benefit of access to the downtown, proximity to public transportation, and senior housing. It is still adjacent to 3rd and H Streets in the active downtown development area.

City staff along with Food Council representatives spoke with the majority of the businesses located adjacent to this location to inquire if they had any immediate concerns with the proposed market and specifically the possible impacts to on-street parking in front of their businesses. The businesses contacted include the Post Office, Cutting Loose Hair Salon, the Housing Authority, Del Norte Office Supply, and Paragon Coffee. Although this certainly was not an exhaustive outreach, all of the businesses staff spoke to were 2025 DOWNTOWN MARKET LOCATION
January 13, 2025
3 supportive of the Market and most stated they thought it would have a positive impact on their business due to the increased traffic and exposure.

In order for this location be fully conducive to serve the needs of the Farmers’ Market the Food Council has stated the need for an accessible portable toilet to be placed in the parking lot as well as some minor electrical improvements to install exterior outlets for use by vendors.

After completion of the Downtown Specific Plan, Front Street, and Beachfront Park, future location alternatives should be evaluated again. However, the Del Norte and Tribal Lands Community Food Council needs to have a market address confirmed soon for the 2025 season so they may complete their applications for both the EBT system as well as other grant funding opportunities.

After receiving Council direction, staff will bring back an agreement with the Food Council outlining the responsibilities of the City and Food Council, the location of the market, utility use, etc., as well as any City budget adjustments needed to a future meeting.

FISCAL ANALYSIS
Electrical improvements are estimated to be a one-time expense of $1,000 – $2,000. The Food Council is willing to partner with the City to share the costs of the ADA accessible portable toilet rental which is estimated to be approximately $2,600 for the entire season.

Consistent with the past markets located in the Front Street and 3rd Street parking lots, the City would continue to pay for the electricity used by the Market.

If directed by the Council to utilize this location, staff request $2,500 for electrical improvements and $300 for a share of the portable toilet cost for June. This could be an additional budget allocation, or Council could direct staff to utilize a portion of the $30,000 budgeted for additional marketing and economic development (currently $26,300 of this budget is remaining as $3,700 was utilized for additional advertising in a National Park publication). As the Market season will extend into FY25/26 the agreement for the 2025 Summer season would also commit the City to approximately $1000 for portable toilet facilities in the FY25/26 budget.

STRATEGIC PLAN ASSESSMENT
GOAL 1: SUPPORT QUALITY SERVICES, COMMUNITY SAFETY, AND HEALTH TO

ENHANCE THE QUALITY OF LIFE AND EXPERIENCE OF OUR RESIDENTS AND

VISITORS
A. Enhance collaboration with other agencies and the community to better aid the public.

E. Target economic development improvements that provide additional benefit by enhancing the quality of life for residents.

F. Incorporate health considerations into decision-making.

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: KEVIN CAREY, FIRE CHIEF
DATE: JANUARY 13, 2025
SUBJECT: SCBA PURCHASE FOR FIRE DEPARTMENT
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Approve and ratify the City Manager’s signature on the purchase order for $199,682.28 worth of new Self-Contained Breathing Apparatus (SCBA) from Bauer Compressors for Crescent City Fire & Rescue.

BACKGROUND
On April 30, 2024, the Measure S Oversight Committee adopted Resolution No. MS 2024- 03, which approved the recommended expenditures of Measure S funds for the fiscal year 2024-2025. As part of this approval, $200,000 was allocated for the purchase of SelfContained Breathing Apparatus (SCBA) for Crescent City Fire & Rescue. This purchase is identified in Exhibit A of Resolution No. MS 2024-03.

Following this, the City Council adopted Resolution No. 2024-47, which formally approved the annual budget for the City of Crescent City, including the Measure S expenditure for the purchase of SCBAs. The purpose of this purchase is to replace the outdated SCBA equipment currently used by the Fire Department with new, state-of-the-art air packs, air cylinders, and masks.

The purchase of new SCBAs will enhance the safety and operational efficiency of the Crescent City Fire & Rescue Department. The current SCBA units are outdated and no longer meet the modern standards required for effective firefighter safety and performance. The new equipment will provide:
• Increased Safety: New SCBAs will offer enhanced protection for firefighters in hazardous environments.
• Improved Efficiency: Modern equipment improves response time and functionality during emergencies.
• Compliance with Standards: The new equipment will meet or exceed current fire safety standards, ensuring the Fire Department remains compliant with regulations.

