Agenda — Gridley City Council, July 15, 2024 (part 1 of 2)

GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 7-15-24 Page 1 of 3 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on July 15th, 2024, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.

You may view using the following link, ID, and passcode:
https://us06web.zoom.us/j/81391762553?pwd=kOnxWfIcFeXgstwVDS4QpR9WrKaP2B.1 Webinar ID: 813 9176 2553
Passcode: 060247
Or Telephone:
+1 669 444 9171 US
+1 346 248 7799 US (Houston)
CALL TO ORDER - Mayor Farr

ROLL CALL
PLEDGE OF ALLEGIANCE – Councilmember Roberts
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES – None
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.

CONSENT AGENDA

1. City Council Minutes Dated June 3rd, June 17th (Special Meeting), June 17th (Regular Meeting)

2. TDA Audit
Gridley City Council – Regular Meeting Agenda
Monday, July 15, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 7-15-24 Page 2 of 3

3. April-May 2024 Expenditure Report

4. FY 23-24 Treasurers Report

5. Resolution 2024-R-022: Appointment of Northern California Cities Self Insurance Fund (NCCSIF) Representative and Alternate Representative

6. Resolution No. 2024-R-023: A Resolution of the City Council of the City of Gridley Authorizing and Designating City Representatives to Vote the City’s Interests in Governance Agreements Associated with City’s Participation in Programs, Projects, and Services as a Member of the Northern California Power Agency

ITEMS FOR CONSIDERATION

7. LAFCo Letter of Agreement Re: Development - Discussion

8. Resolution 2024-R-024: A Resolution of the City Council of the City of Gridley Approving Agreement No. 2CA06877 with the California Department of Forestry and Fire Protection and Authorizing the Mayor to Sign the Agreement for Services from July 1, 2024, to June 30, 2025

9. Request for Acceptance and Approval of FY 2021-2022 Single Audit & GANN Limit Report and FY 2022-2023 Audit Report

10. Renewable Power Purchase Agreement between Northern California Power Agency (NCPA) and Grace Orchard Energy Center, LLC (PPA), and (ii) the Third Phase Agreement for Renewable Power Purchase Agreement with Grace Orchard Energy Center, LLC (Third Phase Agreement)
CITY STAFF AND COUNCIL COMMITTEE REPORTS - Brief updates from City staff and brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.

CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Procurement Policy 8/5/2024
Travel Policy 8/5/2024
Energy Efficiency Contract Review 8/5/2024
Sports Complex 8/5/2024

CLOSED SESSION

11. Closed Session Discussion Public Employment: Police Chief - Cal. Gov. Code Section 54597 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 7-15-24 Page 3 of 3

12. Closed Session Discussion Public Employment: Principal Planner - Cal. Gov. Code Section 54597
ADJOURNMENT – adjourning to a regular meeting on August 5 th
, 2024.

NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., July 12th, 2024. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.

NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 6-3-24 Page 1 of 3 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”

CALL TO ORDER
Mayor Farr called the meeting to order at 6:00 pm.

ROLL CALL

Present: Farr, Johnson, Calderon, Roberts, Sanchez

Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Todd Farr, Interim Police Chief
Tony Galyean, City Attorney
Ross Pippitt, Utilities Director

PLEDGE OF ALLEGIANCE
Councilmember Calderon led the Pledge of Allegiance.

PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None

COMMUNITY PARTICIPATION FORUM
Mayor Farr opened the forum, and seeing as there was no on present to speak, was closed.

CONSENT AGENDA

1. City Council Minutes Dated May 20th, 2024

2. SB 1 Project List
Motion to approve consent agenda as is.

MOTION: Roberts
SECOND: Johnson
Gridley City Council – Regular Meeting Minutes
Monday, June 3, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 6-3-24 Page 2 of 3 ROLL CALL VOTE: 5-0
Ayes: Roberts, Johnson, Calderon, Farr, Sanchez

ITEMS FOR CONSIDERATION

3. Study Session: FY 2024/2024 Draft Budget
City Administrator Arteaga opened the study session for the draft FY 24/25 Budget.

Administrator Arteaga gave a quick overview of the proposed budget, highlighting specific areas and explained the many ways Council and the public can view the budget with the ClearGov software.

Finance Director Martin Pineda addressed the Council via zoom and requested Council send him any recommendations or questions so that they may be addressed at the following budget study session.

After brief council and staff discussion, the draft budget was accepted and will be reviewed at the next regular Council meeting.

CITY STAFF AND COUNCIL COMMITTEE REPORTS
Councilmember Calderon reported on his attendance at Butte County Association of Governments.

Mayor Farr reported on his attendance at the Memorial Day Celebration at the Gridley-Biggs Cemetery.

CITY ADMINISTRATOR REPORTS
City Administrator Arteaga informed Council of her recent meeting with NCPA.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Budget Study Session (2) 6/17/2024
Travel Policy 6/17/2024
Energy Efficiency Contract Review 6/17/2024
Unfunded Accrued Liability/Section 115 Trust 6/17/2024
Consolidation Election 6/17/2024

CLOSED SESSION

4. Closed Session Conference with Labor Negotiators Pursuant to Government Code 54957.6 Concerning Management MOU Contract and Benefits
Council went into closed session and came out at 8:12 pm with no reportable action.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 6-3-24 Page 3 of 3

ADJOURNMENT
With no further items left to discuss, Mayor Farr adjourned to the next regular meeting on June 17, 2024.

GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 6-17-24 Page 1 of 1 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipalservices and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”

CALL TO ORDER
Mayor Farr called the meeting to order at 5:00 pm.

ROLL CALL
Councilmembers

Present: Farr, Roberts, Calderon, Johnson
Attending via zoom: Sanchez

Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Todd Farr, Interim Police Chief
Tony Galyean, City Attorney
Martin Pineda, Finance Director
Ross Pippitt, Utility Director

ITEMS FOR COUNCIL CONSIDERATION

1. Study Session #2 for Proposed FY 24/25 Budget
Finance Director Martin Pineda presented the proposed FY 24/25 Budget through ClearGov.

Pineda highlighted all revisions made since the budget was last presented at the June 3rd budget study session.

This item was informational only, FY 24/25 Budget is scheduled to be adopted at the regular scheduled meeting of June 17, 2024.

COMMUNITY PARTICIPATION FORUM - None
CLOSED SESSION – None

ADJOURNMENT
With no further discussion, Mayor Farr adjourned to the regular scheduled meeting of June 17, 2024.

Gridley City Council – Special Meeting Minutes
Monday, June 17, 2024; 5:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 6-17-24 Page 1 of 3 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”

CALL TO ORDER
Mayor Farr called the meeting to order at 6:00 pm.

ROLL CALL
Councilmembers

Present: Farr, Roberts, Calderon, Johnson
Attending via zoom: Sanchez

PLEDGE OF ALLEGIANCE
Councilmember Roberts led the Pledge of Allegiance.

PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None

COMMUNITY PARTICIPATION FORUM
Diane Wilkerson addressed Council to express concerns regarding the possible reallocation of funds from the Sports Complex to the Highway 99 Waterline project.

CONSENT AGENDA

1. Resolution 2024-R-018: A Resolution of the City Council of the City of Gridley, Requesting the Board of Supervisors of the County of Butte to Consolidate a General Municipal Election to be Held on Tuesday, November 5th, 2024, with the Statewide General Election to be Held on the Date Pursuant to §10403 of the Elections Code
Gridley City Council – Regular Meeting Minutes
Monday, June 17, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 6-17-24 Page 2 of 3 Motion: to approve consent agenda as is.

MOTION: Roberts
SECOND: Calderon
ROLL CALL VOTE: 5-0
Ayes: Roberts, Johnson, Calderon, Farr, Sanchez

ITEMS FOR CONSIDERATION

2. Workplace Violence Prevention Policy
City Administrator Arteaga presented the policy and informed Council of the SB 553 requirement to have a WVPP adopted and in place.

Motion: to approve the Workplace Violence Prevention Policy MOTION: Johnson
SECOND: Roberts
ROLL CALL VOTE: 5-0
Ayes: Roberts, Johnson, Calderon, Farr, Sanchez

3. Resolution No. 2024-R-019: TPM 1-24 Orchard Hospital APN 010-250-048– Application for a Tentative Parcel Map to Subdivide an Approximately 4.9-Acre Parcel into two Parcels Resulting in a 1.0 Parcel and a 3.9-Acre Parcel located on the North Side of Spruce St. The Property has a General Plan Land Use Designation as Public and a Zoning Designation as Public Quasi Public
Administrator Arteaga requested City Council’s approval of the tentative parcel map and explained that the purpose is to subdivide the referenced lot so that Orchard Hospital may receive grant funding for their proposed adolescent hospital. A requirement of receiving the grant funds is that the hospital be built on its own parcel.

4. FY 2024/2025 Draft Budget
Finance Director Martin Pineda requested Council adopt the FY 24/25 City Budget.

Motion: to approve the FY 24/25 budget to include the $10,000 donation to the Chamber of Commerce.

MOTION: Calderon
SECOND: Roberts
ROLL CALL VOTE: 5-0
Ayes: Roberts, Johnson, Calderon, Farr, Sanchez

CITY STAFF AND COUNCIL COMMITTEE REPORTS
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 6-17-24 Page 3 of 3 Councilmember Calderon informed Council of the Well Being Fair being held in Daddow Park, June 29 from 3-6 pm.

Vice Mayor Johnson reported on his attendance at Sutter Butte Mosquito and Vector Control, the Sutter Butte Flood Control Agency and LAFCO meeting.

CITY ADMINISTRATOR REPORTS
Administrator Arteaga reported on the multiple meetings she recently attended including: NCPA, NCCSIF, Butte County Local Hazard Mitigation Planning Meeting and a meeting with representatives from Comala regarding the proposed Sister City Agreement.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Procurement Policy 7/15/2024
Travel Policy 7/15/2024
Energy Efficiency Contract Review 7/15/2024
Sports Complex 7/15/2024
CLOSED SESSION - None

ADJOURNMENT
With no further items left to discuss, Mayor Farr adjourned to the next regular meeting on July 15th, 2024.

City Council Agenda Item #2
Staff Report
Date: July 15, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: FY 2021-2022 Senior Taxi and Transportation Fund Audits on behalf of BCAG Recommendation
Staff respectfully requests that the Mayor and City Council review and accept the financial audits for the City of Gridley Senior Taxi Fund and for the City of Gridley Transportation Development Act Funds as prepared for Butte County Association of Governments (BCAG) for FY 2021-2022.

Background
Enclosed are the separate financial audits prepared for the Butte County Association of Governments (BCAG) for City of Gridley activity related to TDA funds (Fund 430 and 700) for FY 2021-2022.

BCAG is responsible for tracking the use of these funds countywide and the Transportation Development Act (TDA) regulations require that an annual financial audit be completed on these funds. BCAG contracted with a third-party audit firm Richardson & Co. LLP, to complete the audits, including two separate audits for City of Gridley operations. Audits have been completed annually for the Senior Taxi – dial-a-ride and separately for the funds used for street maintenance Programs. The notable historical finding was to the need to create an internal process to recorded prior audit adjustments as part of annual year end closing processes. By adding this process of recording the audit adjustments made during the TDA audit and reconciling accordingly will allow the general ledger to be consistent with how the funds are recorded during financial audits. This recommendation has been implemented as a closing process.

The city did experience a significant decrease in ridership activity during the COVID-19 pandemic, however after review of recent ridership logs there has been a steady increase. As of today, the ridership and operations are back to normal.

Attachments
Senior Taxi and Transportation (TDA) Audit Reports for FY 2021-2022 x Regular
Special
Closed
Emergency

April 2024
Expenditure Report
~~~ ~~ ` ~' Gridley, CA
i~__. ~__
REC~.E~`'
~.
, ,
Vendor Number Vendor Name Payment Date Payment Type
Bank Code: General Checking-General Checking
Check Report
By Check Number
Date Range: 04/01/2024 - 04/30/2024
Discount Amount Payment Amount Number
PGE01 P G & E CO 04/02/2024
AME29 American Fidelity Assuran 04/04/Z024
AME29 American Fidelity Assuran 04/04/2024
AME30 AMERICAN FIDELITY ASSURAN 04/04/2024
AME30 AMERICAN FIDELITYASSURAN 04/04/2024
COL0001 COLANTUONO, HIGHSMITH & WHATLEY, PC 04/04/2024
AME29 American Fidelity Assuran 04/04/2024
AME30 AMERICAN FIDELITY ASSURAN 04/04/2024
A5101 ADMINISTRATIVE SOLUTIONS 04/11/2024
ALT01 ALTECINDUSTRIESINC 04/11/2024
AMA02 AMAZON CAPITAL SERVICES INC 04/11/2024
**Void** 04/11/2024
AND12 ANDES POOL SUPPLY 04/11/2024
ANI01 ANIXTER 04/11/2024
ARA01 ARAMARK UNIFORM SERVICES 04/11/2024
ATT14 AT&T 04/11/2024
ATT14 AT&T 04/11/2024
ATT14 AT&T 04/11/2024
ATT14 AT&T 04/11/2024
BIG01 BIG VALLEY AG SERVICES 04/11/2024
BUT01 BUTTE AUTO PARTS 04/11/2024
BUT16 BUTTE COUNTYAQMD 04/11/2024
ACE02 CANDELARIO ACE HARDWARE 04/11/2024
CIT17 CITY OF OROVILLE 04/11/2024
CLA02 CLARK &SONS 04/11/2024
COM17 COMCAST 04/11/2024
CEDOl CONSOLIDATED ELECTRICAL DISTRIBUTORS, INC 04/11/2024 COR11 CORE PSYCHOLOGICAL CORPORATION 04/11/2024
CG01 COX GLASS CO 04/11/2024
CRA01 CRANMER ENGINEERING 04/11/2024
DATOl DATCO 04/11/2024
DECO2 DECKER ENGINEERING SERVICES, LLC 04/11/2024
DEP20 DEPT OFINDUSTRIALRELATI 04/11/2024
EFF01 EFFICIENCY SERVICES GROUP, LLC 04/11/2024
EID02 EIDE BAILLY LLP 04/11/2024
FGLOl FGL ENVIRONMENTAL, INC. 04/11/2024
GRA07 GRANITE CONSTRUCTION CO. 04/11/2024
GRI01 GRIDLEY COUNTRY FORD 04/11/2024
H0003 HOUSING TOOLS LLC 04/11/2024
CUR02 L.N. CURTIS AND SONS 04/11/2024
LAKOl LAKEVIEW PETROLEUM CO 04/11/2024
LIG03 LIGHTBEAM POWER COMPANY 04/11/2024
MACOl MAC'S HARDWARE &RENTAL 04/11/2024
ME502 MESSENGER PUBLISHING GROU 04/11/2024
M1506 MISSION COMMUNICATIONS, LLC 04/11/2024
MIW01 MIWALLCORPORATION 04/11/2024
CAL76 NATHANIEL CALLAWAY 04/11/2024
NOR06 NORMAC INC 04/11/2024
NOR09 NORTHERN CALIFORNIA GLOVES 04/11/2024
NOR11 Northern California Joint Pole Assoc. 04/11/2024
NORM Northern California Joint Pole Assoc. 04/11/2024
ONE02 ONESOURCE SUPPLY SOLUTIONS 04/11/2024
PGE01 P G & E CO 04/11/2024
PAC24 PACE SUPPLY 04/11/2024
Regular 0.00 451.51 976574
Regular 0.00 645.83 976575
Regular 0.00 -645.83 976575
Regular 0.00 1,416.72 976576
Regular 0.00 -1,416.72 976576
Regular 0.00 21,975.20 976578
Regular 0.00 645.83 976584
Regular 0.00 1,416.72 976585
Regular 0.00 150.00 976589
Regular 0.00 399.12 976590
Regular 0.00 2,145.81 976591
Regular 0.00 0.00 976592
Regular 0.00 127.43 976593
Regular 0.00 865.36 976594
Regular 0.00 16.99 976595
Regular 0.00 29.35 976596
Regular 0.00 29.35 976597
Regular 0.00 982.47 976598
Regular 0.00 240.95 976599
Regular 0.00 11,857.57 976600
Regular 0.00 211.46 976601
Regular 0.00 283.46 976602
Regular 0.00 173.86 976603
Regular 0.00 5,000.54 976604
Regular 0.00 176.55 976605
Regular 0.00 327.68 976606
Regular 0.00 276.44 976607
Regular 0.00 500.00 976608
Regular 0.00 247.12 976609
Regular 0.00 370.00 976610
Regular 0.00 357.00 976611
Regular 0.00 6,525.00 976612
Regular 0.00 675.00 976613
Regular 0.00 3,727.30 976614
Regular 0.00 18,905.25 976615
Regular 0.00 693.00 976616
Regular 0.00 2,762.76 976617
Regular 0.00 160.75 976618
Regular 0.00 240.00 976619
Regular 0.00 5,971.48 976620
Regular 0.00 9,191.11 976621
Regular 0.00 4,872.63 976622
Regular 0.00 843.30 976623
Regular 0.00 888.00 976624
Regular 0.00 563.40 976625
Regular 0.00 99.26 976626
Regular 0.00 241.50 976627
Regular 0.00 156.23 976628
Regular 0.00 147.79 976629
Regular 0.00 10.77 976630
Regular 0.00 -10.77 976630
Regular 0.00 6,616.31 976631
Regular 0.00 369.87 976632
Regular 0.00 978.36 976633
(i/'1..1/'1.014 ï.19:34 PM I'age 1 offi
Check Report Date Range: 04/01/2024 - 04/30/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number PAP01 PAPE MACHINERY, INC. 04/11/2024 Regular 0.00 44.87 976634 RICOl Rich, Fuidge, Bordsen & Gaylean, Inc. 04/11/2024 Regular 0.00 5,737.00 976635 SYL02 SILVIA ELENA CORDERO 04/11/2024 Regular 0.00 2,540.00 976636 STA01 STANDARD INSURANCE CO 04/11/2024 Regular 0.00 3,565.73 976637 SUN01 SUNRISE ENVIROMENTALSCI 04/11/2024 Regular 0.00 349.07 976638 ADVOS SUPERIOR CALIFORNIA OFFICE EQUIPMENT, IN( 04/11/2024 Regular 0.00 1,238.59 976639 SUTli SUTHERLAND LANDSCAPE CENT 04/11/2024 Regular 0.00 363.17 976640 TKE01 THYSSENKRUPP ELEVATOR CORPORATION 04/11/2024 Regular 0.00 998.73 976641 TYL01 TYLER TECHNOLOGIES, INC 04/11/2024 Regular 0.00 3,800.30 976642 UNIV01 UNIVERSAL PROTECTION SECURITY SYSTEMS, Lf 04/11/2024 Regular 0.00 960.26 976643 USBOS US BANK 04/11/2024 Regular 0.00 138.00 976644
USBOS US BANK 04/11/2024 Regular 0.00 325.09 976645
U5606 US BANK 04/11/2024 Regular 0.00 60.33 976646
VER02 VERIZON WIRELESS 04/11/2024 Regular 0.00 1,826.54 976647 **Void** 04/11/2024 Regular 0.00 0.00 976648
AUT03 AUTO ZONE INC. 04/12/2024 Regular 0.00 280.02 976649 CRA02 CRAIN FISHERIES 04/12/2024 Regular 0.00 6,250.00 976650 HITOl HI-TECH EMERGENCY VEHICLE 04/12/2024 Regular 0.00 2,924.14 976651 CAL80 J ANGEL CALDERON 04/12/2024 Regular 0.00 160.80 976652 MIN07 MINASIAN, MEITH, SOARES, SEXTON &COOPER 04/12/2024 Regular 0.00 98.33 976653 SAC03 SACRAMENTO TRUCK CENTER 04/12/2024 Regular 0.00 100.78 976654 IMPOl U.S. BANK CORPORATE PAYMENT SYSTEMS 04/12/2024 Regular 0.00 9,043.29 976655 **Void** 04/12/2024 Regular 0.00 0.00 976656
**Void** 04/12/2024 Regular 0.00 0.00 976657
**Void** 04/12/2024 Regular 0.00 0.00 976658
UL501 UL LLC 04/12/2024 Regular 0.00 2,290.00 976659
NAT31 72 HOUR LLC 04/25/2024 Regular 0.00 230,508.00 976661 ACC08 ACCESS INFORMATION MANAGEMENT 04/25/2024 Regular 0.00 179.20 976662 A5101 ADMINISTRATIVE SOLUTIONS 04/25/2024 Regular 0.00 1,332.50 976663 AME17 AMERICAN LEGAL 04/25/2024 Regular 0.00 190.40 976664 ANI01 ANIXTER 04/25/2024 Regular 0.00 1,387.96 976665
ATT08 ATB:T 04/25/2024 Regular 0.00 31.57 976666
ATTOS AT&T 04/25/2024 Regular 0.00 64.10 976667
ATT0001 AT&T 04/25/2024 Regular 0.00 85.60 976668
ATTOS AT&T 04/25/2024 Regular 0.00 31.57 976669
ATT08 AT&T 04/25/2024 Regular 0.00 31.57 976670
ATT08 ATB:T 04/25/2024 Regular 0.00 64.10 976671
AUT03 AUTO ZONE INC. 04/25/2024 Regular 0.00 28.95 976672 BEN11 BENNETT ENGINEERING SERVI 04/25/2024 Regular 0.00 53,548.06 976673 **Void** 04/25/2024 Regular 0.00 0.00 976674
BUT01 BUTTE AUTO PARTS 04/25/2024 Regular 0.00 42.94 976675 ACE02 CANDELARIO ACE HARDWARE 04/25/2024 Regular 0.00 136.95 976676 CSANOl CARMEN SANTANA 04/25/2024 Regular 0.00 100.00 976677 COM17 COMCAST 04/25/2024 Regular 0.00 401.10 976678
COR01 CORBIN WILLITS SYSTEM, IN 04/25/2024 Regular 0.00 2,433.89 976679 BIR02 DANNY BIRKHOLTZ 04/25/2024 Regular 0.00 2,551.65 976680 DECO2 DECKER ENGINEERING SERVICES, LLC 04/25/2024 Regular 0.00 5,010.00 976681 EVE03 EVERBANK 04/25/2024 Regular 0.00 96.56 976682
EVE01 EVERGREEN JOB &SAFETY TRAINING, INC 04/25/2024 Regular 0.00 1,864.00 976683 ICM02 ICMA 04/25/2024 Regular 0.00 200.00 976684
ITR01 TTRON, INC. 04/25/2024 Regular 0.00 4,646.20 976685 JACO2 JACO ANALYTICAL LAB INC 04/25/2024 Regular 0.00 788.85 976686 HIL09 KATIE HILL 04/25/2024 Regular 0.00 24.50 976687
LAKOl LAKEVIEW PETROLEUM CO 04/25/2024 Regular 0.00 3,607.61 976688 MAC0002 MACQUARIE EQUIPMENT CAPITAL INC. 04/25/2024 Regular 0.00 281.00 976689 ME502 MESSENGER PUBLISHING GROU 04/25/2024 Regular 0.00 1,004.50 976690 MOT08 MOTOROLA SOLUTIONS INC: LEASE PAYMENTS 04/25/2024 Regular 0.00 76,326.84 976691 **Void** 04/25/2024 Regular 0.00 0.00 976692
CAL76 NATHANIEL CALLAWAY 04/25/2024 Regular 0.00 305.36 976693 NCC01 NCCSIF FINANCIAL SERVICES 04/25/2024 Regular 0.00 50,465.00 976694 NOR02 NORTHERN CALIFORNIA POWER AGENCY 04/25/2024 Regular 0.00 228,151.00 976695 Ei/?.'l/2024 .-...i9:34 Pví ;.>,;~~~ ~~
Check Report Date Range: 04/01/2024-04/30/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number ONE02 ONESOURCESUPPLYSOLUTIONS 04/25/2024 Regular 0.00 1,026.65 976696 ORE01 O'REILLY AUTOMOTIVE, INC. 04/25/2024 Regular 0.00 190.82 976697 PGE01 P G & E CO 04/25/2024 Regular 0.00 144.45 976698
RICOl Rich, Fuidge, Bordsen & Gaylean, Inc. 04/25/2024 Regular 0.00 2,425.50 976699 RSGOl RSG INC. 04/25/2024 Regular 0.00 2,550.00 976700
UPSOS THE UPS STORE 04/25/2024 Regular 0.00 32.15 976701 USBOS US BANK 04/25/2024 Regular 0.00 60.31 976702
USBOS US BANK 04/25/2024 Regular 0.00 80.22 976703
USBOS US BANK 04/25/2024 Regular 0.00 47.77 976704
USBOS US BANK 04/25/2024 Regular 0.00 150.83 976705
AME31 AMERICAN RIVER COLLEGE 04/26/2024 Regular 0.00 94.00 976709 ARA01 ARAMARK UNIFORM SERVICES 04/26/2024 Regular 0.00 16.99 976710 BIC01 BI-COUNTY IRRIGATION 04/26/2024 Regular 0.00 7.98 976711 BUT01 BUTTE AUTO PARTS 04/26/2024 Regular 0.00 77.47 976712 ACE02 CANDELARIO ACE HARDWARE 04/26/2024 Regular 0.00 255.61 976713 DIA03 DIAMOND BILT 04/26/2024 Regular 0.00 152.78 976714 SM107 EVASMITH 04/26/2024 Regular 0.00 324.98 976715
FGLOl FGLENVIRONMENTAL,INC. 04/26/2024 Regular 0.00 720.00 976716 GOL09 GOLDEN STATE TREE/LEIFFI 04/26/2024 Regular 0.00 950.00 976717 HAB01 HABITAT FOR HUMANITY YUBA/SLITTER 04/26/2024 Regular 0.00 11,014.00 976718 MACOl MAC'S HARDWARE &RENTAL 04/26/2024 Regular 0.00 660.44 976719 MES02 MESSENGER PUBLISHING GROU 04/26/2024 Regular 0.00 212.80 976720 OFF02 OFFICE DEPOT 04/26/2024 Regular 0.00 570.38 976721 PIT02 PITNEY BOWES INC 04/26/2024 Regular 0.00 68.92 976722 SUT11 SUTHERLAND LANDSCAPE CENT 04/26/2024 Regular 0.00 330.16 976723 CAL70 CALIFORNIA CHOICE BENEFIT 04/20/2024 Bank Draft 0.00 21,512.03 DFT0002603 CAL70 CALIFORNIA CHOICE BENEFIT 04/20/2024 Bank Draft 0.00 21,511.96 DFT0002622 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 48.00 DFT0002640 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 777.57 DFT0002642 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 1,315.21 DFT0002643 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 2,537.87 DFT0002644 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 4,520.99 DFTOD02645 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 4,663.91 DFT0002646 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 4,621.78 DFT0002647 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 2,237.50 DFT0002648 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 6,376.83 DFT0002649 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 2,824.33 DFT0002650 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/05/2024 Bank Draft 0.00 2,781.19 DFT0002651 INT07 INTERNAL REVENUE SERVICE 04/05/2024 Bank Draft 0.00 5,070.92 DFT0002652 INT07 INTERNAL REVENUE SERVICE 04/05/2024 Bank Draft 0.00 14,350.72 DFT0002653 INT07 INTERNAL REVENUE SERVICE 04/05/2024 Bank Draft 0.00 729.20 DFT0002654 EMP01 EMPLOYMENT DEVELOPMENT 04/05/2024 Bank Draft 0.00 5,941.74 DFT0002655 INT07 INTERNAL REVENUE SERVICE 04/05/2024 Bank Draft 0.00 25.94 DFT0002656 INT07 INTERNAL REVENUE SERVICE 04/05/2024 Bank Draft 0.00 19.82 DFT0002657 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 47.00 DFT0002658 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 762.04 DFT0002660 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 1,288.93 DFT0002661 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 2,537.87 DFT0002662 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 4,520.99 DFT0002663 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 4,679.72 DFT0002664 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 4,637.46 DFT0002665 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 2,245.19 DFT0002666 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 6,398.77 DFT0002667 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 2,815.53 DFT0002668 CAL59 CALIFORNIA PUBLIC EMPLOYE 04/19/2024 Bank Draft 0.00 2,772.52 DFT0002669 INT07 INTERNAL REVENUE SERVICE 04/19/2024 Bank Draft 0.00 5,023.94 DFT0002670 INT07 INTERNAL REVENUE SERVICE 04/19/2024 Bank Draft 0.00 13,913.87 DFT0002671 INT07 INTERNAL REVENUE SERVICE 04/19/2024 Bank Draft 0.00 871.66 DFT0002fi72 EMP01 EMPLOYMENT DEVELOPMENT 04/19/2024 Bank Draft 0.00 5,595.06 DFT0002673 INT07 INTERNAL REVENUE SERVICE 04/19/2024 Bank Draft 0.00 188.46 DFT0002674 INT07 INTERNAL REVENUE SERVICE 04/19/2024 Bank Draft 0.00 359.52 DFT0002675 _____~.._._.___
CiJ7.1/207 2; ïS::34
~._______._ .._..........._~..____.__...___________._
PNl
_. _.._.___._.._____._ _ __...~.. ___.___........_._...~~._.____ _. _. _~
.____._______.w______._.__._.Y..

Pagtc 3 of 6
Check Report
Vendor Number Vendor Name Payment Date Payment Type
EMPOl EMPLOYMENTDEVELOPMENT 04/19/2024 Bank Draft
CAL59 CALIFORNIA PUBLIC EMPLOYE 04/25/2024 Bank Draft
CAL59 CALIFORNIA PUBLIC EMPLOYE 04/25/2024 Bank Draft
CAL59 CALIFORNIA PUBLIC EMPLOYE 04/25/2024 Bank Draft
INT07 INTERNAL REVENUE SERVICE 04/25/2024 Bank Draft
INT07 INTERNAL REVENUE SERVICE 04/25/2024 Bank Draft
EMPOl EMPLOYMENT DEVELOPMENT 04/25/2024 Bank Draft
INT07 INTERNAL REVENUE SERVICE 04/25/2024 Bank Draft
INT07 INTERNAL REVENUE SERVICE 04/25/2024 Bank Draft
EMP01 EMPLOYMENT DEVELOPMENT 04/25/2024 Bank Draft
Bank Code General Checking Summary
Payable Payment
Payment Type Count Count
Regular Checks 267 130
Manual Checks 0 0
Voided Checks 0 10
Bank Drafts 46 46
EFT's 0 0
313 186
Date Range: 04/01/2024 - 04/30/2024
Discount Amount Payment Amount Number

0.00 125.80 DFT0002676

0.00 1.00 DFT0002677

0.00 333.38 DFT0002679

0.00 328.29 DFT0002680

0.00 75.50 DFT0002681

0.00 195.51 DFT0002682

0.00 77.63 DFT0002683

0.00 155.16 DFT0002684

0.00 881.73 DFT0002685

0.00 384.64 DFT0002686
Discount Payment

0.00 847,141.17

0.00 0.00

0.00 -2,073.32

0.00 163,084.68

0.00 0.00

0.00 1,008,152.53
(i/21l20 24 ?:? 5:34 PM `rage 4 of 6
Check Report
Vendor Number Vendor Name
Bank Code: Payroll-Payroll
AME29 American Fidelity Assuran
AME29 American Fidelity Assuran
AME30 AMERICAN FIDELITYASSURAN
AME30 AMERICAN FIDELITY ASSURAN
BUT43 CHILD SUPPORT SRVCS.

GRI12 GRIDLEY POLICE
IBE01 I.B.E.W. - LOCAL #11245
M1507 Mission5quare-303902
Payment Type
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
Date Range: 04/01/2024 - 04/30/2024
Payment Date Payment Type Discount Amount Payment Amount Number 04/01/2024 Regular 0.00 100.00 15017
04/01/2024 Regular 0.00 -100.00 15017
04/01/2024 Regular 0.00 1,961.48 15018
04/01/2024 Regular 0.00 -1,961.48 15018
04/01/2024 Regular 0.00 332.30 15019
04/01/2024 Regular 0.00 1,375.00 15020
04/01/2024 Regular 0.00 2,409.46 15021
04/01/2024 Regular 0.00 7,355.27 15022
Bank Code Payroll Summary
Payable Payment
Count Count Discount Payment
18 6 0.00 13,533.51
0 0 0.00 0.00
0 2 0.00 -2,061.48
0 0 0.00 0.00
0 _....
0 0.00 0.00
18 8 0.00 11,472.03
(i/2.:1.%20:'<> ,:.,1y:34 Pi`~i ('at~'r 5 ~,í':;
Check Report Date Range: 04/01/2024-04/30/2024
All Bank Codes Check Summary
Payable Payment
Payment Type Count Count Discount Payment
Regular Checks 285 136 0.00 860,674.68
Manual Checks 0 0 0.00 0.00
Voided Checks 0 12 0.00 -4,134.80
Bank Drafts 46 46 0.00 163,084.68
EFT's 0 0 0.00 0.00
331 194 0.00 1,019 624.56
Fund Summary
Fund Name Period Amount
999 Cash Clearing 4/2024 1,019,624.56
1,019,624.%
6; 7.7.iï0~4 ....:9;3.,: Pi,j P~,~c.:of6
~~~~ ~~
w
.
~ y ~ ~ ,~~ Gridley, CA
~~i~L~~
Payment
Number___. _ _Payment Date Payment,Type
5492 04/05/2024 Regular
5493 04/05/2024 Regular
5494 04/05/2024 Regular
5495 04/05/2024 Regular
5496 04/05/2024 Regular
5497 04/05/2024 Regular
5498 04/05/2024 Regular
5499 04/05/2024 Regular
5500 04/05/2024 Regular
5501 04/05/2024 Regular
5502 04/05/2024 Regular
5503 04/05/2024 Regular
5504 04/05/2024 Regular
5505 04/05/2024 Regular
5506 04/05/2024 Regular
5507 04/05/2024 Regular
5508 04/05/2024 Regular
5509 04/05/2024 Regular
5510 04/05/2024 Regular
5511 04/05/2024 Regular
5512 04/05/2024 Regular
5513 04/05/2024 Regular
5514 04/05/2024 Regular
5515 04/05/2024 Regular
5516 04/05/2024 Regular
5517 04/05/2024 Regular
5518 04/05/2024 Regular
5519 04/05/2024 Regular
5520 04/05/2024 Regular
5521 04/05/2024 Regular
5522 04/05/2024 Regular
5523 04/05/2024 Regular
5524 04/05/2024 Regular
5525 04/05/2024 Regular
5526 04/05/2024 Regular
5527 04/05/2024 Regular
5528 04/05/2024 Regular
5529 04/05/2024 Regular
5530 04/05/2024 Regular
5531 04/05/2024 Regular
5532 04/05/2024 Regular
5533 04/05/2024 Regular
5534 04/05/2024 Regular
5535 04/05/2024 Regular
5536 04/05/2024 Regular
5537 04/05/2024 Regular
5538 04/05/2024 Regular
5539 04/05/2024 Regular
5540 04/05/2024 Regular
5541 04/05/2024 Regular
5542 04/05/2024 Regular
5543 04/05/2024 Regular
5544 04/05/2024 Regular
5545 04/05/2024 Regular
5546 04/05/2024 Regular
5547 04/05/2024 Regular
5548 04/19/2024 Regular
5549 04/19/2024 Regular
5550 04/19/2024 Regular
5551 04/19/2024 Regular
5552 04/19/2024 Regular
Payroll Bank Transaction Report
By Payment Number
Date: 4/1/2024 - 4/30/2024
Payroll Set: O1 -City of Gridley
Direct Deposit
Check Amount Amount..._. Total Payment
0 4335.26 4335.26
0 2379.82 2379.82
0 2409.21 2409.21
0 1586.89 1586.89
0 4725.86 4725.86
0 4753.09 4753.09
0 4279.96 4279.96
0 2428.24 2428.24
0 3792.84 3792.84
0 2031.19 2031.19
0 1437.79 1437.79
0 1824.1 1824.1
0 2060.87 2060.87
0 3980.15 3980.15
0 2025.9 2025.9
0 2505.59 2505.59
0 2771.92 2771.92
0 1936.8 1936.8
0 1909.13 1909.13
0 2232.46 2232.46
0 3376.84 3376.84
0 2571.86 2571.86
0 126.68 126.68
0 115.36 115.36
0 3027.82 3027.82
0 2323.56 2323.56
0 3795.3 3795.3
0 1259.16 1259.16
0 1721.13 1721.13
0 12.42 12.42
0 2523.25 2523.25
0 1640.59 1640.59
0 1704.29 1704.29
0 2312.65 2312.65
0 2630.07 2630.07
0 3070.89 3070.89
0 126.68 126.68
0 3621.33 3621.33
0 1920.15 1920.15
0 2144.64 2144.64
0 1730.63 1730.63
0 1667.19 1667.19
0 311.98 311.48
0 504.52 504.52
0 585.43 585.43
0 184.42 184.42
0 2006.36 2006.36
0 2771.32 2771.32
0 4896.32 4896.32
0 1817.76 1817.76
0 1949.36 1949.36
0 2577.96 2577.96
0 5222.69 5222.69
0 1624.37 1624.37
0 2026.59 2026.59
0 1965.07 1965.07
0 4335.26 4335.26
0 2379.83 2379.83
0 2336.24 2336.24
0 1586.89 1586.89
0 184.7 184.7
5553 04/19/2024 Regular 0 184.7 184.7
5554 04/19/2024 Regular 0 4655.16 4655.16
5555 04/19/2024 Regular 0 4104.17 4104.17
5556 04/19/2024 Regular 0 4279.96 4279.96
5557 04/19/2024 Regular 0 2491.05 2491.05
5558 04/19/2024 Regular 0 3792.84 3792.84
5559 04/19/2024 Regular 0 2031.18 2031.18
5560 04/19/2024 Regular 0 1229.06 1229.06
5561 04/19/2024 Regular 0 1824.1 1824.1
5562 04/19/2024 Regular 0 2060.87 2060.87
5563 04/19/2024 Regular 0 3980.15 3980.15
5564 04/19/2024 Regular 0 2025.9 2025.9
5565 04/19/2024 Regular 0 2505.58 2505.58
5566 04/19/2024 Regular 0 1194.74 1194.74
5567
0 4/19/2024 Regular 0 1852.5 1852.5
5568 04/19/2024 Regular 0 2040.01 2040.01
5569 04/19/2024 Regular 0 1807.5 1807.5
5570 04/19/2024 Regular 0 2356.99 2356.99
5571 04/19/2024 Regular 0 2570.67 2570.67
5572 04/19/2024 Regular 0 2712 2712
5573 04/19/2024 Regular 0 192.28 192.28
5574 04/19/2024 Regular 0 3027.82 3027.82
5575 04/19/2024 Regular 0 2720.49 2720.49
5576 04/19/2024 Regular 0 3795.28 3795.28
5577 04/19/2024 Regular 0 1259.15 1259.15
5578 04/19/2024 Regular 0 1374.28 1374.28
5579 04/19/2024 Regular 0 12.42 12.42
5580 04/19/2024 Regular ~ 0 2980.42 2980.42
5581 04/19/2024 Regular 0 1640.59 1640.59
5582 04/19/2024 Regular 0 1704.28 1704.28
5583 04/19/2024 Regular 0 1794.71 1794.71
5584 04/19/2024 Regular 0 2706.32 2706.32
5585 04/19/2024 Regular 0 76.01 76.01
5586 04/19/2024 Regular 0 2995.56 2995.56
5587 04/19/2024 Regular 0 2707.43 2707.43
5588 04/19/2024 Regular 0 1920.17 1920.17
5589 04/19/2024 Regular 0 1860.42 1860.42
5590 04/19/2024 Regular 0 1641.7 1641.7
5591 04/19/2024 Regular 0 1667.19 1667.19
5592 04/19/2024 Regular 0 309.98 309.98
5593 04/19/2024 Regular 0 504.52 504.52
5594 04/19/2024 Regular 0 585.43 585.43
5595 04/19/2024 Regular 0 2006.37 2006.37
5596 04/19/2024 Regular 0 1908.7 1908.7
5597 04/19/2024 Regular 0 3526.12 3526.12
5598 04/19/2024 Regular 0 1817.77 1817.77
5599 04/19/2024 Regular 0 1949.36 1949.36
5600 04/19/2024 Regular 0 4141.17 4141.17
5601 04/19/2024 Regular 0 5222.69 5222.69
5602 04/19/2024 Regular 0 1808.63 1808.63
5603 04/19/2024 Regular 0 3853.69 3853.69
5604 04/19/2024 Regular 0 1965.06 1965.06
15023 04/05/2024 Regular 1931.38 0 1931.38
15024 04/05/2024 Regular 2117.62 0 2117.62
15025 04/05/2024 Regular 295.65 0 295.65
15026 04/05/2024 Regular 565.95 0 565.95
15027 04/19/2024 Regular 184.7 0 184.7
15028 04/19/2024 Regular 0 0 0
15029 04/19/2024 Regular 1931.38 0 1931.38
15030 04/19/2024 Regular 2117.61 0 2117.61
15031 04/19/2024 Regular 2158.69 0 2158.69
15032
0 4/19/2024 Regular 1504.06 0 1504.06
15033 04/19/2024 Regular 2256.49 0 2256.49
15034 04/25/2024 Regular 1937.7 0 1937.7
15035 04/25/2024 Regular 4006.46 0 4006.46
Total: 21007.69 253471.77 274479.46

Page 3 of 3 ends

May 2024
Expenditure Report
.. __.
4 ___ .
- Check Report
~ y~` ~ GYÍdley, CA By Check Number
.., is Date Range: 05/01/2024 - 05/31/2024
~RIDLE4'
__~ ~~..

Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code: General Checking -General Checking
ARA01 ARAMARK UNIFORM SERVICES 05/07/2024 Regular 0.00 16.99 976724 BUTOl BUTTE AUTO PARTS 05/07/2024 Regular 0.00 141.74 976725 ACE02 CANDELARIO ACE HARDWARE 05/07/2024 Regular 0.00 97.59 976726 FGLOS FGL ENVIRONMENTAL, INC. 05/07/2024 Regular 0.00 280.00 976727 GRI02 GRIDLEY HONDA 05/07/2024 Regular 0.00 15.82 976728 BALOl KNIFE RIVER CONSTRUCTION 05/07/2024 Regular 0.00 657.39 976729 MACOl MAC'S HARDWARE &RENTAL 05/07/2024 Regular 0.00 150.10 976730 **Void** 05/08/2024 Regular 0.00 0.00 976731
**Void** 05/08/2024 Regular 0.00 0.00 976732
**Void** 05/08/2024 Regular 0.00 0.00 976733
**Void** 05/08/2024 Regular 0.00 0.00 976734
**Void** 05/08/2024 Regular 0.00 0.00 976735
**Void** 05/08/2024 Regular 0.00 0.00 976736
**Void** 05/08/2024 Regular 0.00 0.00 976737
**Void** 05/08/2024 Regular 0.00 0.00 976738
**Void** 05/08/2024 Regular 0.00 0.00 976739
**Void** 05/08/2024 Regular 0.00 0.00 976740
**Void** 05/08/2024 Regular 0.00 0.00 976741
**Void** 05/08/2024 Regular 0.00 0.00 976742
**Void** 05/08/2024 Regular 0.00 0.00 976743
**Void** 05/08/2024 Regular 0.00 0.00 976744
**Void** 05/08/2024 Regular 0.00 0.00 976745
**Void** 05/08/2024 Regular 0.00 0.00 976746
**Void** 05/08/2024 Regular 0.00 0.00 976747
**Void** 05/08/2024 Regular 0.00 0.00 976748
**Void** 05/08/2024 Regular 0.00 0.00 976749
**Void** 05/08/2024 Regular 0.00 0.00 976750
**Void** 05/08/2024 Regular 0.00 0.00 976751
**Void** 05/08/2024 Regular 0.00 0.00 976752
**Void** 05/08/2024 Regular 0.00 0.00 976753
**Void** 05/08/2024 Regular 0.00 0.00 976754
**Void** 05/08/2024 Regular 0.00 0.00 976755
**Void** 05/08/2024 Regular 0.00 0.00 976756
**Void** 05/08/2024 Regular 0.00 0.00 976757
**Void** 05/08/2024 Regular 0.00 0.00 976758
**Void** 05/08/2024 Regular 0.00 0.00 976759
**Void** 05/08/2024 Regular 0.00 0.00 976760
**Void** 05/08/2024 Regular 0.00 0.00 976761
**Void** 05/08/2024 Regular 0.00 0.00 976762
**Void** 05/08/2024 Regular 0.00 0.00 976763
**Void** 05/08/2024 Regular 0.00 0.00 976764
**Void** 05/08/2024 Regular 0.00 0.00 976765
**Void** 05/08/2024 Regular 0.00 0.00 976766
**Void** 05/08/2024 Regular 0.00 0.00 976767
**Void** 05/08/2024 Regular 0.00 0.00 976768
**Void** 05/08/2024 Regular 0.00 0.00 976769
**Void** 05/08/2024 Regular 0.00 0.00 976770
**Void** 05/08/2024 Regular 0.00 0.00 976771
**Void** 05/08/2024 Regular 0.00 0.00 976772
**Void** 05/08/2024 Regular 0.00 0.00 976773
**Void** 05/08/2024 Regular 0.00 0.00 976774
**Void** 05/08/2024 Regular 0.00 0.00 976775
**Void** 05/08/2024 Regular 0.00 0.00 976776
**Void** 05/08/2024 Regular 0.00 0.00 976777
(i/2.1í2024 7:20:33 PM Page 1 of 3
Check Report Date Range: 05/01/2024-05/31/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number **Void** 05/08/2024 Regular 0.00 0.00 976778
**Void** 05/08/2024 Regular 0.00 0.00 976779
**Void** 05/08/2024 Regular 0.00 0.00 976780
**Void** 05/08/2024 Regular 0.00 0.00 976781
**Void** 05/08/2024 Regular 0.00 0.00 976782
**Void** 05/08/2024 Regular 0.00 0.00 976783
**Void** 05/08/2024 Regular 0.00 0.00 976784
**Void** 05/08/2024 Regular 0.00 0.00 976785
**Void** 05/08/2024 Regular 0.00 0.00 976786
**Void** 05/08/2024 Regular 0.00 0.00 976787
**Void** 05/08/2024 Regular 0.00 0.00 976788
**Void** 05/08/2024 Regular 0.00 0.00 976789
**Void** 05/08/2024 Regular 0.00 0.00 976790
**Void** 05/08/2024 Regular 0.00 0.00 976791
ALL15 ALLIANT INSURANCE SERVICE 05/08/2024 Regular 0.00 1,119.00 976792 AMA02 AMAZON CAPITAL SERVICES INC 05/08/2024 Regular 0.00 2,244.91 976793 AME17 AMERICAN LEGAL 05/08/2024 Regular 0.00 162.76 976794 AND12 ANDES POOL SUPPLY 05/08/2024 Regular 0.00 79.17 976795 KOP0001 BRANDY KOPP 05/08/2024 Regular 0.00 30.00 976796 BUTOl BUTTE AUTO PARTS 05/08/2024 Regular 0.00 123.33 976797 CAL77 CALIFORNIA ANIMAL WELFARE ASSOCIATION 05/08/2024 Regular 0.00 100.00 976798 ACE02 CANDELARIO ACE HARDWARE 05/08/2024 Regular 0.00 258.33 976799 CIT17 CITY OF OROVILLE 05/08/2024 Regular 0.00 3,518.54 976800 COL0001 COLANTUONO, HIGHSMITH & WHATLEY, PC 05/08/2024 Regular 0.00 1,278.00 976801 COM17 COMCAST 05/08/2024 Regular 0.00 158.57 976802
COM20 COMPLETE ASPHALT SERVICE 05/08/2024 Regular 0.00 729.30 976803 COR11 CORE PSYCHOLOGICAL CORPORATION 05/08/2024 Regular 0.00 500.00 976804 CWS01 CORPORATE WAREHOUSE SUPPLY 05/08/2024 Regular 0.00 1,586.65 976805 DATOl DATCO 05/08/2024 Regular 0.00 40.00 976806
DEAD2 DE AIR COMPANY, INC. 05/08/2024 Regular 0.00 210.00 976807 DECO2 DECKER ENGINEERING SERVICES, LLC 05/08/2024 Regular 0.00 6,525.00 976808 DEP02 DEPARTMENT OF FORESTRY AND FIRE PROTECT 05/08/2024 Regular 0.00 247,980.86 976809 DUROl DURHAM PENTZTRUCK CENTER 05/08/2024 Regular 0.00 585.00 976810 EFF01 EFFICIENCY SERVICES GROUP, LLC 05/08/2024 Regular 0.00 3,580.00 976811 EID02 EIDE BAILEY LLP 05/08/2024 Regular 0.00 10,770.10 976812 ESP01 ESPLANADE OFFICE 05/08/2024 Regular 0.00 2,450.76 976813 FEDOl FEDERAL EXPRESS CORP 05/08/2024 Regular 0.00 55.17 976814 F0002 FOOTHILL FIRE PROTECTION, 05/08/2024 Regular 0.00 114.00 976815 GEN06 GENERAL PACIFIC, INC. 05/08/2024 Regular 0.00 499.52 976816 GRI01 GRIDLEY COUNTRY FORD 05/08/2024 Regular 0.00 8,919.05 976817 GR125 GRIDLEY UNIFIED 05/08/2024 Regular 0.00 912.00 976818 NELOl J C NELSON SUPPLY CO 05/08/2024 Regular 0.00 322.03 976819 C0010 JARED COOLEY 05/08/2024 Regular 0.00 30.00 976820 C0010 JARED COOLEY 05/08/2024 Regular 0.00 553.06 976821 BAL01 KNIFE RIVER CONSTRUCTION 05/08/2024 Regular 0.00 745.79 976822 CUR02 L.N. CURTIS AND SONS 05/08/2024 Regular 0.00 231.83 976823 LAKOl LAKEVIEW PETROLEUM CO 05/08/2024 Regular 0.00 10,121.84 976824 SCHOl LES SCHWAB TIRE CENTER 05/08/2024 Regular 0.00 474.71 976825 LIG03 LIGHTBEAM POWER COMPANY 05/08/2024 Regular 0.00 6,414.63 976826 MACOS MAC'S HARDWARE &RENTAL 05/08/2024 Regular 0.00 384.15 976827 MAXOl MAX WALTERS 05/08/2024 Regular 0.00 1,300.00 976828 NOR09 NORTHERN CALIFORNIA GLOVES 05/08/2024 Regular 0.00 443.70 976829 NOR11 Northern California Joint Pole Assoc. 05/08/2024 Regular 0.00 -11.43 976830 NORil Northern California Joint Pole Assoc. 05/08/2024 Regular 0.00 11.43 976830 OFF02 OFFICE DEPOT 05/08/2024 Regular 0.00 52.92 976831 ONE02 ONESOURCE SUPPLY SOLUTIONS 05/08/2024 Regular 0.00 428.93 976832 PGE01 P G & E CO 05/08/2024 Regular 0.00 3,248.36 976833 PAP01 PAPE MACHINERY, INC. 05/08/2024 Regular 0.00 27.28 976834 PTOl PIONEER TOWING 05/08/2024 Regular 0.00 125.00 976835 PIT01 PITNEY BOWES 06/08/Z024 Regular 0.00 475.93 976836 RICOl Rich, Fuidge, Bordsen & Gaylean, Inc. 05/08/2024 Regular 0.00 5,777.50 976837 Cü:!..tl2f124 2;2B:3í3 PM í'ag:~ ~ of !?
Check Report Date Range: 05/01/2024 - 05/31/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number STA01 STANDARD INSURANCE CO 05/08/2024 Regular 0.00 4,080,84 976838 ADVOS SUPERIOR CALIFORNIA OFFICE EQUIPMENT, IN( 05/08/2024 Regular 0.00 688.44 976839 SUTOl BUTTER BUTTES COMMUNICATIONS, INC 05/08/2024 Regular 0.00 3,21237 976840 UPSOS THE UPS STORE 05/08/2024 kegular 0.00 279.12 976841 IMP01 U.S. BANK CORPORATE PAYMENT SYSTEMS 05/08/2024 Regular 0.00 8,713.63 976842 **Void** 05/08/2024 Regular 0.00 0.00 976843
**Void** 05/08/2024 Regular 0.00 0.00 976844
**Void** 05/08/2024 Regular 0.00 0.00 976845
U5B05 US BANK 05/08/2024 Regular 0.00 325.09 976846
USBOS US BANK 05/08/2024 Regular 0.00 60.33 976847
USBOS US BANK 05/08/2024 Regular 0.00 138.00 976848
VER02 VERIZON WIRELESS 05/08/2024 Regular 0.00 12.94 976849 VI504 VISION SERVICE PLAN - (CA 05/08/2024 Regular 0.00 554.98 976850 WOE0001 W.O.E., INC. 05/08/2024 Regular 0.00 1,250.00 976851 ZKOl Z&K RICHARD ENTERPRISES 05/08/2024 Regular 0.00 800.00 976852 ATT14 AT&T 05/09/2024 Regular 0.00 28.97 976853
ATT14 AT&T 05/09/2024 Regular 0.00 238.59 976854
ATT14 AT&T 05/09/2024 Regular 0.00 989.35 976855
ATT14 AT&T 05/09/2024 Regular 0.00 28.97 976856
BAK08 BAKER SUPPLIES AND REPAIRS 05/09/2024 Regular 0.00 569.49 976857 BUT01 BUTTE AUTO PARTS 05/09/2024 Regular 0.00 165.04 976858 ACE02 CANDELARIO ACE HARDWARE 05/09/2024 Regular 0.00 174.20 976859 CPMOl COMMERCIAL PUMP &MECHANICAL, INC. 05/09/2024 Regular 0.00 47,135.13 976860 CRA01 CRANMER ENGINEERING 05/09/2024 Regular 0.00 370.00 976861 GIGOT GIGANTIFI 05/09/2024 Regular 0.00 50.00 976862
6RI01 GRIDLEY COUNTRY FORD 05/09/2024 Regular 0.00 165.12 976863 GRI02 GRIDLEY HONDA 05/09/2024 Regular 0.00 709.10 976864 MACOl MAC'S HARDWARE &RENTAL 05/09/2024. Regular 0.00 503.97 976865 PAPOS RAPE MACHINERY, INC. 05/09/2024 Regular 0.00 15.58 976866 SYL02 SILVIA ELENA CORDERO 05/09/2024 Regular 0.00 2,620.00 976867 UPSOS THE UPS STORE 05/09/2024 Regular 0.00 32.16 976868 LAW07 LAW'S CUSTOM PAINTING 05/15/2024 Regular 0.00 15,000.00 976880 MIN07 MINASIAN, MEITH, SOARES, SEXTON &COOPER 05/15/2024 Regular 0.00 546.75 976881 ARI01 ARIINVESTIGATIONS INC 05/15/2024 Regular 0.00 -14,928.20 976882 ARI01 ARIINVESTIGATIONS INC 05/15/2024 Regular 0.00 14,928.20 976882 PWBOl PACIFIC WEST BUILDERS INC. 05/17/2024 Regular 0.00 49,372.00 976884 ACCOS ACCESS INFORMATION MANAGEMENT 05/22/2024 Regular 0.00 179.20 976885 ASI01 ADMINISTRATIVE SOLUTIONS 05/22/2024 Regular 0.00 1,365.00 976886 ATT08 AT&T 05/22/2024 Regular 0.00 31.57 976887
ATT08 AT&T 05/22/2024 Regular 0.00 31.57 976888
ATTOS AT&T 05/22/2024 Regular 0.00 64.10 976889
ATT08 AT&T 05/22/2024 Regular 0.00 64.10 976890
ATT08 AT&T 05/22/2024 Regular 0.00 31.57 976891
AUT03 AUTO ZONE INC. 05/22/2024 Regular 0.00 17.43 976892 BEN11 BENNETT ENGINEERINGSERVI 05/22/2024 Regular 0.00 54,674.78 976893 **Void** 05/22/2024 Regular 0.00 0.00 976894
BICOl BI-COUNTY IRRIGATION 05/22/2024 Regular 0.00 -20.32 976895 BICOl BI-COUNTY IRRIGATION 05/22/2024 Regular 0.00 20.32 976895 BUTOl BUTTE AUTO PARTS 05/22/2024 Regular 0.00 292.86 976896 BUTOS BUTTE AUTO PARTS 05/22/2024 Regular 0.00 -292.86 976896 ACEO2 CANDELARIO ACE HARDWARE 05/22/2024 Regular 0.00 -130.98 976897 ACE02 CANDELARIO ACE HARDWARE 05/22/2024 Regular 0.00 130.98 976897 WRO01 CHANDRA WROTEN 05/22/2024 Regular 0.00 150.00 976898 WRO01 CHANDRA WROTEN 05/22/2024 Regular 0.00 -150.00 976898 CLA02 CLARK &SONS 05/22/2024 Regular 0.00 -32.12 976899 CLA02 CLARK &SONS 05/22/2024 Regular 0.00 32.12 976899
CLE06 CLEARGOV, INC. 05/22/2024 Regular 0.00 -30,020.83 976900 CLE06 CLEARGOV, INC. 05/22/2024 Regular 0.00 30,020.83 976900 COM17 COMCAST 05/22/2024 Regular 0.00 570.21 976901
COM17 COMCAST 05/22/2024 Regular 0.00 -570.21 976901
CEDOl CONSOLIDATED ELECTRICAL DISTRIBUTORS, IN( 05/22/2024 Regular 0.00 -1,876.88 976902 (/17./2074 L:2Cf:3S PM Page :~ of 3
Check Report Date Range: 05/01/2024-05/31/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number CED01 CONSOLIDATED ELECTRICAL DISTRIBUTORS, IN( 05/22/2024 Regular 0.00 1,876.88 976902 COR01 CORBINWILLITS SYSTEM, IN 05/22/2024 Regular 0.00 -2,433.89 976903 COROl CORBINWILLITS SYSTEM, IN 05/22/2024 Regular 0.00 2,433.89 976903 BOW04 DAVID BOWLING 05/22/2024 Regular 0.00 300.00 976904 BOW04 DAVID BOWLING 05/22/2024 Regular 0.00 -300.00 976904 DEL16 DELMAY INDUSTRIALAND SAFETY SUPPLIES 05/22/2024 Regular 0.00 -780.64 976905 DEL16 DELMAY INDUSTRIALAND SAFETY SUPPLIES 05/22/2024 Regular 0.00 780.64 976905 DEP13 DEPARTMENT OF JUSTICE 05/22/2024 Regular 0.00 -392.00 976906 DEP13 DEPARTMENTOFJUSTICE 05/22/2024 Regular 0.00 392.00 976906 EVE03 EVERBANK 05/22/2024 Regular 0.00 -96.56 976907
EVE03 EVERBANK 05/22/2024 Regular 0.00 96.56 976907
FGLOl FGL ENVIRONMENTAL, INC. 05/22/2024 Regular 0.00 2,923.00 976908 FGLOl FGL ENVIRONMENTAL, INC. 05/22/2024 Regular 0.00 -2,923.00 976908 GEN06 GENERAL PACIFIC, INC. 05/22/2024 Regular 0.00 -12,046.75 976909 GEN06 GENERAL PACIFIC, INC. 05/22/2024 Regular 0.00 12,046.75 976909 NELOl ) C NELSON SUPPLY CO 05/22/2024 Regular 0.00 60.41 976910 NELOl J C NELSON SUPPLY CO 05/22/2024 Regular 0.00 -60.41 976910 WE103 JENNIFER WEISS 05/22/2024 Regular 0.00 -125.00 976911 WE103 JENNIFER WEISS 05/22/2024 Regular 0.00 125.00 976911 CUR02 L.N. CURTIS AND SONS 05/22/2024 Regular 0.00 -42.89 976912 CUR02 L.N. CURTIS AND SONS 05/22/2024 Regular 0.00 42.89 976912 LTI01 LASER TECHNOLOGY, INC 05/22/2024 Regular 0.00 -3,201.73 976913 LTI01 LASER TECHNOLOGY, INC 05/22/2024 Regular 0.00 3,201.73 976913 LAW07 LAW'S CUSTOM PAINTING 05/22/2024 Regular 0.00 15,000.00 976914 LAW07 LAW'S CUSTOM PAINTING 05/22/2024 Regular 0.00 -15,000.00 976914 SCHOl LESSCHWAB TIRE CENTER 05/22/2024 Regular 0.00 1,988.26 976915 SCHOl LESSCHWAB TIRE CENTER 05/22/2024 Regular 0.00 -1,988.26 976915 MAC01 MAC'S HARDWARE &RENTAL 05/22/2024 Regular 0.00 -2,077.89 976916 MAC01 MAC'S HARDWARE &RENTAL 05/22/2024 Regular 0.00 2,077.89 976916 PIN03 MARTINPINEDA 05/22/2024 Regular 0.00 157.63 976917 PIN03 MARTINPINEDA 05/22/2024 Regular 0.00 -157.63 976917 MES02 MESSENGER PUBLISHING GROU 05/22/2024 Regular 0.00 -585.50 976918 ME502 MESSENGER PUBLISHING GROU 05/22/2024 Regular 0.00 585.50 976918 OFF02 OFFICE DEPOT 05/22/2024 Regular 0.00 116.19 976919 OFF02 OFFICE DEPOT 05/22/2024 Regular 0.00 -116.19 976919 ONE02 ONESOURCESUPPLYSOLUTIONS 05/22/2024 Regular 0.00 -1,618.07 976920 ONE02 ONESOURCE SUPPLY SOLUTIONS 05/22/2024 Regular 0.00 1,618.07 976920 PGE01 P G & E CO 05/22/2024 Regular 0.00 -374.51 976921 PGE01 P G & E CO 05/22/2024 Regular 0.00 374.51 976921
TRI05 PREMIER PRINT &MAIL 05/22/2024 Regular 0.00 -301.06 976922 TRI05 PREMIER PRINT &MAIL 05/22/2024 Regular 0.00 301.06 976922 RICOl Rich, Fuídge, Bordsen &Gaylean, Inc. 05/22/2024 Regular 0.00 -3,843.00 976923 RICOl Rich, Fuidge, Bordsen &Gaylean, Inc. 05/22/2024 Regular 0.00 3,843.00 976923 RTB01 ROYAL TRUCK BODY 05/22/2024 Regular 0.00 -26,152.46 976924 RTBOl ROYAL TRUCK BODY 05/22/2024 Regular 0.00 26,152.46 976924 RSGOl RSG INC. 05/22/2024 Regular 0.00 4,087.50 976925
RSGOl RSG INC. 05/22/2024 Regular 0.00 -4,087.50 976925 SACOS SACRAMENTO REGIONAL SAFETY TRAINING CEf 05/22/2024 Regular 0.00 16.00 976926 SACOS SACRAMENTO REGIONAL SAFETY TRAINING CEf 05/22/2024 Regular 0.00 -16.00 976926 SUNOZ SUN RIDGE SYSTEMS, INC. 05/22/2024 Regular 0.00 -15,711.25 976927 SUN02 SUN RIDGE SYSTEMS, INC. 05/22/2024 Regular 0.00 15,711.25 976927 HOS01 THE HOSE SHOP, LLC 05/22/2024 Regular 0.00 -145.24 976928 HOSOS THE HOSE SHOP, LLC 05/22/2024 Regular 0.00 145.24 976928 TYL01 TYLER TECHNOLOGIES, INC 05/22/2024 Regular 0.00 -550.00 976929 TYL01 TYLER TECHNOLOGIES, INC 05/22/2024 Regular 0.00 550.00 976929 USBOS US BANK 05/22/2024 Regular 0.00 -80.22 976930
USBOS US BANK 05/22/2024 Regular 0.00 80.22 976930
USBOS US BANK 05/22/2024 Regular 0.00 60.31 976931
USBOS US BANK 05/22/2024 Regular 0.00 -60.31 976931
VER02 VERIZON WIRELESS 05/22/2024 Regular 0.00 -1,826.81 976932 VER02 VERIZON WIRELESS 05/22/2024 Regular 0.00 1,826.81 976932 6/2117..024 ];2.0;38 PM Page ç oí' H
Check Report Date Range: OS/01/2024 - 05/31/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number ATT0001 AT&T 05/24/2024 Regular 0.00 85.60 976933
BUT18 BUTTE COUNTY PUBLIC HEALTH 05/24/2024 Regular 0.00 327.00 976934 DECO2 DECKER ENGINEERING SERVICES, LLC 05/24/2024 Regular 0.00 3,000.00 976935 FGL01 FGL ENVIRONMENTAL, INC. 05/24/2024 Regular 0.00 155.00 976936 MAC0002 MACQUARIE EQUIPMENT CAPITAL INC. 05/24/2024 Regular 0.00 281.00 976937 MACOl MAC'S HARDWARE &RENTAL 05/24/2024 Regular 0.00 270.18 976938 PIN03 MARTINPINEDA 05/24/2024 Regular 0.00 106.93 976939 ME502 MESSENGER PUBLISHING GROU 05/24/2024 Regular 0.00 368.00 976940 PGE01 P G & E CO 05/24/2024 Regular 0.00 33,221.22 976941 RM001 RUTHMORENO 05/24/2024 Regular 0.00 200.00 976942
ROCK01 U-ROCK UTILITY EQUIPMENT INC. 05/24/2024 Regular 0.00 149,133.98 976943 LAW07 LAW'S CUSTOM PAINTING 05/31/2024 Regular 0.00 15,000.00 976944 LAW07 LAW'S CUSTOM PAINTING 05/31/2024 Regular 0.00 15,000.00 976945 CAL70 CALIFORNIA CHOICE BENEFIT 05/20/2024 Bank Draft 0.00 21,512.03 DFT0002641 CAL70 CALIFORNIA CHOICE BENEFIT 05/20/2024 Bank Draft 0.00 21,511.96 DFT0002659 CAL70 CALIFORNIA CHOICE BENEFIT 05/20/2024 Bank Draft 0.00 211.98 DFT0002678 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 46.00 DFT0002687 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 762.04 DFT0002689 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 1,288.93 DFT0002690 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 2,566.65 DFT0002691 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 4,572.26 DFT0002692 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 4,689.16 DFT0002693 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 4,646.81 DFT0002694 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 2,333.01 DFT0002695 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 6,649.06 DFT0002696 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 2,506.90 DFT0002697 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/03/2024 Bank Draft 0.00 2,468.61 DFT0002698 INT07 INTERNAL REVENUE SERVICE 08/03/2024 Bank Draft 0.00 4,988.70 DFT0002699 INT07 INTERNAL REVENUE SERVICE 05/03/2024 Bank Draft 0.00 14,083.94 DFT0002700 INT07 INTERNAL REVENUE SERVICE 08/03/2024 Bank Draft 0.00 840.96 DFT0002701 EMPOl EMPLOYMENT DEVELOPMENT 05/03/2024 Bank Draft 0.00 5,763.04 DFT0002702 INT07 INTERNAL REVENUE SERVICE 05/03/2024 Bank Draft 0.00 106.76 DFT0002703 INT07 INTERNAL REVENUE SERVICE 05/03/2024 Bank Draft 0.00 320.68 DFT0002704 EMP01 EMPLOYMENT DEVELOPMENT 05/03/2024 Bank Draft 0.00 109.00 DFT0002705 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 47.00 DFT0002706 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 762.03 DFT0002708 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 1,288.92 DFT0002709 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 2,566.65 DFT0002710 CAL59 CALIFORNIA PUBLIC EMPLOYE OS/17/Z024 Bank Draft 0.00 4,572.26 DFT0002711 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 4,788.80 DFT0002712 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 4,745.57 DFT0002713 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 2,331.39 DFT0002714 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 6,644.44 DFT0002715 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/17/2024 Bank Draft 0.00 2,501.40 DFT0002716 CAL59 CALIFORNIA PUBLIC EMPLOYE 08/17/2024 Bank Draft 0.00 2,463.20 DFT0002717 INT07 INTERNAL REVENUE SERVICE 05/17/2024 Bank Draft 0.00 5,180.60 DFT0002718 INT07 INTERNAL REVENUE SERVICE 05/17/2024 Bank Draft 0.00 14,880.53 DFT0002719 INT07 INTERNAL REVENUE SERVICE 05/17/2024 Bank Draft 0.00 1,414.56 DFT0002720 EMPOl EMPLOYMENT DEVELOPMENT 05/17/2024 Bank Draft 0.00 6,062.63 DFT0002721 INT07 INTERNAL REVENUE SERVICE 05/17/2024 Bank Draft 0.00 133.24 DFT0002722 INT07 INTERNAL REVENUE SERVICE 05/17/2024 Bank Draft 0.00 582.70 DFT0002723 EMPOl EMPLOYMENT DEVELOPMENT 05/17/2024 Bank Draft 0.00 198.51 DFT0002724 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 47.00 DFT0002736 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 762.03 DFT0002737 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 1,288.92 DFT0002738 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 2,566.64 DFT0002739 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 4,572.27 DFT0002740 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 4,684.53 DFT0002741 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 4,642.22 DFT0002742 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 2,327.07 DFT0002743 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 6,632.13 DFT0002744 Gl77.!7.d:'4 7:2C:3S Pi~~1 F'acae S f <s
Check Report Date Range: OS/01/2024 - 05/31/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 2,514.04 DFT0002745 CAL59 CALIFORNIA PUBLIC EMPLOYE 05/31/2024 Bank Draft 0.00 2,475.65 DFT0002746 INT07 INTERNAL REVENUE SERVICE 05/31/2024 Bank Draft 0.00 5,255.42 DFT0002747 INT07 INTERNAL REVENUE SERVICE 05/31/2024 Bank Draft 0.00 16,559.37 DFT0002748 INT07 INTERNAL REVENUE SERVICE 05/31/2024 Bank Draft 0.00 993.40 DFT0002749 EMP01 EMPLOYMENT DEVELOPMENT 05/31/2024 Bank Draft 0.00 6,928.04 DFT0002750 INT07 INTERNAL REVENUE SERVICE 05/31/2024 Bank Draft 0.00 251.16 DFT0002751 INT07 INTERNAL REVENUE SERVICE 05/31/2024 Bank Draft 0.00 617.18 DFT0002752 EMPO3 EMPLOYMENT DEVELOPMENT 05/31/2024 Bank Draft 0.00 173.80 DFT0002763 INT07 INTERNAL REVENUE SERVICE 05/31/2024 Bank Draft 0.00 7.16 DFT0002764 Bank Code General Checking Summary
Payable Payment
Payment Type Count Count Discount Payment
Regular Checks 283 145 0.00 884,614.30
Manual Checks 0 0 0.00 0.00
Voided Checks 0 105 0.00 -145,128.60
Bank Drafts 58 58 0.00 226,440.94
EFT's 0 0 0.00 0.00
341 308 0.00 965,926.64
:i/77.l2.G'~+ ?:2G:íJ8 PNI P. 9` 5 ~f 8
Check Report Date Range: OS/01/2024 - 05/31/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code: Payroll-Payroll
AME29 American FidelityAssuran 05/01/2024 Regular 0.00 325.00 15040 AME30 AMERICAN FIDELITY ASSURAN 05/01/2024 Regular 0.00 1,636.48 15041 BUT43 CHILD SUPPORTSRVCS. 05/01/207.4 Regular 0.00 332.30 15042 GRI12 GRIDLEY POLICE 05/01/2024 Regular 0.00 1,322.00 15043 IBE01 I.B.E.W. - LOCAL #11245 05/01/2024 Regular 0.00 2,502.94 í5D44 MIS07 MissionSquare - 303902 05/01/2024 Regular 0.00 7,228.87 15045 Bank Code Payroll Summary
Payable Payment
Payment Type Count Count Discount Payment
Regular Checks 19 6 0.00 13,347.59
Manual Checks 0 0 0.00 0.00
Voided Checks 0 0 0.00 0.00
Bank Drafts 0 0 0.00 0.00
EFT's 0 0 0.00 0.00
19 ~~ 6 0.00 13,347.59
G/2.1/"J.024 ?:20:38 i'M Fage Ï of 3
Check Report Date Range: 05/01/2024-05/31/2024
All Bank Codes Check Summary
Payable Payment
Payment Type Count Count Discount Payment
Regular Checks 302 151 0.00 897,961.89
Manual Checks 0 0 0.00 0.00
Voided Checks 0 105 0.00 -145,128.60
Bank Drafts 58 58 0.00 226,440.94
EFT's 0 0 0.00 0.00
360 314 0.00 979 274.23
Fund Summary
Fund Name Period Amount
999 Cash Clearing 5/2024 979,274.23
~~ 979,274.23
(i/2.1/20;?<ï ?;20;38 PM Page 8 of 8
~
Gridley, CA
Payroll Bank Transaction Report
By Payment Number
Date: 5/1/2024 - 5/31/2024
Payroll Set: 01 -City of Gridley
Payment Direct Deposit
N,~arn~ber.., _ „ Payment Date Payment Type~~ o .. w~ .-..,e__.o-...,. ~ ~._.~, ._ -..m ..w......__~.~... Check Amount ...~._ _ __ _ ~ ~~M.~.. ._ .. _ q~poy0~ eW_ ToYal Payment 5605 05/03/2024 Regular 0 4335.25 4335.25
5606 05/03/2024 Regular 0 2379.81 2379.81
5607 05/03/2024 Regular 0 2523.89 2523.89
5608 05/03/2024 Regular 0 1586.89 1586.89
5609 05/03/2024 Regular 0 5251.26 5251.26
5610 05/03/2024 Regular 0 4785.31 4785.31
5611 05/03/2024 Regular 0 4279.96 4279.96
5612 05/03/2024 Regular 0 2601.9 2601.9
5613 05/03/2024 Regular 0 3792.84 3792.84
5614 05/03/2024 Regular 0 2031.18 2031.18
5615 05/03/2024 Regular 0 1520.65 1520.65
5616 05/03/2024 Regular 0 1824.1 1824.1
5617 05/03/2024 Regular 0 2060.87 2060.87
5618 05/03/2024 Regular 0 3980.15 3980.15
5619 05/03/2024 Regular 0 2025.9 2025.9
5620 05/03/2024 Regular 0 2505.59 2505.59
5621 05/03/2024 Regular 0 1174.69 1174.69
5622 05/03/2024 Regular 0 1992.4 1992.4
5623 05/03/2024 Regular 0 2055.95 2055.95
5624 05/03/2024 Regular 0 1807.5 1807.5
5625 05/03/2024 Regular 0 2303.62 2303.62
5626 05/03/2024 Regular 0 2570.65 2570.65
5627 05/03/2024 Regular 0 2271.66 2271.66
5628 05/03/2024 Regular 0 331.7 331.7
5629 05/03/2024 Regular 0 3597.08 3597.08
5630 05/03/2024 Regular 0 2104.08 2104.08
5631 05/03/2024 Regular 0 3795.28 3795.28
5632 05/03/2024 Regular 0 1259.14 1259.14
5633 05/03/2024 Regular 0 1287.58 1287.58
5634 05/03/2024 Regular 0 12.42 12.42
5635 05/03/2024 Regular 0 2037.2 2037.2
5636 05/03/2024 Regular 0 1640.6 1640.6
5637 05/03/2024 Regular 0 1704.29 1704.29
5638 05/03/2024 Regular 0 2702.34 2702.34
5639 05/03/2024 Regular 0 2995.56 2995.56
5640 05/03/2024 Regular 0 3157.53 3157.53
5641 05/03/2024 Regular 0 1920.15 1920.15
5642 05/03/2024 Regular 0 2753.26 2753.26
5643 05/03/2024 Regular 0 76.01 76.01
5644 05/03/2024 Regular 0 1628.07 1628.07
5645 05/03/2024 Regular 0 1667.19 1667.19
5646 05/03/2024 Regular 0 399.01 399.01
5647 05/03/2024 Regular 0 585.43 585.43
5648 05/03/2024 Regular 0 585.43 585.43
5649 05/03/2024 Regular 0 184.42 184.42
5650 05/03/2024 Regular 0 2006.36 2006.36
5651 05/03/2024 Regular 0 1775.71 1775.71
5652 05/03/2024 Regular 0 4787.54 4787.54
5653 05/03/2024 Regular 0 2735.69 2735.69
5654 05/03/2024 Regular 0 1949.36 1949.36
5655 05/03/2024 Regular 0 2577.96 2577.96
5656 05/03/2024 Regular 0 5222.7 5222.7
5657 05/03/2024 Regular 0 1624.37 1624.37
5658 05/03/2024 Regular 0 2334.13 2334.13
5659 05/03/2024 Regular 0 1965.07 1965.07
5660 05/17/2024 Regular 0 4335.26 4335.26
5661 05/17/2024 Regular 0 2379.8 2379.8
5662 05/17/2024 Regular 0 2581.35 2581.35
5663 05/17/2024 Regular 0 1586.87 1586.87
5664 05/17/2024 Regular 0 184.7 184.7
5665 05/17/2024 Regular 0 184.7 184.7
05/17/2024 Regular 0 6877.54 6877.54
05/17/2024 Regular 0 4301.64 4301.64
05/17/2024 Regular 0 4279.96 4279.96
05/17/2024 Regular 0 2491.05 2491.05
05/17/2024 Regular 0 3792.84 3792.84
05/17/2024 Regular 0 2031.19 2031.19
05/17/2024 Regular 0 1505.66 1505.66
05/17/2024 Regular 0 1824.1 1824.1
05/17/2024 Regular 0 2060.87 2060.87
05/17/2024 Regular 0 3980.15 3980.15
05/17/2024 Regular 0 2275.49 2275.49
05/17/2024 Regular 0 2505.58 2505.58
05/17/2024 Regular 0 1408.56 1408.56
05/17/2024 Regular 0 1992.4 1992.4
05/17/2024 Regular 0 2040.01 2040.01
05/17/2024 Regular 0 1807.5 1807.5
05/17/2024 Regular 0 2575.68 2575.68
05/17/2024 Regular 0 2570.65 2570.65
05/17/2024 Regular 0 2118.02 2118.02
05/17/2024 Regular 0 126.68 126.68
05/17/2024 Regular 0 434.58 434.58
05/17/2024 Regular 0 3597.08 3597.08
05/17/2024 Regular 0 2375.78 2375.78
05/17/2024 Regular 0 3795.28 3795.28
05/17/2024 Regular 0 1259.13 1259.13
05/17/2024 Regular 0 1703.79 1703.79
05/17/2024 Regular 0 12.42 12.42
05/17/2024 Regular 0 2005.21 2005.21
05/17/2024 Regular 0 1640.59 1640.59
05/17/2024 Regular 0 1743.02 1743.02
05/17/2024 Regular 0 696.31 696.31
05/17/2024 Regular 0 2718.26 2718.26
05/17/2024 Regular 0 266.01 266.01
05/17/2024 Regular 0 2995.56 2995.56
05/17/2024 Regular 0 2707.43 2707.43
05/17/2024 Regular 0 1920.15 1920.15
05/17/2024 Regular 0 1862.67 1862.67
05/17/2024 Regular 0 266.01 266.01
05/17/2024 Regular 0 1641.7 1641.7
05/17/2024 Regular 0 1667.19 1667.19
05/17/2024 Regular 0 577.08 577.08
05/17/2024 Regular 0 532.51 532.51
05/17/2024 Regular 0 585.43 585.43
05/1
7/2024 Regular 0 553.26 553.26
05/17/2024 Regular 0 2006.36 2006.36
05/17/2024 Regular 0 3102.31 3102.31
05/17/2024 Regular 0 3526.11 3526.11
05/17/2024 Regular 0 1919.75 1919.75
05/17/2024 Regular 0 2150.66 2150.66
05/17/2024 Regular 0 4008.44 4008.44
05/17/2024 Regular 0 5222.69 5222.69
05/17/2024 Regular 0 1624.38 1624.38
05/17/2024 Regular 0 2334.12 2334.12
05/17/2024 Regular 0 1965.07 1965.07
05/3
1/2024 Regular 0 4492.19 4492.19
05/31/2024 Regular 0 2389.78 2389.78
05/31/2024 Regular 0 2517.79 2517.79
05/3
1/2024 Regular 0 1636.24 1636.24
05/31/2024 Regular 0 6416.37 6416.37
05/31/2024 Regular 0 5879.87 5879.87
05/31/2024 Regular 0 4742.34 4742.34
05/31/2024 Regular 0 2846.69 2846.69
05/31/2024 Regular 0 4126.17 4126.17
05/3
1/2024 Regular 0 2071.88 2071.88
05/31/2024 Regular 0 1437.79 1437.79
05/31/2024 Regular 0 1874.98 1874.98
05/31/2024 Regular 0 2102.67 2102.67
05/3
1/2024 Regular 0 4228.81 4228.81
05/31/2024 Regular 0 2442.31 2442.31
05/31/2024 Regular 0 2641.23 2641.23
5736 05/31/2024 Regular 0 369.55 369.55
5737 05/31/2024 Regular 0 2036.86 2036.86
5738 05/31/2024 Regular 0 2121.4 2121.4
5739 05/31/2024 Regular 0 1899.67 1899.67
5740 05/31/
2024 Regular 0 2591.6 2591.6
5741 05/31/2024 Regular 0 2736.44 2736.44
5742 05/31/2024 Regular 0 3556.85 3556.85
5743 05/31/2024 Regular 0 733.65 733.65
5744 05/31/2024 Regular 0 228.83 228.83
5745 05/31/2024 Regular 0 3639.31 3639.31
5746 05/31/2024 Regular 0 2686.17 2686.17
5747 05/31/2024 Regular 0 3877.87 3877.87
5748 05/31/2024 Regular 0 1148.84 1148.84
5749 05/31/2024 Regular 0 12.42 12.42
5750 05/31/
2024 Regular 0 3621.42 3621.42
5751 05/31/2024 Regular 0 1834.08 1834.08
5752 05/31/2024 Regular 0 1930.41 1930.41
5753 05/31/2024 Regular 0 824.8 824.8
5754 05/31/2024 Regular 0 2910.42 2910.42
5755 05/31/2024 Regular 0 342.02 342.02
5756 05/31/2024 Regular 0 3092.33 3092.33
5757 05/31/2024 Regular 0 76.01 76.01
5758 05/31/2024 Regular 0 2876.17 2876.17
5759 05/31/2024 Regular 0 2116.54 2116.54
5760 05/31/2024 Regular 0 1905.2 1905.2
5761 05/31/2024 Regular 0 348.35 348.35
5762 05/31/2024 Regular 0 1738.44 1738.44
5763 05/31/
2024 Regular 0 1793.81 1793.81
5764 05/31/2024 Regular 0 630.65 630.65
5765 05/31/2024 Regular 0 296.78 296.78
5766 05/31/2024 Regular 0 259.68 259.68
5767 05/31/2024 Regular 0 1246.06 1246.06
5768 05/31/2024 Regular 0 2058.26 2058.26
5769 05/31/2024 Regular 0 2258.12 2258.12
5770 05/31/2024 Regular 0 5409.05 5409.05
5771 05/31/2024 Regular 0 1958.5 1958.5
5772 05/31/2024 Regular 0 1987.34 1987.34
5773 05/31/2024 Regular 0 2623.31 2623.31
5774 05/31/2024 Regular 0 5314.77 5314.77
5775 05/31/2024 Regular 0 1628.36 1628.36
5776 05/31/2024 Regular 0 3970.17 3970.17
5777 05/31/2024 Regular 0 2020.5 2020.5
15036 05/03/2024 Regular 1931.38 0 1931.38
15037 05/03/2024 Regular 2117.61 0 2117.61
15038 05/03/2024 Regular 1073.51 0 1073.51
15039 05/03/2024 Regular 2124.49 0 2124.49
15051 05/17/2024 Regular 184.7 0 184.7
R-15051 05/17/2024 Reversal -184.7 0 -184.7
15052 05/17/2024 Regular 0 0 0
15053 05/17/2024 Regular 565.95 0 565.95
R-15053 05/17/2024 Reversal -565.95 0 -565.95
15054 05/17/2024 Regular 1931.38 0 1931.38
R-15054 05/17/2024 Reversal -1931.38 0 -1931.38
15055 05/17/2024 Regular 2117.61 0 2117.61
R-15055 05/17/2024 Reversal -2117.61 0 -2117.61
15056 05/17/2024 Regular 2626.82 0 2626.82
R-15056 05/17/2024 Reversal -2626.82 0 -2626.82
15057 05/17/2024 Regular 1119.95 0 1119.95
R-15057 05/17/2024 Reversal -1119.95 0 -1119.95
15058 05/17/2024 Regular 184.7 0 184.7
15059 05/17/2024 Regular 565.95 0 565.95
15060 05/17/2024 Regular 2626.82 0 2626.82
15061 05/17/2024 Regular 1119.95 0 1119.95
15062 05/17/2024 Regular 1931.38 0 1931.38
15063 05/17/2024 Regular 2117.61 0 2117.61
15064 05/31/2024 Regular 1931.38 0 1931.38
15065 05/31/2024 Regular 2133.93 0 2133.93
15066 05/31/2024 Regular 2177.06 0 2177.06
15067 05/31/2024 Regular 565.95 0 565.95
15068 05/31/2024 Regular 1689.69 0 1689.69
15069 05/31/2024 Regular 2124.49 2124.49
15070 05/31/2024 Regular 118731 1187.31
15071 05/31/2024 Regular __
243.15 0 243.15
Total: 27846.36 390857.39 418703.75
fij2]./?024 [;32;24 phi Pt;n,2 ~ Df 4

Treasurer's Report
FY 2023-2024
1 Summary of Investments
2 Cíty Cash &Investment Analysis Graphs
3 Pooled Cash Balances by Fund
4 Investment Balances, Fiscal Agenc, LAIF Interest, Funds Section 1
Summary of Investments
City of Gridley
Summary
Investment Distribution Book Value Market Value Interest Rate Maturity Cash and investments
Cash at banking institutions $ 12,262,438
Wells Fargo Savings 1,084,524
Local Agency Investment Fund (LAIF) 7,819,298
$ 21,166,260
Restricted cash
Cash with fiscal agent 22,732
$ 22,732
$ 12,262,438
1,084,524
7,819,298
$ 21,166,260
$ 22,732
$ 22,732
0%
0%
0%
0%
On demand
On demand
On demand
On demand
Section 2
City Cash &Investment Analysis Graphs
City of Gridley
Treasurer's Report as June 30, 2024
WFSavings Total Cash
Restricted cash°~ as of 06/30/2024
0%
-: r
LAIF Balance ~ , ,,
37% General Checking General Checking
LAIF Balance
.:Restricted cash
WFSavings

4.50%

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
LAIF Interest Rate
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

FUND CASH ALLOCATIONS
General Fund, - _Electric Fund, 5.54%
Fiduciary funds„ `6.01%

22.60% _Water Fund, 12.83%
Other Enterprise ' -
Funds, 3.85% _,
,,\
Other Gov't Funds,

10.77%
r Fund, 20.21%
■ General Fund ~ Electric Fund Water Fund
Sewer Fund ~ Reserve Funds ~ Other Gov't Funds
■ Other Enterprise Funds ■ Fiduciary Funds
Section 3
Pooled Cash Balance By Fund
Cash Balances
Account # Account Name Balance Fund # Fund #and Name Designation 010-10099 Cash Balance $ (2,893,744.41) 010 010-General GF 011-10099 Cash Balance $ 3,138,599.90 011 011-GF-Reserve RES 012-10099 Cash Balance $ 460,000.00 012 012-FEMA-RESERVE OGF 020-10099 Cash Balance $ 1,107,888.19 020 020-General -Impact RES 021-10099 Cash Balance $ 11,782.97 021 021-Dev'I Agree Fee RES 023-10099 Cash Balance $ 40,000.00 023 023-WeIlFund RES 050-10099 Cash Balance $ 85,041.98 050 050-City Hall Rsry RES 060-10099 Cash Balance $ 1,679,179.38 060 060-Equipment Resry RES 070-10099 Cash Balance $ 174,238.78 070 070-SICK LEAVE RESR RES 121-10099 Cash Balance $ (118,918.11) 121 121-Prop 12 & 40 RR OGF 122-10099 Cash Balance $ 1.55 122 122-Prop 12&40Vierr OGF 123-10099 Cash Balance $ 25,000.00 123 123-M.VIERRA PARK OGF 200-10099 Cash Balance $ 209,995.99 200 200-RDA -Operating OGF 204-10099 Cash Balance $ (2,528,764.92) 204 204-2008 Series A OGF 206-10099 Cash Balance $ (1,293,242.00) 206 206-2008 Series B OGF 208-10099 Cash Balance $ (32,825.32) 208 208-2022 Series A OGF 210-10099 Cash Balance $ (17,045.33) 210 210-2022 Series B OGF 215-10099 Cash Balance $ 4,615,505.86 215 215-SuccessorAgeny FID 220-10099 Cash Balance $ - 220 220-Public Fin.Auth OGF
390-10099 Cash Balance $ 262,982.20 390 390-Gas Tax 2105 OGF 395-10099 Cash Balance $ (33,615.87) 395 395-Sect.2103 OGF 400-10099 Cash Balance $ (7,454.55) 400 400-Gas Tax 2106 OGF 410-10099 Cash Balance $ (27,650.93) 410 410-Gas Tax 2107 OGF 420-10099 Cash Balance $ (483.62) 420 420-Gas Tax 2107.5 OGF 425-10099 Cash Balance $ 819,101.99 425 425-SB1-RMR OGF 430-10099 Cash Balance $ (125,373.30) 430 430-56 325 OGF 440-10099 Cash Balance $ (13,270.04) 440 440-Traffic Safety OGF 450-10099 Cash Balance $ 83.31 450 450-Bicycle OGF
455-10099 Cash Balance $ 10,907.60 455 455-Railroad mantce OGF 460-10099 Cash Balance $ 195,754.41 460 460-Public Safe Aug OGF 480-10099 Cash Balance $ 7,853.72 480 480-Boat Ramp OGF 490-10099 Cash Balance $ (32.82) 490 490-Parks &RecImp OGF 495-10099 Cash Balance $ 27,522.91 495 495-RecCoordinator OGF 496-10099 Cash Balance $ 6,305.00 496 496-RecCoordinator Scholar: OGF 500-10099 Cash Balance $ (38,190.23) 500 500-Planning & Dev. OGF 511-10099 Cash Balance $ (8,778.43) 511 511-ED RLF (OLD) OGF 512-10099 Cash Balance $ (4,353.89) 512 512-New Fund OGF 513-10099 Cash Balance $ 259,222.55 513 513-CDBG PROGRAM IN OGF 514-10099 Cash Balance $ 165,962.47 514 514-HOME P.I. OGF 516-10099 Cash Balance $ 19,264.38 516 516-CalHome PI OGF 520-10099 Cash Balance $ - 520 520-Vision Care OGF
570-10099 Cash Balance $ 2,700.00 570 570-New Fund OGF
580-10099 Cash Balance $ 64,551.35 580 580-Flood Maint#1 OGF 581-10099 Cash Balance $ (18,001.91) 581 581-Flood Maint #2 OGF 582-10099 Cash Balance $ (137,265.09) 582 582-Flood Maint #3 OGF 583-10099 Cash Balance $ 21,451.25 583 583-Maint Dist #6 OGF 590-10099 Cash Balance $ 878.76 590 590-Solid Waste OEF 591-10099 Cash Balance $ - 591 591-Solid Waste-Rec OEF
600-10099 Cash Balance $ (3,778,243.87) 600 600-Electric Utilit EF 601-10099 Cash Balance $ (20,140.19) 601 601-Electric - NBE EF Cash Balances
Account # Account Name Balance Fund # Fund #and Name Desienatíon 610-10099 Cash Balance $ 556,048.55 610 610-Public Benefits OEF 620-10099 Cash Balance $ (124,667.29) 620 620-Electric Capitl EF 621-10099 Cash Balance $ 791,498.92 621 621-Elect Cont Rsve EF 630-10099 Cash Balance $ 1,280,978.32 630 630-Water Utility WF 640-10099 Cash Balance $ 578,831.54 640 640-Water Capital WF 641-10099 Cash Balance $ 111,802.99 641 641-Well replacemnt WF 650-10099 Cash Balance $ (144,044.69) 650 650-Sewer Utility SF 656-10099 Cash Balance $ 79,579.49 656 656-Sewer- Dt Svice SF G60-10099 Cash Balance $ 2,734,286.72 660 660-Sewer Capital SF 661-10099 Cash Balance $ 619,431.10 661 661-SEWER WWTCIP $F 670-10099 Cash Balance $ (60,725.43) 670 670-GPD Seizure RE5 672-10099 Cash Balance $ 605,084.84 672 672-COPS GRANTS OGF 673-10099 Cash Balance $ 645.46 673 673-Explorer-PD OGF 674-10099 Cash Balance $ 1,449.48 674 674-K9- DONATIONS OGF 680-10099 Cash Balance $ 12,489.41 680 680-Trust- Main FID 681-10099 Cash Balance $ 60.00 681 681-Gridley BID FID
682-10099 Cash Balance $ - 682 682-Hospital JPA FID
683-10099 Cash Balance $ 489.91 683 683-HOSPIPAADMIN OGF 700-10099 Cash Balance $ 115,036.11 700 700-58325-SenrTaxi OEF 800-10099 Cash Balance $ 508.56 800 800-96-STBG-1011 OGF 802-10099 Cash Balance $ (126,869.85) 802 802-SAFE ROUT SCHL OGF 804-10099 Cash Balance $ (12,156.69) 804 804-CALTRAN MOBIL. OGF 805-10099 Cash Balance $ (90,788.73) 805 805-Hazel StreetTE OGF 806-10099 Cash Balance $ (5,277.27) 806 806-12 CaIHOME 8701 OGF 807-10099 Cash Balance $ (5,308.45) 807 807-13 CDBG-8970 OGF 808-10099 Cash Balance $ (107,813.91) 808 808-13 HOME 8995 OGF 809-10099 Cash Balance $ 171,860.23 809 809-18-HOME-12579 OGF 810-10099 Cash Balance $ 106.40 810 810-89-REHAB OGF
813-10099 Cash Balance $ 3,743.88 813 813-08-HOME-4987 OGF 814-10099 Cash Balance $ 19,092.51 814 814-Gridley Springs OGF 821-10099 Cash Balance $ (74,706.62) 821 821-Strategic Plan OGF 831-10099 Cash Balance $ 214,825.34 831 831-RANCHO VILLA OGF 888-10099 Cash Balance $ - 888 888-02-STBG-1701 OGF
890-10099 Cash Balance $ 116.59 890 890-New Fund OGF
895-10099 Cash Balance $ - 895 895-04-STBG-1961 OGF
896-10099 Cash Balance $ - 896 896-05-PTAA-1446 OGF
912-10099 Cash Balance $ (31,375.15) 912 912-HRPP GRANT OGF 913-10099 Cash Balance $ 8,044.63 913 913-OTS T.S Grant OGF 920-10099 Cash Balance $ (5,841.24) 920 920-CALRECL-PLAY AR OGF 921-10099 Cash Balance $ 6,884.00 921 921-SB 1383 Organic Waste F OGF 922-10099 Cash Balance $ (4,655.00) 922 922-ATP GRANT 2015 OGF 923-10099 Cash Balance $ (11,443.00) 923 923-CDBG-DR OGF 924-10099 Cash Balance $ 51,241.93 924 924-2021 Vierra Park Improv OGF 925-10099 Cash Balance $ - 925 925-CMAQ Department of Tr OGF 926-10099 Cash Balance $ 16,176.61 926 926-SWRCB Revolving Loan-F OGF 927-10099 Cash Balance $ - 927 927-CRF Coronavirus Relief F OGF 928-10099 Cash Balance $ 1,638,574.07 928 928-GARB Credit OGF 929-10099 Cash Balance $ (2,348.95) 929 929-LRSPL- 5140 OGF 930-10099 Cash Balance $ 1,256,816.94 930 930-Coronavirus Recovery F~ OGF 931-10099 Cash Balance $ 10,033.15 931 931-Officer Wellness and Me OGF Cash Balances
Account # Account Name Balance Fund # Fund #and Name Designation 932-10099 Cash Balance $ (59,595.36) 932 932-Fund: 932 -Outdoor Equ OGF 933-10099 Cash Balance $ (70,064.57) 933 933-Gridley Sports Complex OGF 974-10099 Cash Balance $ (1.00) 974 974-GA5868 POOL
975-10099 Cash Balance $ 1.15 975 975-GLTDAG POOL
976-10099 Cash Balance $ - 976 976-RDA-GLTDAG POOL
980-10099 Cash Balance $ (1.46) 980 980-Fixed Assets POOL 982-10099 Cash Balance $ 0.46 982 982-FORECLOSURES POOL $ 12,262,436.30
Section 4
Investment Balances, Fiscal Agent, LAIF Interest, Funds Investments Allocation
Account j Name I Fund Name Ending Balance
010-15020 Investments _IGeneral 1,202,328.63
010-15022 INVESTMENT- WELLS FARGO IGeneral 231,393.27
010-15023 IUS Bank Safekeeping -CDs IGeneral 188,589.14 011-15020 Investments IGF-Reserve 18,929.98
01 1-1 5022 Investments -Wells Fargo GF-Reserve 1,021.14 011-15023 IUS Bank Safekeeping -CDs IGF-Reserve 3,663.48 012-15020 Investments IFEMA-RESERVE 8,580.42
012-15022 INVESTMENT- WELLS FARGO (FEMA-RESERVE 162.43
012-15023 IUS Bank Safekeeping -CDs FEMA-RESERVE 1,646.06 020-15020 Investments IGeneral -Impact 19,366.81
020-15022 (INVESTMENT-WELLS FARGO IGeneral -Impact 1,178.90 020-15023 IUS Bank Safekeeping -CDs General -Impact 3,776.06 021-15020 Ilnvestments Dev'I Agree Fee 191.21
021-15022 Ilnvestments -Wells Fargo IDev'I Agree Fee 4.15 021-15023 IUS Bank Safekeeping -CDs Dev'I Agree Fee
~