The purchase of these SCBAs was made through Bauer Compressors, who holds a Sourcewell contract. The City is a Sourcewell member, which allows the City to bypass a lengthy competitive bidding process and take advantage of pre-negotiated pricing and terms for the purchase of equipment. This purchase includes 24 SCBAs, 46 high pressure air bottles, 24 SCBA masks, and accessory equipment. The Crescent Fire Protection District, with funding provided by the Districts Benefit Assessment will also be making a similar purchase. This will result in our Fire Department (Crescent City Fire and Rescue) and the Volunteers that serve receiving double the quantities of the above listed essential equipment to help protect and serve our community.

Due to the need to make the purchase prior to the end of the calendar year, after which pricing would increase, the City Manager signed the purchase order prior to presenting the purchase to the City Council. Thus, the requested action is ratification (post-action approval) of the City Manager’s execution of the purchase order.

FISCAL ANALYSIS
The fiscal impact of this purchase will be an expense of $199,682.28 from Measure S funds, which was approved by the Measure S Oversight Committee and incorporated into the City’s FY 24-25 budget. These funds are designated specifically for the acquisition of SCBAs for the Fire Department.

STRATEGIC PLAN ANALYSIS
This action supports Strategic Plan Goals #1C Empower and utilize Police, Fire, and Public Works departments to make Crescent City one of the safest cities in the United States; #2A Evaluate and optimize additional revenue sources and #3B Maintain responsible fiscal management and accountability.

ATTACHMENT

1. PO# 55857

PURCHASE ORDER
No. 0000055857
VENDOR: SHIP TO: BILL TO:

Bauer Compressors Inc City of Crescent City
1328 Azalea Garden Rd 377 J Street
Norfolk, VA 23502-1944 Crescent City, CA 95531
,
VENDOR NO. VENDOR PHONE NUMBER TERMS DATE REQUIRED DELIVERY DATE BAUER 0

SHIPPING INSTRUCTIONS
(none)
12/20/2024

ITEM QTY U/M DESCRIPTION/TASK PRD CODE ACCOUNT UNIT PRICE AMOUNT New breathing apparatus - air packs,
air cylinders, masks
1 1.00 001-230-4391-2020S 199,682.28 199,682.28
SUBTOTAL:

TAX:

SHIPPING:

TOTAL:
199,682.28

0.00 0.00
TAXABLE: 199,682.28
CONFIRMING:

Yes

AUTHORIZED SIGNATURE
IMPORTANT: OUR ORDER NUMBER MUST APPEAR ON EVERY INVOICE AND PACKAGE

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: MARTHA D. RICE, CITY ATTORNEY
DATE: JANUARY 13, 2025
SUBJECT: RANNEY COLLECTOR SURGE TANK PARTNER PROJECT WITH ELK

VALLEY RANCHERIA
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to sign a Memorandum of Agreement Between Elk Valley Rancheria, California and the City of Crescent City

BACKGROUND
The City and Elk Valley Rancheria (the “Tribe”) have an established history of working together to seek grant opportunities for public projects that are beneficial to both the City and the citizens of the Tribe. The success stories include an Indian Development Block Grant that provided $605,000 toward modernizing the City Fire Station and purchasing a new fire engine for the Fire Department, and a $200,000 grant for rehabilitation work on the Amador Water Tank.

The Tribe was recently informed by the Bureau of Reclamation (BOR) that it was awarded $200,000 to be used towards the City’s Ranney collector surge tank project. The Ranney collector is a well located off South Bank Road that draws water from the Smith River underflow. This water is then chlorinated and pumped through transmission mains to Crescent City. The City provides municipal water not only to properties within the City, but also to communities outside of the city limits (Bertsch-Ocean View CSD, Church Tree CSD, Meadowbrook Subdivision, Redwood West Subdivision, Elk Valley Rancheria Casino and Tribal Fuel Mart, etc.).

In 2019, an 14-inch water main on Skookum Lane (near the Ranney collector) ruptured, necessitating replacement of 18 feet of cast iron pipe. This event coincided with a loss of power and loss of telemetry combined with a control strategy which commanded all

RANNEY COLLECTOR SURGE TANK
JANUARY 13, 2025
2 three Ranney collector pumps to cycle on at full capacity. The resulting pressure surge was speculated to have caused the water main rupture.

In 2022, a surge analysis of the water system was completed which analyzed the pressure surges caused by sudden loss of power at the Ranney collector and the related operation of the pressure reducing valve (PRV) system. The report explained that a sudden loss of power causes pump(s) to shut down without a ramp-down program which generates vapor cavities downstream in the 14-inch and 18-inch water mains. When these vapor cavities collapse, they generate high localized pressures (water hammer), which can damage the pipelines.

The study recommends the installation of a 6,000-gallon pressurized surge tank as close as possible to the discharge-side of the pumps and downstream of the check valves. The Ranney collector pumps already have the necessary check valves to prevent backflow when turned off. In the event of a power outage, the surge tank will provide the necessary positive pressure to prevent the formation of vapor cavities and changes in pressure would be gradual.

ITEM ANALYSIS
The Elk Valley Rancheria applied for and received a $200,000 grant from the Bureau of Reclamation to be put toward the project, which had an original cost estimate of $577,154.

However, due to the passing of time and the escalation in costs for construction and materials, the cost estimate has now increased to $677,154. However, because the BOR grant recites the original cost estimate, it was determined that we would keep that number in the MOA for consistency if and when BOR reviews the MOA. Regardless, the City is responsible for any costs over the $200,000 grant. The City’s Water Fund will pay approximately $477,154 to complete the project. Through the memorandum of agreement (MOA), the City will advertise and procure the project, pay the contractor, and receive reimbursement from the Tribe. The Tribe will handle all grant administration responsibilities and reporting obligations.

FISCAL ANALYSIS
The current cost estimate for the project is $677,154. Staff has been working with the Tribe for some time to plan this project and secure the funding, and the grant revenue and expense are already included in this year’s budget.

STRATEGIC PLAN ANALYSIS
This item is consistent with the following strategic plan goals:
• Goal 1: Support Quality Services, Community Safety, and Health to Enhance the Quality of Life and Experience of Our Resident and Visitors o A: Enhance collaboration with other agencies and the community to better aid the public

RANNEY COLLECTOR SURGE TANK
JANUARY 13, 2025
3 o D: Provide and maintain an efficient, adequate infrastructure to provide for both current and future community needs
• Goal 2: Promote a Thriving Local Economy
o D: Collaborate with other jurisdictions and nonprofits to maximize regional effectiveness and amplify funding opportunities

ATTACHMENTS

1. Memorandum of Agreement Between the Elk Valley Rancheria, California and the City of Crescent City
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BOR MOA: Crescent City Surge Tank Project
Memorandum of Agreement
Between the Elk Valley Rancheria, California
and the City of Crescent City
This Memorandum of Agreement (“MOA” or “Agreement”) is entered into by and between the Elk Valley Rancheria, California, a federally-recognized Indian Tribe (“the Tribe”), and the City of Crescent City, a California municipal corporation (“the City”), for the purpose of facilitating a partnership project for the construction of a surge tank at the Ranney Collector Control Building at 6900 South Bank Road, Crescent City, CA.

WHEREAS, the Crescent City Ranney Collector is part of the critical infrastructure of the City’s municipal water distribution system, which provides the source of drinking water and fire suppression to the greater Crescent City area, including land held in Trust for the Elk Valley Rancheria; and
WHEREAS, many Elk Valley Rancheria tribal members live off the reservation in and around the City and rely upon this important water source for drinking water and fire suppression services; and
WHEREAS, the construction of a surge tank at the Ranney Collector will absorb pressure spikes due to unplanned pump shutdown during power outages thus protecting water main infrastructure; and
WHEREAS, Crescent City Surge Tank Project has been designed by AECOM and has an estimated construction cost of $577,154; and
WHEREAS, the Tribe and the City have worked cooperatively on a grant application for a Bureau of Reclamation (BOR) grant for this project; and
WHEREAS, the Tribe was recently awarded a BOR grant in the amount of $200,000 for this project, the parties now need to formalize their roles and responsibilities with relationship to this project.

NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and sufficient consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows:

1.0 TERM. This MOA will remain in full force and effect until both parties have fulfilled their respective obligations hereunder and the BOR Grant has been closed out by the Tribe.

2.0 GRANT ADMINISTRATION. The Tribe, as the grant recipient, will administer the BOR Grant.

Jennifer Gisler will serve as the Project Director for the Tribe. The Tribe has budgeted for the costs of project oversight and tribal attorney services. These costs will not be charged to the City or the BOR Award.

3.0 CRESCENT CITY SURGE TANK PROJECT. The City will award and execute a contract for the Crescent City Surge Tank Project

3.1 Bidding Process.
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BOR MOA: Crescent City Surge Tank Project

3.1.1 The City will draft the Invitation to Bid, including the plans and specifications for the Crescent City Surge Tank Project.

3.1.2 The City, with Tribe’s prior approval, will issue the Notice Inviting Bids in accordance with all applicable laws, regulations and grant requirements.