41.52 023-15020 Investments WeIlFund 649.09
023-15022 Ilnvestments -Wells Fargo IWeIIFund 14.13
023-15023 IUS Bank Safekeeping -CDs IWeIIFund 140.93
050-15020 Ilnvestments (City Hall Rsry 3,086.82
050-15022 Investments -Wells Fargo City Hall Rsry 34.25 050-15023 IUS Bank Safekeeping -CDs (City Hall Rsry 595.94 060-15020 Ilnvestments (Equipment Resry 75,995.92
060-15022 (INVESTMENT-WELLS FARGO (Equipment Resry 6,351.37 060-15023 ~US Bank Safekeeping -CDs (Equipment Resry 14,355.32 070-15020 Ilnvestments (SICK LEAVE RESR 2,827.48
070-15022 Ilnvestments -Wells Fargo (SICK LEAVE RESR 61.52 070-15023 IUS Bank Safekeeping -CDs (SICK LEAVE RESR 613.89 122-15020 Ilnvestments (Prop 12&40Vierr 0.01
122-15022 Investments -Wells Fargo (Prop 12&40Vierr -
122-15023 US Bank Safekeeping -CDs (Prop 12&40Víerr -
123-15020 Ilnvestments IM.VIERRA PARK 3,541.12
123-15022 (INVESTMENT-WELLS FARGO IM.VIERRA PARK 70.04
123-15023 US Bank Safekeeping -CDs I M.VIERRA PARK 508.38 200-15020 Investments

INVESTMENT-WELLS FARGO
US Bank Safekeeping -CDs
RDA -Operating 1,008.93
200-15022 RDA -Operating 67.05
200-15023 RDA -Operating 147.34
215-15020 Investments Successor Ageny 118,925.53
215-15022 INVESTMENT- WELLS FARGO (Successor Ageny 16,575.11 215-15023 ~US Bank Safekeeping -CDs _ (Successor Ageny 18,602.53 390-15020 I Investments (Gas Tax 2105 52,550.14
390-15022 INVESTMENT- WELLS FARGO (Gas Tax 2105 7,650.23 390-15023 IUS Bank Safekeeping -CDs (Gas Tax 2105 8,265.64 395-15020 I I nvestments I Sect.2103 31,449.15
395-15022 INVESTMENT- WELLS FARGO ISect.2103 4,690.99
395-15023 US Bank Safekeeping -CDs ISect.2103
_
4,976.69
400-15020 Investments (Gas Tax 2106 19,852.32
400-15022 INVESTMENT- WELLS FARGO —(Gas Tax 2106 2,920.94 400-15023 US Bank Safekeeping -CDs Gas Tax 2106 3,133.47 Investments Allocation
Account ~ Name ( Fund Name Ending Balance
410-15020 Ilnvestments _Gas Tax 2107 26,782.66
410-15022 (INVESTMENT-WELLS FARGO (Gas Tax 2107 3,509.61 410-15023 ~US Bank Safekeeping -CDs Gas Tax 2107 4,428.89 420-15020 Investments _Gas Tax 2107.5 2,193.15
420-15022 INVESTMENT-WELLS FARGO (Gas Tax 2107.5 164.16 420-15023 IUS Bank Safekeeping -CDs Gas Tax 2107.5 387.72 425-15020 Ilnvestments ISBl -RMR 7,199.32
425-15022 (INVESTMENT-WELLS FARGO ISBl -RMR 233.67
425-15023 IUS Bank Safekeeping -CDs IS61 -RMR 1,442.86
430-15020 Ilnvestments ISB 325 112,949.58
430-15022 (INVESTMENT- WELLS FARGO ISB 325 16,142.05
430-15023 US Bank Safekeeping -CDs ISB 325 17,806.28
440-15020 Investments (Traffic Safety 13,280.28
440-15022 _(INVESTMENT -WELLS FARGO (Traffic Safety 1,967.23 440-15023 IUS Bank Safekeeping -CDs (Traffic Safety 2,099.60 450-15020 Investments Bicycle 1.19
450-15022 INVESTMENT- WELLS FARGO I Bicycle 0.03
450-15023 IUS Bank Safekeeping -CDs Bicycle 0.27
455-15020 Ilnvestments Railroad mantce 177.01
455-15022 Ilnvestments -Wells Fargo (Railroad mantce 3.85 455-15023
,
~US Bank Safekeeping -CDs (Railroad mantce 38.42
460-15020 Investments Public Safe Aug 12,885.13
460-15022 INVESTMENT- WELLS FARGO (Public Safe Aug 1,727.47 460-15023 ~US Bank Safekeeping -CDs I Public Safe Aug 2,150.12 480-15020 Investments Boat Ramp 264.08
480-15022 (INVESTMENT-WELLS FARGO (Boat Ramp 5.04
480-15023 IUS Bank Safekeeping -CDs (Boat Ramp 33.59
490-15023 IUS Bank Safekeeping -CDs (Parks &RecImp 0.03 495-15020 Ilnvestments IRec Coordinator
_
693.43
495-15022 (INVESTMENT-WELLS FARGO IRec Coordinator 104.14 495-15023 IUS Bank Safekeeping -CDs IRec Coordinator 109.85 500-15020 Investments (Planning &Dev. 3,006.57
500-15022 INVESTMENT- WELLS FARGO (Planning &Dev. 435.05 500-15023 US Bank Safekeeping -CDs (Planning &Dev. 472.82 513-15020 Ilnvestments ICDBG PROGRAM IN 69,366.73
513-15022 (INVESTMENT -WELLS FARGO ICDBG PROGRAM IN 9,480.60 513-15023 IUS Bank Safekeeping -CDs ICDBG PROGRAM IN 11,534.96 514-15020 Investments (HOME P.I. 2,490.91
514-15022 INVESTMENT- WELLS FARGO (HOME P.I. 44.57
514-15023 ~US Bank Safekeeping -CDs (HOME P.I. 462.35
570-15020 Investments I Drainage Trust 43.81
570-15022 (INVESTMENT -WELLS FARGO (Drainage Trust 0.96 570-15023 ~US Bank Safekeeping -CDs I Drainage Trust
_

9.51 580-15020 Ilnvestments (Flood Maint#1 5,090.70
580-15022 _INVESTMENT -WELLS FARGO (Flood Maint #1 626.38 580-15023 IUS Bank Safekeeping -CDs Flood Maint #1
_ _
866.49
581-15020 Ilnvestments (Flood Maint#2 33,467.62
581-15022 (INVESTMENT-WELLSFARGO IFIoodMaint#2 4,890.19 Investments Allocation
Account ~ Name I Fund Name Ending Balance
581-15023 SUS Bank Safekeeping -CDs (Flood Maint #2 5,371.85 582-15020 Investments Flood Maint #3 30,577.16
582-15022 (INVESTMENT-WELLS FARGO _(Flood Maint #3 4,530.32 582-15023 IUS Bank Safekeeping -CDs (Flood Maint #3 4,839.23 1583-15020 Investments IMaint Dist #6 2,042.94
583-15022 INVESTMENT- WELLS FARGO IMaint Dist #6 247.40 583-15023 US Bank Safekeeping -CDs IMaint Dist #6 350.25 590-15020 Investments Solid Waste 95.23
590-15022 INVESTMENT- WELLS FARGO (Solid Waste 2.08
590-15023 US Bank Safekeeping -CDs Solid Waste 20.72
600-15020 Investments (Electric Utilit 3,288,441.72
600-15022 INVESTMENT- WELLS FARGO (Electric Utilit 476,726.18 600-15023 US Bank Safekeeping -CDs (Electric Utilit 518,674.78 610-15020 Investments IPublíc Benefits 82,327.56
610-15022 (INVESTMENT-WELLS FARGO (Public Benefits 11,325.33 610-15023 IUS Bank Safekeeping -CDs (Public Benefits 13,367.07 620-15020 Investments Electric Capitl 3,736.77
620-15022 (INVESTMENT-WELLS FARGO (Electric Capitl 490.11 620-15023 US Bank Safekeeping -CDs Electric Capitl 587.05 621-15020 Ilnvestments Elect Cont Rsve 12,844.10
621-15022 INVESTMENT- WELLS FARGO (Elect Cont Rsve 279.48 621-15023 US Bank Safekeeping -CDs (Elect Cont Rsve 2,788.67 630-15020 Investments Water Utility 558,171.40
630-15022 (INVESTMENT-WELLS FARGO (Water Utility 79,111.25 630-15023 IUS Bank Safekeeping -CDs I Water Utility 89,387.91 640-15020 I Investments I Water Capital 11,875.92
640-15022 INVESTMENT- WELLS FARGO (Water Capital 784.05 640-15023 US Bank Safekeeping -CDs I Water Capital
_
2,331.12
641-15020 Investments (Well replacemnt 1,722.19
641-15022 INVESTMENT- WELLS FARGO (Well replacemnt 39.54 641-15023 US Bank Safekeeping -CDs (Well replacemnt 371.17 650-15020 Ilnvestments (Sewer Utility 688,285.75
650-15022 (INVESTMENT-WELLS FARGO lSewer Utility 98,750.88 650-15023 IUS Bank Safekeeping -CDs Sewer Utility 108,775.57 656-15020 Investments Sewer - Dt Svice 1,291.39
656-15022 INVESTMENT- WELLS FARGO Sewer - Dt Svice 28.10 656-15023 IUS Bank Safekeeping -CDs Sewer - Dt Svice 280.38 660-15020 Investments Sewer Capital 63,097.98
1660-15022 INVESTMENT- WELLS FARGO lSewer Capital __
_
3,723.20
660-15023 IUS Bank Safekeeping -CDs Sewer Capital 12,185.01 661-15020 Investments (SEWER WWT CIP 10,051.87
661-15022 (INVESTMENT-WELLS FARGO (SEWER WWT CIP 218.73 661-15023 US Bank Safekeeping -CDs (SEWER WWT CIP 2,182.44 670-15020 Investments IGPD Seizure 49,745.94
670-15022 INVESTMENT- WELLS FARGO GPD Seizure 7,512.34
670-15023 IUS Bank Safekeeping -CDs IGPD Seizure 7,887.78 1672-15020 Ilnvestments (COPS GRANTS 56,913.89
1672-15022 (INVESTMENT-WELLS FARGO (COPS GRANTS 7,681.59 Investments Allocation
~ Account ( Name ~ Fund Name Ending Balancé
1672-15023 IUS Bank Safekeeping -CDs COPS GRANTS 9,211.87 (673-15020 Investments Explorer-P D 11.00
673-15022 (INVESTMENT-WELLS FARGO (Explorer-PD 0.24
673-15023 IUS Bank Safekeeping -CDs (Explorer-PD 2.27
674-15020 Investments IK9- DONATIONS 207.21
674-15022 (INVESTMENT-WELLS FARGO K9- DONATIONS 2.89
674-15023 IUS Bank Safekeeping -CDs ~K9- DONATIONS 25.19 680-15020 Ilnvestments Trust -Main 343.75
680-15022 INVESTMENT- WELLS FARGO Trust -Main 25.57
680-15023 IUS Bank Safekeeping -CDs (Trust -Main 66.21
681-15020 Investments ___(Gridley BID 0.97
681-15022 INVESTMENT- WELLS FARGO (Gridley BID 0.02
681-15023 IUS Bank Safekeeping -CDs Gridley BID 0.21
683-15020 Ilnvestments HOSP JPA ADMIN 7.94
683-15022 INVESTMENT- WELLS FARGO HOSP JPA ADMIN 0.17
683-15023 IUS Bank Safekeeping -CDs HOSP JPA ADMIN 1.72 700-15020 Ilnvestments ISB325-Senr Taxí 27,822.90
700-15022 INVESTMENT- WELLS FARGO ISB325-Senr Taxi 3,646.97 700-15023 US Bank Safekeeping -CDs ISB325-Senr Taxi 4,429.90 800-15020 I Investments 96-STBG-1011 8.25
800-15022 INVESTMENT- WELLS FARGO 96-STBG-1011 0.18
800-15023 ~US Bank Safekeeping -CDs I96-STBG-1011 1.80
806-15020 Ilnvestments I12 CaIHOME 8701 44.30
806-15022 (INVESTMENT-WELLS FARGO 12 CaIHOME 8701 4.74
806-15023 IUS Bank Safekeeping -CDs 12 CaIHOME 8701 7.02 808-15020 Investments I13 HOME 8995 35,318.05
808-15022 INVESTMENT- WELLS FARGO 13 HOME 8995 5,300.67 808-15023 US Bank Safekeepíng -CDs I13 HOME 8995 5,595.82 810-15020 I Investments I89-REHAB 12.79
810-15022 INVESTMENT- WELLS FARGO 89-REHAB 0.03
810-15023 IUS Bank Safekeeping -CDs I89-REHAB 0.23
813-15020 I I nvestments I08 -HOME-4987 60.76
813-15022 (INVESTMENT-WELLS FARGO 08-HOME-4987 1.42
813-15023 US Bank Safekeeping -CDs OS-HOME-4987 13.20
814-15020 Investments (Gridley Springs 309.83
814-15022 (INVESTMENT-WELLS FARGO (Gridley Springs 7.21 814-15023 IUS Bank Safekeeping -CDs (Gridley Springs 67.28 821-15020 Ilnvestments (Strategic Plan 20,865.24
821-15022 INVESTMENT-WELLS FARGO (Strategic Plan 3,076.41 821-15023 'US Bank Safekeeping -CDs (Strategic Plan 3,300.17 831-15020 Ilnvestments RANCHO VILLA 3,587.02
831-15022 (INVESTMENT-WELLS FARGO (RANCHO VILLA
___

91.81 831-15023 IUS Bank Safekeeping -CDs RANCHO VILLA 772.90 890-15020 I Investments I94-CDBG Housing Rebab/Drainage Grant 1.89 890-15022 I INVESTMENT- WELLS FARGO I94-CDBG Housing Rebab/Drainage Grant 0.04 890-15023 US Bank Safekeeping -CDs I94-CDBG Housing Rebab/Drainage Grant I 0.41 896-15020 Investments I05-PTAA-1446 I -
896-15022 INVESTMENT- WELLS FARGO I05-PTAA-1446 I -
Investments Allocation
Account Name ~ fund Name Ending Balance
896-15023 IUS Bank Safekeeping -CDs ~05-PTAA-1446 -
912-15020 Investments ~HRPP GRANT 801.10
912-15022 INVESTMENT- WELLS FARGO IHRPP GRANT 85.64
912-15023 US Bank Safekeeping -CDs I HRPP GRANT 127.02
X913-15020 Investments ÍOTS T.S Grant 3,552.14
1913-15022 (INVESTMENT-WELLS FARGO IOTST.S Grant 519.21 913-15023 US Bank Safekeeping -CDs TOTS T.S Grant 570.87 920-15020 I Investments I CALRECL-PLAY AR 89.15
920-15022 INVESTMENT- WELLS FARGO CALRECL-PLAY AR 9.53
920-15023 IUS Bank Safekeepíng -CDs (CALRECL-PLAY AR 14.14 921-15020 INVESTMENT

INVESTMENT-WELLS FARGO
US Bank Safekeeping - CDs
IS61383 Organic Waste Recycling Grant 96.09
921-15022 561383 Organic Waste Recycling Grant 6.39
921-15023 561383 Organic Waste Recycling Grant 14.03
982-15020 I Investments I FORECLOSURES -
982-15022 (INVESTMENT-WELLS FARGO FORECLOSURES -
982-15023 IUS Bank Safekeeping -CDs I FORECLOSURES -
8,903,821.57
Investments Allocation
Name i Fund Name Ending Balance
Cash held with fiscal agents General -
Cash held with fiscal agents 2008 Series A 0.01
Cash held with fiscal agents 2008 Series B 15,492.48
Cash held with fiscal agents 2022 Series A 2,090.06
Cash held with fiscal agents 2022 Series B 5,149.82
Cash held with fiscal agents COPS GRANTS -
22,732.37
https://www.treasurer.ca.aov/pmia-laif/historical/av~ mn vlds.asp

LAIFINTEREST
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1977 5.77 5.66 5.66 5.65 5.76 5.85 5.93 6.05 6.09 6.09 6.61 6.73 1978 6.92 7.05 7.14 7.27 7.386 7.569 7.652 7.821 7.871 8.11 8.286 8.769 1979 8.777 8.904 8.82 9.082 9.046 9.224 9.202 9.528 9.259 9.814 10.223 10.218 1980 10.98 11.251 11.49 11.48 12.017 11.798 10.206 9.87 9.945 10.056 10.426 10.961 1981 10.987 11.686 11.13 11.475 12.179 11.442 12.346 12.844 12.059 12.397 11.867 11.484 1982 11.683 12.044 11.8 3 5 11.773 12.27 11.994 12.235 11.9 09 11.151 11.111 10.704 10.401 1983 10.251 9.887 9.688 9.868 9.527 9.6 9.879 10.076 10.202 10.182 10.164 10.227 1984 10, 312 10.28 10.382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024 1985 10.579 10.289 10.118 10.025 10.18 9.743 9.656 9.417 9.572 9.482 9.488 9.371 1986 9.252 9.09 8.958 8.621 8.369 8.225 8.141 7.844 7.512 7.586 7.432 7.439 1987 7.365 7.157 7.205 7.044 7.294 7.289 7.464 7.562 7.712 7.825 8.121 8.071 1988 8.078 8.05 7.945 7.94 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563 1989 8.698 8.77 8.87 6.992 9.227 9.204 9.056 8.833 8.801 8.771 8.685 8.645 1990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8.382 8.333 8.321 8.269 8.279 1991 8.164 8.002 7.775 7.666 7.374 7.169 7.098 7.072 6.859 6.719 6.591 6.318 1992 6.122 5.863 5.68 5.692 5.379 5.323 5.235 4.958 4.76 4.73 4.659 4.647 1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.43 4.38 4.365 4.384 1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.38 5.528 1995 5.612 5.779 5.934 5.96 6.008 5.997 5.972 5.91 5.832 5.784 5.805 5.748 1996 5.698 5.643 5.557 5.538 5.502 5.548 5.587 5.566 5.601 5.601 5.599 5.574 1997 5.583 5.575 5.58 5.612 5.634 5.667 5.679 5.69 5.707 5.705 5.715 5.744 1998 5.742 5.72 5.68 5.672 5.673 5.671 5.652 5.652 5.639 5.557 5.492 5.374 1999 5.265 5.21 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639 2000 5.76 5.824 5.851 6.014 6.19 6.349 6.443 6.505 6.502 6.517 6.538 6.535 2001 6.372 6,169 5.976 5,76 5.328 4.958 4.635 4.502 4.288 3.785 3.526 3.261 2002 3.068 2.967 2.861 2.845 2.74 2.687 2.714 2.594 2.604 2.487 2.301 2.201 2003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545 2004 1.528 1.44 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.89 2.003 2.134 2005 2.264 2.368 2.542 2.724 2.856 2,967 3.083 3.179 3.324 3.458 3.636 3.808 2006 3.955 4.043 4.142 4.305 4.563 4.7 4.849 4.946 5.023 5.098 5.125 5.129 2007 5.156 5.181 5.214 5.222 5.248 5.25 5.255 5.253 5.231 5.137 4.962 4.801 2008 4.62 4.161 3.777 3.4 3.072 2.894 2.787 2.779 2.774 2.709 2.568 2.353 2009 2.046 1.869 1.822 1.607 1.53 1.377 1.035 0.925 0.75 0.646 0.611 0.569 2010 0.558 0.577 0.547 0.588 0.56 0.528 0.531 0.513 0.5 0.48 0.454 0.462 2011 0.538 0.512 0.5 0.588 0.413 0.448 0.381 0.406 0.378 0.385 0.401 0.382 2012 0.385 0.389 0.383 0.367 0.363 0.358 0.363 0.377 0.348 0.34 0.324 0.326 2013 0.3 0.286 0.285 0.264 0.245 0.244 0.267 0.271 0.257 0.266 0.263 0.264 2014 0.244 0.236 0.236 0.233 0.228 0.228 0.244 0.26 0,246 0.261 0.261 0.267 2015 0.262 0.266 0.278 0.283 0.29 0.299 0.32 0.33 0.337 0.357 0.374 0.4 2016 0.446 0.467 0.506 0.525 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 2017 0.751 0.777 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 2018 1.35 1.412 1.524 1.661 1.755 1.854 1.944 1.998 2.063 2.144 2.208 2.291 2019 2.355 2.392 2.436 2.445 2.449 2.428 2.379 2.341 2.28 2.19 2.103 2.043 2020 1.967 1.912 1.787 1.648 1.363 1.217 0.92 0.784 0.685 0.62 0.576 0.54 2021 0.458 0.407 0.357 0.339 0.315 0.262 0.221 0.221 0.206 0.203 0.203 0.212 2022 0.234 0.278 0.365 0.523 0.684 0.861 1.09 1.276 1.513 1.772 2.007 2.173 2023 2.425 2.624 2.831 2.87 2.993 3.167 3.305' 3.434 3.534 3.67 3.843 3.929 2024 4.012 4.122 4.232 4.272 4.332 4.48
Fund # Fund Name Fund #and Name
010 General 010-General GF
011 GF-Reserve 011-GF-Reserve RES
012 FEMA-RESERVE 012-FEMA-RESERVE OGF
020 General -Impact 020-General -Impact RES
021 Dev'I Agree Fee 021-Dev'I Agree Fee RES
023 WeIlFund 023-WeIlFund RES
050 City Hall Rsry 050-City Hall Rsry RES
060 Equipment Resry 060-Equipment Resry RES
070 SICK LEAVE RESR 070-SICK LEAVE RESR RES
121 Prop 12 & 40 RR 121-Prop 12 & 40 RR OGF
122 Prop 12&40Vierr 122-Prop 12&40Vierr OGF
123 M.VIERRA PARK 123-M.VIERRA PARK OGF
200 RDA -Operating 200-RDA -Operating OGF
204 2008 Series A 204-2008 Series A OGF
206 2008 Series B 206-2008 Series B OGF
208 2022 Series A 208-2022 Series A OGF
210 2022 Series B 210-2022 Series B OGF
215 SuccessorAgeny 215-SuccessorAgeny FID
220 Public Fin.Auth 220-Public Fin.Auth OGF
390 Gas Tax 2105 390-Gas Tax 2105 OGF
395 Sect.2103 395-Sect.2103 OGF
400 Gas Tax 2106 400-Gas Tax 2106 OGF
410 Gas Tax 2107 410-Gas Tax 2107 OGF
420 Gas Tax 2107.5 420-Gas Tax 2107.5 OGF
425 SB1 -RMR 425-SB1 -RMR OGF
430 SB 325 430-SB 325 OGF
440 Traffic Safety 440-Traffic Safety OGF
450 Bicycle 450-Bicycle OGF
455 Railroad mantce 455-Railroad mantce OGF
460 Public Safe Aug 460-Public Safe Aug OGF
480 Boat Ramp 480-Boat Ramp OGF
490 Parks &RecImp 490-Parks &RecImp OGF
495 RecCoordinator 495-RecCoordinator OGF
496 RecCoordinator Schol496-Rec Coordinator Scholar: OGF 500 Planning &Dev. 500-Planning &Dev. OGF
511 ED RLF (OLD) 511-ED RLF (OLD) OGF
512 New Fund 512-New Fund OGF
513 CDBG PROGRAM IN 513-CDBG PROGRAM IN OGF
514 HOME P.I. 514-HOME P.I. OGF
516 CalHome PI 516-CalHome PI OGF
520 Vision Care 520-Vision Care OGF
570 New Fund 570-New Fund OGF
580 Flood Maint #1 580-Flood Maint #1 OGF
581 Flood Maint #2 581-Flood Maint #2 OGF
582 Flood Maint #3 582-Flood Maint #3 OGF
583 Maint Dist #6 583-Maint Dist #6 OGF
Fund # Fund Name Fund #and Name
590 Solid Waste 590-Solid Waste OEF
591 Solid Waste-Rec 591-Solid Waste-Rec OEF
600 Electric Utilit 600-Electric Utilit EF
601 Electríc -NBE 601-Electric -NBE EF
610 Public Benefits 610-Public Benefits OEF
620 Electric Capitl 620-Electric Capitl EF
621 Elect Cont Rsve 621-Elect Cont Rsve EF
630 Water Utility 630-Water Utility WF
640 Water Capital 640-Water Capital WF
641 Well replacemnt 641-Well replacemnt WF
650 Sewer Utility 650-Sewer Utility SF
656 Sewer - Dt Svice 656-Sewer - Dt Svice SF
660 Sewer Capital 660-Sewer Capital SF
661 SEWER WWT CIP 661-SEWER WWT CIP SF
670 GPD Seizure 670-GPD Seizure RES
672 COPS GRANTS 672-COPS GRANTS OGF
673 Explorer-PD 673-Explorer-PD OGF
674 K9- DONATIONS 674-K9- DONATIONS OGF
680 Trust -Main 680-Trust -Main FID
681 Gridley BID 681-Gridley BID FID
682 Hospital JPA 682-Hospital JPA FID
683 HOSP JPA ADMIN 683-HOSP JPA ADMIN FID
700 SB325-Sent Taxi 700-SB325-Sent Taxi OEF
800 96-STBG-1011 800-96-STBG-1011 OGF
802 SAFE ROUT SCHL 802-SAFE ROUT SCHL OGF
804 CALTRAN MOBIL. 804-CALTRAN MOBIL. OGF
805 Hazel StreetTE 805-Hazel StreetTE OGF
806 12 CaIHOME 8701 806-12 CaIHOME 8701 OGF
807 13 CDBG-8970 807-13 CDBG-8970 OGF
808 13 HOME 8995 808-13 HOME 8995 OGF
809 18-HOME-12579 809-18-HOME-12579 OGF
810 89-REHAB 810-89-REHAB OGF
813 08-HOME-4987 813-08-HOME-4987 OGF
814 Gridley Springs 814-Gridley Springs OGF
821 Strategic Plan 821-Strategic Plan OGF
831 RANCHO VILLA 831-RANCHO VILLA OGF
888 02-STBG-1701 888-02-STBG-1701 OGF
890 New Fund 890-New Fund OGF
895 04-STBG-1961 895-04-STBG-1961 OGF
896 05-PTAA-1446 896-05-PTAA-1446 OGF
912 HRPP GRANT 912-HRPP GRANT OGF
913 OTS T.S Grant 913-OTS T.S Grant OGF
920 CALRECL-PLAY AR 920-CALRECL-PLAY AR OGF
921 SB 1383 Organic Wast 921-SB 1383 Organic Waste F OGF 922 ATP GRANT 2015 922-ATP GRANT 2015 OGF
923 CDBG-DR 923-CDBG-DR OGF
924 2021 Vierra Park Impr 924-2021 Vierra Park Improv OGF 925 CMAQ Department of 925-CMAQ Department of Tr OGF
926 SWRCB Revolving Loai 926-SWRCB Revolving Loan -F OGF G'
n
~GRIDLEY
Fund # Fund Name Fund #and Name
927 CRF Coronavirus Relie 927-CRF Coronavirus Relief F~ OGF 928 GARB Credit 928-GARB Credit OGF
929 LRSPL- 5140 929-LRSPL- 5140 OGF
930 Coronavirus Recovery 930-Coronavirus Recovery Fu OGF 931 Officer Wellness and P 931-Officer Wellness and Me OGF 932 Fund: 932 - Outdoor E 932-Fund: 932 -Outdoor Equ OGF 933 Gridley Sports Comple 933-Gridley Sports Complex OGF 974 GA56 68 974-GASB 68 POOL
975 GLTDAG 975-GLTDAG POOL
976 RDA-GLTDAG 976-RDA-GLTDAG POOL
980 Fixed Assets 980-Fixed Assets POOL
982 FORECLOSURES 982-FORECLOSURES POOL
999 New Fund 999-New Fund POOL
999 New Fund 999-New Fund POOL
999 New Fund 999-New Fund POOL
600 Electric Utilit 600-Electric Utilit POOL
999 New Fund 999-New Fund POOL
999 New Fund 999-New Fund POOL

City Council Agenda Item #5
Staff Report
Date: July 15, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Resolution 2024-R-022: Appointment of Northern California Cities Self Insurance Fund (NCCSIF) Representative and Alternate Representative Recommendation
Staff respectfully requests the City Council approve Resolution 2024-R-022 “A Resolution of the City Council of the City of Gridley appointing Representative and Alternate Representative for the Northern California Cities Self Insurance Fund” by reading of title only.

Background
The City of Gridley is a member of the Northern California Cities Self Insurance Fund (NCCSIF).

NCCSIF is a Joint Powers Authority formed in 1979, an association of twenty-two (22) municipalities joined together to protect resources by providing risk services, management, and programs. Within the structure of the organization there are regular meetings and committees (Executive, Risk Management and Claims) reviewing programs and voting on issues relating to the resources, coverages and programs (General Liability, Workers’ Compensation, Crime/Bond, Property, Mobile Equipment, Auto Physical Damage, Employee Assistance & Training, Special Events, Vendor/Contractors). The city being a member of NCCSIF, a larger pool of Northern California cities, allows for a mechanism to self-fund a layer of workers compensation. The city also has access to group purchases of excess insurances. Generally, the Finance Director is the primary representative and, in the event, the primary representative cannot attend a meeting, his/her designee (Alternate Representative) will attend. Staff is recommending Council re-appoint both the Finance Director as the primary representative and Elisa Arteaga as the Alternate Representative. Additionally, Elisa Arteaga and Jodi Molinari shall serve in the risk management committee.

Financial Impact
Appoint is a formality required by the JPA, there are no fiscal impacts. All fiscal impacts are part of the budgetary process on a fiscal year basis.

Attachment
Resolution No. 2024-R-022
X Regular
Special
Closed
Emergency
RESOLUTION NO. 2024-R-022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY APPOINTING REPRESENTATIVE AND

ALTERNATE REPRESENTATIVE FOR NORTHERN CALIFORNIA CITIES SELF INSURANCE FUND WHEREAS, it is desirable and necessary to appoint agents for the City of Gridley to act for and in its behalf in the Northern California Cities Self Insurance Fund (NCCSIF) which provides insurance coverage for the City of Gridley.

WHEREAS, the City of Gridley Finance Director is the primary representative and it is required to have an alternate appointed;
NOW, THEREFORE, IT IS HEREBY RESOLVED, Martin Pineda, Finance Director is the City of Gridley Representative and Elisa Arteaga, City Administrator be appointed as alternate representative. Elisa Arteaga, City Administrator and Jodi Molinari, Human Resources Manager, shall be appointed to the risk management committee.

I HEREBY CERTIFY that the foregoing resolution was introduced, passed and adopted by the City Council of the City of Gridley at a regular meeting held on the 15th day of July, 2024, by the following vote:

AYES: COUNCILMEMBERS ________________________________
NOES: COUNCILMEMBERS ________________________________
ABSTAIN: COUNCILMEMBERS ________________________________ ABSENT: COUNCILMEMBERS ________________________________ APPROVED: MAYOR ________________________________
Michael W. Farr
ATTEST: CITY CLERK ________________________________
Elisa Arteaga
City Council Agenda Item #6
Staff Report
Date: July 15, 2024
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Resolution No. 2024-R-023: A Resolution of the City Council of the City of Gridley Authorizing and Designating City Representatives to Vote the City’s Interests in Governance Agreements Associated with City’s Participation in Programs, Projects, and Services as a Member of the Northern California Power Agency Recommendation
Staff respectfully requests the City Council approve the attached resolution effective July 15, 2034, that appoints Elisa Arteaga, Ross Pippitt and Catalina Sanchez as representatives to NCPA Committees and Mike Farr as the Alternate Representative to the NCPA Commission and other various NCPA committees.

Background
The purpose of this recommendation is to ensure that the City of Gridley meet its long-term obligations as a member of the NCPA. This recommended action will not result in authority being granted to Councilmembers or the City staff to make decisions or take action binding the City to individual actions apart from the broader efforts of the NCPA, such as the individual purchase of new power at the Lodi Energy Center.

Financial Impact
There are no direct costs associated with this effort.

Compliance with the City Council Strategic Plan or Budget Goals This recommendation is consistent with our ongoing efforts to provide cost effective electrical services that are fully transparent and compliant with all legal standards.

Attachment:

Resolution No. 2024-R-023 Appointing Representatives to the NCPA X Regular
Special
Closed
Emergency
RESOLUTION NO.
2024-R-023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY AUTHORIZING AND DESIGNATING CITY REPRESENTATIVES TO VOTE THE CITY’S INTERESTS IN GOVERNANCE AGREEMENTS ASSOCIATED WITH CITY’S PARTICIPATION IN PROGRAMS, PROJECTS AND

SERVICES AS A MEMBER OF THE NORTHERN CALIFORNIA POWER AGENCY WHEREAS, (1) the City joined the Northern California Power Agency, hereinafter referred to as NCPA, in order to facilitate the City’s acquisition of electrical power that is required to meet the electrical needs of residents and businesses within the City of Gridley; and WHEREAS, (2) the City became a member of the NCPA by executing the NCPA Joint Powers Agreement on July 19, 1968, and has subsequently executed the Amended and Restated Northern California Power Agency Joint Powers Agreement, hereinafter referred to as the JPA, with an effective date of January 1, 2008, as supplemented from time-to-time; and WHEREAS, (3) the JPA provides that each party to the JPA shall be a “Member” of NCPA and appoint its designated representative to the Commission; and WHEREAS, (4) NCPA Bylaws, as authorized pursuant to JPA Article II, specify that:
a) NCPA is governed by a Commission, composed of one (1) voting representative of each of the Members. Each Member of the Agency may also appoint one or more alternate Commissioners to act in the absence of that Member’s Commissioner. b) The clerk or secretary of the board of each Member shall be responsible for advising the Secretary, in writing, of:
a. The identity of the Member’s appointee to the Commission b. The identity of any alternate Commissioner
c. The priority of such alternate Commissioner if more than one such alternate is appointed; and
WHEREAS, (5) the City has entered into a number of programs, project and service agreements through its Membership at NCPA to further facilitate the acquisition and delivery of electric power to support the provision municipal services to its residents and businesses, including:
a) Lodi Energy Center Power Sales Agreement
b) Lodi Energy Center Project Management and Operations Agreement c) Power Management and Administrative Services Agreement d) Amended and Restated Schedule Coordination Program Agreement e) Amended and Restated Facilities Agreement
f) Second Amended and Restated Pooling Agreement
g) Single Member Service Agreement
h) Natural Gas Program Agreement
i) Amended and Restated Market Purchase Program Agreement j) Legislative and Regulatory Affairs Program Agreement; and WHEREAS, (6), each of the program and project agreements described above require the City to designate a representative that is authorized to direct NCPA to take actions on the City’s behalf and obligate the City to pay for any actions taken by NCPA on the City’s behalf; and WHEREAS, (7) the Lodi Power Sales Agreement and Lodi Energy Center Project Management and Operations Agreement provide for the establishment of a Participants Committee, hereinafter referred to as the PPC, consisting of one member from each of the project participants, who are entitled to cast one vote on matters to which a majority of Participants is used to determine approval of matters relating to the Lodi Energy Center; and WHEREAS, (8) Participants on the PPC are required to promptly give notice in writing to the other Participants and NCPA of any changes in the designation of its representative(s), including any change in its voting representative, on any committee or subcommittee; and WHEREAS, (9) Signatories to the Power Management and Administrative Services agreement and Amended and Restated Schedule Coordination Agreement, hereinafter referred to as the PMASA and SCPA respectively, are entitled to cast one vote on matters pertaining to these Agreements, where such votes will be taken at meetings of the NCPA Commission through duly appointed Commissioners or Alternate Commissioners of each Member; and WHEREAS, (10) the City has executed the Amended and Restated Facilities Agreement, herein after referred to as the FA, where the FA provides for the creation of a technical working group, known as the Facilities Committee that provides advisory recommendations to the NCPA Commission on matters associated with NCPA project operations, maintenance and budgets, including matters associated with the PMASA and SCPA; and WHEREAS, (11) Each signatory to the FA is entitled to identify a Primary Representative and Alternate Representatives by written notice from a Participant’s Commissioner, or their designee who will vote on matters pertaining to the FA at meetings held in accordance with the Ralph M. Brown Act; and
WHEREAS, (12) the City has executed the Second Amended and Restated Pooling Agreement, herein after referred to as the PA, where the PA provides the means and methods for joint resource planning, load forecasting, power pool purchases and centralized scheduling, dispatch and settlement activities; and
WHEREAS, (13) No formal designation is needed to participate on the Pooling Committee, but may be helpful to ensure notice is provided to the proper City representatives; and
WHEREAS, (14) the City has executed the Single Member Service Agreement, hereinafter referred to as the SMSA, which enables NCPA to enter into Power, Gas, and Financial transactions on behalf of the City, along with advisory, agency and pooled subscription services; and
WHEREAS, (15) the SMSA specifies that the Member by resolution or Member’s manager with written delegated authority will delegate to NCPA all of the Member’s governing body’s authority to enter into a Transaction with the delegation to NCPA confirming an Agency Service or Power Procurement Service for such Transaction; and WHEREAS, (16) the City has executed the Amended and Restated Market Purchase Program Agreement, and the Natural Gas Program Agreement, hereinafter referred to as the MPP, and NGP respectively, which enables NCPA, on behalf of the Participants to engage in Contract Transactions to purchase and sell Energy, Resource Adequacy Capacity, Renewable Energy Credits, Greenhouse Gas Compliance Instruments, and Physical Option Products for the benefit of the Participant’s customers; and
WHEREAS, (17) all transactions executed under the MPP and/or the NGP by NCPA on a Participant’s behalf require a pre-authorization form executed by a duly authorized Participant Designated Representative, where the MPP and NGP provide that the Designated Representative of each Participant is the Participants Utility Director, and that an employee other than the Utility Director may be designated by resolution of the Participant’s governing body; and
WHEREAS, (18) participate in activities of and entitled to cast one vote on matters related to a project, activity, budget, or initiative under the Legislative and Regulatory Affairs Program Agreement; and
WHEREAS, (19) the City desires to update its authorized and designated representatives to reflect updates to the City’s staffing and organizational structure; and WHEREAS, (20) the City wishes to appoint a representative(s) to act as the City’s Commissioner on the NCPA Commission; to identify City representatives to participate on various NCPA committee’s established to support the delivery of project and program services to members, and to authorize transactions that NCPA may enter into on the City’s behalf that are necessary to deliver electric power to support the provision of municipal services to its residents and businesses; and
WHEREAS, (21) this resolution supersedes and replaces Resolution No. 2023-R-003 approved by Gridley City Council on January 23, 2023.

NOW, THEREFORE BE IT RESOLVED that the Gridley City Council hereby takes the following actions:

RESOLVED, (a) the City Council of the City of Gridley (CITY) confirms the following individuals as Commissioner and Alternate Commissioner on the NCPA Commission effective July 15, 2024:

Commissioner – Catalina Sanchez
Alternate Commissioners – Mike Farr and Elisa Arteaga
RESOLVED, (b) the CITY confirms the following individuals as the voting representatives on the LEC Project Participant Committee:

Voting Representative – Ross Pippitt
Alternate Voting Representative – Elisa Arteaga
RESOLVED, (c) the CITY confirms the following individuals as the voting representative on the Legislative and Regulatory Affairs Committee:

Voting Representative – Catalina Sanchez
Alternate Voting Representatives – Mike Farr and Elisa Arteaga RESOLVED, (d) the CITY confirms the following individuals as the voting representative on the NCPA Facilities Committee:

Voting Representative – Ross Pippitt
Alternate Voting Representative – Elisa Arteaga
RESOLVED, (e) the CITY confirms the following individuals to receive notice regarding City’s participation on the Pooling Committee:

Representative – Elisa Arteaga
RESOLVED, (f) the CITY delegates CITY Authority to enter into Transactions through delegations to NCPA confirming an Agency Service or Power Procurement service, pursuant to section 11.2 of the SMSA to:

Authorized Representative(s) – City Administrator
RESOLVED, (g) the City delegates Board Authority to execute Participant Authorizations directing NCPA to engage in Contract Transactions to purchase and sell Energy, Natural Gas, Resource Adequacy Capacity, Renewable Energy Credits, Greenhouse Gas Compliance Instruments, and Physical Option Products for the benefit of the Participant’s customers, in accordance with the provisions of the MPP and NGP and appoints the following individual(s) as its Designated Representative(s) pursuant to section 1.1.2.6 of the MPP and 1.1.15 of the NGP:

Designated Representative(s) – City Administrator
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Gridley at a regular meeting held on July 15, 2024, by the following vote:

AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS

ATTEST APPROVE
_____________________ ______________________
Elisa Arteaga, City Administrator Michael W. Farr, Mayor

City Council Agenda Item #7
Staff Report
Date: July 15, 2024
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: LAFCO Letter of Agreement
RECOMMENDATION:

Council discussion regarding consideration of the Letter Agreement between the City of Gridley, the City of Biggs, Butte Local Agency Formation Commission, Reclamation District 2056, Reclamation District 833, Butte Water District, Biggs-West Gridley Water District and Drainage District. Review red/blueline, provide direction to staff as to consideration of participation. Should the Council wish to move forward, direct staff which version of agreement (red/blue) for approval.

BACKGROUND:

City staff has been discussing with LAFCO the consideration of a Letter Agreement between the City of Gridley, the City of Biggs, Butte Local Agency Formation Commission, Reclamation District 2056, Reclamation District 833, Butte Water District, Biggs-West Gridley Water District and Drainage District since there were concerns as to the lack of noticing relating to future developments. The initial document has been approved by LAFCO and Biggs.

The initial agreement was forwarded to the city. Upon the document being submitted to city staff it was reviewed then forwarded to City Attorney to further review. Recommended changes were made to continue to allow for clear language over local control over city development projects to be held by the city because the initial nature of the creation of the documentation was to facilitate communication and collaboration between all parties with respect to specifically development projects.

After the document was forwarded to the City Attorney for review and the redline version was forwarded to LAFCO staff for consideration. The city received a blue-line version with modification to sections 3.1 and 3.2 by where the process is subject to final approval by the affected district. Staff is recommending before approval Council consider that the purpose of the agreement should not create veto power by districts but rather support current procedures in place for proper noticing and a spirit of collaboration between all parties. A copy of the draft versions with both red/blue lines are attached to the staff report.

FISCAL IMPACT:

No fiscal impact at this time only consideration of moving forward with agreement. However, it does not eliminate possible impacts to development if final approval authority is changed to be subject by districts.

X Regular
Special
Closed
Emergency
Compliance with City Council Strategic Plan or Budget Goals This plan is consistent with the Council’s goals of compliance with State Law and providing a safe working environment for all City employees.

Attachments (1):

Draft Letter Agreement between the City of Gridley, the City of Biggs, Butte Local Agency Formation Commission, Reclamation District 2056, Reclamation District 833, Butte Water District, Biggs-West Gridley Water District and Drainage District.

{00320847.1}

LETTER AGREEMENT BETWEEN THE CITY OF GRIDLEY, THE CITY OF BIGGS,

THE BUTTE LOCAL AGENCY FORMATION COMMISSION, RECLAMATION DISTRICT 2056, RECLAMATION DISTRICT 833, THE BUTTE WATER DISTRICT, THE BIGGS-WEST GRIDLEY WATER DISTRICT AND DRAINAGE DISTRICT 1 This agreement (“Agreement”) is made and entered into on this ____ day of _______________, 2024, among the City of Gridley and the City of Biggs (collectively, “the Cities”), the Butte Local Agency Formation Commission (“Butte LAFCo”), Reclamation District 2056 (“RD 2056”), Reclamation District 833 (“RD 833”) the Butte Water District, the Biggs-West Gridley Water District, and Drainage District 1 (“DD 1”) (collectively, “the Districts”). Together, considered the “Parties”.

RECITALS

1.0 Purpose
The Parties desire to enter into this Agreement relating to the development review process for the Cities to facilitate communication and collaboration between the Parties related to the review and approval of development projects and the protection of the health, safety and welfare of its citizens. For the purpose of this Agreement, “development project” means any project undertaken for the purpose of converting and developing agricultural property which affect agriculture-related services to urban residential or commercial purposes either by right, ministerial or discretionary, including a project involving the issuance of a permit for construction or reconstruction. This agreement:
 Describes the process by which the Cities will include the Districts in the development review process for development projects as defined above and ensure that development reasonably avoids or mitigates to the greatest extent as economically and physically practicable any impacts to the District’s facilities and services; and
 Describes the encasement, and/or fencing, or other polices of the Districts and clearly identifies when/where such the policies would be implemented and enforced.

2.0 Background
The Cities of Gridley and Biggs are surrounded by high-quality orchards, rice fields, and grazing lands.

These agricultural lands receive and drain irrigation water via a complex network of open and covered ditches, canals, and conduits owned and operated by the Districts. The General Plans of both the City of Gridley and the City of Biggs recognize that agriculture is an extremely important and valuable industry for the region and is a fundamental part of the history and culture of the people who reside in the cities of Gridley and Biggs. These General Plans emphasizes the desire to reduce the impacts of growth on the viability of agriculture by accommodating compact urban-level growth and requiring development to mitigate or avoid incompatibilities with ag-related services. These goals, policies, and determinations are examples of how the Cities are committed to responsible urbanization. If the Cities anticipate further population growth and urban-level development, collaboration and cooperation to avoid impacts to special districts supporting ag-related services is critical.

The protection of agricultural lands is a fundamental charge given to LAFCo by the State Legislature. It is recognized that if the Cities are to grow, the conversion of land supporting agricultural resources is necessary and impacts to agricultural-related infrastructure is unavoidable. Also critical to the needs of the State of California, its counties, towns, cities and communities is the need to assure and provide adequate {00320847.1}
housing which meets the needs of a growing and diverse population from all socioeconomic classes and groups. Over the years, careful consideration has been given to ensure the continuance of agriculturalrelated services and that the development of urban uses occurs timely, and with regard to the needs of the agriculture industry.

3.0 Agreements and Obligations
The Cities are obligated under certain laws, ordinances, and regulations to provide the Districts with the opportunity to engage, collaborate and participate in the review process for development projects which require discretionary review and approval. It is the desire of the Parties to establish a process for the review of development projects which are ministerial or by-right in nature and to establish a process for the Cities and Districts to engage in meaningful bilateral consultation and review of development projects proposed to occur adjacent to or in the vicinity of facilities and infrastructure owned or operated by the Districts, and to help ensure that such projects are properly conditioned to avoid or mitigate any proposed impacts to the Districts’ facilities and services.

The following agreements and obligations will be the basis for continued collaboration and consultation between the Cities and the Districts for review of development projects.

3.1 Development Review Process.

The Cities agrees to engage and consult the Districts for review and comment on development project proposals which take place adjacent to or in the immediate vicinity of Districts’ facilities and infrastructure or which would have a reasonably known significant impact on District facilities and infrastructure. Such engagement includes, but is not limited to, early notification of a project proposal, cooperative sharing of information, meaningful discussion of District concerns, and providing an opportunity to discussincluderecommend for inclusion appropriate conditions in development approvals to avoidavoid or properly reasonably mitigate impacts of development on the Districts.

The Districts recognizes that timely review of a development proposal is crucial and necessary to the successful growth and development of the Cities. The Districts agree to respond to requests for review, comment, and consultation on development projects within a period of 30 days.

3.2 Encasement and Non-Interference Polices Enforced (enclosed appendices).

To address potential conflicts with property development and to protect human health and safety, the Districts have adopted administrative policies regarding canal setback and encasement and noninterference with facilities (see enclosures). The Cities recognize that the Districts’ policies generally identify the need for encasement of open canals or ditches within 100 feet of a site proposed for development and for other facilities protections. Alternatives to the required conditions of these policies may be proposed by the developer and considered and determined to be appropriate through a process of bilateral collaboration and subject to final approval by the affected District..or not by the Districts in their sole discretion.

3.3 Access to District Facilities and Infrastructure
In order to provide for the ongoing maintenance of District facilities and infrastructure, it is crucial that access to facilities be maintained or granted to the Districts during the development process.

The Districts generally own the parcels on which their facilities and infrastructure are constructed, {00320847.1}
or retain access to facilities through recorded easements. The Cities agree that no development plans should permit the use of, or create barriers to, District facilities and infrastructure. Any development proposing to utilize District lands for the purpose of access or development shall be subject to advance written approval from the affected District, or its rejection of the proposed use, in the District’s sole discretion.

3.4 Cooperation and Communication.

The Parties agree to fully encourage and take part in cooperation and communication among the Parties. It is desired that the Parties meet on a quarterly basis to discuss potential projects and refinements to the review process.

3.5 Compliance with other Rules and Regulations.

The Parties shall comply with all other rules, laws, ordinances, and regulations including, but not limited to, the City of Gridley General Plan, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, the California Environmental Quality Act (CEQA), and the Permit Streamlining Act, etc.

4.0 Effective Date and Duration. The term of this Agreement shall commence on the date executed below and shall continue in perpetuity until and unless it is earlier terminated in writing by all Parties.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their respective officers hereunto duly authorized on this ____ date of _______________, 2024.

CITY OF GRIDLEY
__________________________________

CITY OF BIGGS
__________________________________

BUTTE LOCAL AGENCY FORMATION COMMISSION
_________________________________________
Shannon Costa

BUTTE WATER DISTRICT
___________________________________
{00320847.1}

BIGGS-WEST GRIDLEY WATER DISTRICT
_________________________________________
RECLAMATION DISTRICT 833
_________________________________________
RECLAMATION DISTRICT 2056
______________________________________
DRIINAGE DISTRICT 1
_______________________________
City Council Item #8
Staff Report
Date: July 15, 2024
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Resolution 2024-R-024: A Resolution of the City Council of the City of Gridley Approving Agreement No. 2CA06877 with the California Department of Forestry and Fire Protection and Authorizing the Mayor to Sign the Agreement for Services from July 1, 2024, to June 30, 2025
Recommendation
Staff respectfully requests the City Council review and approve the California Department of Forestry and Fire Protection Agreement No. 2CA06877, for the amount not to exceed $1,108,072 and approval of Resolution 2024-R-024.

Background
The City has historically contracted with California Department of Forestry and Fire for fire protection services. The reimbursement agreement is submitted to Council for review and approval annually. Last fiscal year, the Council approved the 23-24 Operating and Capital Budget which included the estimated costs for fire services at $1,147,018. The FY 23-24 fire service contract presented for approval has decreased by $38,946.

Fiscal Impact
The budget for FY 2024-2025 Operating Budget has included the estimated costs for Fire Protection Services.

Compliance with City Council Strategic Plan or Budget Goals The City Council and City staff are committed to provide the best possible financial practices and the highest possible transparency regarding all financial transactions. This presentation is consistent with our ongoing effort to be responsive and transparent regarding all financial matters, as well as be congruent with best financial practices.

Attachments
Resolution No. 2024-R-024
Cooperation Fire Programs Fire Protection Reimbursement Agreement #2CA06877 X Regular
Special
Closed
Emergency
RESOLUTION NO.
2024-R-024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY APPROVING AGREEMENT NO. 2CA06877 WITH THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT FOR SERVICES FROM JULY 1, 2024 TO JUNE 30, 2025
BE IT RESOLVED by the City Council of the City of Gridley that said Council does hereby approve the agreement with the California Department of Forestry and Fire Protection dated July 1, 2024.

The agreement provides fire protection services during the State fiscal year (2024/2025).

BE IT FURTHER RESOLVED that Michael W. Farr, Mayor of said City of Gridley be and hereby authorized to sign and execute said agreement on behalf of the City of Gridley.

I HEREBY CERTIFY that the foregoing resolution was dully passed and adopted by the City Council of the City of Gridley at a regular meeting thereof, held on July 15th, 2024, by the following vote:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
ATTEST: APPROVE:
_________________________ ______________________________ Elisa Arteaga, City Administrator Michael W. Farr, Mayor

City Council Agenda Item #9
Staff Report
Date: July 15, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Request for Acceptance and Approval of FY 2021-2022 Single Audit & GANN Limit Report and FY 2022-2023 Audit Report
Recommendation
Staff respectfully requests that the Mayor and City Council accept the attached FY 2021-2022 Single Audit & GANN Limit Report as well as the FY 2022-2023 Financial Statements & Independent Auditors Reports.

Background
As previously reported to the City Council by Finance Management, the FY 2022-2023 audit reports has been delayed due to city staff turnover caused by COVID-19. Eide Bailly Accounting Service Staff has been assisting the department to date. Sheldon and Associates, the city’s auditors, created a plan to get the city caught up with the audits. FY 2022-2023 was the last audit, and the city will now be up to date on audits once approved.

The Finance Department has received the remaining FY 2021-2022 reports as well as the financial audit for FY 2022-2023 and has reviewed the findings and recommendations made by our independent auditors. Finance staff concurs with findings and recommendations. New and existing policies are being implemented/updated to comply with standard practices. These will be presented to the council as we assess and update each policy for approval.

As the Council was aware, FY 2021-2022 and 2022-2023 were being worked on simultaneously. Now that we have received the remaining 2021-2022 reports and the 2022-2023 financials, the city will be caught up. The Finance department and Chavan & Associates have began working on FY 2023-2024 audit.

The city’s independent Auditor, Sheldon Chavan from Chavan & Associates LLP will provide a verbal overview of the FY 2022-2023 financial audit reports.

Compliance with City Council Strategic Plan or Budget Goals The City Council and City staff are committed to providing the best possible financial practices and the highest possible transparency regarding all financial transactions.

Attachments:
2021-22 City of Gridley Single Audit Report_C&ALLP
FY21-22 COG GANN Report_C&ALLP
2022-23 City of Gridley AFR_C&ALLP
2022-23 City of Gridley Single Audit Report_C&ALLP
FY22-23 COG GANN Report_C&ALLP
x Regular
Special
Closed
Emergency
Chavan & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Ste 130
Morgan Hill, CA 95037

CITY OF GRIDLEY, CALIFORNIA

SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2022

CITY OF GRIDLEY, CALIFORNIA

SINGLE AUDIT REPORT

TABLE OF CONTENTS
JUNE 30, 2022
PAGE NO.

Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance in Accordance with Uniform Guidance.......................................................................................................... 1 Schedule of Expenditures of Federal Awards...................................................................... 4 Notes to Schedule of Expenditures of Federal Awards....................................................... 5 Schedule of Findings and Questioned Costs:

Section I - Summary of Auditor’s Results..................................................................... 6 Section II - Financial Statement Findings...................................................................... 7 Section III - Federal Awards Findings and Questioned Costs....................................... 10 Summary Schedule of Prior Year Findings......................................................................... 12 Independent Auditor’s 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................................. 15 Page | 1 15105 Concord Circle, Ste 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH

MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Gridley’s (the City) compliance with the types of compliance requirementsidentified 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, 2022. 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 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, 2022.

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 (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); 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 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.

Page | 2 15105 Concord Circle, Ste 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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 GAAS, 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.

In performing an audit in accordance with GAAS, 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.

Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2022-004 and 2022-005. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s responses were not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control over Compliance
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 Page | 3 15105 Concord Circle, Ste 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2022-004 and 2022-005 to be significant deficiencies.

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. Government Auditing Standards requires the auditor to perform limited procedures on the City of Gridley’s response to the findings identified in our engagement and described in the accompanying schedule of findings and questioned costs. City of Gridley’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.

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.

Chavan & Associates, LLP
Certified Public Accountants
June 23, 2024
Morgan Hill, California

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
The accompanying notes are an integral part of this financial statement. 4 Pass-through
Assistance Identifying Federal
Federal Grantor/Pass-Through Grantor/Program Title Listing Number Expenditures U.S. DEPARTMENT OF TRANSPORTATION
Passed-Through California Department of Transportation:

Highway Planning and Construction 20.205 03-5140F15 $ 83,335 Total U.S. Department of Transportation 83,335
U.S. DEPARTMENT OF THE TREASURY
Passed-Through California Department of Finance:

Coronavirus State and Local Fiscal Recovery Funds 21.027 (1) OIG-CA-20-028 188,678 Total U.S. Department of the Treasury 188,678
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Passed-Through California Department of Housing and Community Development:

Community Development Block Grant Program 14.228 17-CDBG-12015 1,954 Community Development Block Grant Program 14.228 N/A 176,274 Community Development Block Grant Program 14.228 Beginning Loan Balance 1,663,815 Total Community Development Block Grant Program 1,842,043 HOME Investment Partnership Program 14.239 (1)Beginning Loan Balance 7,785,213 Total U.S. Department of Housing and Urban Development 9,627,256 U.S. DEPARTMENT OF AGRICULTURE
Passed-Through California Department of Forestry and Fire Protection:

Cooperative Forestry Assistance 10.664 7FG20020 42,997
Total U.S. Department of Agriculture 42,997
U.S. ENVIRONMENTAL PROTECTION AGENCY
Passed-Through State Water Resources Control Board:

Capitalization Grants for Clean Water State Revolving Funds 66.458 D190102400 123,291 Total U.S. Environmental Protection Agency 123,291
U.S. DEPARTMENT OF HOMELAND SECURITY
Staffing for Adequate Fire and Emergency Response (SAFER) Grant Program 97.083 N/A 355,210 Total U.S. Department of Homeland Security 355,210
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 10,420,767

(1) Audited as major program
Notes:
a) The City has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. b) There are no federal grants passed through to subrecipients.

CITY OF GRIDLEY, CALIFORNIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
5 Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the City of Gridley (the City) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Note 2. Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10 percent deminimus indirect cost rate as allowed under Uniform Guidance.

Note 3. Relationship to the Basic Financial Statements
The amounts reported in the accompanying schedule agree, in all material respects, to amounts reported within the City’s financial statements. Federal award revenues are reported principally in the City’s financial statements as intergovernmental revenues.

Note 4. Relationship to Federal Financial Reports
Amounts reported in the accompanying schedule agree or can be reconciled with the amounts reported or to be reported in the federal financial reports.

Note 5. Pass-Through Entities' Identifying Number
When federal awards are received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City has determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
6 Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:

Material weaknesses? x Yes No
Significant deficiencies identified not
considered to be material weaknesses? x Yes None Reported Non-compliance material to financial statements noted? Yes x No Federal Awards
Internal control over major programs:

Material weaknesses? Yes x No
Significant deficiencies identified not
considered to be material weaknesses? x Yes None Reported Type of auditor's report issued on compliance over major programs Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) x Yes No
Identification of Major Programs:

CFDA Numbers Name of Federal Program
Coronavirus State and Local Fiscal Recovery Funds
Home Investment Partnership Program
Dollar threshold used to distinguish between
type A and type B programs:

Auditee qualified as low risk auditee? Yes x No
Unmodified
Unmodified

14.239
$ 750,000

21.027

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
7 Section II - Financial Statement Findings
Finding 2022-001 - Financial Close (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.

Condition
During the audit, we proposed material audits adjustments to the City’s general ledger which were agreed to and posted by management. In addition, management provided material audit adjustments subsequent to sending us the City’s trial balance and general ledger for the audit. Inherently, material audit adjustments are indicative of ineffective financial reporting and closing. The timeliness of the adjustments is also indicative of an ineffective closing process.

Cause
Due to personnel turnover, the City did not have adequate controls in place to ensure accounting records were closed timely and accurately. Also, personnel would also benefit from training related to recent governmental accounting pronouncements. Finally, the City’s fund set-up and utilization of funds can be was inefficient and difficult to understand, costing the City time during its annual close.

Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments.

Recommendation
We recommend the City implement written closing procedures and establish a routine timeline for closing.

Documenting the closing process involves identifying and gaining an understanding of: 1) the events or transactions included in the procedures that need to be performed, 2) the automated or manual procedures used in performing the process, 3) the person(s) or positions(s) responsible for performing the procedures, 4) the source documents used or generated during the closing process, 5) the procedures for required approval, review, and correction of any errors detected, and 6) the financial or operational entries or reports summarizing the result of the process.

We further recommend the City develop checklists or other guidance documents over the City's closing process to ensure all closing entries are captured in the City's general ledger in a timely manner, and supporting schedules agree and reconcile to respective account balances prior to the trial balance being provided for the audit.

Corrective Action Plan
The City experienced significant staffing turnover and had recently transitioned to new financial software which was the primary focus of testing conversion data. The City has since hired staff and has been establishing an internal process to train newly appointed staff which encompasses internal routine financial close. The Finance Department will work on implementing a check list of closing procedures

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
8 Finding 2022-002 - Negative Cash Balances (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance over the safeguarding of assets and the reliability of the classification financial information.

Condition
During our audit procedures to test cash and pooled cash balances, we identified the following:
 We noted 38 funds as of year-end which contained negative pooled cash balances. Thirty-two of these funds reported the same negative pooled cash balance in the prior year. This resulted in management proposing a significant number of adjustments to record due to/due from entries to offset the negative pooled cash balances and many of these adjustments were repeat adjustments from the prior year.  We noted a difference between pooled cash reported in the Pooled Cash fund and the total pooled cash reported in all other funds combined.

Cause
The City does not have adequate controls in place to effectively monitor pooled cash balances for individual funds. The pooled cash and negative cash balances in each fund were not cleared during the annual close.

Transfers and interfund balance adjustments that should have been made between funds were not made during the close as well.

Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments between the funds and in pooled cash.

Recommendation
We recommend that management establish written procedures that establish when, why and how to review all funds for negative cash balances and what the corrective action should be to clear negative cash balances in a fund. The written procedures should also include a systematic and routine reconciliation of pooled cash to each fund once the negative cash is cleared.

Management should also ensure that interfund payables and receivables do not exceed one year from the fiscal year end by including written procedures related the timing of interfund balances and when and how to clear those balances. If a interfund payables and receivables extend beyond one year, the balance should be converted to a formal loan agreement between the funds and recorded as an Advance.

We recommend that management improve the City's pooled cash reconciliation process to ensure that pooled cash reported in the pooled cash fund is equally offset by pooled cash reported in all other funds combined.

Corrective Action Plan
The Finance Department will create a written procedure to address the negative cash balances. The City is currently looking at consolidating funds based on the nature of the fund and the restriction of the revenue stream. For those that cannot be consolidated, the City will seek direction from the City Council.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
9 Finding 2022-003 - Negative Fund Balances (Significant Deficiency - Repeat Finding) Criteria
GASB 54: Fund Balance Reporting and Governmental Fund Type Definitions, defines special revenue funds as funds used to report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes, other than capital projects or debt service. In addition, per paragraph 31, a government should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.

Condition
During our audit procedures, we noted that the City's general ledger contains multiple funds classified as special revenue funds which either have had no activity for multiple years, have negative cash balances, have a negative fund balance, or a combination of these three issues.

Cause
The City did not assess the requirements of GASB 54 as they apply to special revenue funds and the City may not be correctly utilizing its fund structure as set-up in the chart of accounts.

Effect
The following funds ending the fiscal year with deficits:

Recommendation
We recommend that management needs create written procedures that require the review of all funds for deficit fund balance during the budget process. Then, corrective action should be identified as a part of the budget process. The written procedures should include criteria regarding whether or not a fund still meets the definition of a separate fund type as listed in GASB 54 as compared to the fund’s current classification.

If there are special revenue funds with negative cash balances which should remain open, we recommend that management determine if the revenue source for which the fund was opened still exists, or if the Deficit Deficit
Fund Net
Balance Position
SB 325 TDA Fund $ 317,591 $ -
Traffic Safety Fund 53,116 -
Planning and Development Fund 1,155,618 -
Solid Waste Recreation Fund 57,646 -
Gas Tax Fund 614,369 -
Recreation Related Fund 1,539,728 -
2021 Vierra Park Improvements Fund 3,006 -
Home Fund 6,846 -
Senior Taxi Fund - 318,974
Totals $ 3,747,920 $ 318,974

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
10 General Fund is financing the activity of the fund. If the City no longer expects that a substantial portion of the inflows will derive from restricted or committed resources, the fund should be closed, and the remaining resources should be reported in the General Fund.

Corrective Action Plan
The city will create and implement a written procedure that will require the Finance Department to review all funds with a deficit balance. The City is currently looking at consolidating funds based on the nature of the fund and the restriction on the revenue stream. For those that cannot be consolidated, the City will seek direction from the City Council.

Section III - Federal Award Findings and Questioned Costs Finding 2022-004 - Federal Grant Procedures Manual (Significant Deficiency - Repeat Finding) Criteria
Office of Management and Budget (0MB), Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), subpart D, sections 200.317 - 200.326.

Condition
The City has not updated their procurement policy in accordance with the Uniform Guidance standards.

Cause
Originally, management was unaware of the Uniform Guidance procurement requirements and implementation dates. Once management became aware of the requirements, the lack of time and resources led to the inability to create and implement a new policy in a timely manner.

Effect
The City's procurement policies and procedures are not in compliance with the Uniform Guidance.

Recommendation
We recommend the City review the Uniform Guidance procurement requirements and update their policy.

Corrective Action Plan
The City will in the future update Federal Grant Procedures Manual.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
11 Finding 2022-005 - Financial Reporting Timeliness (Significant Deficiency - Repeat Finding) Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the end of the audit period. In accordance with 0MB Memo M-20-26, and due to the coronavirus, an extension of six months beyond the normal due date was granted for submission of the audit, data collection form, and reporting package.

Condition
The 2022 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the deadline of March 31, 2023.

Cause
There were various issues which caused the delay of the fiscal year 2022 audit. The main issue was turnover.

Effect
The City will automatically be considered high risk which means that at least 40% of its expenditures of federal awards will be required to be tested instead of 20%. This could lead to additional audit fees as more major programs may need to be tested.

Recommendation
We recommend that the City implement closing procedures that requires management to close the year no later then five months after the fiscal year ends. The procedures should include specific timelines by phase and instructions for communicating with departments and what the department cut-offs will be.

Corrective Action Plan
The City experienced significant staffing turnover and had recently transitioned to new financial software which was the primary focus of testing conversion data. The City has since hired staff and has been establishing an internal process to train newly appointed staff which encompasses internal routine financial close. Now that the City is fully staffed up, the City will continue to catch up on audits to bring them current.

The City will also review and update the closing procedures and will develop a timeline.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
12 Section II - Financial Statement Findings
Finding 2021-001 Financial Close (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.

Condition
During the performance of the audit, processes utilized for closing and reporting of financial activity for the fiscal year were not effective, which contributed to the delayed accounting close of the City's trial balances and unpreparedness for the audit. The year-end audit for the June 30, 2021 fiscal year-end began in December 2022 and in April 2023, the City provided a revised version of the trial balance to be audited.

Recommendation
We recommend the City institute a program to methodically identify and document its significant operational and accounting processes. Documenting a process involves identifying and gaining an understanding of the events or transactions that trigger performance of the process, the automated or manual procedures used in performing the process, the person(s) or positions(s) responsible for performing the procedures, the source documents used or generated, the procedures for approval, review, and correction of any errors detected, and the financial or operational entries or reports summarizing the result of the process.

Status
Not implemented. See finding 2022-001.

Finding 2021-002 Negative pooled cash balances (Significant Deficiency- Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.

Condition
During our audit procedures to test cash and pooled cash balances, we identified the following:
 We noted 32 funds as of year-end which contained negative pooled cash balances. Fifteen of these funds reported the same negative pooled cash balance in the prior year. This resulted in management proposing a significant number of adjustments to record due to/due from entries to offset the negative pooled cash balances and many of these adjustments were repeat adjustments from the prior year.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
13  We noted a difference between pooled cash reported in the Pooled Cash fund and the total pooled cash reported in all other funds combined.

Recommendation
 Management needs to perform procedures to review all funds with negative pooled cash balances and determine if the negative balances and due to/due from entries are appropriate. A due to/due from balance should only be recorded for less than one year. If a due to/due from is recorded for longer than one year, the due to/due from needs to be converted to a formal loan agreement between the funds.  Management needs to improve the City's pooled cash reconciliation process to ensure that pooled cash reported in the Pooled Cash fund is equally offset by pooled cash reported in all other funds combined.

Status
Not implemented. See finding 2022-002.

Finding 2021-003 Funds with negative fund balances and no current year activity (Significant Deficiency - Repeat Finding)
Criteria
GASB 54: Fund Balance Reporting and Governmental Fund Type Definitions, defines special revenue funds as funds used to report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes, other than capital projects or debt service. In addition, per paragraph 31, a government should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.

Condition
During our audit procedures, we noted that the City's general ledger contains multiple funds designated as special revenue funds which either have had no activity for multiple years, have negative pooled cash balances, have a negative fund balance, or a combination of these three issues. There are several special revenue funds which have one or more of these characteristics.

Recommendation
Management needs to perform procedures to review all open funds in the City and close funds which no longer have activity or a purpose. If there are special revenue funds with negative cash balances which should remain open, management needs to determine if the revenue source for which the fund was opened still exists, or if the General Fund is inappropriately financing the activity of the fund. If the City no longer expects that a substantial portion of the inflows will derive from restricted or committed resources, the fund should be closed, and the remaining resources should be reported in the General Fund.

Status
Not implemented. See finding 2022-003.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
14 Section III - Federal Award Findings and Questioned Costs Finding 2021-004 Federal Grant Procedure Manual (Uniform Guidance Compliance - Repeat Finding)
Criteria
Office of Management and Budget (0MB), Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), subpart D, sections 200.317 - 200.326.

Condition
The City has not updated their procurement policy in accordance with the Uniform Guidance standards.

Recommendation
We recommend the City review the Uniform Guidance procurement requirements and update their policy.

Status
Not implemented. See finding 2022-004.

Finding 2021-005 Financial Reporting Timeliness (Uniform Guidance Compliance - Repeat Finding) Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the end of the audit period. In accordance with 0MB Memo M-20-26, and due to the coronavirus, an extension of six months beyond the normal due date was granted for submission of the audit, data collection form, and reporting package.

Condition
The 2021 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the original deadline of March 31, 2022, nor the extended deadline of September 30, 2022.

Recommendation
As noted in recommendation 2021-001, we recommend the City strive to close the year-end with properly prepared reconciliations within 3 - 4 months after year-end in order to complete the annual financial audit timely.

Status
Not implemented. See finding 2022-005.

Page | 15 15105 Concord Circle, Ste 130,Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S 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
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, 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 City of Gridley (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 23, 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.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2022-001 and 2022-002 to be material weaknesses.

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. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2022-003 to be a significant deficiency.

Page | 16 15105 Concord Circle, Ste 130,Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, and which are described in the accompanying schedule of findings and questioned costs as items 2022-004 and 2022-005.

City of Gridley’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Gridley’s response to the findings identified in our engagement and described in the accompanying schedule of findings and questioned costs. City of Gridley’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.

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.

Chavan & Associates, LLP
Certified Public Accountants
June 23, 2024
Morgan Hill, California
Chavan & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Suite 130
Morgan Hill, CA 95037

CITY OF GRIDLEY, CALIFORNIA

APPROPRIATIONS LIMIT SCHEDULE AND
INDEPENDENT ACCOUNTANT’S REPORT
For the Year ending June 30, 2022
* * *

CITY OF GRIDLEY, CALIFORNIA

APPROPRIATIONS LIMIT SCHEDULE AND
INDEPENDENT ACCOUNTANT’S REPORT
FOR THE YEAR ENDING JUNE 30, 2022

TABLE OF CONTENTS

PAGE NO
INDEPENDENT ACCOUNTANT’S REPORT ........................................................................... 1-2 APPROPRIATIONS LIMIT SCHEDULE.................................................................................. 3 NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE .......................................................... 4 Page | 1 15105 Concord Circle, Suite 130, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON

PROCEDURES APPLIED TO APPROPRIATIONS LIMIT UNDER

ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Gridley (City) for the fiscal year ending June 30, 2022. The City’s management is responsible for the accompanying Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and our findings were as follows:

1. We obtained completed worksheets used by the City to calculate its appropriation limit for the fiscal year ending June 30, 2022 and determined that the limit and annual adjustment factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council.

Findings: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments and agreed the resulting amount to the current year’s limit.

Findings: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriation Limit Schedule to corresponding information in worksheets used by the City.

Findings: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit in the accompanying Appropriation Limit Schedule to the corresponding information in worksheets used by the City.

Findings: No exceptions were noted as a result of our procedures.

Page | 2 15105 Concord Circle, Suite 130, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA.

We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

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

However, this report is a matter of public record, and its distribution is not limited.

June 23, 2024
Morgan Hill, California

CITY OF GRIDLEY, CALIFORNIA

APPROPRIATIONS LIMIT SCHEDULE
FOR THE YEAR ENDING JUNE 30, 2022
3 Amount Source
A. Appropriations limit for the fiscal year ended June 30, 2021 $ 21,503,174 Prior Year Schedule B. Calculation Factors:

1. Population increase % 0.9408 1) State Department of Finance

2. Inflation increase % 1.0573 State Department of Finance

3. Total adjustment factor % 0.99470784 B1 x B2
C. Annual adjustment (113,798) [(B3-1)A)]
D. Other Adjustments:

Loss responsibility (-) - N/A
Transfers to private (-) - N/A
Transfers to fees (-) - N/A
Assumed responsibility (+) - N/A
E. Total Adjustments (113,798) (C+D)
F. Appropriations limit for the fiscal year ending June 30, 2022 $ 21,389,376 (A+E) 1) Population increase % for:

City of Gridley 0.9408
Butte County 0.9699

CITY OF GRIDLEY, CALIFORNIA

NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE
FOR THE YEAR ENDING JUNE 30, 2022
4 1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitations Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIB, the annual calculation of the appropriation limit is subject to a limited procedures review in connection with the annual audit.

2. METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

3. INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4
th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2021-22 represents the annual percentage change in the per capita personal income.

A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2021-22 represents the annual percentage change in population for the City.

4. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustment for the year ending June 30, 2022.

CITY OF GRIDLEY

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
This page is intentionally blank

CITY OF GRIDLEY

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS

FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................... 1 Management’s Discussion and Analysis .......................................................................................... 6 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .................................................................................................. 24 Statement of Activities ...................................................................................................... 26

Fund Financial Statements

Governmental Funds:

Balance Sheet .............................................................................................................. 28 Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position .................................. 29 Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ........................................................................................... 31

Proprietary Funds:

Statement of Net Position ............................................................................................ 34 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................... 35 Statement of Cash Flows .............................................................................................. 36 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ............................................................................. 38 Statement of Changes in Fiduciary Net Position ........................................................... 39

Notes to the Basic Financial Statements ................................................................................. 42

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

General Fund .................................................................................................................... 79 08-HOME-4987 Grant Fund .............................................................................................. 80 Block Grant Funds ............................................................................................................ 81 Grant-Related Funds ......................................................................................................... 82 Notes to Required Supplementary Information – Budgetary Accounting and Control ..................... 83 Schedule of Pension Contributions................................................................................................ 84 Schedule of Proportionate Share of Net Pension Liability .............................................................. 85 Schedule of Changes in Total OPEB Liability ............................................................................... 86

CITY OF GRIDLEY

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS

SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds:

Combining Balance Sheet ....................................................................................................... 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................... 96 Nonmajor Enterprise Funds:

Combing Statement of Net Position ....................................................................................... 102 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................... 103 Combining Statement of Cash Flows ..................................................................................... 104 Private Purpose Trust Funds:

Combining Statement of Fiduciary Net Position .................................................................... 106 Combining Statement of Changes in Fiduciary Net Position ................................................... 107 Custodial Funds:

Combining Statement of Fiduciary Net Position .................................................................... 110 Combining Statement of Changes in Fiduciary Net Position ................................................... 111 General Fund:

Combining Balance Sheet ..................................................................................................... 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 115

FINANCIAL SECTION
This page is intentionally blank

15105 Concord Circle, Suite 130 Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Gridley
Gridley, California
Report on the Financial Statements
Opinion
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Gridley (the “City"), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Gridley, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements City 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.
15105 Concord Circle, Suite 130 Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

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

15105 Concord Circle, Suite 130 Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, 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.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 19, 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 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 internal control over financial reporting or on compliance. That

15105 Concord Circle, Suite 130 Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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.

Chavan & Associates, LLP
Certified Public Accountants
June 19, 2024
Morgan Hill, California
MANAGEMENT’S DISCUSSION

AND ANALYSIS
City of Gridley Management’s Discussion and Analysis

INTRODUCTION
As management of the City of Gridley, California (city), we offer readers of the City’s financial statements this narrative overview and analysis of financial activities of the City of Gridley, for the fiscal year that ended on June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the other sections of the attached audited financial statements, required supplemental information and other supplemental information.

The required components of the report are listed below.

Required Components of the Annual Financial Report
FISCAL YEAR 2022/23 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
 The assets and deferred outflows of resources for the City of Gridley exceeded the liabilities and deferred inflows of resources at the close of the fiscal year by $41.35 million (net position). Of the net position, $20.51 million was classified as net investment in capital assets; $5.31 million recorded as restricted funds; and $15.53 million categorized as unrestricted net position.  The City’s net position increased by $5.2 million. This included a $2.33 million increase in the net position of Governmental Activities and a $2.88 million increase in the net position of Business-Type Activities.
 City revenues increased by $2.17 million, or 12.46%, when compared to the prior fiscal year. This increase is primarily related to increased business-type activities charges for services of $3.1 million, which was offset by a decrease in operating grants and contributions of $838,264. Total expenses decreased by $4.95 million, or 25.59%, with a $188,960 decrease in general government expenses, $1.59 million decrease in public safety, $446,005 decrease in streets and public works, $125,709 decrease in community development, $86,632 decrease in parks and recreation, $1.15 million Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
City of Gridley Management’s Discussion and Analysis
decrease in the electric service expenses, $357,317 decrease in water services expenses, $749,668 decrease in in the sewer program expenses, and a $254,670 decrease in other proprietary programs expenses.
 Deferred outflows of resources increased by $2.06 million, while deferred inflows of resources decreased by $7.99 million. This was primarily related to pension liability adjustments identified in the City’s actuarial reports, which include differences between expected and actual earnings; expected and actual experiences; and changes in proportional allocations. The City’s net pension liability as of June 30, 2023 was $13.96 million versus $5.38 million in the prior fiscal year, while the total OPEB liability for the fiscal year ending June 30, 2023 was $3.98 million versus $2.63 million in the prior fiscal year.
 The City’s long-term debt decreased by $92,337, or 2.95%, in Fiscal Year 2022/23 primarily from debt service payments made during the year.
 The City’s net capital assets decreased by $167,639, or .71%, primarily as a result of depreciation expenses in excess of additions.

Fund Highlights
 At the close of Fiscal Year 2022/23 the City’s Governmental Funds reported a combined fund balance of $13.5 million, which is an decrease of $801,352 in comparison with the prior year. Approximately

17.59%, or $2.37 million, was classified as unassigned fund balance and is available for spending.  At the end of the current fiscal year, the General Fund’s unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $12.866 million, or 204.83%, of total general fund expenditures, prior to transfers. The General Fund’s unassigned fund balance was $7.13 million, or 113.57%, of total general fund expenditures, prior to transfers.  The General Fund’s fund balance decreased by $515,487 at the close of the fiscal year. This included an excess of operating expenditures over revenues of $2.03 million, before an additional $1.51 million in net transfers.
 General Fund revenues decreased from prior year by $680,494 and expenditures increased from prior year by $1.03 million.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.

The City’s basic financial statements are comprised of (1) Government-Wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information intended to furnish additional detail to support the basic financial statements themselves.

Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. Government-Wide financial statements are City of Gridley Management’s Discussion and Analysis
prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Government-Wide Financial Statements consist of the Statement of Net Position and the Statement of Activities.

The Statement of Net Position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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

Both of the Government-Wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). An overview of the City’s functions associated with each classification is listed below.

Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public safety, streets and public works, community development, and parks and recreation. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees.

Business-Type Activities – The City’s enterprise activitiesinclude electric, water, sewer, drainage, solid waste, and senior taxi services. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.

The Government-Wide Financial Statements include not only the City itself (known as the primary government), but also a legally separate financing authority which the City is financially accountable. The City of Gridley Public Facilities Financing Authority (Financing Authority) is legally separate from the City but is blended with the primary government because it has the same governing board as the City and because of its financial relationship with the City. Separate financial statements are not issued for the Financing Authority.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. Major funds are presented individually, with all non-major funds summarized and presented only in a single column. Other Supplementary information includes subordinate schedules that present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City's activities. All of the City's funds can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.

City of Gridley Management’s Discussion and Analysis
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements. Such information may be useful in evaluating the City'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 government’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.

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, 08-Home-4987 Grant Fund, Block Grant Fund, and Grant Related Funds, which are major funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Other Supplementary Information section of this report.

The City adopts an annual budget for its General Fund and Special Revenue Funds. A budgetary comparison statement has been provided for the General Fund and Major Special Revenue Funds to demonstrate compliance with this budget.

Proprietary Funds
The City has six Enterprise Funds that are a proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide statements.

Proprietary funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for include electric, water, sewer, drainage, solid waste, and senior taxi services. The electric, water and sewer funds are major enterprise funds for the City.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the Government-Wide Financial Statements because the resources of these funds are not available to support the City’s own programs. The accounting for fiduciary funds is much like that used for business-type activities. The City maintains private purpose trust funds and custodial funds to report activities that are fiduciary in nature.

City of Gridley Management’s Discussion and Analysis

NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is necessary to acquire a full understanding of the data provided in the Government-Wide and Fund Financial Statements.

REQUIRED SUPPLEMENTARY INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s progress in funding its obligations to provide pension and Other Post Employment Benefit (OPEB) benefits to its employees.

SUPPLEMENTARY INFORMATION
The combining statements referred to earlier in connection with nonmajor governmental funds, are presented in the other supplementary information section, immediately following the required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $41.35 million at the close of Fiscal Year 2022/23. This is an increase of $5.21 million over the prior fiscal year.

The following table summarizes the City’s ending net position:

A significant portion, or $20.51 million, of the City's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), net of accumulated depreciation and less any outstanding debt that was used to acquire or construct those assets. Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the City‘s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this 2023 2022 2023 2022 2023 2022
Assets
Current and other assets $ 26,830,005 $ 26,566,221 $ 11,170,960 $ 10,988,115 $ 38,000,965 $ 37,554,336 Capital assets 10,784,112 10,682,149 12,761,652 13,031,254 23,545,764 23,713,403 Total Assets $ 37,614,117 $ 37,248,370 $ 23,932,612 $ 24,019,369 $ 61,546,729 $ 61,267,739 Deferred Outflows of Resources $ 3,587,722 $ 2,503,120 $ 2,635,711 $ 1,656,405 $ 6,223,433 $ 4,159,525 Liabilities
Current and other liabilities $ 2,318,817 $ 1,313,403 $ 640,705 $ 1,151,572 $ 2,959,522 $ 2,464,975 Noncurrent liabilities 10,908,781 8,352,635 10,344,150 8,274,360 21,252,931 16,626,995 Total Liabilities $ 13,227,598 $ 9,666,038 $ 10,984,855 $ 9,425,932 $ 24,212,453 $ 19,091,970 Deferred Inflows of Resources $ 2,171,414 $ 6,609,818 $ 36,474 $ 3,585,592 $ 2,207,888 $ 10,195,410 Net Position
Net investment in capital assets $ 10,784,112 $ 10,682,149 $ 9,727,598 $ 9,904,863 $ 20,511,710 $ 20,587,012 Restricted 5,310,275 4,584,441 - - 5,310,275 4,584,441
Unrestricted 9,708,440 8,209,044 5,819,396 2,759,387 15,527,836 10,968,431 Total Net Position $ 25,802,827 $ 23,475,634 $ 15,546,994 $ 12,664,250 $ 41,349,821 $ 36,139,884 Table 1 - Net Position
Governmental Activities Business-Type Activities Total
City of Gridley Management’s Discussion and Analysis
debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities.

The $5.31 million classified as Restricted Net Position, represents resources that are subject to external restrictions, by external creditors, grantors, contributors, or laws or regulations of other governments, on how they may be used. Complete details of each fund can be found in the fund descriptions.

The remaining balance of $15.53 million is classified as unrestricted.

At the end of Fiscal Year 2022/23, the City reported a positive balance for the government as a whole.

The reasons for the overall financial changes are discussed in the following sections for governmental and business-type activities.

Governmental and Business-Type Activities
As shown in the Statement of Changes in Net Position schedule, the net position for Governmental Activities increased from $2.33 million during Fiscal Year 2022/23. This increase is largely due to pension credits and decreases in total expenses.

The net position for business-type activities increased by $2.88 million during Fiscal Year 2022/23. This increase was mostly due an increase in Charges for Services of $3.09 million and a decrease to operating expenses of $2.5 million, mostly due to a pension credit. An analysis of the changes in revenues and expenses by type of significant events follows:

Increase Increase Increase
Functions/Programs 2023 2022 (Decrease) 2023 2022 (Decrease) 2023 2022 (Decrease) Program Revenues
Charges for services $ 611,883 $ 602,385 $ 9,498 $ 13,089,323 $ 10,000,158 $ 3,089,165 $ 13,701,206 $ 10,602,543 $ 3,098,663 Operating grants and contributions 2,265,638 3,103,902 (838,264) 87,434 86,000 2,353,072 1,434 3,189,902 (836,830) Total Program Revenues 2,877,521 3,706,287 (828,766) 13,176,757 10,086,158 3,090,599 16,054,278 13,792,445 2,261,833 General Revenues
Taxes 3,087,539 2,851,011 236,528 - - - 3,087,539 2,851,011 236,528 Rental income 30,592 528,802 (498,210) - - - 30,592 528,802 (498,210) Investment earnings 100,277 (25,329) 125,606 53,057 (16,187) 69,244 153,334 (41,516) 194,850 Other revenues 274,474 288,841 (14,367) 15,294 22,162 (6,868) 289,768 311,003 (21,235) Loss on disposal of capital assets (19,198) - (19,198) - - - - - - Transfers 1,395,944 2,894,438 (1,498,494) (1,395,944) (2,894,438) 1,498,494 - - - Total General Revenues 4,869,628 6,537,763 (1,668,135) (1,327,593) (2,888,463) 1,560,870 3,561,233 3,649,300 (88,067) Expenses
General government 224,089 413,049 (188,960) - - - 224,089 413,049 (188,960) Public safety 3,335,114 4,921,625 (1,586,511) - - - 3,335,114 4,921,625 (1,586,511) Streets and public works 1,132,256 1,578,261 (446,005) - - - 1,132,256 1,578,261 (446,005) Community development 359,130 484,839 (125,709) - - - 359,130 484,839 (125,709) Parks and recreation 369,367 455,999 (86,632) - - - 369,367 455,999 (86,632) Electric - - - 6,843,213 7,994,113 (1,150,900) 6,843,213 7,994,113 (1,150,900) Water - - - 782,138 1,139,455 (357,317) 782,138 1,139,455 (357,317) Sewer - - - 1,334,078 2,083,746 (749,668) 1,334,078 2,083,746 (749,668) Other proprietary - - - 6,991 261,661 (254,670) 6,991 261,661 (254,670) Total Expenses 5,419,956 7,853,773 (2,433,817) 8,966,420 11,478,975 (2,512,555) 14,386,376 19,332,748 (4,946,372) Increase / (Decrease) in Net Position 2,327,193 2,390,277 (63,084) 2,882,744 (4,281,280) 7,164,024 5,229,135 (1,891,003) 7,120,138 Prior Period Adjustments - 14,507 (14,507) - (3,036) 3,036 - 11,471 (11,471) Net Position, Beginning of Year 23,475,634 21,070,850 2,404,784 12,664,250 16,948,566 (4,284,316) 36,139,884 38,019,416 (1,879,532) Net Position, End of Year $ 25,802,827 $ 23,475,634 $ 2,327,193 $ 15,546,994 $ 12,664,250 $ 2,882,744 $ 41,369,019 $ 36,139,884 $ 5,229,135 Table 2 - Statement of Changes in Net Position
Governmental Activities Business-Type Activities Totals City of Gridley Management’s Discussion and Analysis
Governmental Activities
Governmental Revenues
The following chart summarizes the changes in revenues by category during Fiscal Year 2022/23:

Significant changes in governmental revenues consisted of the following:
 Charges for Services in governmental activities increased by $9,498 as Recreation and Community Services program revenues continued to recover from prior COVID-19 restrictions.  In Fiscal Year 2022/23, operating grants and contributions decreased by $838,264. The decrease was mainly due to one-time grants received from federal, state and county agenciesin the prior fiscal year.  Taxes increased by $236,528 or 8.3%, which is made up of property tax and sales and use tax.  Rental Income decreased by $498,210, this is due to the FEMA lease at the industrial park expiring.

The industrial park was used to provide temporary housing to victims of the Camp Fire.  Investment earnings increased by $125,606 which reflects the rise in interest rates by the Federal Reserve and an changes in fair value.
 Transfers decreased by $1.5 million, this was due to the creation of a new GHG Carbon Credit Fund.

Historically, carbon credit revenue was posted to the Electric Fund (Fund 600), and these funds are limited and can be used only for the purpose of reducing emissions ..

City of Gridley Management’s Discussion and Analysis
Governmental Expenses
The Fiscal Year 2022/23 expenses for Governmental Activities decreased by $2.43 million as illustrated in the chart below:

Significant changes in governmental expenses consisted of the following:

Overall governmental expenses decreased by $2.43 million mostly from a pension adjustment of $3.64 million and an OPEB adjustment of $1.33 million, reducing expenses for all programs by $4.97 million. The changes in program expenses are a part of the presentation of financial statements on a governmentwide perspective, whereby expenditures are allocated to departments related to adjustments for actuarial pension reports and depreciation. Additional allocations or conversion entries are needed to convert fund statements to a government-wide perspective.

City of Gridley Management’s Discussion and Analysis
Business-Type Activities
The City’s net position for business-type activities increased by $2.88 million. The following chart is a summary of the changes in revenues and expenses for the City’s business-type activities from Fiscal Year 2022/23 to 2021/22, with additional analysis following the chart:

Total Program Revenues for business-type activities increased by $3.09 million when compared to the prior fiscal year. $1.28 million of this amount was a one-time settlement payment from NCPA to the electric fund. The remaining amount was an increased amount in utility billing, with the majority coming from the Electric fund.

Total General Revenues increased by $62,638 because of increased investment earnings and transfers out decreased by $1.5 million related to the transfer of GHG carbon credits that were posted to the Electric Fund and now being tracked in its own Fund in the prior year.

Total expenses for business type activities were $8.97 million for Fiscal Year 2022/23, which was a decrease of $2.5 million when compared to the prior fiscal year. This was primarily due to the power the city purchases from NCPA in the prior year.