3.1.3 The City, with the Tribe’s prior approval, will approve the award of a contract for the Crescent City Surge Tank Project.

3.1.4 The City will provide construction management services for the project, including review of all project documents, inspection and quality assurance.

3.2 Project Funding. The actual final construction contract for the Crescent City Surge Tank Project will be more than the funding provided by the BOR Grant received by the Tribe. The Tribe will contribute the $200,000 in BOR grant funding and the City will contribute the remaining $377,154. If the actual project costs are in excess of the $577,154 estimated project cost, then the City will pay 100% of the cost overrun.

3.3 Progress Payment Processing. Contractor requests for progress payments will be submitted to the City for review and approval. Upon approval, the City will pay the contractor, less retention, and then submit the progress payment approvals and evidence of payment to the Tribe to submit to BOR for reimbursement. Upon receiving reimbursement from the BOR, the Tribe will remit the reimbursement funds to the City.

The City will release the retention amount to the contractor upon request and in conformance with the construction contract requirements.

3.4 Ownership of Improvements. The City will at all times be the owner of all improvements made as part of the Crescent City Surge Tank Project.

4.0 GENERAL PROVISIONS.

4.1 Effective Date. The effective date of this Agreement is its date of execution.

4.2 Notice. Any legal notices issued pursuant to this Agreement must be made in writing and either hand-delivered or sent by first class mail, postage prepaid, and addressed as follows:

If to City: If to Tribe:

City of Crescent City Elk Valley Rancheria
Attn: City Manager Attn: Crista Stewart
377 J Street 2322 Howland Hill Rd.

Crescent City, CA 95531 Crescent City, CA 95531

4.3 No Third-Party Beneficiaries. None of the provisions of this Agreement may be construed as existing for the benefit of any party not a party to this Agreement. There are no third-party beneficiaries to this Agreement.
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BOR MOA: Crescent City Surge Tank Project

4.4 Limited Waiver of Sovereign Immunity. For the limited purposes of interpreting and enforcing this Agreement, the Tribe hereby voluntarily waives its sovereign immunity.

4.5 Governing Law and Forum. This Agreement will be governed by and interpreted in accordance with the laws of the State of California. Any legal action brought to interpret or enforce the provisions of this Agreement must be brought in Del Norte County Superior Court.

4.6 Attorney’s Fees. The prevailing party in any legal action brought to interpret or enforce the provisions of this Agreement will be entitled to an award of reasonable attorney’s fees and costs.

4.7 Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, then it is the intent of the parties that the remaining provisions of this Agreement continue in full force and effect.

4.8 Entire Agreement. This Agreement represents the entire agreement of the parties with respect to the subject matter contained herein. Any previous negotiations, discussions, or oral agreements are hereby superseded by the contents of this Agreement.

4.9 Execution. Each of the signatories hereto warrants and represents that he or she has been duly authorized to execute this Agreement.

IN WITNESS WHEREOF, the parties have caused this agreement to be executed on the date last written below in Del Norte County, California.

ELK VALLEY RANCHERIA, CALIFORNIA
Date:

Dale Miller, Tribal Council Chairman

CITY OF CRESCENT CITY
Date:

Eric Wier, City Manager
APPROVED AS TO FORM:

Martha D. Rice, City Attorney

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: ROBIN ALTMAN, CITY CLERK/ADMINISTRATIVE ANALYST
DATE: JANUARY 13, 2025
SUBJECT: 2025 COUNCIL BOARD AND COMMITTEE APPOINTMENTS
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Confirm the Mayor’s 2025 appointments to Boards and Committees • Approve and adopt Resolution No. 2025-03, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY APPOINTING ONE MEMBER

AND ONE ALTERNATE MEMBER TO THE BORDER COAST REGIONAL

AIRPORT AUTHORITY BOARD OF COMMISSIONERS

BACKGROUND
Annually, Council Members review the various boards, committees, and commissions upon which they serve as part of their role as a City Council Member. Each Council Member is asked to make their preferences known for the following year to the Mayor.

The Mayor then reviews those lists and makes appointments. That list is then brough to the City Council as a whole to confirm said appointments.

ANALYSIS
The Mayor recently reviewed the preferences of each City Council Member and made appointments to the various boards, committees, and commissions for 2025. The appointment list is attached to this staff report. The City Council can confirm the appointments as presented or as amended by the Mayor.