City of Gridley Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.

In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City ’s Council.

The following summarizes the fund balances by major and nonmajor funds:

Total Fund Balance as of June 30, 2023 was $13.5 million. Of this amount, $2.37 million, or 17.59%, was unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance was either nonspendable, restricted, or assigned to indicate that it was (1) not in a spendable form, $81,571; (2) restricted for particular purposes, $5.31 million; (3) committee by Council resolution for a specific purpose, $40,710; or (3) assigned for particular purposes, $5.69 million. A summary of the changes in fund balance of the Major Funds and Nonmajor Governmental Funds is presented below:

As of June 30, 2023, the City’s governmental funds reported combined fund balances of $13.49 million, a decrease of $801,352 in comparison with the prior fiscal year. 08-Home-4987 Block Grant Nonmajor
General Grant Grant Related Governmental
Fund Fund Fund Funds Funds Total
Nonspendable $ 81,571 $ - $ - $ - $ - $ 81,571
Restricted - 3,810 1,049,869 1,712,452 2,544,144 5,310,275 Committed 40,710 - - - - 40,710
Assigned 5,691,488 - - - - 5,691,488
Unassigned 7,133,400 - - - (4,759,619) 2,373,781
Total Fund Balance $ 12,947,169 $ 3,810 $ 1,049,869 $ 1,712,452 $ (2,215,475) $ 13,497,825 Table 3 - Summary of Fund Balances - Governmental Funds 08-Home-4987 Block Grant Nonmajor
General Grant Grant Related Governmental
Fund Fund Fund Funds Funds Total
Total Revenues $ 4,250,950 $ 28 $ 194,177 $ 382,420 $ 1,280,501 $ 6,108,076 Total Expenditures 6,281,113 - 99,053 92,092 1,833,114 8,305,372 Revenues Over (Under) Expenditures (2,030,163) 28 95,124 290,328 (552,613) (2,197,296) Transfers in 1,514,676 - - - - 1,514,676
Transfers out - - - (118,732) - (118,732)
Net change in fund balances (515,487) 28 95,124 171,596 (552,613) (801,352) Beginning of year 13,462,656 3,782 954,745 1,540,856 (1,662,862) 14,299,177 Prior Period Adjustment - - - - - -
End of year $ 12,947,169 $ 3,810 $ 1,049,869 $ 1,712,452 $ (2,215,475) $ 13,497,825 Table 4 - Summary of Changes in Fund Balance - Governmental Funds City of Gridley Management’s Discussion and Analysis
Analysis of Individual Funds
The General Fund is the chief operating fund of the City. As of the end of Fiscal Year 2022/23, the unassigned fund balance of the general fund was $7.13 million, while total fund balance decreased to $12.95 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents 113.57% of total general fund expenditures, while total fund balance represents 206.13% of total general fund expenditures.

The General Fund’s fund balance decreased by $515,487 for Fiscal Year 2022/23. This is primarily attributed to $1.51 million in net transfers into the General Fund offset by operating expenditures exceeding operating revenues by $2.03 million during fiscal year 2022/23.

The 08-Home-4987 Fund’s fund balance increased by $28 during the year. This fund is reported as major because of the loans reported in that fund totaling $5.55 million at year end.

The Bock Grant Fund’s fund balance increased by $95,124 during the year as revenues exceeded expenditures by this amount during the year.

The Grant Related Funds fund balance increased by $171,596 during the year as expenditures decreased by $849,728.

Nonmajor Governmental Fund’s fund balances decreased by $552,613 mainly due to an increase in total expenditures of $299,310 during the year.

GENERAL FUND BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information section along with a comparison to actual activity for the fiscal year ended.

Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council.

Revenues
The General Fund adopted and final revenue budgets were $3.58 million with actual revenues at $4.25 million. The overall budgetary difference of $670,043 primarily reflects greater than anticipated revenue from taxes and assessments.

Expenditures
The General Fund adopted and final expenditure budget was $9 million. The actual expenditures totaled $5.25 million, which resulted in a net difference from the final budget of $2.73 million. This budgetary variance was mostly attributable to lower-than-expected capital outlay costs and pension credits.

City of Gridley Management’s Discussion and Analysis

CAPITAL ASSETS
The City of Gridley’s investment in capital assets for its governmental and business-type activities as of June 30, 2023, was $23.55 million (net of accumulated depreciation). This includes net capital assets from governmental activities of $10.78 million and net capital assets from business-type activities of $12.76 million. This investment in capital assets includes land, buildings and improvements, machinery and equipment, infrastructure and sewer systems.

The following table summarizes the City’s capital assets at the end of the fiscal year:

The total decrease in the City’s capital assets, net of depreciation and disposals was $167,639. In Governmental Activities, the net increase in capital assets was $101,963, or .95%, while business-type activities capital assets decreased by $269,602, or 2.07%. This changes were mainly attributed to depreciation in excess of purchases.

Additional detail and information on capital asset activity is included in the notes to the financial statements, Note 6.

DEBT ADMINISTRATION
At the end of the fiscal year, the City had total debt outstanding of $3.03 million which was all reported in business-type activities.

The following table summarizes the City’s debt at the end of the fiscal year:

During the fiscal year, long-term debt decreased by $92,337. The reduction in Long-Term Debt was a result of debt service payments. Additional detail and information on long-term debt activity is included in the notes to the financial statements, Note 7.
2023 2022 2023 2022 2023 2022 % Change
Land - non-depreciable $ 1,142,779 $ 1,150,990 $ 921,793 $ 921,793 $ 2,064,572 $ 2,072,783 -0.40% Construction in Progress - non-depreciable 345,812 395,719 644,242 485,570 990,054 881,289 12.34% Infrastructure 3,686,180 3,956,696 3,463,139 3,625,203 7,149,319 7,581,899 -5.71% Buildings and Improvements 984,269 1,097,178 183,491 200,593 1,167,760 1,297,771 -10.02% Improvements other than Buildings 3,069,319 2,531,215 5,375,367 5,716,530 8,444,686 8,247,745 2.39% Vehicle and Equipment 1,555,753 1,550,351 2,172,501 2,079,145 3,728,254 3,629,496 2.72% Right of Use Assets - - 1,119 2,420 1,119 2,420 100.00% Total Capital Assets, Net $ 10,784,112 $ 10,682,149 $ 12,761,652 $ 13,031,254 $ 23,545,764 $ 23,713,403 -0.71% Table 5 - Capital Assets at Year End - Net
Governmental Activities Business-type Activities Total
2023 2022 % Change
USDA Rural Development Loan $ 903,000 $ 939,000 -3.83%
USDA Rural Development Loan 2,130,000 2,185,000 -2.52%
Lease Liability 1,054 2,391 -55.92%
Total outstanding long-term debt $ 3,034,054 $ 3,126,391 -2.95% Table 6 - Outstanding Long-Term Debt at Year End
Business-type Activities
City of Gridley Management’s Discussion and Analysis

ECONOMIC FACTORS
Summary
The City’s primary revenue sources include property taxes, sales and use taxes, and Franchise Tax Fee and Stage Coach Trailer Tax. Property tax revenue is projected to grow as the City anticipates more housing to be built. Now that COVID is no longer a major factor, the City is working to return to normal working conditions and duties.

Some departments within the City are currently recovering in staffing across all departments. Finance staff has been working towards hiring new staff and late fees/shut offs are back to a normal routine. CAPP and Water Arrearage Program helped the City and residents to receive financial assistance on their utility bills, due to COVID.

The City’s General Fund revenue for FY 2022-2023 was $4.25 million, the projection for FY 2023-2024 is $5.02 million. The increase is mainly due to property taxes, sales tax, and the state trailer coach tax. As we expect more housing, franchise fee revenue is expected to increase as well. We will monitor these fees and review the impact. The City is currently working with a third party contractor to perform a Utility Rate Study. The utility rates will change depending on the results of the study. This will be presented to council and rates would likely be changed in 2024. While the approaching fiscal year reflects increased revenue receipts, the economic outlook assumes the leveling off of sales and use taxes to anticipate only a conservative 3% growth over prior year revenues as consumers shift from goods to services.

Planned expenditures also increased in the upcoming fiscal year. City staffing levels remained at 50 fulltime equivalents (FTE) in fiscal year 2022-2023. The cost of staffing increases from $8 million to $9.5 million due to a combination of factors such as negotiated salary and benefit adjustments, personnel advancement (annual merit or salary step adjustments), rising retirement and health insurance costs and additional staff. Personnel costs steadily increased, approaching $9.7 million by fiscal year 2024-2025, without any additional increase in FTE beyond the fiscal year 2023-2024 staffing levels.

However, even without an increase in staffing levels, the City faces rising personnel costs primarily attributed to pension-related expenses. In addition to its annual contributions toward retirement costs for existing employees, the City makes an annual required payment to the California Public Employees’ Retirement System (CalPERS) for the City’s unfunded accrued liability (“UAL”). The UAL payment for FY 2022-2023 was $671K. FY 2023-2024 UAL payment is project to be roughly $650K. The City currently has not addressed its pension obligations, there are options to this such as Section 115 Trust or adjustments of the Amortization Schedule. Finance staff will prepare a report on ways to address the increase UAL and present to council for direction.

If the City Council elects to start funding a Section 115 trust, it will have to plan and continually fund the trust while maintaining an annual balanced budget. To achieve this, the revenues must sustain an annual growth over the next several years and controlling the citywide expenses, particularly regarding the salary and benefits and capital outlay. Inflation also affects the ability to reduce costs for staffing, services, and supplies.

City of Gridley Management’s Discussion and Analysis
Outlook for Major Revenues
Property Taxes
The City’s land capacity for new housing is limited, which curtails the availability of housing stock. The rising cost of housing as well as the loan rates, creates a volatility in the housing market. This limited supply, coupled with a high demand for housing driven by the City’s desirability as a place to live, contributes to a healthy real estate market and thus the stability and strength of property tax revenues.

Unlike sales tax and franchise fees, the fiscal year 2023-2024 budget assumed minimal growth in property tax and continued resiliency.

The State median home price averaged over $758K in 2023, setting a 8.8% decrease from prior year. The California median home sales price for 2024 is expected to rise 13% to $860K. Gridley has consistent property tax base and the City does not foresee the average home in Gridley to be as high as the California Median home price. While fiscal year 2023-2024 property tax revenue is on par with projections, annual growth of 3% is conservatively realistic. The financial forecast assumes 3% annual growth over the next several years.

Sales and Use Taxes
Many of the features that contribute to residential quality of life, such as a temperate climate, natural beauty, and various family friendly events also attract visitors. The unique restaurants and other shopping options located within the City, as well as grocery and clothing retailers contributes to shopping opportunities for residents and visitors alike. The City also hosts the yearly Butte County Fair at the end of August, this also attracts visitors from surrounding cities and is a popular attraction. 2023-2024 budget projects a $1.6 million, which is minimal change when comparing to FY 2022-2023 actuals. Inflation is a major factor, recent trends show inflation has cooled in FY 2023-2024 while financing costs are expected to begin a gradual decent in the second half of 2024. The City will be closely monitoring this and adjust budgeted amounts during a Mid-Year Budget review if needed.

Franchise Fees
The City currently gets Franchise Fees Revenues from vendors that provide a service that the City does not provide, but is essential for our residents. This includes Waste/Environmental Services, Cable/Internet Services, and Gas Services. These services play a vital role in the quality of life for our residents and it benefits the City as a source of revenue. There was a projected minimal increase of 3% for FY 2023-2024.

The City will collect revenue from the fees which are collected from the vendor providing the services. As the pandemic has subsided and new housing expected in Gridley, the City should see an increase in revenue.

Outlook for Major Expenditures
Salaries and Benefits
The City’s largest expenditure is related to the cost of personnel. City staffing levels remained at 50 fulltime equivalents (FTE) in fiscal year 2022-2023. Correspondingly, the cost of staffing increases from $8 million to $9.5 million due to a combination of factors such as negotiated salary and benefit adjustments, City of Gridley Management’s Discussion and Analysis
step increases, rising retirement and health care costs and additional staff. Personnel costs steadily increase, approaching $9.7 million by fiscal year 2024-2025, without any additional increase in FTE beyond fiscal year 2023-2024 staffing levels.

Pension Costs
The City provides a defined pension plan through the California Public Employees’ Retirement System (CalPERS) for its full-time employees. As such, the City is responsible for contributing toward current employees’ retirement packages based upon a set amount determined by CalPERS based upon a percentage of salary (“employer contribution”). The employer contribution is included within the City’s overall budgeted salary and benefit costs. In addition, the City is obligated to make additional pension payments to CalPERS known as the Unfunded Accrued Lability (“UAL”). The UAL addresses any shortfall between the funding CalPERS needs to pay for retirement benefits when employees retire; compared to the funding that CalPERS currently has on hand to pay for the estimated costs of these benefits.

The City’s UAL is estimated at $14 million (not including interest) based on the valuation date of June 30, 2022. As calculated by CalPERS, the City’s UAL annual contribution payment has been steadily increasing and projected to increase by $1.7 million by year 2034. The City anticipates annual contribution costs will continue to rise over the next several years even if staffing levels remain unchanged. To help address its pension obligations, the City is looking at ways to tackle the UAL and will be discussed with council in an study session.

Other Operating Costs
In order to deliver services to the community, the City procures various types of goods and services. The category of services and supplies assumes a modest annual growth in fiscal year 2023-2024, as the City adjusts for goods and services overall sensitivity to inflation. The City is hopeful that federal interest rates will ease in 2024 and inflation will slow. The City contracts for specialized professional services and costs trend upward based upon credentials, certifications and qualifications of the individuals providing the service. Moreover, the City currently contracts with another governmental agency for fire prevention and response services, subject to increases based upon salary and benefits, including pension. Overall costs across all sectors are significantly higher over prior fiscal years.

Capital Projects
The City capital expenditures budgeted is $7.64 million in fiscal year 2023-2024. The City’s Five-Year Capital Improvement Plan totals $32.1 million and identifies needs of $6.4 million annually over the next five fiscal years. Similar to service and supplies, inflation and other market-based conditions drive the availability of contractors and costs to implement public works projects, subject to prevailing wage. In addition, deferring building and infrastructure maintenance drives long-term costs for repair and replacement.

Debt Service
In FY 2022, the City worked with a third party vendor and successfully refinanced two bonds. The City was able to refinance at a lower interest rate which in turn will be an interest cost savings to the City. Prior to the dissolution of the Redevelopment Agency (“RDA”), the former agency issued a $2.9 million and $1.7 million bond for the purpose of providing funds to finance redevelopment projects.

City of Gridley Management’s Discussion and Analysis

REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City's finances for all of the City's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Gridley Finance Department at 685 Kentucky St., Gridley, CA 95948, or visit the City of Gridley webpage at www.gridley.ca.us.

This page is intentionally blank

BASIC FINANCIAL STATEMENTS
City of Gridley
Statement of Net Position
June 30. 2023
BusinessGovernmental Type
Activities Activities Total
ASSETS
Current Assets:

Cash and investments $ 14,605,365 $ 9,280,637 $ 23,886,002 Accounts receivable 51,801 489,776 541,577
Due from other governments 186,552 688,451 875,003
Interest receivable 33,676 19,844 53,520
Taxes receivable 197,611 - 197,611
Prepaid items - 7,765 7,765
Inventory - 1,013,516 1,013,516
Advances to fiduciary funds 326,868 - 326,868
Leases receivable, current 24,921 - 24,921
Internal balances 329,029 (329,029) -
Total Current Assets 15,755,823 11,170,960 26,926,783
Noncurrent Assets:

Loans receivable 10,746,851 - 10,746,851
Leases receivable 327,331 - 327,331
Capital Assets:

Nondepreciable 1,566,035 1,488,591 3,054,626
Depreciable, net of accumulated depreciation 9,295,521 11,195,617 20,491,138 Total Capital Assets, Net 10,784,112 12,761,652 23,545,764 Total Noncurrent Assets 21,858,294 12,761,652 34,619,946 Total Assets $ 37,614,117 $ 23,932,612 $ 61,546,729

DEFERRED OUTFLOWS OF RESOURCES
Pension Adjustments $ 3,437,154 $ 2,522,125 $ 5,959,279 OPEB Adjustments 150,568 113,586 264,154
Total Deferred Outflows of Resources $ 3,587,722 $ 2,635,711 $ 6,223,433 Continued
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Net Position
June 30. 2023
BusinessGovernmental Type
Activities Activities Total

LIABILITIES
Current Liabilities:

Accounts payable $ 642,212 $ 70,913 $ 713,125
Accrued expenses - 45,430 45,430
Unearned revenue 1,500,517 - 1,500,517
Deposits payable 350 291,365 291,715
Interest payable - 23,095 23,095
Compensated absences, due within one year 175,738 114,848 290,586 Long-term debt, due within one year - 95,054 95,054
Total Current Liabilities 2,318,817 640,705 2,959,522
Noncurrent Liabilities:

Total OPEB liability 2,269,072 1,711,756 3,980,828
Net pension liability 8,397,209 5,565,382 13,962,591
Compensated absences, due in more than one year 242,500 128,012 370,512 Long-term debt, due in more than one year - 2,939,000 2,939,000 Total Noncurrent Liabilities 10,908,781 10,344,150 21,252,931 Total Liabilities $ 13,227,598 $ 10,984,855 $ 24,212,453

DEFERRED INFLOWS OF RESOURCES
Leases $ 347,549 $ - $ 347,549
Pension Adjustments 1,823,865 36,474 1,860,339
Total Deferred Inflows of Resources $ 2,171,414 $ 36,474 $ 2,207,888

NET POSITION
Net investment in capital assets $ 10,784,112 $ 9,727,598 $ 20,511,710 Restricted for:

Redevelopment 1,159,274 - 1,159,274
Grants 2,968,690 - 2,968,690
Taxes and fees 873,559 - 873,559
Capital projects 39,668 - 39,668
Other 2,336 - 2,336
Total Restricted 5,043,527 - 5,043,527
Unrestricted 9,975,188 5,819,396 15,794,584
Total Net Position $ 25,802,827 $ 15,546,994 $ 41,349,821 Concluded
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Activities
For the Year Ended June 30, 2023
Operating BusinessCharges for Grants and Governmental Type Functions/Programs Expenses Services Contributions Activities Activities Total Primary Government:

Governmental Activities:

General government $ 224,089 $ 395,115 $ 601,340 $ 772,366 $ 772,366 Public safety 3,335,114 19,226 565,470 (2,750,418) (2,750,418) Streets and public works 1,132,256 - 1,004,635 (127,621) (127,621) Community development 359,130 129,081 94,193 (135,856) (135,856) Parks and recreation 369,367 68,461 - (300,906) (300,906) Total Governmental Activities $ 5,419,956 $ 611,883 $ 2,265,638 (2,542,435) (2,542,435) Business-Type Activities:

Electric $ 6,843,213 $ 9,795,539 -$ 2,952,326 2,952,326 Water 782,138 1,328,866 - 546,728 546,728
Sewer 1,334,078 1,961,798 - 627,720 627,720
Other proprietary 6,991 3,120 87,434 83,563 83,563
Total Business-Type Activities $ 8,966,420 $ 87,434 13,089,323 $ 4,210,337 4,210,337 General Revenues:

Taxes:

Property taxes 643,350 643,350 -
Sales and use taxes 1,921,248 1,921,248 -
Motor vehicle and gas taxes 354,342 354,342 -
Occupancy tax 19,512 19,512 -
Franchise taxes 149,087 149,087 -
Total taxes 3,087,539 3,087,539 -
Investment earnings 100,277 53,057 153,334
Rental income 30,592 30,592 -
Other revenues 274,474 15,294 289,768
Total General Revenues 3,492,882 3,561,233 68,351
Special Item - Loss on Sale of Assets (19,198) (19,198) - Transfers 1,395,944 (1,395,944) -
Total General Revenues and Transfers 4,869,628 (1,327,593) 3,542,035 Change in Net Position 2,327,193 2,882,744 5,209,937
Net Position - Beginning of Year 23,475,634 12,664,250 36,139,884 Net Position - End of Year $ 15,546,994 25,802,827 $ 41,349,821 $ The accompanying notes are an integral part of these financial statements.

Net (Expense) Revenue and Changes
Program Revenues in Net Position

GOVERNMENTAL FUND FINANCIAL STATEMENTS
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.

The 08-Home-4987 Grant Fund is a special revenue fund used to account for the activities of the U.S.

Department of Housing and Urban Development HOME Investment Partnerships Grant.

The Block Grant Fund is a Community Development Block Grant (CDBG) Revolving Loan program and Economic Development Block Grant (EDBG) Program. The City participates in this federally funded program that is utilized to fund housing activities, community facilities and public service projects serving lower income private parties and businesses. Eligible activities include funding housing activities (single/multi-family) rehabilitation, rental housing acquisition, homeownership assistance, or new construction. Interest may vary depending on the loan terms and interest may be deferred until the related property is refinanced or sold. The repayment of the loans results in program income, which is deposited into the Housing Rehabilitation Revolving Loan Fund (RLF) program for public benefit projects, general administration, and program delivery functions (preapproved ratios to the funds loaned).

The Grant Related Fund is used to account for various restricted grants, mostly from the State of California (transportation, planning, and COPS grants).

City of Gridley
Balance Sheet
Governmental Funds
June 30. 2023
08-Home-4987 Block Grant Nonmajor Total
General Grant Grant Related Governmental Governmental
Fund Fund Fund Funds Funds Funds
ASSETS
Cash and investments $ 3,801 8,187,871 $ 752,230 $ 3,152,585 $ 2,508,878 $ 14,605,365 $ Accounts receivable - 20,024 - - 31,777 51,801
Due from other governments - - 175,180 11,372 - 186,552 Interest receivable 22,675 9 2,048 1,447 7,497 33,676
Taxes receivable 81,233 - - - 116,378 197,611
Loans receivable - 5,546,250 2,491,216 2,709,385 - 10,746,851 Due from other funds 5,179,143 - - - 329,029 5,508,172
Leases receivable 352,252 - - - - 352,252
Advances to fiduciary funds 76,868 - 250,000 - - 326,868 Total assets $ 13,920,066 $ 5,550,060 $ 3,670,674 $ 5,874,789 $ 2,993,559 $ 32,009,148

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 600,897 -$ $ 898 $ 10,526 $ 29,891 $ 642,212 Unearned revenue 24,101 - - - - 24,101
Deposits payable 350 - - - - 350
Due to other funds - - - - 5,179,143 5,179,143
Total liabilities 625,348 - 898 10,526 5,209,034 5,845,806 Deferred Inflows of Resources:

Leases 347,549 - - - - 347,549
Unavailable revenues - 5,546,250 2,619,907 4,151,811 - 12,317,968 Total deferred inflows of resources 347,549 5,546,250 2,619,907 4,151,811 - 12,665,517 Fund Balances:

Nonspendable
Leases receivable 4,703 - - - - 4,703
Advances to fiduciary funds 76,868 - - - - 76,868
Total nonspendable 81,571 - - - - 81,571
Restricted:

Redevelopment - - - - 1,159,274 1,159,274
Grants - 3,782 954,745 1,540,856 469,307 2,968,690
Taxes and fees - - - - 873,559 873,559
Capital projects - - - - 39,668 39,668
Other - - - - 2,336 2,336
Total restricted - 3,782 954,745 1,540,856 2,544,144 5,043,527 Committed:

Infrastructure reserve 40,710 - - - - 40,710
Total committed - 40,710 - - - 40,710
Assigned:

Bond reserve 3,154,837 - - - - 3,154,837
Sick payout reserve 177,333 - - - - 177,333
Equipment replacement 2,270,759 - - - - 2,270,759
Building maintenance 88,559 - - - - 88,559
Total assigned - 5,691,488 - - - 5,691,488
Unassigned 28 7,133,400 95,124 171,596 (4,759,619) 2,640,529 Total fund balances 3,810 12,947,169 1,049,869 1,712,452 (2,215,475) 13,497,825 Total liabilities, deferred inflows of
resources and fund balances $ 5,550,060 13,920,066 $ 3,670,674 $ 5,874,789 $ 2,993,559 $ 32,009,148 $ The accompanying notes are an integral part of these financial statements.

City of Gridley
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30. 2023
Total Fund Balances - Total Governmental Funds $ 13,497,825 Amounts reported for governmental activities in the statement of net position were different because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Capital assets 23,547,668
Less: accumulated depreciation (12,763,556)
Total Capital Assets 10,784,112
The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. 1,763,857 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as deferred inflows of resources in the fund statements.

The unavailable amounts offset loans receivable in the fund statements. 10,841,552 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:

Compensated absences (418,238)
Net pension liability (8,397,209)
Total OPEB liability (2,269,072)
Total Long-Term Obligations (11,084,519)
Net Position of Governmental Activities $ 25,802,827
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
08-Home-4987 Block Grant Nonmajor Total
General Grant Grant Related Governmental Governmental
Fund Fund Fund Funds Funds Funds

REVENUES
Taxes and assessments 3,326,589 $ - $ - $ - $ 598,299 $ 3,924,888 $ Licenses, permits and fees 98,797 - - - 23,560 122,357
Fines and forfeitures 8,406 - - - 19,226 27,632
Intergovernmental 444,991 - 78,765 378,600 332,797 1,235,153 Charges for services 68,688 - - - 264,125 332,813
Program income - - 109,817 - 19,264 129,081
Use of money and property 104,157 28 5,595 3,820 17,269 130,869 Other revenue - 199,322 - - 5,961 205,283
Total Revenues 28 4,250,950 194,177 382,420 1,280,501 6,108,076

EXPENDITURES
Current:

General government 223,960 - - - - 223,960
Public safety 4,970,085 - - 20,882 - 4,990,967
Streets and public works 411,851 - - - 778,646 1,190,497 Community development 165,902 - 99,053 8,083 294,855 567,893 Parks and recreation 142,345 - - 16,457 209,283 368,085 Capital outlay 366,970 - - 46,670 550,330 963,970
Total Expenditures 6,281,113 - 99,053 92,092 1,833,114 8,305,372 Excess (Deficiency) of
Revenues over Expenditures (2,030,163) 28 95,124 290,328 (552,613) (2,197,296)

OTHER FINANCING SOURCES (USES)
Transfers in 1,514,676 - - - 1,514,676 -
Transfers out - - (118,732) - (118,732) -
Total Other Financing Sources (Uses) 1,514,676 - (118,732) - 1,395,944 - Net Change in Fund Balances (515,487) 28 95,124 171,596 (552,613) (801,352) Fund Balances Beginning 13,462,656 3,782 954,745 1,540,856 (1,662,862) 14,299,177 Fund Balances Ending $ 12,947,169 $ 3,810 $ 1,049,869 $ 1,712,452 $ (2,215,475) $ 13,497,825 The accompanying notes are an integral part of these financial statements.

City of Gridley
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds $ (801,352) Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense.

Capital asset additions 898,480
Depreciation expense (777,319)
Gain (loss) on disposal of capital assets (19,198)
Compensated absences not required to be paid with current financial resources are not reported in the governmental funds, but are accrued as noncurrent liabilities in the Government Wide Statement Net Position. The change from prior year accrued compensated absences is reported in the applicable program expense. (82,456)
Receipts of payments and disbursements of funds related to notes and loans receivable are reported as revenue and expenditures, respectively, in governmental funds, but an increase and decrease, respectively, in notes receivable in the Statement of Net Position.

Loan program receipts 69,191
Loans made during the year 193,136
In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. 1,754,534
Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:

Other postemployment benefits 1,092,177
Change in Net Position of Governmental Activities $ 2,327,193 The accompanying notes are an integral part of these financial statements.

This page is intentionally blank

PROPRIETARY FUND FINANCIAL STATEMENTS
The Electric Fund is used to account for the activities of the City's electric generation and distribution operations.

The Water Fund is used to account for the activities of the City's water treatment and distribution operations.

The Sewer Fund is used to account for the activities of the City's sewage collection and treatment operations.

Nonmajor enterprise funds include the Drainage Fund, Solid Waste Fund and Senior Taxi Fund.

City of Gridley
Statement of Net Position
Proprietary Funds
June 30. 2023

Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
ASSETS
Current assets:

Cash and investments $ 1,884,643 $ 2,715,645 $ 4,393,234 $ 287,115 $ 9,280,637 Accounts receivable, net 229,885 100,323 158,636 932 489,776 Due from other governments 688,451 - - - 688,451
Interest receivable 3,218 6,079 9,760 787 19,844
Prepaid items 7,765 - - - 7,765
Inventory 961,207 50,406 1,903 - 1,013,516
Total current assets 3,775,169 2,872,453 4,563,533 288,834 11,499,989 Noncurrent assets:

Capital assets:

Nondepreciable assets 734,544 128,066 703,425 - 1,566,035 Depreciable, net 2,813,601 2,474,156 5,900,152 7,708 11,195,617 Total capital assets, net 3,548,145 2,602,222 6,603,577 12,761,652 7,708 Total noncurrent assets 3,548,145 2,602,222 6,603,577 12,761,652 7,708 Total assets $ 7,323,314 $ 5,474,675 $ 11,167,110 $ 296,542 $ 24,261,641

DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ 1,310,721 $ 477,595 $ 572,750 $ 161,059 $ 2,522,125 OPEB Adjustments 55,472 29,057 29,057 - 113,586
Total deferred outflows of resources $ 1,366,193 $ 506,652 $ 601,807 $ 161,059 $ 2,635,711

LIABILITIES
Current liabilities:

Accounts payable $ 23,740 $ 23,363 $ 21,172 $ 2,638 $ 70,913 Accrued expenses 33,220 - 12,210 - 45,430
Interest payable - - 23,095 - 23,095
Deposits payable 291,365 - - - 291,365
Due to other funds - - - 329,029 329,029
Compensated absences, current 61,742 19,577 27,794 5,735 114,848 Long-term liabilities, current 1,054 - 94,000 - 95,054
Total current liabilities 411,121 42,940 178,271 337,402 969,734 Noncurrent liabilities:

Total OPEB liability 835,974 437,891 437,891 - 1,711,756 Net pension liability 2,926,927 1,129,252 1,223,314 285,889 5,565,382 Compensated absences, noncurrent 6,956 45,216 60,357 15,483 128,012 Long-term liabilities, noncurrent - - 2,939,000 - 2,939,000 Total noncurrent liabilities 3,769,857 1,612,359 4,660,562 301,372 10,344,150 Total liabilities $ 4,180,978 $ 1,655,299 $ 4,838,833 $ 638,774 $ 11,313,884

DEFERRED INFLOWS OF RESOURCES
Pension adjustments -$ -$ -$ $ 36,474 $ 36,474
OPEB adjustments - - - - -
Total deferred inflows of resources -$ -$ -$ $ 36,474 $ 36,474

NET POSITION
Net Investment in capital assets $ 3,547,091 $ 2,602,222 $ 3,570,577 $ 9,727,598 7,708 $ Unrestricted 961,438 1,723,806 3,359,507 (225,355) 5,819,396 Total net position $ 4,508,529 $ 4,326,028 $ 6,930,084 $ (217,647) $ 15,546,994 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds
City of Gridley
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2023

Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total

OPERATING REVENUES
Charges for services $ 9,795,539 $ 1,328,866 $ 1,961,798 $ 13,089,323 3,120 $ Intergovernmental - - - 87,434 87,434
Other revenue - 706 1,618 12,970 15,294
Total operating revenues 9,795,539 1,329,572 1,963,416 103,524 13,192,051

OPERATING EXPENSES
Salaries and benefits 1,021,161 8,833 76,380 (36,000) 1,070,374 (1) Materials and supplies 398,563 169,016 209,241 9,693 786,513 Repairs and maintenance 8,552 147,775 204,764 2,335 363,426 Power and utilities 4,717,159 206 97,830 - 4,815,195
Contractual services 88,205 25,051 13,806 606 127,668
Administration 409,049 209,267 142,279 22,510 783,105
Miscellaneous - - 48,761 - 48,761
Depreciation and amortization 200,517 221,990 457,193 7,847 887,547 Total operating expenses 6,843,206 782,138 1,250,254 6,991 8,882,589 Operating income (loss) 2,952,333 547,434 713,162 96,533 4,309,462

NONOPERATING REVENUES(EXPENSES)
Interest expense (7) - (83,824) - (83,831)
Interest income 8,980 16,404 26,550 1,123 53,057
Total nonoperating revenues(expenses) 8,973 16,404 (57,274) 1,123 (30,774) Income (loss) before transfers 2,961,306 563,838 655,888 97,656 4,278,688

CONTRIBUTIONS AND TRANSFERS
Transfers in - - 4,056 - 4,056
Transfers out (1,400,000) - - - (1,400,000)
Net contributions and transfers (1,400,000) - 4,056 - (1,395,944) Change in net position 1,561,306 563,838 659,944 97,656 2,882,744 Total net position - beginning 2,947,223 3,762,190 6,270,140 (315,303) 12,664,250 Total net position - ending $ 4,508,529 $ 4,326,028 $ 6,930,084 $ (217,647) $ 15,546,994 The accompanying notes are an integral part of these financial statements. (1) Salaries and benefits include a pension credit of $1,884,852, a reduction to salaries and benefits expenses.

Business-Type Activities
Enterprise Funds
City of Gridley
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
Cash flows from operating activities:

Receipts from customers $ 9,634,881 $ 1,352,673 1,950,798$ $ 102,592 $ 13,040,944 Payments to suppliers (6,575,837) (544,385) (841,505) (37,571) (7,999,298) Payments to employees (1,872,900) (522,397) (710,073) (121,402) (3,226,772) Net cash provided (used) by operating activities 1,186,144 285,891 399,220 (56,381) 1,814,874 Cash flows from noncapital financing activities:

Interfund transactions (1,400,000) - 4,056 - (1,395,944) Net cash provided (used) by noncapital financing activities (1,400,000) - 4,056 - (1,395,944) Cash flows from capital financing activities:

Acquisition of capital assets (344,076) (105,891) (167,975) - (617,942) Principal payments on long-term debt (1,337) - (91,000) - (92,337) Interest paid on long-term debt (7) - (84,558) - (84,565) Net cash provided (used) by capital financing activities (345,420) (105,891) (343,533) - (794,844) Cash flows from investing activities:

Investment income received 6,524 11,666 18,980 376 37,546 Net cash provided (used) by investing activities 6,524 11,666 18,980 376 37,546 Net increase (decrease) in cash and cash equivalents (552,752) 191,666 78,723 (56,005) (338,368) Cash and cash equivalents - beginning 2,437,395 2,523,979 4,314,511 343,120 9,619,005 Cash and cash equivalents - ending $ 1,884,643 $ 2,715,645 4,393,234$ $ 287,115 $ 9,280,637 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ 2,952,333 547,434$ 713,162$ 96,533 $ 4,309,462 Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 200,517 221,990 457,193 7,847 887,547
Changes in operating assets and liabilities:

Accounts receivables (209,055) 23,101 (12,618) (199,504) (932) Inventory (311,111) 4,832 81 - (306,198)
Deferred outflows of resources (126,931) (524,714) (224,048) (103,613) (979,306) Accounts payable (602,556) 12,850 (109,666) (2,427) (701,799) Accrued expenses (40,642) (10,752) (15,239) - (66,633)
Deposits payable 48,397 - - - 48,397
Total OPEB liability 446,145 (46,927) (46,930) - 352,288 Net pension liability 1,068,615 354,492 478,845 146,612 2,048,564 Compensated absences (12,091) 5,803 (12,894) (9,644) (28,826) Deferred inflows of resources (1,829,694) (700,001) (828,666) (190,757) (3,549,118) Net cash provided (used) by operating activities $ 1,186,144 285,891$ 399,220$ $ (56,381) $ 1,814,874 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

FIDUCIARY FUND FINANCIAL STATEMENTS
Private-Purpose Trust Funds
The City’s private purpose trust funds include the Main Trust Fund and the Successor Agency Trust Fund.

The Successor Agency was created as a result of the State order to dissolve California Redevelopment Agencies. The Successor Agency Trust Fund is used to track the activities by the Successor Agency Oversight Board and the City’s Department of Finance in relation to the remaining assets and liabilities of the Successor Agency. The Housing Successor is governed by the City of Gridley City Council and is obligated to use the Housing Successor Agency’s assets according to Redevelopment law for low and moderate-income housing.

Custodial Funds
The City’s custodial funds include the Gridley Bid Fund and the Hospital JPA Administration Fund.

City of Gridley
Statement of Fiduciary Net Position
Fiduciary Funds
June 30. 2023
Private
Purpose Trust Custodial
Funds Funds
ASSETS
Cash and investments $ 741,857 $ 559
Restricted cash and investments 22,732 -
Interest receivable 31 1
Capital assets, land 1,302,116 -
Total assets $ 2,066,736 $ 560

DEFERRED OUTFLOWS OF RESOURCES
Loss on debt refunding $ 155,770 $ -

LIABILITIES
Accounts payable $ 12,034 $ -
Interest payable 79,581 -
Advances from the City 326,868 -
Long-term liabilities, current 120,000 -
Long-term liabilities, noncurrent 3,970,000 -
Total liabilities $ 4,508,483 $ -

NET POSITION
Held in trust for private purposes $ (2,285,977) $ -
Restricted for individuals, organizations and
other governments - 560
Total net position $ (2,285,977) $ 560
City of Gridley
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
Private
Purpose Trust Custodial
Funds Funds

ADDITIONS
Property taxes $ 255,732 $ -
Interest Income 4,954 5
Total additions 260,686 5

DEDUCTIONS
Professional services 115,479 -
Administrative expense 3,077 -
Interest and fiscal charges 160,650 -
Total deductions 279,206 -
Change in net position (18,520) 5
Total net position - beginning (2,267,457) 555
Total net position - ending $ (2,285,977) $ 560
This page is intentionally blank

NOTES TO THE BASIC

FINANCIAL STATEMENTS
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Gridley (the "City") is a municipal corporation organized under the constitution and laws of the State of California. The City operates under a Council-Administrator form of government and provides the following services: public safety (police, fire, and animal regulation), street, sanitation, transportation and social services, recreation, public improvements, planning and zoning, water, sewer, electrical, and general administrative services.

The voters of the City give authority and responsibility for operations to the City Council. The City Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the City's management is the financial budget, which is adopted annually by the City Council.

The basic financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Financial Reporting Entity
As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The following entities are reported as blended component units:

Gridley Public Financing Authority
The Gridley Public Financing Authority (the "Authority"), established February 4, 2008, is a joint powers authority created by the City of Gridley and the former Gridley Redevelopment Agency. The creation of the Authority is authorized under the MarksRoos Local Bond Pooling Act of 1985, constituting Article 4, Chapter 5, Division 7, Title 1 (commencing with Section 6584) of the California Government Code. The City and the Authority are separate legal entities. For financial reporting purposes, the Authority is reported as a part of the City's operations because the five (5) members of the City Council also act as the governing body of the Authority. The purpose of the Authority is to assist in the financing of public capital improvements. No separate financial statements are issued for the Authority.

B. Basis of Presentation, Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental 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.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City.

Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support.

These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 for interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, inter fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

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

Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.

The City reports the following funds as major funds:

General Fund
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities such as public safety, public ways and facilities, pars and recreation services, and economic development services. 08-Home-4987 Fund
The 08-Home-4987 Fund is a special revenue fund used to account for the activities of the U.S.

Department of Housing and Urban Development HOME Investment Partnerships Grant.

Block Grant Fund
The Block Grant Fund is a Community Development Block Grant (CDBG) Revolving Loan program and Economic Development Block Grant (EDBG) Program. The City participates in this federally funded program that is utilized to fund housing activities, community facilities and public service projects serving lower income private parties and businesses. Eligible activities include funding housing activities (single/multi-family) rehabilitation, rental housing acquisition, homeownership assistance, or new construction. Interest may vary depending on the loan terms and interest may be deferred until the related property is refinanced or sold. The repayment of the loans results in program income, which is deposited into the Housing Rehabilitation Revolving Loan Fund (RLF) program for public benefit projects, general administration, and program delivery functions (preapproved ratios to the funds loaned).

Grant Related Fund
The Grant Related Fund is used to account for various restricted grants, mostly from the State of California (transportation, planning, and COPS grants).

Additionally, the City reports the following nonmajor fund types of governmental funds:

Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.

Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.

The City has the following enterprise funds that have been reported as major:

Electric Fund
The electric fund is used to account for the activities of the City's electric generation and distribution operations.

Water Fund
The water fund is used to account for the activities of the City's water treatment and distribution operations.

Sewer Fund
The sewer fund is used to account for the activities of the City's sewage collection and treatment operations.

Fiduciary Funds
The City reports the following fiduciary funds:

Private Purpose Trust Funds
These funds include the Main Trust and Successor Agency. The Main Trust Fund is used to account for trust arrangements where the balances and activity benefit individuals and organizations other than the City. The Successor Agency fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.

Custodial Funds
The City administers two custodial funds, the Gridley Bid fund and the Hospital JPA Administration fund.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
C. Cash and Investments
The City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund's equity share of the City's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund's equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated monthly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.

The City's investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of their portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. This amount is included in cash and cash equivalents in the balance sheet of the governmental funds. Changes in fair value are allocated to each participating fund.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
 Market approach - This approach uses prices generated for identical or similar assets or liabilities.

The most common example is an investment in a public security traded in an active exchange such as the NYSE.
 Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures.  Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.

Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City's cash and investment pool, and restricted non-pooled investments with initial maturities of three months or less.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and to meet bond indenture debt reserve requirements.

E. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.

F. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred. Business-type activities report utilities and interest earnings as their major receivables.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available.

Loans receivable are recorded in the fund statements, but are recorded as deferred inflows of resources to indicate they do not represent current financial resources. Proprietary fund receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables.

G. Lease Receivables
When applicable, the City’s lease receivables are measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease.

The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.

H. Prepaid Expenses and Inventory
Inventories are stated at cost (average cost per unit) for governmental and proprietary funds. The cost is recorded as an expenditure/expense in the funds at the time individual inventory items are consumed, rather than purchased. Inventories of governmental funds are offset by nonspendable fund balance to indicate they do not constitute resources available for future appropriation.

Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
I. Capital Assets
In the government-wide financial statements, infrastructure with an aggregate cost of $25,000 or more and land, buildings, machinery, vehicles, and equipment with a cost of $5,000 or more and a useful life of two years are capitalized. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Intangible right-to-use assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset.

Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying asset.

Depreciation and amortization is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated or amortized.

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

Infrastructure and buildings 20 - 50 years
Improvements 10 - 30 years
Equipment and vehicles 3 - 20 years
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.

J. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet 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 or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position or balance sheet 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 or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
K. Compensated Absences
Compensated absences comprise unused vacation leave and compensatory time off, which are accrued as earned. Employees may accumulate sick leave without limits. The City's liability for compensated absences is recorded in the government-wide Statement of Net Position for governmental funds and the Statement of Net Position for proprietary funds as appropriate. A liability is calculated for all the costs of compensated absences based upon benefits earned by employees in the current period for which there is a probability of payment at termination.

Accumulated unpaid vacation and sick pay are accrued when earned. In addition, those employees who have reached the age of retirement may cash out sick leave upon retirement. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. In December of each year, management personnel are allowed to convert unused sick leave earned within the previous twelve months, in excess of nine days, to vacation. The general fund and enterprise funds are used to liquidate compensated absences.

L. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

M. Pensions
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) plans (the Plans) and additions to/deductions from the Plans’ 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.

N. Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources, and deferred inflows of resources related to the City’s other postemployment benefits, OPEB expense information of the City’s OPEB plan have been determined based on information provided in an actuarial study. The City recognizes benefit payments when due and payable in accordance with the benefit terms in the fund statements. Generally accepted accounting principles require that the reported results must pertain to City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date July 1, 2021
Measurement Date June 30, 2022
Measurement Period Julye 31, 2022 to June 30, 2023
O. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

Nonspendable
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed, or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for specific purpose.

Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.

Committed
Committed fund balances have constraints imposed by passage of a Resolution of the City Council which may be altered only by Resolution of the City Council. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources. The City considers Resolutions to be the highest level of action that can be taken by Council that constitutes the most binding constraint.

Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. The City Council has delegated the authority to make assignments of fund balance to the City Administrator.

Unassigned
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
P. Net Position
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position.

Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

Q. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.

R. Property Taxes and Special Assessments
The County of Butte levies, bills, and collects property taxes and special assessments for the City.

Property taxes levied are recorded as revenue when received, in the fiscal year of levy, due to the adoption of the "alternate method of property tax distribution", known as the Teeter Plan, by the City and the County of Butte. The Teeter Plan authorizes the Auditor/Controller of the County of Butte to allocate 100% of the secured property taxes billed, but not yet paid.

The County of Butte remits tax monies to the City in three installments as follows: 50% remitted in December; 45% remitted in April; 5% remitted in June.

Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.

Property valuations are established by the Assessor of the County of Butte for the secured and unsecured property tax rolls. Under the provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of purchase price or value in 1978 whichever is later. From this base assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied.

The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

S. Budgetary Information
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project length basis. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year. The budgetary data is prepared on the modified accrual basis consistent with the related "actual" amounts.

Department heads submit a proposed budget to the City Administrator. The City Administrator submits a proposed budget to the City Council for the following year beginning July 1. The preliminary budget may or may not be amended by the City Council after public hearings are held and is adopted by City Council resolution prior to July 1 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. The City Administrator is authorized to transfer budgeted amounts within an object or purpose within any department. However, the City Council must approve revisions that alter the total expenditures of any department. Budgetary control is legally maintained at the fund level.

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

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations.

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

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
U. Implemented New Accounting Pronouncements
Governmental Accounting Standards Board Statement No. 91, Conduit Debt Obligations In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. This standard did not have a significant impact on the City’s financial statements.

Governmental Accounting Standards Board Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public private and public-public partnership arrangements (PPPs). A PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). An APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. This standard did not have a significant impact on the City’s financial statements.

GASB Statement No. 96, Subscription-based Information Technology Arrangements.

During the fiscal year, the City implemented GASB Statement No. 96, Subscription-based Information Technology Arrangements. GASB Statement No. 96 is an accounting pronouncement issued by the Governmental Accounting Standards Board (GASB) that provides guidance on how the costs and investments for subscription-based information technology arrangements (SBITAs) are accounted for and disclosed by governmental entities. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. This standard did not have a significant impact on the City’s financial statements.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
V. Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to identify the potential impact on the financial statements of the following GASB Statements:

Governmental Accounting Standards Board Statement No. 99, Omnibus 2022 In April 2022, GASB issued Statement No. 99, Omnibus 2022. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The City has not determined what impact, if any, this pronouncement will have on the financial statements. The requirements of this statement related to leases, PPPs and SBITAs are effective for the City's fiscal year ending June 30, 2023 and the requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for the City's fiscal year ending June 30, 2024.

GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections in previously issued financial statements.

The requirements of this Statement are effective for accounting changes and error corrections made starting with fiscal year June 30, 2024 and all reporting periods thereafter.

GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
GASB Statement No. 102, Certain Risk Disclosures
The purpose of Statement 102 is to identify potential risks in governmental environments and develop disclosure requirements associated with those risks. These requirements are designed to provide users of the financial statements with information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. As a result of this statement, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.

GASB Statement 102 states that the assessment of the disclosure criteria should be made at the level of the primary government, which includes its blended component units, as defined in Statement 14, “The Financial Reporting Entity.” An additional assessment of the disclosure criteria should be made for all other reporting units that report a liability for revenue debt.

The guidance is effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter, with early adoption encouraged. This disclosure is to be applied on a prospective basis; that is, if comparative financial statements are presented, the reporting requirements of this statement are required only for the current period.

NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the financial statements as follows:

Governmental
Activities
Business-Type
Activities Total
Cash and investments $ 14,605,365 $ 9,280,637 $ 742,416 $ 24,628,418 Restricted cash and investments - - 22,732 22,732
Total cash and investments $ 14,605,365 $ 9,280,637 $ 765,148 $ 24,651,150 Government Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Position
Cash and investments consisted of the following as of June 30, 2023:

Deposits:

Cash on hand $ 1,060
Cash in banks 16,842,309
Total deposits 16,843,369
Investments:

Local Agency Investment Fund 6,700,527
Certificates of Deposit 1,084,522
Total investments 7,785,049
Total City Treasury 24,628,418
Restricted cash and investments:

Cash with fiscal agents 22,732
Total cash and investments $ 24,651,150
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

The bank balances before reconciling items totaled $17,147,121 at June 30, 2023 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $16,808,039, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.

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

B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
 Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
 Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

C. Investment Policy
Under the terms of certain debt issuances, the City must maintain required amounts of cash and investments with trustees or fiscal agents. These funds are unexpended bond proceeds or are pledged as reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statute. The table below identifies the investment types that are authorized for investments with fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
The table also identifies certain provisions of these debt agreements:

Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio Anyone Issuer Local Agency Bonds None None None
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 365 days None None
Commercial Paper 270 days None None
Federal Funds 365 days None None
Unsecured Certificates of Deposit 365 days None None
Time Deposits 365 days None None
Cash Sweep Accounts None None None
Money Market Mutual Funds N/A None None
Mortgage-backed securities None None None
Local Agency Investment Fund (LAIF) N/A None $75 million/account The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value. Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio Anyone Issuer Local Agency Bonds 5 years None 10%
U.S. Treasury Obligations 5 years None None
State Obligations - CA And Others 5 years None None
CA Local Agency Obligations 5 years None None
U.S. Agency Obligations 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper - Select Agencies 270 days 25% 10%
Commercial Paper - Other Agencies 270 days 40% 10%
Negotiable Certificates of Deposit 5 years 30% 30%
CD Placement Service 5 years 30% 30%
Repurchase Agreements 1 year None 10%
Reverse Repurchase Agreements and Securities
Lending Agreements 92 days 20% 10%
Medium-Term Notes 5 years 30% 10%
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Collateralized Bank Deposits 5 years None None
Mortgage Pass-Through Securities 5 years 20% None
Bank/Time Deposits 5 years None None
County Pooled Investment Funds N/A None None
JPA Pools (other investment pools) N/A None None
Local Agency Investment Fund (LAIF) N/A None $75 million/account Voluntary Investment Program Fund N/A None None
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
D. External Investment Pool
The City's investments with LAIF at June 30, 2023, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes
These 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 that have embedded forwards or options.

Asset-Backed Securities
The bulk of asset-backed securities 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 CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.

E. Allocation of Interest Income Among Funds
Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated monthly based on the ending cash balances of the previous month in each fund receiving interest.

F. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2023, the City’s investments were in compliance with the ratings required by the City’s investment policy and Government Code. The California Asset Management Program (CAMP) investment pool was the only investment vehicle required to be rated and had a rating of AAAm by S&P.

Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2023, the City had no investments in any one issuer (other than U.S. Treasury obligations, bonds, and the external investment pools) that represented 5% or more of the total City investments.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

As of June 30, 2023, the City’s investments had the following maturities:
12 Months
or Less 1-5 years Fair Value
ConcentrationsFair Value
Input Levels
Local Agency Investment Fund $ 6,700,527 $ - $ 6,700,527 86.1% n/a Certificates of Deposit 243,755 840,767 1,084,522 13.9% Level 2 Total Investments $ 6,944,282 $ 840,767 $ 7,785,049
Maturity
Investment Type
NOTE 3 - LOANS RECEIVABLE
The following is a summary of loans receivable at year end:

Balance Balance
Loans Receivable July 01, 2022 Additions Retirements June 30, 2023 Governmental Funds:

Home Program $ 8,672,190 $ 276,052 $ 75,000 $ 8,873,242 CalHome Program 19,264 - 19,264 -
CDBG Program 1,851,373 27,518 5,282 1,873,609
Total Governmental Funds 10,542,827 303,570 99,546 10,746,851 Fiduciary Funds:

Construction Loan 678,000 - - 678,000
Less: Allowance for Uncollectible Loans (678,000) - - (678,000) Total Loans Receivable $ 10,542,827 $ 303,570 $ 99,546 $ 10,746,851 Governmental Funds
The City participates in the Home Investment Partnerships (HOME) program, the Community Development Block Grant (CDBG) Revolving Loan program and the CalHome program. Under these programs, grants or loans are provided under favorable terms to homeowners, developers, or businesses who agree to spend these funds in accordance with the City's terms.

The balance of the loans receivable have been offset in the governmental fund financial statements by deferred inflows of resources as they are not deemed measurable and available within sixty days. In the government-wide financial statements, the loans are not offset in accordance with the accrual basis of accounting.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Fiduciary Funds
The former RDA assisted Gridley Pacific Associates with its acquisition and development of the Washington Court Apartments Affordable Housing Project by providing $678,000 in the form of cash in return for a note bearing simple interest at a rate of 3% per year, secured by a deed of trust on the Project.

The former RDA had several programs under which it extended loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and-moderate income housing. The remaining loan, issued to the Washington Court Apartments, has a forgiveness clause if the developer complies with all the terms of the loan over its full term. The former RDA had provided an allowance of 100% for the note receivable subject to the forgiveness provision of this loan. Per long-term monitoring reviews, all terms have been met by the developer for the loan as of June 30, 2023.

NOTE 4 - LEASES RECEIVABLE
Leases receivable for governmental activities consisted of the following as of June 30, 2023:

Township 18
North, Range 3
East 13.62 Acres
Township 18
North, Range 3
East 12.17 Acres Total
Inception 11/17/2011 12/29/2010
End 11/16/2036 12/28/2035
Interest Rate 1.51% 1.47%
Annual Payment $ 15,000 $ 15,000
Leases Receivable:

Beginning $ 194,195 $ 182,616 $ 376,811
Additions - - -
Deletions (12,148) (12,411) (24,559)
Ending 182,047 170,205 352,252
Deferred Inflows of Resources:

Beginning 192,997 181,419 374,416
Additions - - -
Deletions (13,423) (13,444) (26,867)
Ending 179,574 167,975 347,549
Net Book Value $ 2,473 $ 2,230 $ 4,703
The following summarizes future collections for governmental activities leases receivable:

Year Ending June 30 Principal Interest
2024 $ 24,921 $ 5,079
2025 25,300 4,700
2026 25,679 4,321
2027 26,064 3,936
2028 26,449 3,551
2029-2033 138,327 11,673
2034-2038 85,512 1,987
Total $ 352,252 $ 35,247
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
NOTE 5 - INTERFUND TRANSACTIONS
Advances To and From Funds
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years.

Pursuant to Resolution No. 2003.RDA-05, the former Redevelopment Agency agreed to reimburse the City of Gridley for infrastructure improvements within the Agency's industrial park for up to $250,000.

No interest accrues for the amount due to the City.

The Successor Agency agreed to reimburse the City's General Fund for the formation of the RDA in the amount of $176,868. Repayment is made as funds are available. No interest accrues for the amount due to the City. The Successor Agency paid $100,000 toward the outstanding balance during the current fiscal year.

As of June 30, 2023, advances to the Successor Agency fund consisted of the following:

Advances Advances
to from
Fund Other Funds Other Funds
General Fund $ 76,868 $ -
Block Grant Fund 250,000 -
Successor Agency Private Purpose Trust Fund - 326,868
Total Advances $ 326,868 $ 326,868
Inter-fund Receivables and Payables
As of the end of the fiscal year, balances are owed between funds for temporary pooled cash adjustments and temporary loans.

As of June 30, 2023, inter-fund receivables and payables consisted of the following:

Due from Due to
Fund Other Funds Other Funds
General Fund $ 5,179,143 $ -
Nonmajor Funds 329,029 5,179,143
Senior Tax Enterprise Fund - 329,029
Total Due From/To $ 5,508,172 $ 5,508,172
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Transfers In/Out
With Council approval resources may be transferred from one fund to another. The most significant transfers were from the Electric Fund to the General Fund for unfunded operations and to the Grant Related Fund for carbon credits. Other transfers were made for operations within each respective fund.

The following summarizes transfers between funds during the fiscal year ended June 30, 2023:

Fund Transfer in Transfer out
General Fund $ 1,514,676 $ -
Grant Related Funds - 118,732
Electric Enterprise Fund - 1,400,000
Sewer Enterprise Fund 4,056 -
Total Transfers $ 1,518,732 $ 1,518,732
Intra-Fund Transfers In/Out
The following table represents intra-fund transfers made during the fiscal year ended June 30, 2023:

Fund Transfer in Transfer out
General Fund $ - $ 1,018,760
General Fund Reserve Fund 1,018,760 -
Total Transfers $ 1,018,760 $ 1,018,760
Intra-fund transfers are eliminated for presentation in the fund financial statements.

NOTE 6 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2023:

Balance Deletions/ Balance
Governmental activities: July 01, 2022 Additions Transfers Adjustments 6/30/2023 Non-depreciable:

Land $ 1,150,990 $ - $ - $ (8,211) $ 1,142,779
Construction in Progress 395,719 653,985 (703,892) - 345,812 Total Non-Depreciable 1,546,709 653,985 (703,892) (8,211) 1,488,591 Depreciable:

Infrastructure 7,999,087 - - - 7,999,087
Buildings and improvements 3,654,840 - - - 3,654,840
Improvements other than Buildings 3,771,547 - 703,892 - 4,475,439 Vehicles and Equipment 5,823,032 244,495 - (137,816) 5,929,711 Total Depreciable 21,248,506 244,495 703,892 (137,816) 22,059,077 Less Accumulated Depreciation for:

Infrastructure (4,042,391) (270,516) - - (4,312,907)
Buildings and Improvements (2,557,662) (112,909) - - (2,670,571) Improvements other than Buildings (1,240,332) (165,788) - - (1,406,120) Vehicles and Equipment (4,272,681) (228,106) - 126,829 (4,373,958) Total Accumulated Depreciation (12,113,066) (777,319) - 126,829 (12,763,556) Total Depreciable Capital Assets - Net 9,135,440 (532,824) 703,892 (10,987) 9,295,521 Total Capital Assets - Net $ 10,682,149 $ 121,161 $ - $ (19,198) $ 10,784,112 City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Depreciation expense for governmental activities was charged to the following programs during the year:

General Government $ 82,460
Public Safety 178,869
Streets and Public Works 379,397
Parks and Recreation 136,593
Total depreciation expense $ 777,319
Capital assets for business-type activities consisted of the following as of June 30, 2023:

Balance Deletions/ Balance
Business-Type Activities: July 01, 2022 Additions Transfers Adjustments June 30, 2023 Non-depreciable:

Land $ 921,793 $ - $ - $ - $ 921,793
Construction in Progress 485,570 205,331 (46,659) - 644,242 Total Non-Depreciable 1,407,363 205,331 (46,659) - 1,566,035 Depreciable:

Infrastructure 6,340,384 - - - 6,340,384
Buildings and Improvements 1,139,545 - - - 1,139,545
Improvements other than Buildings 10,021,366 - 46,659 - 10,068,025 Right of Use Assets 3,722 - - - 3,722
Vehicles and Equipment 8,074,969 412,611 - (47,345) 8,440,235 Total Depreciable 25,579,986 412,611 46,659 (47,345) 25,991,911 Less Accumulated Depreciation for:

Infrastructure (2,715,181) (162,064) - - (2,877,245)
Buildings and Improvements (938,952) (17,102) - - (956,054) Improvements other than Buildings (4,304,836) (387,822) - - (4,692,658) Right of Use Assets (1,302) (1,301) - - (2,603)
Vehicles and Equipment (5,995,824) (319,255) - 47,345 (6,267,734) Total Accumulated Depreciation (13,956,095) (887,544) - 47,345 (14,796,294) Total Depreciable Capital Assets - Net 11,623,891 (474,933) 46,659 - 11,195,617 Total Capital Assets - Net $ 13,031,254 $ (269,602) $ - $ - $ 12,761,652 Depreciation expense for business-type activities was charged to the following programs during the year:

Electricity $ 191,703
Water 199,871
Sewer 489,481
Other Enterprise 6,489
Total depreciation expense $ 887,544
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
NOTE 7 - NONCURRENT LIABILITIES
Noncurrent liabilities consisted of the following as of June 30, 2023:

Balance Balance Due Within
Description July 01, 2022 Additions Retirements June 30, 2023 One Year Governmental Activiies
Net Pension Liability $ 5,384,017 $ 4,460,221 $ 1,447,029 $ 8,397,209 $ - Total OPEB Liability 2,632,836 1,559,560 1,923,324 2,269,072 - Compensated Absences 335,782 207,369 124,913 418,238 175,738 Total Governmental Activities Debt $ 8,352,635 $ 6,227,150 $ 3,495,266 $ 11,084,519 $ 175,738 Business-Type Activities
Direct Borrowing:

USDA Rural Development Loan (2001) 939, $ 000 $ - $ 36,000 $ 903,000 $ 38,000 USDA Rural Development Loan (2009) 2,185,000 - 55,000 2,130,000 56,000 Lease Liability 2,391 - 1,337 1,054 1,054
Net Pension Liability 3,516,818 2,956,176 907,612 5,565,382 - Total OPEB Liability 1,359,468 1,176,511 824,223 1,711,756 - Compensated Absences 271,683 43,711 72,533 242,861 114,848 Total Business-type Activities Debt $ 8,274,360 $ 4,176,398 $ 1,896,705 $ 10,554,053 $ 209,902 Fiduciary Funds - Successor Agency:

Tax allocation bonds, Series 2008 $ 4,260,000 $ - $ 4,260,000 $ - $ - Tax allocation bonds, Series 2022A - 2,390,000 - 2,390,000 65,000 Tax allocation bonds, Series 2022B - 1,700,000 - 1,700,000 55,000 Unamortized bond discounts (102,395) - (102,395) - -
Total Long-term liabilities $ 4,157,605 $ 4,090,000 $ 4,157,605 $ 4,090,000 $ 120,000 Business-Type Activities - USDA Rural Development Loans On February 12, 2001, the City executed a long-term loan agreement with the United States Department of Agriculture (USDA) Rural Development to repay the interim sewer project financing provided by U.S.

Bank. The interim financing repayment total consisted of $1,478,141 in principal and $9,529 in accrued interest. Interest on the new loan, at the rate of 3.25%, is payable semiannually. Annual principal payments, ranging from $18,670 to $65,000, are also required. This loan will be completely repaid on September 1, 2040 and is secured by the revenues of the City's sewer fund.

On April 15, 2009, the City entered into a loan/grant agreement with USDA Rural Development for the rehabilitation and upgrade of the City's existing wastewater treatment plant. The agreement consists of a loan of $3,100,000 with a subsequent grant of $1,000,000. Interest, at the rate of 2.5%, is payable annually. This loan will be completely repaid on April 1, 2050.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Future debt service payments for the USDA Rural Development Loans are as follows:

Year Ending June 30 Principal Interest Total
2024 $ 94,000 $ 81,980 $ 175,980
2025 97,000 79,329 176,329
2026 99,000 76,595 175,595
2027 102,000 73,804 175,804
2028 105,000 70,914 175,914
2029-2033 571,000 308,288 879,288
2034-2038 657,000 222,646 879,646
2039-2043 619,000 128,219 747,219
2044-2048 485,000 62,475 547,475
2049-2053 204,000 7,599 211,599
Total $ 3,033,000 $ 1,111,849 $ 4,144,849
Business-Type Activities
Successor Agency - Tax Allocation Bonds
In 2002, the former RDA issued $4,750,000 of Tax Allocation Bonds, Series 2008A (Taxable) and Series 2008B (Tax Exempt). A total of $2,980,000 of Series 2008A bonds were issued and $1,770,000 of Series 2008B bonds. The proceeds of the Series 2008A bonds issued were used to repay a significant portion of the loans from the City of Gridley to the Agency. These bonds were refunded in fiscal year 2022 with the issuance of $2,390,000 in Tax Allocation Bonds, Series 2022A and $1,700,000 in Tax Allocation Bonds, Series 2022B.

The Series 2022A bonds bear annual interest at 5.26% and that is payable semi-annually on August 1st and February 1st. Principal is paid in annual installments beginning August 1, 2023 and ending August 1, 2043 in amounts ranging from $65,000 to $185,000. The Series 2022B bonds bear annual interest at

3.84% and that is payable semi-annually on August 1st and February 1st. Principal is paid in annual installments beginning August 1, 2023 and ending August 1, 2043 in amounts ranging from $55,000 to $115,000.

The Successor Agency recognized $163,968 as a deferred loss on the early defeasance of debt which will be amortized through fiscal year 2043. The Successor Agency realized savings of $1,105,328, which was the aggregate difference of the total debt service between the refunded debt of $7,579,125 and refunding debt of $6,473,797. Future debt service payments for the tax allocation bonds are as follows:

Year Ending June 30 Principal Interest Total
2024 $ 120,000 $ 188,229 $ 308,229
2025 120,000 182,698 302,698
2026 130,000 176,939 306,939
2027 135,000 170,822 305,822
2028 145,000 164,345 309,345
2029-2033 810,000 713,868 1,523,868
2034-2038 1,030,000 500,736 1,530,736
2039-2043 1,300,000 229,218 1,529,218
2044-2045 300,000 7,071 307,071
Total $ 4,090,000 $ 2,333,926 $ 6,423,926
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
NOTE 8 - RETIREMENT PLANS
General Information about the Pension Plans
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 three miscellaneous rate plans. 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.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Tier I Tier II PEPRA Tier I PEPRA
Benefit formula 2% @ 55 2% @ 55 2% @ 62 3% @ 50 2.7% @ 57 Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 55 55 62 50 57
Monthly benefits as a
% of eligible compensation 2.00% 2.00% 2.00% 3.00% 2.00% Required employee contribution rates 7.00% 7.00% 6.75% 9.00% 13.00% Required employer contribution rates 10.87% 10.32% 7.47% 22.47% 12.78% Miscellaneous Safety
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Employees Covered
At June 30, 2023, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety Total
Active 31 10 41
Transferred 16 13 29
Separated 14 6 20
Retired 54 41 95
Total 115 70 185
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2023, the City’s contributions were as follows:

Employer
Contributions
Miscellaneous $ 909,898
Safety 660,352
Total Employer Contributions $ 1,570,250
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liabilities as follows:

Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 8,491,669
5,470,922
$ 13,962,591
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2022, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2022 and 2022 was as follows:

Miscellaneous Safety Combined Plans
Proportion - June 30, 2022 0.29769% 0.09256% 0.16458%
Proportion - June 30, 2023 0.18148% 0.07962% 0.12088%
Change - Increase/(Decrease) -0.11621% -0.01294% -0.04370% For the year ended June 30, 2023, the City recognized a pension credit of $2,069,411.

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 1,421,783 $ -
Differences between Expected and Actual Experience 396,951 173,623 Differences between Projected and Actual Investment Earnings 2,419,383 - Differences between Employer's Contributions and
Proportionate Share of Contributions 91,313 234,110
Change in Employer's Proportion 59,601 1,452,604
Pension Contributions Made Subsequent to Measurement Date 1,570,250 - Total $ 5,959,281 $ 1,860,337
The City reported $1,570,250 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety Total
$ 120,304 $ 394,908 $ 515,212
55,586 307,530 363,116
(157) 171,688 171,531
951,365 527,011 1,478,376
- - -
- - -
$ 1,127,098 $ 1,401,137 $ 2,528,235
2024
Total
2025
2026
2027
Thereafter
2028
Deferred Outflows/(Inflows) of
Fiscal Year Ending Resources
June 30:

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.8% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.9% discount rate is adequate and the use of the municipal bond rate calculation is not necessary.

The long-term expected discount rate of 6.9% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap 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 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, 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:

Miscellaneous Safety Totals
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability $ 11,771,236 7,837,603 19,608,839 Current 6.90% 6.90% 6.90%
Net Pension Liability $ 8,491,669 5,470,922 13,962,591
1% Increase 7.90% 7.90% 7.90%
Net Pension Liability $ 5,793,399 3,536,695 9,330,094
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 9 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
The City sponsors and administers a single-employer health care plan for its employees. The plan provides medical, dental, and vision coverage. Medical coverage is provided through CalPERS under the City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Public Employees' Medical and Hospital Care Act (PEMHCA), also referred to as PERS Health. The City sets its contribution rates for health insurance on behalf of active employees according to the PEMHCA statutory minimum. The amounts are indexed (increased) in all future years according to the rate of medical inflation. The excess of the designated City contribution for healthcare (the second highest premium available in the 95948 zip code area) over the PEMHCA statutory minimum is contributed to a Cafeteria Plan and the employee may elect to have some or all of this excess contributed on his or her behalf to CalPERS as an "employee contribution" towards healthcare benefits. As the City 's OPEB benefits are administered by City personnel, no separate financial statements are issued.

Management employees are subject to PERS' "100/90 State Contribution Formula" under which the City's contribution is determined based upon the weighted average of the four most popular medical plan options under PEMHCA, as announced each year by CalPERS. The City offers the same medical plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverage's offered under PEMHCA. Management employees hired on or before December 31, 2012 are eligible for benefits upon retirement at age 50 with 10 years of service. The City's contribution on behalf of Management hired on or before December 31, 2012 retirees, is based on the ‘PERS’ "Unequal Contribution Method" and equals 5% of the statutory minimum multiplied by the number of years the City has participated in PEMHCA. This amount is $40.40/month for 2018.

Employees Covered by Benefit Terms
At June 30, 2023, the benefit terms covered the following employees:

Active employees 2
Inactive employees 9
Total employees 11
Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:

Valuation Date:

Measurement Date:

Actuarial Cost Method:

Amortization Period:

Actuarial Assumptions:

Discount Rate
Inflation
Payroll Increases
Trend Rate
Municipal Bond Rate
Mortality
Notes:

The discount rate increased from 2.21% to 3.54%.

Payroll growth increased from 2% to 4%.

3.54%

7.00%
Entry-Age Normal Cost Method
Pub-2010 General Employees HeadcountWeighted Mortality fully generational using Scale MP-2021, and Pub-2010 General
Retirees Headcount-Weighted Mortality
fully generational using Scale MP-2021.

July 1, 2021
June 30, 2022
30 years

2.75%

3.00%
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.

Contributions
The City's policy is to fully fund the annual required contribution, which is determined by an actuary. The City makes the contributions on behalf of the participants. For the fiscal year ended June 30, 2023, the City paid contributions of $172,125. There have been no assets accumulated in a trust to provide for the benefits of this plan.

Total OPEB Liability
The City's Total OPEB liability was measured as of June 30, 2022 (measurement date) and was determined by an actuarial valuation as of July 1, 2021 (valuation date) for the fiscal year ended June 30, 2023 (reporting date).

Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year ended June 30, 2023:

Fiscal Year Ended June 30, 2023
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(Asset)
Balance at June 30, 2022 $ 3,992,304 $ - $ 3,992,304
Service cost 22,368 - 22,368
Interest in Total OPEB Liability 138,281 - 138,281
Benefit payments (172,125) - (172,125)
Net changes (11,476) - (11,476)
Balance at June 30, 2023 $ 3,980,828 $ - $ 3,980,828
The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.

Deferred Inflows and Outflows of Resources
At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience $ 130,576 $ - Change in assumptions 133,578 -
Totals $ 264,154 $ -
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30, Amount
2024 $ 264,154
Total $ 264,154
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2023:

Service cost $ 22,368
Interest on total OPEB liability 138,281
Other actuarial adjustments (48)
Difference between actual and expected experience (799,133) Change in assumptions (524,240)
OPEB Expense $ (1,162,772)
The following summarizes changes in the Total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2023:
$ 3,980,828
(3,992,304)
(11,476)
Changes in deferred outflows 1,148,496
Changes in deferred inflows (2,471,917)
Employer contributions and implicit subsidy 172,125
OPEB Expense $ (1,162,772)
Net OPEB liability ending
Net OPEB liability beginning
Change in net OPEB liability
Sensitivity to Changes in the Discount Rate
The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, was as follows:
(1% Decrease ) 3.54% (1% Increase )
Net OPEB Liability (Asset) $ 4,615,965 $ 3,980,828 $ 3,474,684 Discount Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, was as follows:
(1% Decrease ) 7.00% (1% Increase )
Net OPEB Liability (Asset) $ 3,401,356 $ 3,980,828 $ 4,709,088 Trend Rate
City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
NOTE 10 - DEFICIT FUND BALANCE AND NET POSITION
The City reported the following funds with deficit fund balance and net position as of June 30, 2023:

Deficit Deficit
Fund Net
Balance Position
SB 325 TDA Fund $ 465,928 $ -
Traffic Safety Fund 51,581 -
Planning and Development Fund 1,352,123 -
Solid Waste Recreation Fund 57,646 -
Gas Tax Fund 936,567 -
Maintenance District Fund 17,852
Recreation Related Fund 1,728,721 -
2021 Vierra Park Improvements Fund 52,120 -
Home Fund 97,081 -
Senior Taxi Fund - 221,380
Totals $ 4,759,619 $ 221,380
The fund deficits were a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues and interfund transfers.

NOTE 11 - RISK MANAGEMENT
The City is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article 1, Chapter 5, Division 7, Title 1 of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides claims processing, administrative services, risk management services, and actuarial studies. A member from each city governs the NCCSIF. The City Council members do not have significant oversight responsibility since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the extent of any deficiency in its equity balance. The audited financial statements of the JPA are available at the NCCSIF's office.

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City provides property, liability, and workers compensation insurance through Northern California Cities Self Insurance Fund a public entity risk pool currently operating as a common risk management and insurance program for several Northern California municipalities. Annual deposits are paid by member cities and are adjusted retrospectively to cover costs.

The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors.

A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made. The City does not have any material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years. The City's insurance coverage and the respective coverage providers are as follows:

Amount Coverage Provider Payment
General Liability
$0 - $50,000 Self-insured Banking layer
$50,001 - $450,000 Northern California Cities Self
Insurance Fund
Shared risk
$450,001 - $40,000,000 California Joint Powers Risk
Management Authority
Shared risk (to $5 mil, excess
insurance after that)
Workers' Compensation
$0 - $100,000 Self-insured Banking layer
$100,001 -$400,000 Northern California Cities Self
Insurance Fund
Shared risk
$400,001 - statutory CSAC-EIA Shared risk and Excess Insurance Property insurance
The City's standard deductible is $5,000 for coverage. The coverage limit for fiscal year 2023 was $1,000,000,000 blanket real and personal property.

Performance and Public Employee Dishonesty Bonds
The City has $25,000 in performance bond coverage for the City Clerk, $100,000 performance bond coverage for the City Treasurer, and $3,000,000 in coverage for public employee dishonesty with a deductible of $5,000.

NOTE 12 - RELATED ORGANIZATIONS
The City is a member of various joint powers authorities that provide goods or services to the City and other authority members. The City does not have sufficient authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations. The names and general functions of these joint powers are as follows:

Northern California Power Agency (NCPA)
Membership consists of 12 municipal electric utilities, one Rural Electric Cooperative, an irrigation district, and a public utility district. The NCPA is generally empowered to purchase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of NCPA on an elective basis. A Commission comprised of one representative for each member governs the NCPA.

The City is currently involved in several hydroelectric, geothermal, and other energy-related projects as a member of this agency. The NCPA is financed by contributions from member cities, government grants, and debt. The City is committed to providing substantial additional financial support for its portion of the actions and projects of the NCPA.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2023
The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. The NCPA requires agency members to maintain at least 90% of the annual general operating reserve. The City has maintained the required reserve amount during the fiscal year ending 2023. Due to the nature of the reserve held by NCPA, payments made to the reserve are expensed as purchased power. The financial statements are available online at www.ncpa.com.

Transmission Agency of Northern California (TANC)
Members include eleven cities, one electric co-op, two irrigation districts, and one public utility district.

The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to 1% of the total expenditures. The financial statements are available online at http://tanc.us/financials.html.

NOTE 13 - COMMITMENTS AND CONTINGENCIES
Lawsuits
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Deferred Compensation
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all full-time City employees, permits employees to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The assets and liabilities of these plans have been excluded from the accompanying financial statements. The City does not administer the plan.

REQUIRED SUPPLEMENTARY INFORMATION
This page is intentionally blank
City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments $ 2,563,001 2,563,001 $ 3,326,589 $ 763,588 $ Licenses, permits and fees 38,677 38,677 98,797 60,120
Fines and forfeitures 9,616 9,616 8,406 (1,210)
Intergovernmental 630,079 630,079 444,991 (185,088)
Charges for services 143,194 143,194 68,688 (74,506)
Use of money and property 36,078 36,078 104,157 68,079
Other revenue 160,262 160,262 199,322 39,060
Total Revenues 3,580,907 3,580,907 4,250,950 670,043

EXPENDITURES
Current:

General government 1,111,100 1,111,100 223,960 887,140
Public safety 5,166,657 5,166,657 4,970,085 196,572
Streets and public works 711,658 711,658 411,851 299,807 Community development 120,743 120,743 165,902 (45,159)
Parks and recreation 192,055 192,055 142,345 49,710
Capital outlay 1,704,993 1,704,993 366,970 1,338,023
Total Expenditures 9,007,206 9,007,206 6,281,113 2,726,093 Excess (Deficiency) of Revenues over Expenditures (5,426,299) (5,426,299) (2,030,163) 3,396,136

OTHER FINANCING SOURCES (USES)
Transfers in - 1,514,676 - 1,514,676
Sale of capital assets - - - -
Total Other Financing Sources (Uses) - 1,514,676 - 1,514,676 Net Change in Fund Balance (5,426,299) (5,426,299) (515,487) 4,910,812 Fund Balance Beginning 13,462,656 13,462,656 - 13,462,656 Fund Balance Ending $ 8,036,357 $ 8,036,357 $ 12,947,169 $ 4,910,812 City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - - $ 28 $ 28 $
Total Revenues - - 28 28

EXPENDITURES
Total Expenditures - - - -
Net Change in Fund Balance - - 28 28
Fund Balance Beginning 3,782 3,782 - 3,782
Fund Balance Ending $ 3,782 $ 3,782 $ 3,810 $ 28
City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ - - $ 78,765 $ 78,765 $
Program income 86,585 86,585 109,817 23,232
Use of money and property - - 5,595 5,595
Total Revenues 86,585 86,585 194,177 107,592

EXPENDITURES
Current:

Community development 7,831 7,831 99,053 (91,222)
Total Expenditures 7,831 7,831 99,053 (91,222)
Net Change in Fund Balance 78,754 78,754 95,124 16,370
Fund Balance Beginning 954,745 954,745 - 954,745
Fund Balance Ending $ 1,033,499 $ 1,033,499 $ 1,049,869 $ 16,370 City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 71,515 71,515 $ 378,600 $ 307,085 $ Use of money and property 499 499 3,820 3,321
Total Revenues 72,014 72,014 382,420 310,406

EXPENDITURES
Current:

Public safety 56,396 56,396 20,882 35,514
Community development - - 8,083 (8,083)
Parks and recreation - - 16,457 (16,457)
Capital outlay 55,000 55,000 46,670 8,330
Total Expenditures 111,396 111,396 92,092 19,304
Excess (Deficiency) of Revenues over Expenditures (39,382) (39,382) 290,328 329,710

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (118,732) - (118,732)
Total Other Financing Sources (Uses) - (118,732) - (118,732) Net Change in Fund Balance (39,382) (39,382) 171,596 210,978 Fund Balance Beginning 1,540,856 1,540,856 - 1,540,856
Fund Balance Ending $ 1,501,474 $ 1,501,474 $ 1,712,452 $ 210,978 City of Gridley
Notes to Required Supplementary Information
Budgetary Accounting and Control
June 30, 2023
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project length basis. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year. The budgetary data is prepared on the modified accrual basis consistent with the related "actual" amounts.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control. Supplemental appropriations, which increase appropriations, may be made during the fiscal year. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations.

City of Gridley
Schedule of Pension Contributions
June 30, 2023
(Last Ten Years)
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Contractually Required Contributions $ 701,624 $ 795,514 $ 866,010 $ 947,355 $ 1,023,639 $ 1,128,141 $ 1,293,223 $ 1,420,621 $ 1,570,250 Contributions in Relation to
Contractually Required Contributions 701,624 795,514 866,010 947,355 1,023,639 1,128,141 1,293,223 1,420,621 1,570,250 Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered Payroll $ 3,118,121 $ 3,099,247 $ 3,275,057 $ 3,384,871 $ 2,642,537 $ 2,891,883 $ 3,233,815 $ 3,508,606 $ 3,606,847 Contributions as a % of Covered Payroll 22.50% 25.67% 26.44% 27.99% 38.74% 39.01% 39.99% 40.49% 43.54% Notes to Schedule:

Valuation Date: June 30, 2021
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
Remaining Amortization Period no more than 29 years
Inflation Assumed at 2.30%
Investment Rate of Returns set at 6.8%
Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.90% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing morality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

City of Gridley
Schedule of Proportionate Share of Net Pension Liability June 30, 2023
(Last Ten Years)
Miscellaneous and Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Proportion of Net Pension
Liability (Safety and Misc) 0.12501% 0.12003% 0.10006% 0.11218% 0.11472% 0.11475% 0.11487% 0.16458% 0.12088% Proportionate Share of
Net Pension Liability $ 7,778,821 $ 8,238,421 $ 8,658,560 $11,125,054 $11,054,726 $11,758,898 $12,498,264 $ 8,900,835 $13,962,591 Covered Payroll $ 3,079,982 $ 3,118,121 $ 3,099,247 $ 3,275,057 $ 3,384,871 $ 2,642,537 $ 2,891,883 $ 3,233,815 $ 3,508,606 Proportionate Share of NPL
as a % of Covered Payroll 252.56% 264.21% 279.38% 339.69% 326.59% 444.99% 432.18% 275.24% 397.95% Plan's Fiduciary Net Position
as a % of the TPL 81.15% 71.26% 68.94% 67.62% 68.40% 67.37% 65.78% 76.73% 66.11% Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.80% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

City of Gridley
Schedule of Changes in Total OPEB Liability
June 30, 2023
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021 2022 2023
Total OPEB liability
Service cost $ 12,401 $ 12,650 $ 171,325 $ 165,106 $ 21,603 $ 22,368 Interest 158,069 159,756 206,796 211,318 139,337 138,281 Diff. between expected/actual experience 21,513 16,042 2,401,492 - (3,239,275) - Changes of assumptions - - 2,456,638 - (2,618,711) -
Actuarial adjustments - - - 74,743 (165,484) -
Benefit payments (148,050) (141,637) (161,908) (84,534) (166,240) (172,125) Net change in Total OPEB Liability 43,933 46,811 5,074,343 366,633 (6,028,770) (11,476) Total OPEB Liability - beginning 4,489,354 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 Total OPEB Liability - ending 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 3,980,828 Plan fiduciary net position
Net change in plan fiduciary net position - - - - - -
Plan fiduciary net position - beginning - - - - - -
Plan fiduciary net position - ending - - - - - -
Net OPEB liability (asset) $ 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 3,980,828 Plan fiduciary net position as a %
of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered Employee Payroll $ 2,726,110 $ 2,780,632 $ 826,218 $ 842,742 $ 258,224 $ 265,971 NOL as a % of covered employee payroll 166.29% 164.71% 1168.51% 1189.10% 1546.06% 1496.72% TOL as a % of covered employee payroll 166.29% 164.71% 1168.51% 1189.10% 1546.06% 1496.72% Other Notes
Mortality assumption changed from SOA RP-2014 Total Dataset Mortality with Scale MP-2019 (Base Rate 2006) to Pub-2010 General Employees Headcount-Weighted Mortality fully generational using Scale MP-2021, and Pub-2010 General Retirees Headcount-Weighted Mortality fully generational using Scale MP-2021.

Payroll growth increased from 2% to 4%.

GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

Discount rates changed from 3.58% to 2.21% in FY2020, and then to 3.54% in FY2022.

SUPPLEMENTARY INFORMATION
This page is intentionally blank

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
FEMA Reserve
This fund is used to account for the FEMA lease revenue.

General Impact Fee
The source of funding is a portion of the impact fees on new developments calculated in the City Fee Schedule. This fund is used for the CIP project per council approval.

Development Agreement Fee
The source of revenue is a portion of the impact fees on new developments calculated in a City fee schedule. The funds will be appropriated for CIP projects upon council approval.

M. Vierra Park
This fund is used to account for the grant funding for the development of M. Vierra Park.

SB 1 RMRA
This fund is used to account for receipts and expenditures of gas tax funds for road repair and maintenance under the California rehab program.

SB 325 TDA
This fund is used to account for receipts and expenditures of monies apportioned for street and road sweeping, repairs, maintenance and other street projects under the street and highway code 2105, 2016, 2107 and 2107.5 of the State of California.

Traffic Safety
This fund is used to account for receipts of motor vehicle fines and forfeitures expended for traffic projects.

Railroad Maintenance
This fund is used to account for expenses related to repairs for the railroad and intersecting streets.

Public Safety Augmentation
This fund is used to account for receipts and expenditure related to safety expenses.

Planning and Development
This fund is used to account for the City's participation in the Community Development Block Grant programs, which provides loans to rehab low income housing and First Time home buyers (generally low income).

Solid Waste Recreation
This fund is used for purchasing beverage trash containers located throughout the City right-of-way and public parks.

Gas Tax
This fund is used to account for receipts and expenditures of monies apportioned for street and road sweeping, repairs, maintenance and other street projects under the street and highway code 2105, 2016, 2107 and 2107.5 of the State of California.

NONMAJOR GOVERNMENTAL FUNDS
Butte Interagency Narcotics Task Force (BINTF)
This fund is used to account for the contribution of funds and service to BINTF.

Maintenance Districts
The funds are used to account for the receipts and expenditures of four districts within the City limit. The assessment of districts is the source of funding.

CDBG Housing Rehab/Drainage Grant
This fund is used to account for revenues and expenditures related to the Community Development Block Grant for housing rehabilitation and drainage.

Cal Home
This fund is used to account for Cal Home grant revenues and expenditures.

Police Explorer
The fund is used to pay the expenditures related to youth programs. Donations and fund raising are the sources of funding.

K-9 - Donations & Expenses
The fund is used to account for City donations and expenses.

Recreation Related
The fund is used to pay the expenditures related to recreational activities funded through the annual budget.
2021 Vierra Park Improvements
This fund is used to account for resources expended on Vierra Park improvements.

Home
This fund is used to account for Home program revenues and expenditures.

City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30. 2023
General
FEMA Impact Development M. Vierra
Reserve Fee Agreement Park
Fund Fund Fund Fund
ASSETS
Cash and investments $ 468,166 $ 1,125,156 $ 11,963 $ 27,984 Accounts receivable - - - -
Interest receivable 1,141 2,744 29 583
Taxes receivable - - - -
Due from other funds - - - -
Total assets $ 469,307 $ 1,127,900 $ 11,992 $ 28,567

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ -$ -$
Due to other funds - - - -
Total liabilities - - - -
Fund Balances:

Restricted:

Redevelopment - 1,127,900 11,992 -
Grants 469,307 - - -
Taxes and fees - - - -
Capital projects - - - 28,567
Other - - - -
Unassigned - - - -
Total fund balances 469,307 1,127,900 11,992 28,567
Total liabilities, deferred inflows of
resources and fund balances $ 469,307 $ 1,127,900 $ 11,992 $ 28,567 Cont'd
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30. 2023
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances

SB 1 SB 325 Traffic Railroad
RMRA TDA Safety Maintenance
Fund Fund Fund Fund
$ 653,004 $ - $ 2,626 $ 11,074
28,645 - 2,717 -
1,606 9 - 27
- 109,302 - -
- 329,029 - -
$ 683,255 $ 438,340 $ 5,343 $ 11,101
$ - $ 5,479 $ 2,822 $ -
- 898,789 54,102 -
- 904,268 56,924 -
- - - -
- - - -
683,255 - - -
- - - 11,101
- - - -
- (465,928) (51,581) -
683,255 (465,928) (51,581) 11,101
$ 683,255 $ 438,340 $ 5,343 $ 11,101
Cont'd
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30. 2023
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Butte
Public Planning Solid Interagency
Safety and Waste Gas Narcotics
Augmentation Development Recreation Tax Tac Force
Fund Fund Fund Fund Fund
$ 183,036 -$ -$ -$ $ 4,155
- - - 372 -
414 - - 729 -
2,699 - - 4,377 -
- - - - -
$ 186,149 -$ -$ $ 5,478 $ 4,155
-$ 11,968 $ -$ $ 5,700 -$
- 1,340,155 57,646 936,345 -
- 1,352,123 57,646 942,045 -
- - - - -
- - - - -
186,149 - - - 4,155
- - - - -
- - - - -
- (1,352,123) (57,646) (936,567) -
186,149 (1,352,123) (57,646) (936,567) 4,155
$ 186,149 -$ -$ $ 5,478 $ 4,155
Cont'd
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30. 2023
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances

Maintenance Police
Districts Cal Home Explorer
Fund Fund Fund
$ - $ 118 $ 19,264 $ 655
43 - - -
211 - - -
- - - -
- - - -
$ 254 $ 118 $ 19,264 $ 655
$ - $ - $ - $ -
18,106 - - -
18,106 - - -
- 118 19,264 -
- - - -
- - - -
- - - -
- - - 655
(17,852) - - -
(17,852) 118 19,264 655
$ 254 $ 118 $ 19,264 $ 655
Cont'd
CDBG Housing
Rehab/Drainage
Grant Fund
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30. 2023
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
K-9 2021 Vierra Total
Donations Recreation Park Nonmajor
& Expense Related Improvements Home Governmental
Fund Fund Fund Fund Funds
$ 1,677 $ - $ - $ 2,508,878 - $
- - - - 31,777
4 - - - 7,497
- - - - 116,378
- - - - 329,029
$ 1,681 $ - $ - $ - $ 2,993,559
$ - $ 3,922 $ - $ - $ 29,891
1,724,799 - 52,120 97,081 5,179,143
1,728,721 - 52,120 97,081 5,209,034
- - - - 1,159,274
- - - - 469,307
- - - - 873,559
- - - - 39,668
1,681 - - - 2,336
(1,728,721) - (52,120) (97,081) (4,759,619)
1,681 (1,728,721) (52,120) (97,081) (2,215,475)
$ 1,681 $ - $ - $ 2,993,559 - $
Concluded
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
General
FEMA Impact Development M. Vierra
Reserve Fee Agreement Park
Fund Fund Fund Fund

REVENUES
Taxes and assessments $ - $ - $ - $ -
Licenses, permits and fees - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Charges for services - 264,125 - -
Program income - - - -
Use of money and property 3,273 6,905 85 (316)
Other revenue - - - -
Total Revenues 3,273 271,030 85 (316)

EXPENDITURES
Current:

Streets and public works - - - -
Community development - - - -
Parks and recreation - - - -
Capital outlay - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 3,273 271,030 85 (316)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 3,273 271,030 85 (316)
Fund Balances Beginning 466,034 856,870 11,907 28,883
Fund Balances Ending $ 1,127,900 469,307 $ 11,992 $ 28,567 $ Cont'd
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Program income
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending

SB 1 SB 325 Traffic Railroad
RMRA TDA Safety Maintenance
Fund Fund Fund Fund
$ 243,957 163,476 $ - $ - $
- - - -
- - 19,226 -
- - - -
- - - -
- - - -
1 3,618 - 77
- - - -
243,958 167,094 19,226 77
72,563 - 17,691 -
- - - -
- - - -
319,732 - - -
392,295 - 17,691 -
(148,337) 167,094 1,535 77
- - - -
- - - -
- - - -
(148,337) 167,094 1,535 77
516,161 (317,591) (53,116) 11,024
$ 683,255 $ (465,928) $ (51,581) $ 11,101
Cont'd
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Program income
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Butte
Public Planning Solid Interagency
Safety and Waste Gas Narcotics
Augmentation Development Recreation Tax Tac Force
Fund Fund Fund Fund Fund
-$ -$ -$ 190,866 $ -$
- 7,455 - - -
- - - - -
37,008 - - 117,837 -
- - - - -
- - - - -
1,053 - - 1,955 -
- 660 - 1,116 -
38,061 8,115 - 311,774 -
- - - 630,440 -
- 204,620 - - -
- - - - -
- - - 3,532 -
- 204,620 - 633,972 -
38,061 (196,505) - (322,198) -
- - - - -
- - - - -
- - - - -
38,061 (196,505) - (322,198) -
148,088 (1,155,618) (57,646) (614,369) 4,155
$ 186,149 $ (1,352,123) $ (57,646) $ (936,567) $ 4,155
Cont'd
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Program income
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending

Maintenance Police
Districts Cal Home Explorer
Fund Fund Fund
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- - - -
- - 19,264 -
604 - - 3
- - - -
604 - 19,264 3
57,952 - - -
- - - -
- - - -
- - - -
57,952 - - -
(57,348) - 19,264 3
- - - -
- - - -
- - - -
(57,348) - 19,264 3
39,496 118 - 652
$ (17,852) $ 118 $ 19,264 $ 655
Cont'd
CDBG Housing
Rehab/Drainage
Grant Fund
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Program income
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
K-9 2021 Vierra Total
Donations Recreation Park Nonmajor
& Expense Related Improvements Home Governmental
Fund Fund Fund Fund Funds
-$ -$ -$ -$ $ 598,299
- 16,105 - - 23,560
- - - - 19,226
- - 177,952 - 332,797
- - - - 264,125
- - - - 19,264
11 - - - 17,269
- 4,185 - - 5,961
11 20,290 177,952 - 1,280,501
- - - - 778,646
- - - 90,235 294,855
- 209,283 - - 209,283
- - 227,066 - 550,330
- 209,283 227,066 90,235 1,833,114
(188,993) 11 (49,114) (90,235) (552,613)
- - - - -
- - - - -
- - - - -
(188,993) 11 (49,114) (90,235) (552,613)
(1,539,728) 1,670 (3,006) (6,846) (1,662,862)
$ (1,728,721) 1,681 $ $ (52,120) $ (97,081) $ (2,215,475) Concluded
Special Revenue Funds

NONMAJOR ENTERPRISE FUNDS
The Drainage Fund is used to account for the activities of the City's drainage operations.

The Solid Waste Fund is used to account for the activities of the City's solid waste operations.

The Senior Taxi Fund is used to account for the activities of the City's senior taxi operations.