ATTACHMENTS

1. Mayor’s 2025 Appointment to Boards and Committees

2. Resolution No. 2025-03 (BCRAA appointment)

ORGANIZATION MEETING SCHEDULE CONTACT PERSON APPOINTED COUNCIL MEMBERS Auditor Committee As needed Linda Leaver, Finance Director, 707-464- 7483, [email protected]
Ray Altman and Isaiah Wright
Alternate: Jason Greenough
Border Coast Regional
Airport Authority
Monthly on the first
Thursday at 2pm
Ryan Cooley, Airport Director 707-464-7288 Candace Tinkler Alternate: Daran Dooley
Chamber of Commerce
Board of Directors
Monthly on the 4th Friday at
12 pm
Cindy Vosburg, Executive Director, 707-464-
3174
[email protected]
Candace Tinkler
Alternate: Daran Dooley
Crescent City Fire and
Rescue 2x2
As needed Ray Altman and Isaiah Wright
Alternate: Jason Greenough
City / County 2x2 As needed Ray Altman and Candace Tinkler Alternate: Daran Dooley
Cultural Center
Committee
As needed Isaiah Wright and Candace Tinkler
Alternate: Ray Altman
Del Norte Local
Transportation
Commission
Monthly on the first
Tuesday at 3pm
Board Chambers
Tamera Leighton, Director, 707-465-3878,
[email protected]
Ray Altman, Candace Tinkler, and Daran Dooley
Alternate: Jason Greenough and Isaiah Wright
Del Norte Solid Waste
Management Authority
Monthly on the 3rd Tuesday
at 4pm, Board Chambers
Tedd Ward, Executive Director, 707-465-
1100, [email protected]
Isaiah Wright and Candace Tinkler
Alternate: Jason Greenough and Daran Dooley
Last Chance Grade
Stakeholder Group
As needed John Driscoll, 707-407-3585 Jason Greenough and Ray Altman Alternate: Daran Dooley
Local Area Formation
Commission
Every other month on the
4 th Monday at 4pm; Board
Chambers
George Williamson, Executive Officer,
707-825-8260
[email protected]
Jason Greenough and Isaiah Wright
Alternate: Candace Tinkler and Daran Dooley
Oversight Board to the
Successor Agency to
the Crescent City
Redevelopment
Agency
Twice a year, once in
January and once in July
Eric Wier, City Manager, 707-464-7483
[email protected]
Candace Tinkler and Eric Wier
Alternate: Daran Dooley
Pelican Bay State
Prison Citizens
Advisory Committee
Quarterly on the 2nd
Wednesday at 3pm, in the
Warden’s office
Jason Greenough and Daran Dooley
Alternate: Candace Tinkler
Redwood Coast Transit
Authority (RCTA)
Monthly on the fourth
Monday at 5:30 p.m.

Joe Rye, 707-235-3078,
[email protected]
Ray Altman and Isaiah Wright
Alternate: Candace Tinkler and Jason Greenough
Visitors Bureau Quarterly on the 4
th Friday
immediately following the
Chamber of Commerce
Board of Directors meeting
Cindy Vosburg, Executive Director, 707-464-
3174; [email protected]
Candace Tinkler
Alternate: Daran Dooley
CITY OF CRESCENT CITY RESOLUTION NO. 2025-03 Page 1
RESOLUTION NO. 2025-03

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY

APPOINTING ONE MEMBER AND ONE ALTERNATE MEMBER TO THE BORDER

COAST REGIONAL AIRPORT AUTHORITY BOARD OF COMMISSIONERS WHEREAS, the Border Coast Regional Airport Authority (the Authority) is a public entity established under Government Code sections 6500, et. seq., the "JPA Law"; and WHEREAS, the Third Amended Joint Powers Agreement of the Authority provides that the City of Crescent City is entitled to appoint one Commissioner and one Alternate Commissioner, which appointments must be made by resolution of the City Council; and WHEREAS, the Authority appointments are four-year terms, regardless of terms identified by member agencies; and
WHEREAS, the internal practice of the City Council is to review appointments to external bodies annually, with the Mayor making appointments that are subject to the power of the Council to reject those appointments; and
WHEREAS, the current appointees are Kelly Schellong (Member) and Blake Inscore (Alternate), both of whom no longer serve on the City Council.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the city of Crescent City hereby confirms the Mayor's appointments of the following individuals to serve on the Border Coast Regional Airport Authority Board of Commissioners:
• Candace Tinkler, Member
• Daran Dooley, Alternate
PASSED AND ADOPTED and made effective the same day by the City Council of the City of Crescent City on this 13
th day of January, 2025, by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_____________________________
Ray Altman, Mayor
ATTEST:
__________________________
Robin Altman, City Clerk

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