City of Gridley
Combining Statement of Net Position
Proprietary Funds
June 30. 2023

Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments $ 2,742 $ 969 $ 283,404 $ 287,115
Accounts receivable - - 932 932
Interest receivable 7 15 765 787
Total current assets 2,749 984 285,101 288,834
Noncurrent assets:

Capital assets - depreciable, net - - 7,708 7,708
Total assets $ 2,749 $ 984 $ 292,809 $ 296,542

DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ - $ - $ 161,059 $ 161,059
Total deferred outflows of resources $ - $ - $ 161,059 $ 161,059

LIABILITIES
Current liabilities:

Accounts payable $ - $ - $ 2,638 $ 2,638
Due to other funds - - 329,029 329,029
Compensated absences, current - - 5,735 5,735
Total current liabilities - - 337,402 337,402
Noncurrent liabilities:

Net pension liability - - 285,889 285,889
Compensated absences, noncurrent - - 15,483 15,483
Total noncurrent liabilities - - 301,372 301,372
Total liabilities $ - $ - $ 638,774 $ 638,774

DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ - $ - $ 36,474 $ 36,474
Total deferred inflows of resources $ - $ - $ 36,474 $ 36,474

NET POSITION
Net Investment in capital assets $ - $ - $ 7,708 $ 7,708 Unrestricted 2,749 984 (229,088) (225,355)
Total net position $ 2,749 $ 984 $ (221,380) $ (217,647) The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds
City of Gridley
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2023

Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total

OPERATING REVENUES
Charges for services - $ - $ 3,120 $ 3,120 $
Intergovernmental - - 87,434 87,434
Other revenue - - 12,970 12,970
Total operating revenues - - 103,524 103,524

OPERATING EXPENSES
Salaries and benefits - - (36,000) (36,000) (1)
Materials and supplies - - 9,693 9,693
Repairs and maintenance - - 2,335 2,335
Power and utilities - - 606 606
Administration - - 22,510 22,510
Depreciation and amortization - - 7,847 7,847
Total operating expenses - - 6,991 6,991
Operating income (loss) - - 96,533 96,533

NONOPERATING REVENUES(EXPENSES)
Interest income 20 42 1,061 1,123
Total nonoperating revenues(expenses) 42 20 1,061 1,123 Change in net position 42 20 97,594 97,656
Total net position - beginning 942 2,729 (318,974) (315,303) Total net position - ending $ 984 2,749 $ (221,380) $ (217,647) $ The accompanying notes are an integral part of these financial statements. (1) Salaries and benefits include a pension credit of $147,758, a reduction to salaries and benefits expenses.

Business-Type Activities
Enterprise Funds
City of Gridley
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
Cash flows from operating activities:

Receipts from customers -$ -$ 102,592 $ $ 102,592
Payments to suppliers - - (37,571) (37,571)
Payments to employees - - (121,402) (121,402)
Net cash provided (used) by operating activities - - (56,381) (56,381) Cash flows from investing activities:

Investment income received 15 31 330 376
Net cash provided (used) by investing activities 15 31 330 376 Net increase (decrease) in cash and cash equivalents 15 (56,051) 31 (56,005) Cash and cash equivalents - beginning 2,727 339,455 938 343,120 Cash and cash equivalents - ending $ 2,742 $ 283,404 969 $ $ 287,115 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) -$ -$ $ 96,533 $ 96,533
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - - 7,847 7,847
Changes in operating assets and liabilities:

Accounts receivable - - (932) (932)
Deferred outflows of resources - - (103,613) (103,613)
Accounts payable - - (2,427) (2,427)
Net pension liability - - 146,612 146,612
Compensated absences - - (9,644) (9,644)
Deferred inflows of resources - - (190,757) (190,757)
Net cash provided (used) by operating activities -$ -$ (56,381) $ $ (56,381) The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

PRIVATE PURPOSE TRUST FUNDS
Private Purpose Trust Funds
These funds include the Main Trust and Successor Agency.

The Main Trust Fund is used to account for trust arrangements where the balances and activity benefit individuals and organizations other than the City.

The Successor Agency Fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.

City of Gridley
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30. 2023
Main Successor
Trust Agency
Fund Fund Total
ASSETS
Cash and investments $ 12,864 $ 728,993 $ 741,857
Restricted cash and investments - 22,732 22,732
Interest receivable 31 - 31
Capital assets, land - 1,302,116 1,302,116
Total assets $ 12,895 $ 2,053,841 $ 2,066,736

DEFERRED OUTFLOWS OF RESOURCES
Loss on debt refunding $ - $ 155,770 $ 155,770

LIABILITIES
Accounts payable $ - $ 12,034 $ 12,034
Interest payable - 79,581 79,581
Advances from the City - 326,868 326,868
Long-term liabilities, current - 120,000 120,000
Long-term liabilities, noncurrent - 3,970,000 3,970,000 Total liabilities $ - $ 4,508,483 $ 4,508,483

NET POSITION
Held in trust for private purposes $ 12,895 $ (2,298,872) $ (2,285,977) Total net position $ 12,895 $ (2,298,872) $ (2,285,977) City of Gridley
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Year Ended June 30, 2023
Main Successor
Trust Agency
Fund Fund Total

ADDITIONS
Property taxes - $ 255,732 255,732 $
Interest Income 88 4,866 4,954
Total additions 260,598 88 260,686

DEDUCTIONS
Professional services 115,479 115,479 -
Administrative expense - 3,077 3,077
Interest and fiscal charges - 160,650 160,650
Total deductions 279,206 - 279,206
Change in net position 88 (18,608) (18,520)
Total net position - beginning 12,807 (2,280,264) (2,267,457) Total net position - ending 12,895 $ (2,298,872) $ (2,285,977) $ This page is intentionally blank

CUSTODIAL FUNDS
Custodial Funds
The City administers two custodial funds, the Gridley Bid Fund and the Hospital JPA Administration Fund.

The Gridley Bid Fund is used to account for the use of resources received in relation to bidding and procurement.

The Hospital JPA Administration Fund is used to account for the use of resources held for the Hospital HPA administration.

City of Gridley
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30. 2023
Hospital
Gridley JPA
Bid Administration
Fund Fund Total
ASSETS
Cash and investments 61 498 $ 559
Interest receivable - 1 1
Total assets $ 61 $ 499 $ 560

NET POSITION
Restricted for individuals, organizations and
other governments $ 61 $ 499 $ 560
Total net position $ 61 $ 499 $ 560
City of Gridley
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023
Hospital
Gridley JPA
Bid Administration
Fund Fund Total

ADDITIONS
Interest Income $ 1 $ 4 $ 5
Total net position - beginning 60 495 555
Total net position - ending $ 61 $ 499 $ 560
This page is intentionally blank

GENERAL FUND COMBINING SCHEDULES
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.

City of Gridley
Combining Balance Sheet
General Fund
June 30. 2023
General City Sick Leave
Fund Hall Equipment Payout Total
General Reserve Well Reserve Reserve Reserve General
Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 3,147,052 2,469,605 $ 40,611 $ 88,348 $ 2,265,354 $ 176,901 $ 8,187,871 $ Accounts receivable - 20,024 - - - - 20,024
Interest receivable 8,743 7,785 99 211 5,405 432 22,675 Taxes receivable 81,233 - - - - - 81,233
Due from other funds 5,179,143 - - - - - 5,179,143
Leases receivable 352,252 - - - - - 352,252
Advances to fiduciary funds 76,868 - - - - - 76,868
Total assets $ 8,187,868 $ 3,154,837 $ 40,710 $ 2,270,759 88,559 $ $ 177,333 $ 13,920,066

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 600,897 -$ -$ -$ -$ -$ $ 600,897
Unearned revenue 24,101 - - - - - 24,101
Deposits payable 350 - - - - - 350
Total liabilities 625,348 - - - - - 625,348
Deferred Inflows of Resources:

Leases 347,549 - - - - - 347,549
Total deferred inflows of resources 347,549 - - - - - 347,549 Fund Balances:

Nonspendable
Leases receivable 4,703 - - - - - 4,703
Total nonspendable 4,703 - - - - - 4,703
Committed
Infrastructure reserve - - 40,710 - - - 40,710
Total committed - - 40,710 - - - 40,710
Assigned:

Bond reserve - 3,154,837 - - - - 3,154,837
Sick payout reserve - - - - - 177,333 177,333
Equipment replacement - - - - 2,270,759 - 2,270,759
Building maintenance - - - 88,559 - - 88,559
Total assigned - 3,154,837 - 88,559 2,270,759 177,333 5,691,488 Unassigned 7,210,268 - - - - - 7,210,268
Total fund balances 7,214,971 3,154,837 40,710 2,270,759 88,559 177,333 12,947,169 Total liabilities, deferred inflows of
resources and fund balances $ 8,187,868 $ 3,154,837 $ 40,710 $ 2,270,759 88,559 $ $ 177,333 $ 13,920,066 City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2023
General City Sick Leave
Fund Hall Equipment Payout Total
General Reserve Well Reserve Reserve Reserve General
Fund Fund Fund Fund Fund Fund Eliminations Fund

REVENUES
Taxes and assessments 3,326,589 $ - $ -$ -$ -$ -$ -$ $ 3,326,589 Licenses, permits and fees 98,797 - - - - - - 98,797
Fines and forfeitures 8,406 - - - - - - 8,406
Intergovernmental 444,991 - - - - - - 444,991
Charges for services 68,688 - - - - - - 68,688
Use of money and property 70,173 15,511 285 605 16,343 1,240 - 104,157 Other revenue 199,322 - - - - - - 199,322
Total Revenues 4,216,966 15,511 285 605 16,343 1,240 - 4,250,950

EXPENDITURES
Current:

General government 223,960 - - - - - - 223,960
Public safety 4,970,085 - - - - - - 4,970,085
Streets and public works 411,851 - - - - - - 411,851
Community development 165,902 - - - - - - 165,902
Parks and recreation 142,345 - - - - - - 142,345
Capital outlay 142,499 - - - 224,471 - - 366,970
Total Expenditures 6,056,642 - - - 224,471 - - 6,281,113 Excess (Deficiency) of
Revenues over Expenditures 15,511 (1,839,676) 285 605 (208,128) 1,240 - (2,030,163)

OTHER FINANCING SOURCES (USES)
Transfers in 1,514,676 1,018,760 - - - - (1,018,760) 1,514,676 Transfers out - (1,018,760) - - - - 1,018,760 -
Total Other Financing Sources (Uses) 495,916 1,018,760 - - - - - 1,514,676 Net Change in Fund Balances 1,034,271 (1,343,760) 285 605 (208,128) 1,240 - (515,487) Fund Balances Beginning 8,558,731 2,120,566 40,425 87,954 2,478,887 176,093 - 13,462,656 Fund Balances Ending $ 3,154,837 7,214,971 $ 40,710 $ 88,559$ 2,270,759 $ 177,333 $ -$ 12,947,169 $ Chavan & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Ste 130
Morgan Hill, CA 95037

CITY OF GRIDLEY, CALIFORNIA

SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2023

CITY OF GRIDLEY, CALIFORNIA

SINGLE AUDIT REPORT

TABLE OF CONTENTS
JUNE 30, 2023
PAGE NO.

Section I - Summary of Auditor’s Results..................................................................... 6 Section II - Financial Statement Findings...................................................................... 7 Section III - Federal Awards Findings and Questioned Costs....................................... 10 Summary Schedule of Prior Year Findings......................................................................... 12 Independent Auditor’s 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................................. 16 Page | 1 15105 Concord Circle, Ste 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH

MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Gridley’s (the City) compliance with the types of compliance requirementsidentified 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, 2023. 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.

Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2023-004 and 2023-005. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s responses were not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Chavan & Associates, LLP
Certified Public Accountants
June 24, 2024
Morgan Hill, California

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of this financial statement. 4 CITY OF GRIDLEY, CALIFORNIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
5 Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the City of Gridley (the City) under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Note 2 - Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10 percent deminimus indirect cost rate as allowed under Uniform Guidance.

Note 3 - Relationship to the Basic Financial Statements The amounts reported in the accompanying schedule agree, in all material respects, to amounts reported within the City’s financial statements. Federal award revenues are reported principally in the City’s financial statements as intergovernmental revenues.

Note 4 - Relationship to Federal Financial Reports
Amounts reported in the accompanying schedule agree or can be reconciled with the amounts reported or to be reported in the federal financial reports.

Note 5 - Pass-Through Entities' Identifying Number
When federal awards are received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City has determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
6 Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:

Assistance Listing Name of Federal Program
Coronavirus State and Local Fiscal Recovery Funds
HOME Investment Partnership Program
Dollar threshold used to distinguish between
type A and type B programs:

Auditee qualified as low risk auditee? Yes x No
Unmodified
Unmodified

14.239
$ 750,000

21.027

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
7 Section II - Financial Statement Findings
Finding 2023-001 - Financial Close (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.

Cause
Due to personnel turnover, the City did not have adequate controls in place to ensure accounting records were closed timely and accurately. Also, personnel would also benefit from training related to recent governmental accounting pronouncements. Finally, the City’s fund set-up and utilization of funds were inefficient and difficult to understand, costing the City time during its annual close.

Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments.

Recommendation
We recommend the City implement written closing procedures and establish a routine timeline for closing.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
8 Finding 2023-002 - Negative Cash Balances (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance over the safeguarding of assets and the reliability of the classification financial information.

Condition
During our audit procedures to test cash and pooled cash balances, we identified the following:
 We noted 37 funds as of year-end which contained negative pooled cash balances. Thirty-three of these funds reported the same negative pooled cash balance in the prior year. This resulted in management proposing a significant number of adjustments to record due to/due from entries to offset the negative pooled cash balances and many of these adjustments were repeat adjustments from the prior year.  We noted a difference between pooled cash reported in the Pooled Cash fund and the total pooled cash reported in all other funds combined.

Transfers and interfund balance adjustments that should have been made between funds were not made during the close as well.

Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments between the funds and in pooled cash.

Management should also ensure that interfund payables and receivables do not exceed one year from the fiscal year end by including written procedures related to the timing of interfund balances and when and how to clear those balances. If an interfund payables and receivables extend beyond one year, the balance should be converted to a formal loan agreement between the funds and recorded as an Advance.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
9 Finding 2023-003 - Negative Fund Balances (Significant Deficiency - Repeat Finding) Criteria
GASB 54: Fund Balance Reporting and Governmental Fund Type Definitions, defines special revenue funds as funds used to report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes, other than capital projects or debt service. In addition, per paragraph 31, a government should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.

Cause
The City did not assess the requirements of GASB 54 as they apply to special revenue funds and the City may not be correctly utilizing its fund structure as set-up in the chart of accounts.

Effect
The following funds ending the fiscal year with deficits:

Recommendation
We recommend that management create written procedures that require the review of all funds for deficit fund balance during the budget process. Then, corrective action should be identified as a part of the budget process. The written procedures should include criteria regarding whether or not a fund still meets the definition of a separate fund type as listed in GASB 54 as compared to the fund’s current classification. If there are special revenue funds with negative cash balances which should remain open, we recommend that management determine if the revenue source for which the fund was opened still exists, or if the General

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
10 Fund is financing the activity of the fund. If the City no longer expects that a substantial portion of the inflows will derive from restricted or committed resources, the fund should be closed, and the remaining resources should be reported in the General Fund.

Section III - Federal Award Findings and Questioned Costs Finding 2023-004 - Federal Grant Procedures Manual (Significant Deficiency - Repeat Finding) Criteria
Office of Management and Budget (0MB), Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), subpart D, sections 200.317 - 200.326.

Condition
The City has not updated their procurement policy in accordance with the Uniform Guidance standards.

Effect
The City's procurement policies and procedures are not in compliance with the Uniform Guidance.

Recommendation
We recommend the City review the Uniform Guidance procurement requirements and update their policy.

Corrective Action Plan
The City is in the process of updating its Federal Grant Procedures Manual.

CITY OF GRIDLEY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
11 Finding 2023-005 - Financial Reporting Timeliness (Significant Deficiency - Repeat Finding) Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed, and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the end of the audit period. In accordance with 0MB Memo M-20-26, and due to the coronavirus, an extension of six months beyond the normal due date was granted for submission of the audit, data collection form, and reporting package.

Condition
The 2023 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the deadline of March 31, 2024.

Cause
There were various issues which caused the delay of the fiscal year 2023 audit. The main issue was turnover.

Recommendation
We recommend that the City implement closing procedures that require management to close the year no later than five months after the fiscal year ends. The procedures should include specific timelines by phase and instructions for communicating with departments and what the department cut-offs will be.

Corrective Action Plan
The City experienced significant staffing turnover and had recently transitioned to new financial software which was the primary focus of testing conversion data. The City has since hired staff and has been establishing an internal process to train newly appointed staff which encompasses internal routine financial close. Now that the City is fully staffed up, the City will continue to catch up on audits to bring them current.

The City will also review and update the closing procedures and will develop a timeline.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
12 Section II - Financial Statement Findings
Finding 2022-001 - Financial Close (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.

Recommendation
We recommend the City implement written closing procedures and establish a routine timeline for closing.

Status
Not implemented. See finding 2023-001.

Finding 2022-002 - Negative Cash Balances (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance over the safeguarding of assets and the reliability of the classification financial information.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
13 proposing a significant number of adjustments to record due to/due from entries to offset the negative pooled cash balances and many of these adjustments were repeat adjustments from the prior year.  We noted a difference between pooled cash reported in the Pooled Cash fund and the total pooled cash reported in all other funds combined.

Status
Not implemented. See finding 2023-002.

Finding 2022-003 - Negative Fund Balances (Significant Deficiency - Repeat Finding) Criteria
GASB 54: Fund Balance Reporting and Governmental Fund Type Definitions, defines special revenue funds as funds used to report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes, other than capital projects or debt service. In addition, per paragraph 31, a government should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
14 management determine if the revenue source for which the fund was opened still exists, or if the General Fund is financing the activity of the fund. If the City no longer expects that a substantial portion of the inflows will derive from restricted or committed resources, the fund should be closed, and the remaining resources should be reported in the General Fund.

Status
Not implemented. See finding 2023-003.

Condition
The City has not updated their procurement policy in accordance with the Uniform Guidance standards.

Recommendation
We recommend the City review the Uniform Guidance procurement requirements and update their policy.

Status
Not implemented. See finding 2023-004.

Finding 2022-005 - Financial Reporting Timeliness (Significant Deficiency - Repeat Finding) Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the end of the audit period. In accordance with 0MB Memo M-20-26, and due to the coronavirus, an extension of six months beyond the normal due date was granted for submission of the audit, data collection form, and reporting package.

Condition
The 2022 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the deadline of March 31, 2023.

CITY OF GRIDLEY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
15 Recommendation
We recommend that the City implement closing procedures that require management to close the year no later than five months after the fiscal year ends. The procedures should include specific timelines by phase and instructions for communicating with departments and what the department cut-offs will be.

Status
Not implemented. See finding 2022-005.

Page | 16 15105 Concord Circle, Ste 130,Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S 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
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, 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 City of Gridley (the “City”) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 24, 2024.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Page | 17 15105 Concord Circle, Ste 130,Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, and which are described in the accompanying schedule of findings and questioned costs as items 2023-004 and 2023-005.

Chavan & Associates, LLP
Certified Public Accountants
June 24, 2024
Morgan Hill, California
Chavan & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Suite 130
Morgan Hill, CA 95037

CITY OF GRIDLEY, CALIFORNIA

APPROPRIATIONS LIMIT SCHEDULE AND
INDEPENDENT ACCOUNTANT’S REPORT
For the Year ending June 30, 2023
* * *

CITY OF GRIDLEY, CALIFORNIA

APPROPRIATIONS LIMIT SCHEDULE AND
INDEPENDENT ACCOUNTANT’S REPORT
FOR THE YEAR ENDING JUNE 30, 2023

TABLE OF CONTENTS

PROCEDURES APPLIED TO APPROPRIATIONS LIMIT UNDER

ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Gridley (City) for the fiscal year ending June 30, 2023. The City’s management is responsible for the accompanying Appropriations Limit Schedule.

The procedures performed and our findings were as follows:

1. We obtained completed worksheets used by the City to calculate its appropriation limit for the fiscal year ending June 30, 2023 and determined that the limit and annual adjustment factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council.

Findings: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments and agreed the resulting amount to the current year’s limit.

Findings: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriation Limit Schedule to corresponding information in worksheets used by the City.

Findings: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit in the accompanying Appropriation Limit Schedule to the corresponding information in worksheets used by the City.

Findings: No exceptions were noted as a result of our procedures.

Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

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

However, this report is a matter of public record, and its distribution is not limited.

June 23, 2024
Morgan Hill, California

CITY OF GRIDLEY, CALIFORNIA

APPROPRIATIONS LIMIT SCHEDULE
FOR THE YEAR ENDING JUNE 30, 2023
3 Amount Source
A. Appropriations limit for the fiscal year ended June 30, 2022 $ 21,389,376 Prior Year Schedule B. Calculation Factors:

1. Population increase % 0.9719 1) State Department of Finance

2. Inflation increase % 1.0755 State Department of Finance

3. Total adjustment factor % 1.04527845 B1 x B2
C. Annual adjustment Increase 968,478 [(B3-1)A)]
D. Other Adjustments:

Loss responsibility (-) - N/A
Transfers to private (-) - N/A
Transfers to fees (-) - N/A
Assumed responsibility (+) - N/A
E. Total Adjustments 968,478 (C+D)
F. Appropriations limit for the fiscal year ending June 30, 2023 $ 22,357,854 (A+E) 1) Population increase % for:

City of Gridley 0.9719
Butte County 0.9756

CITY OF GRIDLEY, CALIFORNIA

NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE
FOR THE YEAR ENDING JUNE 30, 2023
4 1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitations Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIB, the annual calculation of the appropriation limit is subject to a limited procedures review in connection with the annual audit.

3. INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4
th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2022-23 represents the annual percentage change in the per capita personal income.

4. POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2022-23 represents the annual percentage change in population for the City.

5. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustment for the year ending June 30, 2023.

Cover Sheet

RENEWABLE POWER PURCHASE AGREEMENT

COVER SHEET
Seller: Grace Orchard Energy Center, LLC, a Delaware limited liability company Buyer: Northern California Power Agency, a joint powers agency of the State of California Description of Facility: A 50 MWAC solar photovoltaic generating facility located in Riverside County, California, as further described in Exhibit A.

Milestones:

Milestone Date for
Completion
Evidence of Site Control 9/1/2025
Executed Interconnection Agreement Completed
Guaranteed Construction Start Date 9/1/2026
Guaranteed Commercial Operation Date 12/1/2027
Delivery Term: The period for Product delivery will be for twenty (20) Contract Years.

Expected Energy: The amount of Expected Energy is set forth below.

Contract Year Expected Energy (MWh)
1 146,941
2 146,885
3 146,372
4 145,848
5 145,315
6 144,773
7 144,221
8 143,660
9 143,089
10 142,508
11 141,916
12 141,314
Cover Sheet
13 140,703
14 140,083
15 139,454
16 138,816
17 138,168
18 137,509
19 136,836
20 136,151
Guaranteed Capacity: 50 MWAC
Dedicated Interconnection Capacity: 50 MWAC
Contract Price:

Contract Year Contract Price
1 – 20 $42.51/MWh (flat) with no
escalation
Product:
 Facility Energy
 Green Attributes, including, but not limited to, Portfolio Content Category 1 Renewable Energy Credits
Scheduling Coordinator: Buyer or Buyer’s agent
Development Security: $100/kW of Guaranteed Capacity
Performance Security: $75/kW of Installed Capacity

TABLE OF CONTENTS
i
ARTICLE 1 DEFINITIONS ........................................................................................................ 1

1.1 Contract Definitions............................................................................................. 1

1.2 Rules of Interpretation ...................................................................................... 23 ARTICLE 2 TERM; CONDITIONS PRECEDENT.................................................................. 24

2.1 Contract Term.................................................................................................... 24

2.2 Conditions Precedent......................................................................................... 25

2.3 Development; Construction; Progress Reports............................................... 26

2.4 Remedial Action Plan ........................................................................................ 26

2.5 New PV Trade Measure Events and UFLPA/WRO Restraints .................... 27

2.6 Seller’s Pre-COD Termination Right............................................................... 28

2.7 CEQA.................................................................................................................. 28 ARTICLE 3 PURCHASE AND SALE...................................................................................... 28

3.1 Purchase and Sale of Product........................................................................... 28

3.2 Sale of Green Attributes.................................................................................... 29

3.3 Imbalance Energy .............................................................................................. 29

3.4 Ownership of Renewable Energy Incentives................................................... 29

3.5 Future Environmental Attributes .................................................................... 29

3.6 Test Energy......................................................................................................... 29

3.7 CEC Certification and Verification ................................................................. 30

3.8 RPS Standard Terms and Conditions.............................................................. 30

3.9 Compliance Expenditure Cap........................................................................... 31

3.10 Project Configuration........................................................................................ 32 ARTICLE 4 OBLIGATIONS AND DELIVERIES................................................................... 32

4.1 Delivery ............................................................................................................... 32

4.2 Title and Risk of Loss........................................................................................ 33

4.3 Forecasting.......................................................................................................... 33

4.4 Dispatch Down/Curtailment ............................................................................. 34

4.5 Reduction in Delivery Obligation..................................................................... 35

4.6 Guaranteed Energy Production........................................................................ 36

4.7 WREGIS ............................................................................................................. 37

4.8 Interconnection Costs........................................................................................ 38 ARTICLE 5 TAXES .................................................................................................................. 38

5.1 Allocation of Taxes and Charges...................................................................... 38

5.2 Cooperation ........................................................................................................ 38 ARTICLE 6 OPERATIONS AND MAINTENANCE OF THE FACILITY ............................ 39

6.1 Operation and Maintenance of the Facility..................................................... 39

6.2 Maintenance of Health and Safety ................................................................... 39

6.3 Shared Facilities................................................................................................. 39 ARTICLE 7 METERING........................................................................................................... 40 ii

7.1 Metering.............................................................................................................. 40

7.2 Meter Verification.............................................................................................. 41 ARTICLE 8 INVOICING AND PAYMENT; CREDIT............................................................ 41

8.1 Invoicing.............................................................................................................. 41

8.2 Payment .............................................................................................................. 42

8.3 Books and Records............................................................................................. 42

8.4 Payment Adjustments; Billing Errors ............................................................. 42

8.5 Billing Disputes................................................................................................... 42

8.6 Netting of Payments........................................................................................... 43

8.7 Seller’s Development Security .......................................................................... 43

8.8 Seller’s Performance Security .......................................................................... 43

8.9 Buyer Credit Support........................................................................................ 44

8.10 First Priority Security Interest in Cash or Cash Equivalent Collateral....... 44

8.11 Financial Statements.......................................................................................... 45 ARTICLE 9 NOTICES .............................................................................................................. 46

9.1 Addresses for the Delivery of Notices............................................................... 46

9.2 Acceptable Means of Delivering Notice ........................................................... 46 ARTICLE 10 FORCE MAJEURE............................................................................................. 46

10.1 Definition ............................................................................................................ 46

10.2 No Liability If a Force Majeure Event Occurs ............................................... 47

10.3 Notice................................................................................................................... 47

10.4 Termination Following Force Majeure Event................................................. 48 ARTICLE 11 DEFAULTS; REMEDIES; TERMINATION..................................................... 48

11.1 Events of Default................................................................................................ 48

11.2 Remedies; Declaration of Early Termination Date ........................................ 51

11.3 Termination Payment........................................................................................ 52

11.4 Notice of Payment of Damage Payment or Termination Payment ............... 52

11.5 Disputes With Respect to Damage Payment or Termination Payment........ 52

11.6 Rights And Remedies Are Cumulative ............................................................ 53

11.7 Seller’s Pre-COD Liability Limitation............................................................. 53 ARTICLE 12 LIMITATION OF LIABILITY AND EXCLUSION OF WARRANTIES ........ 53

12.1 No Consequential Damages............................................................................... 53

12.2 Waiver and Exclusion of Other Damages........................................................ 53 ARTICLE 13 REPRESENTATIONS AND WARRANTIES; AUTHORITY.......................... 54

13.1 Seller’s Representations and Warranties ........................................................ 54

13.2 Buyer’s Representations and Warranties........................................................ 55

13.3 General Covenants............................................................................................. 55

13.4 Prevailing Wage ................................................................................................. 56 ARTICLE 14 ASSIGNMENT.................................................................................................... 56

14.1 General Prohibition on Assignments ............................................................... 56 iii

14.2 Collateral Assignment; Financing Cooperation.............................................. 57

14.3 Other Permitted Assignments and Transfers by Seller.................................. 57 ARTICLE 15 DISPUTE RESOLUTION................................................................................... 57

15.1 Governing Law................................................................................................... 57

15.2 Venue................................................................................................................... 57

15.3 Judicial Reference.............................................................................................. 57

15.4 Dispute Resolution ............................................................................................. 58 ARTICLE 16 INDEMNIFICATION ......................................................................................... 58

16.1 Indemnification .................................................................................................. 58 ARTICLE 17 INSURANCE ...................................................................................................... 58

17.1 Insurance ............................................................................................................ 58 ARTICLE 18 CONFIDENTIAL INFORMATION................................................................... 59

18.1 Definition of Confidential Information............................................................ 59

18.2 Duty to Maintain Confidentiality ..................................................................... 60

18.3 Irreparable Injury; Remedies........................................................................... 60

18.4 Disclosure to Lenders, Etc................................................................................. 61

18.5 Public Announcements...................................................................................... 61 ARTICLE 19 MISCELLANEOUS............................................................................................ 61

19.1 Entire Agreement; Integration; Exhibits......................................................... 61

19.2 Amendments....................................................................................................... 61

19.3 No Waiver ........................................................................................................... 61

19.4 No Agency, Partnership, Joint Venture or Lease ........................................... 61

19.5 Severability ......................................................................................................... 62

19.6 Mobile-Sierra...................................................................................................... 62

19.7 Counterparts; Electronic Signatures ............................................................... 62

19.8 Electronic Delivery............................................................................................. 62

19.9 Binding Effect..................................................................................................... 62

19.10 No Recourse to Members of Buyer................................................................... 62

19.11 Forward Contract; Inapplicability/Waiver of Bankruptcy Code Section 366 .......................................................................................................... 62

19.12 Further Assurances............................................................................................ 63

19.13 Change in Electric Market Design ................................................................... 63 iv
Exhibits:

Exhibit A Facility Description
Exhibit B Major Project Development Milestones and Commercial Operation Exhibit C Compensation
Exhibit D-1 Scheduling Coordinator Responsibilities
Exhibit D-2 Buyer and Seller Operating Coordination
Exhibit E Progress Reporting Form
Exhibit F-1 Form of Average Expected Energy Report
Exhibit F-2 Form of Monthly Available Generating Capacity Report Exhibit G Guaranteed Energy Production Damages Calculation Exhibit H Form of Commercial Operation Date Certificate Exhibit I Form of Installed Capacity Certificate
Exhibit J Form of Construction Start Date Certificate
Exhibit K Form of Letter of Credit issued on behalf of Seller for the benefit of Buyer Exhibit L Form of Guaranty
Exhibit M Reserved
Exhibit N Notices
Exhibit O Form of Consent and Agreement
Exhibit P Form of Estoppel Certificate
Exhibit Q Form of Letter of Credit issued on behalf of Buyer for the benefit of Seller Exhibit R Metering Diagram
Exhibit S Performance Test
1 RENEWABLE POWER PURCHASE AGREEMENT
This Renewable Power Purchase Agreement (“Agreement”) is entered into as of _________, 2024 (the “Effective Date”), between Buyer and Seller. Buyer and Seller are sometimes referred to herein individually as a “Party” and jointly as the “Parties.” All capitalized terms used in this Agreement are used with the meanings ascribed to them in Article 1 to this Agreement.

RECITALS
WHEREAS, Seller intends to develop, construct, own or otherwise control, and operate the Facility; and
WHEREAS, Seller desires to sell, and Buyer desires to purchase, on the terms and conditions set forth in this Agreement, the Product;
NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the Parties agree to the following:

ARTICLE 1

DEFINITIONS

1.1 Contract Definitions. The following terms, when used herein with initial capitalization, shall have the meanings set forth below:
“AASMTC AD/CVD Case” means the filing of, and any proceedings, rulemakings, orders, determinations, tariffs, or duties related to, any of the Petitions for the Imposition of Antidumping and Countervailing Duties, filed on or around April 24, 2024 by the American Alliance for Solar Manufacturing Trade Committee, concerning Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules, from Cambodia, Malaysia, Thailand, and Vietnam, in any of the DOC dockets A-555-003, A-557-830, A-549-851, A-552-841, C-555-004, C-557-831, C-549-852, or C-552-842
“AC” means alternating current.
“Acceptable Issuer” means a U.S. commercial bank, or a foreign bank with a U.S. branch, with such bank having at least $10 billion of assets and having a Credit Rating of at least A- from S&P or A3 from Moody’s.
“Accepted Compliance Costs” has the meaning set forth in Section 3.9. “AD/CVD” means antidumping and/or countervailing duty.
“Adjusted Days of Liquidity on Hand” or “ADLH” means the calculation below using figures and terms from Buyer’s Audited Financial Statements published on Buyer’s website:
2 “Adjusted Energy Production” has the meaning set forth in Exhibit G. “Affiliate” means, with respect to any Person, each Person that directly or indirectly controls, is controlled by, or is under common control with such designated Person. For purposes of this definition and the definition of “Permitted Transfer” and “Permitted Transferee”, “control” (including, with correlative meanings, the terms “controlled by”, and “under common control with”), as used with respect to any Person, shall mean (a) the direct or indirect right to cast at least fifty percent (50%) of the votes exercisable at an annual general meeting (or its equivalent) of such Person or, if there are no such rights, ownership of at least fifty percent (50%) of the equity or other ownership interest in such Person, or (b) the right to direct the policies or operations of such Person. Notwithstanding the foregoing, with respect to Seller, Affiliate shall include any investment funds or publicly-traded vehicles for the ownership of operating power generation, storage, or transmission assets (such as a “yield co”) controlled by Seller, NextEra Energy, Inc. or an Affiliate of NextEra Energy, Inc., NextEra Energy Partners, LP (“NEP”), NextEra Energy Operating Partners, LP (“NEOP”), and NextEra Energy Capital Holdings, Inc. (“NEECH”), and their respective direct or indirect subsidiaries.
“After-Tax Basis” means, with respect to any payment received, or deemed to have been received, by any Person, the amount of such payment (the “Base Payment”), supplemented by a further payment (the “Additional Payment”) to such Person so that the sum of the Base Payment plus the Additional Payment will be equal to the Base Payment, after deduction of the amount of all taxes required to be paid by such Person in respect of the receipt or accrual of the Base Payment and the Additional Payment (taking into account any current or previous credits or deductions arising from the underlying event giving rise to the payment, the Base Payment and the Additional Payment). Such calculations shall be made on the assumption that the recipient is subject to Federal income taxation at the statutory rate applicable to corporations under subchapter C of the Internal Revenue Code of 1986, as amended, and subject to the highest state and local income tax rate then in effect for corporations in the states in which the Person is subject to taxation during the applicable fiscal year, and shall take into account the deductibility, if applicable (for Federal income tax purposes), of state and local income taxes.
“Agreement” has the meaning set forth in the Preamble and includes any Exhibits, schedules and any written supplements hereto, the Cover Sheet, and any designated collateral, credit support or similar arrangement between the Parties. “Approved Forecast Vendor” means (i) CAISO, or in the event the CAISO no longer provides a forecast of Facility Energy for the Facility under the EIRP, then (ii) Seller or a Seller Affiliate, or if not Seller or a Seller Affiliate, a vendor selected by Seller for the purposes of providing or verifying the forecasts under Section 4.3(d) reasonably acceptable to Buyer, with such acceptance not to be unreasonably withheld, conditioned or delayed. “Auxin Anti-Circumvention Proceeding” means the DOC’s anti-circumvention investigation and proceeding concerning Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules, from the People's Republic of China, Petition filed February 8, 2022 by Auxin Solar, Inc. in four separate DOC dockets: A-570-979 Malaysia; Thailand; Cambodia; and Vietnam.
3 “Available Generating Capacity” means the capacity of the Facility, expressed in whole MWs, that is mechanically available to generate Energy. “Bankrupt” means with respect to any entity, such entity that (a) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar Law, (b) has any such petition filed or commenced against it which remains unstayed or undismissed for a period of ninety (90) days, (c) makes an assignment or any general arrangement for the benefit of creditors, (d) otherwise becomes bankrupt or insolvent (however evidenced), (e) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (f) is generally unable to pay its debts as they fall due. “Business Day” means any day except a Saturday, Sunday, or a Federal Reserve Bank holiday in California. A Business Day begins at 8:00 a.m. and ends at 5:00 p.m. local time for the Party sending a Notice, or payment, or performing a specified action. “Buyer” has the meaning set forth in the Cover Sheet.
“Buyer Bid Curtailment” means the occurrence of both of the following:
(a) the CAISO provides notice to a Party or the Scheduling Coordinator for the Facility, requiring the Party to deliver less Facility Energy than the full amount of Energy forecasted in accordance with Section 4.3(d) to be produced from the Facility for a period of time; and (b) for the same time period as referenced in (a), the notice referenced in (a) results from Buyer or the SC for the Facility, as the result of a Buyer instruction or lack of instruction to the SC:
(i) not having submitted a Self-Schedule or Energy Supply Bid for the MW subject to the reduction;
(ii) having submitted an Energy Supply Bid and the MW subject to the reduction were not awarded a schedule with respect to the Energy Supply Bid; or (iii) having submitted a Self-Schedule for less than the full amount of Energy forecasted to be generated by or delivered from the Facility in accordance with Section 4.3(d).

If the Facility is subject to a Planned Outage, Forced Facility Outage, Force Majeure Event and/or a Curtailment Period during the same time period as referenced in (a), then the calculation of Deemed Delivered Energy during such period shall not include any Facility Energy that was not generated due to such Planned Outage, Forced Facility Outage, Force Majeure Event, or Curtailment Order. For avoidance of doubt, if a Buyer Bid Curtailment and a CAISO system-wide overgeneration Curtailment Order occur in the same Settlement Interval or Settlement Period, the curtailment shall be treated as:
(i) a Buyer Bid Curtailment for the purpose of the calculation of Deemed Delivered Energy when there is a Negative LMP that is equal to or less than the Negative LMP Strike Price, or 4 (ii) a Curtailment Order for the purpose of the calculation of Deemed Delivery Energy when there is a Negative LMP that is greater than the Negative LMP Strike Price, subject to the following clarification, if Buyer or the SC (1) did not submit a Self-Schedule or Energy Supply Bid, or (2) failed to correctly submit or made an error with respect to a Self-Schedule or Energy Supply Bid, the curtailment shall be treated as a Buyer Bid Curtailment. “Buyer Curtailment Order” means an instruction from Buyer to Seller to reduce Energy from the Facility by the amount, and for the period of time set forth in such instruction (which for avoidance of doubt and without limiting the generality of the foregoing may include a Buyer instruction to reduce Energy when there is a Negative LMP that is equal to or less than the Negative LMP Strike Price), for reasons unrelated to Energy that was not generated due to a Planned Outage, Forced Facility Outage, Force Majeure Event and/or Curtailment Order. “Buyer Curtailment Period” means the period of time, as measured using current Settlement Intervals, during which Seller reduces Energy from the Facility pursuant to or as a result of (a) Buyer Bid Curtailment, (b) a Buyer Curtailment Order, or (c) any other action or omission by Buyer (or its agents) including a Buyer Default hereunder which directly causes Seller to be unable to deliver Facility Energy to the Delivery Point; provided, the duration of any Buyer Curtailment Period shall be inclusive of the time required for the Facility to ramp down and ramp up.
“Buyer Default” means a failure by Buyer (or its agents) to perform Buyer’s obligations hereunder, and includes an Event of Default of Buyer.
“Buyer’s WREGIS Account” has the meaning set forth in Section 4.7(a). “CAISO” means the California Independent System Operator Corporation or any successor entity performing similar functions.
“CAISO Approved Meter” means a CAISO approved revenue quality meter or meters, metering scheme, CAISO approved data processing gateway or remote intelligence gateway, telemetering equipment and data acquisition services, that comply with the CAISO Tariff, sufficient for monitoring, recording and reporting, in real time, all Facility Energy delivered to the Delivery Point.
“CAISO Grid” has the same meaning as “CAISO Controlled Grid” as defined in the CAISO Tariff.
“CAISO Metered Entity” has the meaning set forth in the CAISO Tariff. “CAISO Operating Order” means the Operating Instruction or Dispatch Instruction, as each are defined in the CAISO Tariff.
“CAISO Tariff” means the California Independent System Operator Corporation Agreement and Tariff, Business Practice Manuals (BPMs), and operating procedures, including the rules, protocols, procedures and standards attached thereto, as the same may be amended or modified from time-to-time and approved by FERC.
5 “California Renewables Portfolio Standard” or “California RPS Program” or “RPS” means the “California Renewables Portfolio Standard” program and policies established by California State Senate Bills 1038 (2002), 1078 (2002), 107 (2008), X-1 2 (2011), 350 (2015), and 100 (2018) as codified in, inter alia, California Public Utilities Code Sections 399.11 through 399.31 and California Public Resources Code Sections 25740 through 25751, as such provisions are amended or supplemented from time to time, including without limitation all applicable eligibility criteria and requirements thereof and implemented under the Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities, as adopted by the CEC on December 22, 2020, and as may be amended from time to time. “Capacity Damages” has the meaning set forth in Exhibit B. “CEC” means the California Energy Commission, or any successor agency performing similar statutory functions.
“CEC Certification and Verification” means that the CEC has certified (or, with respect to periods before the date that is one hundred eighty (180) days following the Commercial Operation Date, that the CEC has pre-certified, as such date may be extended pursuant to Section 3.9) that the Facility is an Eligible Renewable Energy Resource for purposes of the California Renewables Portfolio Standard and that all Facility Energy delivered to the Delivery Point qualifies as generation from an Eligible Renewable Energy Resource. “CEC Precertification” means that the CEC has issued a precertification for the Facility indicating that the planned operations of the Facility would comply with applicable CEC requirements for CEC Certification and Verification.
“CEQA” means the California Environmental Quality Act, California Public Resources Code §§ 21000, et seq. and Chapter 3 of Division 6 of Title 14 of the California Code of Regulations.
“CEQA Completion Date” has the meaning set forth in Section 2.7(a). “CEQA Documents” means an initial study, categorical exemption negative declaration, environmental impact report or equivalent document (as applicable) relied upon by the lead agency in connection with the CEQA environmental review for the Facility, including but not limited to any addendum, supplement, or subsequent negative declaration or environmental impact report. “Change in Law” means the occurrence, after the Effective Date, of any of the following:
(a) the adoption or implementation of any Law; (b) any change in any Law or in the administration, interpretation or application of any Law by any Governmental Authority; (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; (d) any change to a Resource Adequacy Ruling; (e) any order, decision, resolution, rule, regulation, guidance document, or other determination of the CEC or the CPUC or its Energy Division, (f) any change in the CAISO Tariff or any document included in the definition thereof whether or not approved by FERC, or (g) any change in STC REC-1, STC REC2 or STC 6. “Change of Control” means, except in connection with public market transactions of 6 equity interests or capital stock of Seller’s Ultimate Parent, any circumstance in which Ultimate Parent ceases to own, directly or indirectly through one or more intermediate entities, more than fifty percent (50%) of the outstanding equity interests in Seller; provided that in calculating ownership percentages for all purposes of the foregoing:
(a) any ownership interest in Seller held by Ultimate Parent indirectly through one or more intermediate entities shall not be counted towards Ultimate Parent’s ownership interest in Seller unless Ultimate Parent directly or indirectly owns more than fifty percent (50%) of the outstanding equity interests in each such intermediate entity; and (b) ownership interests in Seller owned directly or indirectly by any Lender (including any cash equity or tax equity provider) shall be excluded from the total outstanding equity interests in Seller;
provided further, a Change of Control shall not be deemed to have occurred as a result of a Permitted Transfer.
“COD Certificate” has the meaning set forth in Exhibit B. “Collateral Assignment Agreement” has the meaning set forth in Section 14.2. “Commercial Operation” has the meaning set forth in Exhibit B. “Commercial Operation Date” has the meaning set forth in Exhibit B. “Commercial Operation Delay Damages” means an amount equal to (a) the Development Security amount required hereunder, divided by (b) one-hundred and eighty (180). “Committed Unused Bank Line” means the total amount of (a) bank lines of credit committed to Buyer which are for Buyer’s general use or that are dedicated for Buyer’s use with respect to this Agreement (which for avoidance of doubt shall not include any amounts which qualify under the following subsection (b), i.e., no “double counting”), or (b) funds committed to Buyer as security deposits by Participating Members under the Third Phase Agreement, to the extent the amount of (a) and (b) are (1) available for Buyer’s unrestricted use, or (2) solely dedicated for use by Buyer under this Agreement. Without limiting the generality of the immediately preceding sentence, but for clarification purposes, the term Committed Unused Bank Line does not include any bank lines of credit committed to Buyer, or any other funds provided to Buyer, which are dedicated to any other specific purpose (i.e., any specific purpose other than Buyer’s use under this Agreement).
“Compliance Actions” has the meaning set forth in Section 3.9. “Compliance Costs” has the meaning set forth in Section 3.9. “Compliance Expenditure Cap” has the meaning set forth in Section 3.9. “Confidential Information” has the meaning set forth in Section 18.1. 7 “Construction Start” has the meaning set forth in Exhibit B. “Construction Start Date” has the meaning set forth in Exhibit B. “Contract Price” has the meaning set forth on the Cover Sheet. “Contract Term” has the meaning set forth in Section 2.1(a). “Contract Year” means a period of twelve (12) consecutive months. The first Contract Year shall commence on the Commercial Operation Date and each subsequent Contract Year shall commence on the anniversary of the Commercial Operation Date. “Construction Start Delay Damages” means an amount equal to (a) the Development Security amount required hereunder, divided by (b) one-hundred and eighty (180). “Costs” means, with respect to the Non-Defaulting Party, brokerage fees, commissions and other similar third-party transaction costs and expenses reasonably incurred by such Party either in terminating any arrangement pursuant to which it has hedged or financed its obligations or entering into new arrangements which replace this Agreement; and all reasonable attorneys’ fees and expenses incurred by the Non-Defaulting Party in connection with terminating this Agreement. “Cover Sheet” means the cover sheet to this Agreement, which is incorporated into this Agreement.
“COVID-19” means the epidemic disease designated COVID-19 and the related virus designated SARS-CoV-2, and any mutations thereof.
“CPUC” means the California Public Utilities Commission or any successor agency performing similar statutory functions.
“Credit Rating” means, with respect to an entity other than Buyer, the current rating then assigned to that entity’s unsecured, senior long-term debt obligations (not supported by third party credit enhancements), or if that entity does not have a rating for its senior unsecured long-term debt, then the rating then assigned to such entity as an issuer rating by S&P, Fitch or Moody’s.

With respect to Buyer, the long term issuer rating assigned by S&P, Moody’s, and Fitch. If Buyer does not have a long term issuer rating, then the highest rating assigned to Buyer’s revenue bonds (not supported by third party credit enhancements).
“Curtailment Order” means any of the following:
(a) CAISO orders, directs, alerts, or provides notice to a Party or the SC, including a CAISO Operating Order, to curtail deliveries of Facility Energy for the following reasons: (i) any System Emergency, or (ii) any warning of an anticipated System Emergency, or warning of an imminent condition or situation, which jeopardizes CAISO’s electric system integrity or the integrity of other systems to which CAISO is connected; (b) a curtailment ordered by the Participating Transmission Owner for reasons including, but not limited to, (i) any situation that affects normal function of the electric system 8 including, but not limited to, any abnormal condition that requires action to prevent circumstances such as equipment damage, loss of load, or abnormal voltage conditions, or (ii) any warning, forecast or anticipation of conditions or situations that jeopardize the Participating Transmission Owner’s electric system integrity or the integrity of other systems to which the Participating Transmission Owner is connected;
(c) a curtailment ordered by CAISO or the Participating Transmission Owner; or (d) a curtailment in accordance with Seller’s obligations under its Interconnection Agreement with the Participating Transmission Owner or distribution operator.

For clarification, any notice, order, or instruction from the CAISO to curtail or reduce Facility Energy and/or the Facility that results from a Buyer Bid Curtailment or a Buyer Curtailment Order is not a Curtailment Order.
“Curtailment Period” means the period of time, as measured using current Settlement Intervals, during which generation from the Facility is reduced pursuant to a Curtailment Order; provided, the Curtailment Period shall be inclusive of the time required for the Facility to ramp down and ramp up.
“Damage Payment” means the dollar amount that equals the amount of the Development Security less (i) any amounts paid by Seller including without limitation any Construction Start Delay Damages or Commercial Operation Delay Damages, and further less (ii) any amounts which Buyer has drawn from the Development Security.
“Day-Ahead Forecast” has the meaning set forth in Section 4.3(c). “Day-Ahead Schedule” has the meaning set forth in the CAISO Tariff. “Dedicated Interconnection Capacity” means the maximum instantaneous amount of Facility Energy that is permitted to be delivered to the Delivery Point under the Interconnection Agreement, in the amount of MWs as set forth on the Cover Sheet “Deemed Delivered Energy” means the amount of Energy expressed in MWh that the Facility would have produced and delivered to the Delivery Point, but that is not produced by the Facility during a Buyer Curtailment Period, which amount shall, for any time period, be equal to the difference between (a) the full amount of Energy forecasted to be produced by the Facility in accordance with Section 4.3(d) during a Buyer Curtailment Period, and any adjustments necessary to accurately reflect the Facility’s capacity to produce and deliver energy to the Delivery Point, including applicable losses and manufacturers’ applicable performance data, subject to Buyer’s verification not to be unreasonably withheld, minus (b) the amount of energy that the Facility produced and delivered to the Delivery Point during the Buyer Curtailment Period; provided that, if the applicable difference between the foregoing clauses (a) and (b) is negative, the Deemed Delivered Energy shall be zero (0). For the purpose of clarity, Deemed Delivered Energy does not include the amount of Energy expressed in MWh that the Facility would have produced and delivered to the Delivery Point, but that is not produced by the Facility during a Curtailment Period. “Defaulting Party” has the meaning set forth in Section 11.1(a). 9 “Deficient Month” has the meaning set forth in Section 4.7(e). “Delivery Point” has the meaning set forth in Exhibit A. “Delivery Term” shall mean the period of Contract Years set forth on the Cover Sheet beginning on the Commercial Operation Date, unless terminated earlier in accordance with the terms and conditions of this Agreement.
“Development Cure Period” has the meaning set forth in Exhibit B. “Development Security” means (a) cash or (b) a Letter of Credit in the amount set forth on the Cover Sheet.
“Disclosing Party” has the meaning set forth in Section 18.1. “DOC” means the U.S. Department of Commerce.
“Early Termination Date” has the meaning set forth in Section 11.2(a). “Effective Date” has the meaning set forth on the Preamble. “Electrical Losses” means all transmission or transformation losses between the Facility and the Delivery Point, calculated in accordance with CAISO approved methodologies applicable to revenue metering.
“Eligible Intermittent Resources Protocol” or “EIRP” means the Eligible Intermittent Resource Protocol, as may be amended from time to time, as set forth in the CAISO Tariff. “Eligible Renewable Energy Resource” has the meaning set forth in California Public Utilities Code Section 399.12(e) and California Public Resources Code Section 25741(a), as either code provision is amended or supplemented from time to time. “Energy” means electrical energy generated by the Facility. “Energy-Only Deliverability Status” has the meaning set forth in the CAISO Tariff. “Energy Supply Bid” has the meaning set forth in the CAISO Tariff. “Estoppel Certificate” has the meaning set forth in Section 14.2 and substantially in the form attached as Exhibit P.
“Event of Default” has the meaning set forth in Section 11.1. “Excess MWh” has the meaning set forth in Exhibit C.
“Executed Interconnection Agreement Milestone” means the date for completion of execution of the Interconnection Agreement by Seller (or Seller’s Affiliate) and the PTO as set forth on the Cover Sheet.
10 “Expected Energy” means the quantity of Energy that Seller expects to be able to deliver to Buyer from the Facility during each Contract Year or other time period in the quantity specified on the Cover Sheet.
“Facility” means the solar photovoltaic generating facility described on the Cover Sheet and in Exhibit A, located at the Site and including mechanical equipment and associated facilities and equipment (but excluding any Shared Facilities) required to deliver Energy to the Delivery Point.
“Facility Energy” means Energy delivered to the Delivery Point, net of Electrical Losses and Station Use, as measured by the Facility Meter, which Facility Meter will be adjusted in accordance with CAISO meter requirements and Prudent Operating Practices to account for Electrical Losses and Station Use.
“Facility Meter” means the CAISO Approved Meter that will measure all Facility Energy and is dedicated exclusively to the Facility.
“FERC” means the Federal Energy Regulatory Commission or any successor government agency.
“Fitch” means Fitch Ratings Ltd., or its successor.
“Force Majeure Event” has the meaning set forth in Section 10.1. “Forced Facility Outage” means an unexpected failure of one or more components of the Facility that prevents Seller from generating Energy or making Facility Energy available at the Delivery Point and that is not the result of a Force Majeure Event. For the purpose of clarity, a “Forced Facility Outage” is equivalent to a “Forced Outage” as such term is defined in the CAISO Tariff.
“Full Capacity Deliverability Status” has the meaning set forth in the CAISO Tariff. “Full Network Model” has the meaning set forth in the CAISO Tariff. “Future Environmental Attributes” shall mean, except to the extent set forth in the last sentence of this definition, any and all generation attributes (other than Green Attributes or Renewable Energy Incentives) which are newly recognized after the Effective Date under the RPS regulations or under any and all other international, federal, regional, state or other law, rule, regulation, bylaw, treaty or other intergovernmental compact, decision, administrative decision, program (including any voluntary compliance or membership program), competitive market or business method (including all credits, certificates, benefits, and emission measurements, reductions, offsets and allowances related thereto) that are attributable to the generation of electrical energy by the Facility and its displacement of conventional energy generation. Future Environmental Attributes do not include (i) any energy, capacity, reliability or other power attributes from the Facility, (ii) Renewable Energy Incentives including Tax Benefits including without limitation production tax credits or investment tax credits associated with the development, construction, operation or ownership of the Facility, or other financial incentives in the form of credits, reductions, or allowances associated with the Facility that are applicable to a 11 state or federal income taxation obligation, (iii) fuel-related subsidies or “tipping fees” that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular preexisting pollutants or the promotion of local environmental benefits, or (iv) emission reduction credits encumbered or used by the Facility for compliance with local, state, or federal operating and/or air quality permits. “Gains” means, with respect to any Non-Defaulting Party, an amount equal to the present value of the economic benefit to it, if any (exclusive of Costs), resulting from the termination of this Agreement for the remaining Contract Term, determined in a commercially reasonable manner. Factors used in determining the economic benefit to a Non-Defaulting Party may include, without limitation, reference to information supplied by one or more third parties, which shall exclude Affiliates of the Non-Defaulting Party, including without limitation, quotations (either firm or indicative) of relevant rates, prices, yields, yield curves, volatilities, spreads or other relevant market data in the relevant markets, comparable transactions, forward price curves based on economic analysis of the relevant markets, settlement prices for comparable transactions at liquid trading hubs (e.g., SP-15), all of which should be calculated for the remaining Contract Term, and include the value of Green Attributes.
“Governmental Authority” means any federal, state, provincial, local or municipal government, any political subdivision thereof or any other governmental, congressional or parliamentary, regulatory, or judicial instrumentality, authority, body, agency, department, bureau, or entity with authority to bind a Party at law, including CAISO; provided, however, that “Governmental Authority” shall not in any event include any Party, and in Buyer’s case, its Participating Members as well.
“Green Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the generation from the Facility, and its avoided emission of pollutants and displacement of conventional energy generation. Green Attributes include but are not limited to PCC1 Renewable Energy Credits, as well as: (1) any avoided emission of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (2) any avoided emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere; (3) the reporting rights to these avoided emissions, such as PCC1 Renewable Energy Credits or Green Tag Reporting Rights. Green Tags and PCC1 Renewable Energy Credits are accumulated on a MWh basis and one Green Tag or PCC 1 Renewable Energy Credit represents the Green Attributes associated with one (1) MWh of Energy. Green Attributes as defined herein are limited to Green Attributes that exist under applicable Law as of the Effective Date. Green Attributes do not include (i) any energy, capacity, reliability or other power attributes from the Facility, (ii) Renewable Energy Incentives including Tax Benefits including without limitation production tax credits or investment tax credits associated with the development, construction, operation or ownership of the Facility and other financial incentives in the form of credits, reductions, or allowances associated with the Facility that are applicable to a state or federal income taxation obligation, (iii) fuel-related subsidies or “tipping fees” that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular preexisting pollutants or the 12 promotion of local environmental benefits, or (iv) emission reduction credits encumbered or used by the Facility for compliance with local, state, or federal operating or air quality permits. “Green Tag Purchaser” means Buyer.
“Green Tag Reporting Rights” means the right of a Green Tag Purchaser to report the ownership of accumulated Green Tags in compliance with federal or state law, if applicable, and to a federal or state agency or any other party at the Green Tag Purchaser’s discretion, and include without limitation those Green Tag Reporting Rights accruing under Section 16.5(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emission trading program, including pursuant to the WREGIS Operating Rules.
“Guaranteed Capacity” means the amount of generating capacity of the Facility, as measured in MWAC at the Delivery Point (i.e., measured at the Facility Meter as such meter readings at the Facility Meter are adjusted by the CAISO for any applicable Electrical Losses and Station Use to the extent such Electrical Losses and Station Use are not already reflected in the Facility Meter measurements), set forth on the Cover Sheet, as the same may be adjusted pursuant to Section 5 of Exhibit B.
“Guaranteed Commercial Operation Date” has the meaning set forth on the Cover Sheet, subject to extension pursuant to Exhibit B.
“Guaranteed Construction Start Date” has the meaning set forth on the Cover Sheet, subject to extension pursuant to Exhibit B.
“Guaranteed Energy Production” means an amount of Adjusted Energy Production equal to eighty percent (80%) of the Expected Energy for the applicable Performance Measurement Period.
“Guarantor” means, with respect to Seller, (a) NextEra Energy Capital Holdings, Inc., (b) an Affiliate of Seller with an Investment Grade Credit Rating, or (c) any Person reasonably acceptable to Buyer, that (i) has an Investment Grade Credit Rating, (ii) has a tangible net worth of at least One Hundred Fifty Million Dollars ($150,000,000), (iii) is incorporated or organized in a jurisdiction of the United States and is in good standing in such jurisdiction, and (iv) executes and delivers a Guaranty for the benefit of Buyer.
“Guaranty” means a guaranty from a Guarantor provided for the benefit of Buyer substantially in the form attached as Exhibit L.
“Imbalance Energy” means the amount of energy in MWh, in any given Settlement Period or Settlement Interval, by which the amount of Facility Energy deviates from the amount of Scheduled Energy.
“Independent Report” has the meaning set forth in Section 2.5(b). “Initial Synchronization” means the initial delivery of Facility Energy to the Delivery Point.
13 “Installed Capacity” means the actual generating capacity of the Facility, as measured in MWAC at the Delivery Point, that achieves Commercial Operation, as evidenced by a certificate substantially in the form attached as Exhibit I hereto; provided, the Installed Capacity may not exceed the Guaranteed Capacity.
“Interconnection Agreement” means the interconnection agreement(s) entered into by Seller or Seller’s Affiliate pursuant to which the Facility will be interconnected with the Transmission System, and pursuant to which Seller’s Interconnection Facilities and any other Interconnection Facilities will be constructed, operated and maintained during the Contract Term. “Interconnection Facilities” means the interconnection facilities, control and protective devices and metering facilities required to connect the Facility with the Transmission System in accordance with the Interconnection Agreement.
“Interest Rate” has the meaning set forth in Section 8.2. “Inter-SC Trade” or “IST” has the meaning set forth in the CAISO Tariff. “Interim Deliverability Status” has the meaning set forth in the CAISO Tariff. “Investment Grade Credit Rating” means a Credit Rating of at least BBB- from S&P, BBB- from Fitch, or Baa3 from Moody’s. If ratings by S&P, Fitch, and Moody’s are not equivalent, the highest two ratings shall apply. For avoidance of doubt, a Credit Rating from more than one credit agency is not necessary for a Party to demonstrate an Investment Grade Credit Rating.
“ITC” means the investment tax credit established pursuant to Section 48, 48E or other applicable provisions of the United States Internal Revenue Code of 1986, as in effect from timeto-time throughout the Contract Term or any successor provision. “Joint Powers Act” means the provisions of the California Joint Exercise of Powers Act found in Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, beginning at California Government Code Section 6500, et seq. “Joint Powers Agreement” means the Amended and Restated Northern California Power Agency Joint Exercise of Power Agreement dated as of January 31, 2008, as such agreement may be further amended or amended and restated from time to time, under which Buyer is organized as a Joint Powers Agency in accordance with the Joint Powers Act. “Law” means any applicable law, statute, rule, regulation, decision, writ, order, decree or judgment, permit or any interpretation thereof, promulgated or issued by a Governmental Authority.
“Lead Agency” means the public agency with the principal responsibility for approving the Facility or relevant portion thereof as defined pursuant to CEQA, 14 C.C.R. § 15367. “Lender” means, collectively, any Person (a) providing senior or subordinated construction, interim, back leverage, mezzanine, or long-term debt, equity, or tax equity financing 14 or refinancing for or in connection with the development, construction, purchase, installation, or operation of the Facility, whether that financing or refinancing takes the form of private debt (including back-leverage debt), equity (including cash or tax equity), public debt, or any other form (including financing or refinancing provided to a member or other direct or indirect owner of Seller), including any equity or tax equity investor directly or indirectly providing financing or refinancing for the Facility or purchasing equity ownership interests of Seller and/or its Affiliates, and any trustee or agent or similar representative acting on their behalf, (b) providing interest rate or commodity protection under an agreement hedging or otherwise mitigating the cost of any of the foregoing obligations, (c) participating in a lease financing (including a sale leaseback or leveraged leasing structure) with respect to the Facility, or (d) acting as issuing bank for any Letter(s) of Credit issued pursuant hereto or in connection with the Facility. “Letter(s) of Credit” means one or more irrevocable, standby letters of credit, issued by an Acceptable Issuer, in a form substantially similar to the letter of credit set forth in (a) Exhibit K if issued on behalf of Seller for the benefit of Buyer, and (b) Exhibit Q if issued on behalf of Buyer for the benefit of Seller, each as applicable.
“Licensed Professional Engineer” means an independent, professional engineer selected by Seller and reasonably acceptable to Buyer, licensed in the State of California. “Locational Marginal Price” or “LMP” has the meaning set forth in the CAISO Tariff. “Losses” means, with respect to the Non-Defaulting Party, an amount equal to the present value of the economic loss to it, if any (exclusive of Costs), resulting from termination of this Agreement for the remaining Contract Term, determined in a commercially reasonable manner.

Factors used in determining economic loss to a Non-Defaulting Party may include, without limitation, reference to information supplied by one or more third parties, which shall exclude Affiliates of the Non-Defaulting Party, including without limitation, quotations (either firm or indicative) of relevant rates, prices, yields, yield curves, volatilities, spreads or other relevant market data in the relevant markets, comparable transactions, forward price curves based on economic analysis of the relevant markets, settlement prices for comparable transactions at liquid trading hubs (e.g., SP-15), all of which should be calculated for the remaining Contract Term, as applicable, and must include the value of Green Attributes and Renewable Energy Incentives. “Lost Output” has the meaning set forth in Section 4.6. “Major Project Development Milestone” has the meaning set forth in in Exhibit B. “Master File” has the meaning set forth in the CAISO Tariff. “Meter Service Agreement for Metered Entities” or “MSA” has the meaning set forth in the CAISO Tariff.
“Milestones” means the development activities for significant interconnection and construction milestones set forth on the Cover Sheet.
“Monthly Delivery Forecast” has the meaning set forth in Section 4.3(b). 15 “Moody’s” means Moody’s Investors Service, Inc., or its successor. “MW” means megawatts in alternating current, unless expressly stated in terms of direct current.
“MWh” means megawatt-hour measured in alternating current, unless expressly stated in terms of direct current.
“NEECH” has the meaning set forth in the definition of Affiliate. “NEER” means NextEra Energy Resources, LLC.
“Negative LMP” means, in any Settlement Period or Settlement Interval, the Day-Ahead Market or Real-Time Market at the Facility’s PNode is less than Zero dollars ($0). “Negative LMP Strike Price” means zero dollars per MWh ($0/MWh), as such price may be revised by Buyer at its sole discretion (provided the revised price is less than or equal to Zero dollars ($0)) by providing Notice to Seller in accordance with Exhibit C. “NEOP” has the meaning set forth in the definition of Affiliate. “NEP” has the meaning set forth in the definition of Affiliate. “NERC” means the North American Electric Reliability Corporation or any successor entity performing similar functions.
“Network Upgrades” has the meaning set forth in the CAISO Tariff. “New PV Trade Measure Event” means any of the following events, during the period while the applicable ruling request, inquiry, rulemaking, or other filing or proceeding remains pending or subject to appeal before the DOC or other applicable Governmental Authority:
i. Filing of any anti-circumvention ruling request alleging that manufacturers or importers are circumventing any AD/CVD orders on PV Equipment; ii. Initiation of any anti-circumvention inquiry into whether manufacturers or importers are circumventing any AD/CVD orders on PV Equipment or issuance in any such inquiry of any finding or ruling that manufacturers or importers are circumventing any AD/CVD orders on PV Equipment; or
iii. Filing or initiation of any rulemakings, adjudications, or other proceedings or actions to increase, extend, or expand application of, or impose any new, tariffs, duties (including but not limited to AD/CVD), or other trade measures, or issuance of any related determinations, orders, tariffs, duties, or trade measures, on PV Equipment.

For the avoidance of doubt, the Parties acknowledge that any of the following shall trigger the occurrence of a New PV Trade Measure Event with respect to the Auxin Anti-Circumvention Proceeding: (a) any legislative, judicial, or administrative challenge to, or withdrawal (in whole 16 or in part) of, (I) that certain Declaration of Emergency and Authorization for Temporary Extensions of Time and Duty-Free Importation of Solar Cells and Modules from Southeast Asia, by the President of the United States, dated June 6, 2022, or supporting Presidential Determination Pursuant to Section 303 of the Defense Production Act, or (II) any implementation thereof by the DOC or other Governmental Authority, including through any rulemaking; or (b) any legislative, judicial, or administrative challenge that seeks to expand the scope of the DOC’s final affirmative circumvention determinations, as published on August 23, 2023 in 88 Fed. Reg. 57,419, to cover companies or activities excluded in such final affirmative determinations, or to narrow the scope of, or vacate or reverse, any negative circumvention determinations or guidance on avoiding circumvention in such published issuance. The Parties further acknowledge that the AASMTC AD/CVD Case constitutes a New PV Trade Measure Event.
“Non-Defaulting Party” has the meaning set forth in Section 11.2. “Notice” shall, unless otherwise specified in this Agreement, mean written communications by a Party to be delivered by hand delivery, United States mail, next Business Day courier service, or electronic messaging (e-mail).
“Participating Generator Agreement” has the meaning set forth in the CAISO Tariff. “Participating Member” means a member of Buyer that is signatory to the Third Phase Agreement. As of the Effective Date, such Participating Members are _________; if the Participating Members change after the Effective Date, Buyer shall provide written notice to Seller confirming the then-current list of Participating Members that are signatory to the Third Phase Agreement, and such written notice shall not be considered to be an amendment to this Agreement. “Participating Transmission Owner” or “PTO” means an entity that owns, operates and maintains transmission or distribution lines and associated facilities or has entitlements to use certain transmission or distribution lines and associated facilities where the Facility is interconnected. For purposes of this Agreement, the Participating Transmission Owner is set forth in Exhibit A.
“Party” or “Parties” has the meaning set forth in the Preamble. “Performance Measurement Period” means each two (2) consecutive Contract Year periods during the Delivery Term, calculated on a non-rolling basis such that no Contract Year is included in more than one Performance Measurement Period. The first Performance Measurement Period shall include Contract Years 1 and 2. The second Performance Measurement Period shall be comprised of Contract Years 3 and 4, and so on.
“Performance Security” means (a) cash or (b) a Letter of Credit or (c) a Guaranty in the amount set forth on the Cover Sheet.
“Permitted Transfer” means each of the following transactions:
(a) Transactions among Affiliates of Seller, including any corporate reorganization, merger, combination or similar transaction or transfer of assets or ownership interests involving Seller or its Affiliates; provided (i)(A) Ultimate Parent retains the authority, directly or indirectly, 17 to control the entity that is the Seller after such transactions, or (B) a wholly-owned, indirect subsidiary of Ultimate Parent operates the Facility, and (ii) if such transactions transfer this Agreement to any entity other than the entity that is the Seller before such transactions (including transfers by operation of law pursuant to transactions in which Seller is not the surviving entity), the transferee (A) executes and delivers to Buyer a written agreement under which the transferee assumes in writing all of Seller’s duties and obligations under this Agreement and otherwise agrees to be bound by all of the terms and conditions of this Agreement, and (B) satisfies the Seller Development Security requirements and Performance Security requirements; (b) A Change of Control of Ultimate Parent;
(c) Any change of economic and voting rights triggered in Seller’s organization documents arising from the financing of the Facility and that does not result in the transfer of ownership, economic or voting rights in any entity that had no such rights immediately prior to the change;
(d) The direct or indirect transfer of shares of, or equity interests in, Seller to a Lender; (e) An assignment of the Agreement, or the transfer of the Facility or the direct or indirect ownership of equity interests in Seller, to a Permitted Transferee; or (f) A transfer of the Facility (or the direct or indirect ownership of equity interests in Seller) in connection with any of the following transfers: (i) all or substantially all of the assets of NEER, NEECH, or Ultimate Parent; (ii) all or substantially all of NEER’s or Ultimate Parent’s renewable energy generation portfolio; or (iii) all or substantially all of NEER’s or Ultimate Parent’s solar generation and/or energy storage portfolio; or (iv) the direct or indirect transfer of shares of, or equity interests in, Seller to a person in which, following the transfer, an Affiliate of NEER continues to hold an economic interest in the Facility; provided, that in the case of each of (i) through (iv) above: (A) the transferee (1) executes and delivers to Buyer a written agreement under which the transferee assumes in writing all of Seller’s duties and obligations under this Agreement and otherwise agrees to be bound by all of the terms and conditions of this Agreement, and (2) meets the Seller credit security requirements; and (B) the entity that operates the Facility following such transfer is (or contracts with) a Qualified Operator. “Permitted Transferee” means (a) any Affiliate of Seller, or (b) any entity that satisfies, or is controlled by another Person that satisfies, the following requirements:
(i) A Tangible Net Worth of not less than One Hundred Fifty Million Dollars ($150,000,000) or a Credit Rating of at least BBB- from S&P, BBB- from Fitch, or Baa3 from Moody’s; and
(ii) At least two (2) years of experience in the ownership and operations of power generation facilities similar to the Facility, or has retained a third-party with such experience to operate the Facility.

Notwithstanding the foregoing, with respect to Seller, Permitted Transferee shall include its Ultimate Parent, NEER, NEECH, NEOP, and NEP, and their respective direct or indirect subsidiaries.
18 “Person” means any individual, sole proprietorship, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, incorporated organization, institution, public benefit corporation, unincorporated organization, government entity or other entity.
“Planned Outage” means a period during which the Facility is either in whole or in part not capable of providing service due to planned maintenance that has been scheduled in advance in accordance with Section 4.5(a). For the purpose of clarity, a “Planned Outage” is equivalent to a “Planned Outage” as such term is defined in the CAISO Tariff. “PNode” has the meaning set forth in the CAISO Tariff.
“Portfolio” means the single portfolio of electrical energy generating, energy storage, or other assets and entities, including the Facility (or the interests of Seller or Seller’s Affiliates or the interests of their respective direct or indirect parent companies), that entails assets in the United States, that is pledged as collateral security in connection with a Portfolio Financing. “Portfolio Content Category” means PCC1, PCC2 or PCC3, as applicable. “Portfolio Content Category 1” or “PCC1” means any Renewable Energy Credit associated with the generation of electricity from an Eligible Renewable Energy Resource consisting of the portfolio content set forth in California Public Utilities Code Section 399.16(b)(1), as may be amended from time to time or as further defined or supplemented by Law.
“Portfolio Financing” means any equity (including tax equity) financings or debt transactions entered into by an Affiliate of Seller that is secured only by a Portfolio. “Portfolio Financing Entity” means any Affiliate of Seller that enters into a tax equity transaction or incurs debt in connection with any Portfolio Financing. “Product” has the meaning set forth on the Cover Sheet. For the purpose of clarity, Product shall include (i) Facility Energy, and (ii) Green Attributes, including, but not limited to, Portfolio Content Category 1 Renewable Energy Credits (in each case not to exceed the quantity of Facility Energy and associated Green Attributes available from the Installed Capacity). “Progress Report” means a progress report including the items set forth in Exhibit E. “Proposed Contract Price Increase” has the meaning set forth in Section 2.5(b). “Prudent Operating Practice” means (a) the applicable practices, methods and acts required by or consistent with applicable Laws and reliability criteria, and otherwise engaged in or approved by a significant portion of the electric utility and independent power producer industry during the relevant time period with respect to grid-interconnected, utility-scale generating facilities in the Western United States, or (b) any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Prudent Operating Practice is not 19 intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather to acceptable practices, methods or acts generally accepted in the industry with respect to grid-interconnected, utility-scale generating facilities in the Western United States. Prudent Operating Practice includes compliance with applicable Laws, applicable reliability criteria, and the applicable criteria, rules and standards promulgated in the National Electric Safety Code and the National Electrical Code, as they may be amended or superseded from time to time, including the criteria, rules and standards of any successor organizations. “PTC” means the production tax credit established pursuant to Section 45 or 45Y or other applicable provisions of the United States Internal Revenue Code of 1986, as in effect as of the Commercial Operation Date, adjusted for inflation during the period any such PTCs are received as permitted under such applicable provisions of the United States Internal Revenue Code as of the Commercial Operation Date.
“PTC Amount” means the amount, on a dollar per MWh basis, equal to the PTCs that Seller would have earned in respect of Facility Energy at the time, grossed up on an After-Tax Basis at the then-highest marginal combined federal and state corporate tax rate, but failed to earn as a result of Buyer Bid Curtailment, Buyer Curtailment Order, or any other action or omission by Buyer (or its agents) including a Buyer Default which causes Seller to be unable to deliver Facility Energy to the Delivery Point, with the applicable MWh figure to be calculated by reference to the amount of Deemed Delivered Energy; provided, however the PTC Amount shall not be greater than $40.00 per MWh as of the Commercial Operation Date, and as subsequently adjusted for inflation during the period any such PTC Amounts are received by Seller, where the period of time any such PTC Amounts are received by Seller shall not exceed a total period of 10 years. “PV Equipment” means solar photovoltaic cells, modules, onboard sensors, control components, inverters, or any of their components.
“Qualified Operator” means Seller (either itself or through the engagement of an Affiliate) or an operator of photovoltaic solar generation facilities that has sufficient experience and technical capability to perform for Seller’s benefit the obligations of Seller under this Agreement related to the operation and maintenance of the Facility in accordance with the applicable requirements of this Agreement, as evidenced by such operator having operated two (2) or more photovoltaic solar generation facilities, each having a nameplate capacity rating of twenty (20) MW or more, for not less than two (2) years.
“Qualified Reporting Entity” or “QRE” has the meaning set forth in the WREGIS Operating Rules.
“Real-Time Forecast” has the meaning set forth in Section 4.3(d). “Real-Time Market” has the meaning set forth in the CAISO Tariff. “Real-Time Price” means the Resource-Specific Settlement Interval LMP as defined in the CAISO Tariff. If there is more than one applicable Real-Time Price for the same period of time, Real-Time Price shall mean the price associated with the smallest time interval. “Receiving Party” has the meaning set forth in Section 18.1. 20 “Recurring Certificate Transfer” has the meaning set forth in Section 4.7(a). “Remedial Action Plan” has the meaning set forth in Section 2.4. “Renewable Energy Credit” or “REC” means a renewable energy credit as defined by and in accordance with Section 399.12(h) of the California Public Utilities Code, including the right to claim title to the Green Attributes attributable to the generation of electric generation from an Eligible Renewable Energy Resources, as may be amended from time to time or as further defined or supplemented by Law.
“Renewable Energy Incentives” means: (a) all federal, state, or local Tax credits or other Tax benefits associated with the production of electricity from, or the construction, operation or the ownership of, the Facility or any part thereof (including the Tax Benefits and other credits under Sections 38, 45, 45Y, 46, 48, and 48E of the Internal Revenue Code of 1986, as amended); (b) any federal, state, or local grants, subsidies or other like benefits relating in any way to the Facility, including a cash grant available under Section 1603 of Division B of the American Recovery and Reinvestment Act of 2009, in lieu of federal Tax credits or any similar or substitute payment available under subsequently enacted federal legislation; and (c) any other form of incentive relating in any way to the Facility that is not a Green Attribute, or Future Environmental Attribute.
“S&P” means the Standard & Poor’s Financial Services, LLC (a subsidiary of S&P Global Inc.) or its successor.
“Schedule” has the meaning set forth in the CAISO Tariff, and “Scheduled” has a corollary meaning.
“Scheduled Energy” means the Facility Energy that clears under the applicable CAISO market based on the final Day-Ahead Schedule, FMM Schedule (as defined in the CAISO Tariff), or any other financially binding Schedule, market instruction or dispatch for the Facility for a given period of time implemented in accordance with the CAISO Tariff. “Scheduling Coordinator” or “SC” means an entity certified by the CAISO as qualifying as a Scheduling Coordinator pursuant to the CAISO Tariff for the purposes of undertaking the functions specified in “Responsibilities of a Scheduling Coordinator,” of the CAISO Tariff, as amended from time to time.
“Scheduling Coordinator Metered Entity” has the meaning set forth in the CAISO Tariff.
“Security Interest” has the meaning set forth in Section 8.10. “Self-Schedule” has the meaning set forth in the CAISO Tariff. “Seller” has the meaning set forth on the Cover Sheet.
“Seller’s WREGIS Account” has the meaning set forth in Section 4.7(a). 21 “Settlement Amount” means the Non-Defaulting Party’s Costs and Losses, on the one hand, netted against its Gains, on the other. If the Non-Defaulting Party’s Costs and Losses exceed its Gains, then the Settlement Amount shall be an amount owing to the Non-Defaulting Party. If the Non-Defaulting Party’s Gains exceed its Costs and Losses, then the Settlement Amount shall be zero dollars ($0). The Settlement Amount does not include consequential, incidental, punitive, exemplary or indirect or business interruption damages; provided, that the Parties agree that the value of Green Attributes and Renewable Energy Incentives are direct damages to be accounted for as specified in the definitions of Losses and Gains. “Settlement Interval” has the meaning set forth in the CAISO Tariff. “Settlement Period” has the meaning set forth in the CAISO Tariff. “Settlement Quality Meter Data” has the meaning set forth in the CAISO Tariff. “Shared Facilities” means the gen-tie lines, transformers, substations, or other equipment, permits, contract rights, and other assets and property (real or personal), in each case, as necessary to enable delivery of Energy from the Facility (which is excluded from Shared Facilities) to the point of interconnection, including the Interconnection Agreement itself, that are used in common with Affiliates and/or other third parties or by Seller for electric generation or storage facilities owned by Seller other than the Facility.
“Site” means the real property on which the Facility is or will be located, as further described in Exhibit A and as shall be updated by Seller at the time Seller provides an executed Construction Start Date certificate in the form of Exhibit J to Buyer. “Site Control” means that Seller or its Affiliate for the Delivery Term: (a) owns or has the option to purchase the Site; (b) is the lessee or has the option to lease the Site; or (c) is the holder of an easement or an option for an easement, right-of-way grant, or similar instrument with respect to the Site.
“SP-15” means the Existing Zone Generation Trading Hub for Existing Zone region SP15 as set forth in the CAISO Tariff.
“SQMD Plan” has the meaning set forth in the CAISO Tariff. “Station Use” means:
(a) The Energy generated by the Facility that is used within the Facility to power the lights, motors, control systems and other electrical loads that are necessary for operation of the Facility; and
(b) The Energy generated by the Facility that is consumed within the Facility’s electric energy distribution system as losses.

For the purpose of clarity Seller shall not use Energy generated by the Facility to charge a battery energy storage system and claim such as Station Use.
22 “System Emergency” means any condition that requires, as determined and declared by CAISO or the PTO, automatic or immediate action to (a) prevent or limit harm to or loss of life or property, (b) prevent loss of transmission facilities or generation supply in the immediate vicinity of the Facility, or (c) to preserve Transmission System reliability. “Tangible Net Worth” means the tangible assets (for example, not including intangibles such as goodwill and rights to patents or royalties) that remain after deducting liabilities as determined in accordance with generally accepted accounting principles. “Tax” or “Taxes” means all U.S. federal, state and local and any foreign taxes, levies, assessments, surcharges, duties and other fees and charges of any nature imposed by a Governmental Authority, whether currently in effect or adopted during the Contract Term, including ad valorem, excise, franchise, gross receipts, import/export, license, property, sales and use, stamp, transfer, payroll, unemployment, income, and any and all items of withholding, deficiency, penalty, additions, interest or assessment related thereto. “Tax Benefits” means the PTC, ITC, and any other state, local and/or federal tax benefit or incentive, including energy credits determined under Sections 38, 45, 45Y, 46, 48 and 48E of the Internal Revenue Code of 1986, as amended, investment tax credits, production tax credits, depreciation, amortization, deduction, expense, exemption, preferential rate, and/or other tax benefit or incentive associated with the production, sale, or storage of renewable energy and/or the operation, construction, investments in or ownership of, the Facility (including any cash payment or grant).
“Terminated Transaction” has the meaning set forth in Section 11.2(a). “Termination Payment” has the meaning set forth in Section 11.3. “Test Energy” means Facility Energy delivered (a) commencing on the later of (i) the first date that the CAISO informs Seller in writing that Seller may deliver Energy to the CAISO and (ii) the first date that the PTO informs Seller in writing that Seller has conditional or temporary permission to parallel and (b) ending upon the occurrence of the Commercial Operation Date. “Test Energy Rate” has the meaning set forth in Section 3.6. “Third Phase Agreement” means the agreement between Buyer and the Participating Members that sets forth the terms and conditions under which Buyer is authorized to enter into this Agreement on behalf of the Participating Members.
“TP Deliverability” has the meaning set forth in the CAISO Tariff. “Transmission Provider” means any entity or entities transmitting or transporting the Facility Energy on behalf of Buyer from the Delivery Point. “Transmission System” means the transmission facilities operated by the CAISO, now or hereafter in existence, which provide energy transmission service downstream from the Delivery Point.
23 “UFLPA/WRO Restraint” means any withhold release order or other import restraint issued by U.S. Customs and Border Protection or other applicable Governmental Authority, including under the Uyghur Forced Labor Prevention Act, that prevents or delays the import or release of any PV Equipment into the United States and such order, despite the use by Seller of commercially reasonable efforts to avoid procurement or sourcing of PV Equipment that was reasonably foreseeable to become subject to such restraint, prevents or delays the delivery of such PV Equipment to Seller for incorporation into the Facility. “Ultimate Parent” means NextEra Energy, Inc., NEER, NEP, NEOP, or NEECH, and includes any combination thereof.
“Variable Energy Resource” or “VER” has the meaning set forth in the CAISO Tariff. “WREGIS” means the Western Renewable Energy Generation Information System or any successor renewable energy tracking program.
“WREGIS Certificate Deficit” has the meaning set forth in Section 4.7(e). “WREGIS Certificates” has the same meaning as “Certificate” as defined by WREGIS in the WREGIS Operating Rules and are designated as eligible for complying with the California Renewables Portfolio Standard.
“WREGIS Operating Rules” means those operating rules and requirements adopted by WREGIS as of October 1, 2022, as subsequently amended, supplemented or replaced (in whole or in part) from time to time.

1.2 Rules of Interpretation. In this Agreement, except as expressly stated otherwise or unless the context otherwise requires:
(a) headings and the rendering of text in bold and italics are for convenience and reference purposes only and do not affect the meaning or interpretation of this Agreement; (b) words importing the singular include the plural and vice versa and the masculine, feminine and neuter genders include all genders; (c) the words “hereof”, “herein”, and “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (d) a reference to an Article, Section, paragraph, clause, Party, or Exhibit is a reference to that Article, Section, paragraph, clause of, or that Party or Exhibit to, this Agreement unless otherwise specified;
(e) a reference to a document or agreement, including this Agreement means such document, agreement or this Agreement including any amendment or supplement to, or replacement, novation or modification of this Agreement, but disregarding any amendment, supplement, replacement, novation or modification made in breach of such document, agreement or this Agreement;
24 (f) a reference to a Person includes that Person’s successors and permitted assigns;
(g) the terms “include” and “including” mean “include or including (as applicable) without limitation” and any list of examples following such terms shall in no way restrict or limit the generality of the word or provision in respect of which such examples are provided;
(h) references to any statute, code or statutory provision are to be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or reenacted, and include references to all bylaws, instruments, orders and regulations for the time being made thereunder or deriving validity therefrom unless the context otherwise requires; (i) in the event of a conflict, a mathematical formula or other precise description of a concept or a term shall prevail over words providing a more general description of a concept or a term;
(j) references to any amount of money shall mean a reference to the amount in United States Dollars;
(k) the expression “and/or” when used as a conjunction shall connote “any or all of”;
(l) words, phrases or expressions not otherwise defined herein that (i) have a generally accepted meaning in Prudent Operating Practice shall have such meaning in this Agreement or (ii) do not have well known and generally accepted meaning in Prudent Operating Practice but that have well known and generally accepted technical or trade meanings, shall have such recognized meanings; and
(m) each Party acknowledges that it was represented by counsel in connection with this Agreement and that it or its counsel reviewed this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement.

ARTICLE 2
TERM; CONDITIONS PRECEDENT

2.1 Contract Term.
(a) The term of this Agreement shall commence on the Effective Date and shall remain in full force and effect until the conclusion of the Delivery Term, subject to any early termination provisions set forth herein (“Contract Term”); provided, however, that subject to Buyer’s obligations in Section 3.6, Buyer’s obligations to pay for or accept any Product are subject to Seller’s completion of the conditions precedent pursuant to Section 2.2. (b) Applicable provisions of this Agreement shall continue in effect after termination, including early termination, to the extent necessary to enforce or complete the duties, obligations or responsibilities of the Parties arising prior to termination. The indemnity and audit 25 rights shall remain in full force and effect for one (1) year following the termination of this Agreement. The confidentiality obligations of the Parties under Article 18 shall remain in full force and effect for two (2) years following the termination of this Agreement.

2.2 Conditions Precedent. The Delivery Term shall commence upon Seller’s completion of all of the following conditions:
(a) Seller shall have constructed or caused to be constructed the Facility as of the Commercial Operation Date to (i) enable Seller to satisfy the obligations of the Seller under this Agreement subject to Exhibit B, Section 5, and (ii) enable the Facility to provide Product; (b) The Facility has successfully completed all testing required by Prudent Operating Practice or any requirement of Law to operate the Facility; (c) Seller has delivered to Buyer (i) a completion certificate from a Licensed Professional Engineer substantially in the form of Exhibit H and (ii) a certificate from a Licensed Professional Engineer substantially in the form of Exhibit I setting forth the Installed Capacity on the Commercial Operation Date;
(d) A Participating Generator Agreement and a Meter Service Agreement for Metered Entities between Seller and CAISO shall have been executed and delivered and be in full force and effect, and a copy of each such agreement delivered to Buyer; (e) An Interconnection Agreement between Seller or Seller’s Affiliate and the PTO shall have been executed and delivered and be in full force and effect and a copy of the Interconnection Agreement delivered to Buyer;
(f) All applicable regulatory authorizations, approvals and permits required for the operation of the Facility have been obtained and all required conditions thereof that are required to be satisfied by the Commercial Operation Date have been satisfied and shall be in full force and effect (including CEQA requirements);
(g) Seller has provided notice that Seller (either itself or through the engagement of an Affiliate) will act as the Qualified Operator for the Facility, or Seller has entered into one or more agreements providing for the operation and maintenance of the Facility with one or more other Qualified Operators;
(h) Seller, with the reasonable cooperation of Buyer, has taken all actions and executed and delivered to Buyer and the CAISO all documents that are reasonably capable of being completed prior to the Commercial Operation Date necessary to register and quality the Facility to participate and operate in the CAISO markets, as set forth in the CAISO Tariff, including satisfying and completing the CAISO New Resource Implementation process (commonly referred to as the “NRI Process”) with respect to the Facility;
(i) Seller has received CEC Precertification of the Facility (and reasonably expects to receive final CEC Certification and Verification for the Facility in no more than one hundred eighty (180) days from the Commercial Operation Date); 26 (j) Seller (with the reasonable participation of Buyer) shall have completed all applicable WREGIS registration requirements that are reasonably capable of being completed prior to the Commercial Operation Date under WREGIS rules, including (as applicable) the completion and submittal of all applicable registration forms and supporting documentation, which may include applicable interconnection agreements, informational surveys related to the Facility, and other appropriate documentation required to effect Facility registration with WREGIS and to enable PCC1 Renewable Energy Credit transfers related to the Facility within the WREGIS system; and
(k) Seller has delivered the Performance Security to Buyer in accordance with Section 8.8.
(l) Seller has satisfied the insurance requirements to the extent set forth in Section 17.1(a) of this Agreement.
(m) Seller or its Affiliate has obtained Site Control necessary to enable Seller to satisfy the obligations of the Seller under this Agreement.

2.3 Development; Construction; Progress Reports. Within fifteen (15) days after the close of (i) each calendar quarter from the first calendar quarter following the Effective Date until the Construction Start Date, and (ii) each calendar month from the first calendar month following the Construction Start Date until the Commercial Operation Date, Seller shall provide to Buyer a Progress Report and shall hold regularly scheduled (i.e., quarterly or monthly, as applicable) meetings between representatives of Buyer and Seller to review such reports and discuss Seller’s construction progress, such meeting to be held in person or by teleconference as agreed between the Parties. The form of the Progress Report is set forth in Exhibit E. Seller shall also provide Buyer with any reasonable requested documentation (subject to confidentiality restrictions) directly related to the achievement of Milestones within ten (10) Business Days of receipt of such request by Seller. For the avoidance of doubt, as between Seller and Buyer, Seller is solely responsible for the design and construction of the Facility, including the location of the Site, obtaining all permits and approvals to build the Facility, the Facility layout, and the selection and procurement of the equipment comprising the Facility.

2.4 Remedial Action Plan. If Seller (a) misses the Guaranteed Construction Start Date, (b) misses three (3) or more Milestones, or (c) misses any one (1) Milestone (other than the Guaranteed Construction Start Date) by more than ninety (90) days, except as the result of a Development Cure Period, a New PV Trade Measure Event, WRO Restraint, or Buyer Default, Seller shall submit to Buyer, within ten (10) Business Days after the occurrence of (a), (b) or (c), a remedial action plan (“Remedial Action Plan”), which will describe in detail any delays (actual or anticipated) beyond the scheduled Milestone dates, including the cause of the delay, if known (e.g., governmental approvals, financing, property acquisition, design activities, equipment procurement, project construction, interconnection, or any other factor), Seller’s reasonably detailed description of its proposed course of action to achieve the missed Milestones and all subsequent Milestones to the extent possible; provided, delivery of any Remedial Action Plan shall not relieve Seller of its obligation to provide Remedial Action Plans with respect to any subsequent Milestones and to achieve the Guaranteed Commercial Operation Date in accordance with the terms of this Agreement. Subject to the provisions of Exhibit B, so long as Seller complies with 27 its obligations under this Section 2.4, Seller shall not be considered in default of its obligations under this Agreement solely as a result of missing any Milestone.

2.5 New PV Trade Measure Events and UFLPA/WRO Restraints.

Notwithstanding anything to the contrary in this Agreement, in connection with any New PV Trade Measure Event or UFLPA/WRO Restraints:
(a) Seller may suspend development and construction of the Facility during, and shall receive a day-for-day extension of the Guaranteed Construction Start Date the Guaranteed Commercial Operation Date, and each other applicable Milestone for, each day of the New PV Trade Measure Event through the end date of such New PV Trade Measure Event or each day of the UFLPA/WRO Restraint through the end date of such UFLPA/WRO Restraint, as applicable, plus any period afterward as is reasonably necessary to accommodate any Seller or industry supply chain mobilization, remobilization, or other adjustment to the outcome of such New PV Trade Measure Event or UFLPA/WRO Restraint, as applicable. Subject to Exhibit B, if the extension of the Guaranteed Commercial Operation Date exceeds 365 days, either Party may within ten (10) Business Days thereof provide a Notice to the other Party terminating this Agreement, provided, however, the Parties may mutually agree to a further extension of time by amending this agreement pursuant to Section 19.2. Neither Party shall have any liability to the other Party as a result of any termination of this Agreement under this Section 2.5(a), and within ten (10) Business Days each Party shall return any Development Security or Buyer Security then held by such Party to Seller or Buyer, as applicable.
(b) Seller may, in its sole discretion at any time prior to sixty (60) days after the occurrence or cessation, as applicable, of such New PV Trade Measure Event, provide written notice to Buyer of a Proposed Contract Price Increase to keep Seller whole with respect to any actual cost increases that Seller incurs as a result of such New PV Trade Measure Event (“Proposed Contract Price Increase”); provided, in which case Seller shall deliver to Buyer a report from an independent retained consultant or other qualified person not employed by or affiliated with Seller or Buyer, and where such independent consultant or other qualified person is approved by Buyer, where such Buyer approval cannot be unreasonably withheld, conditioned or delayed, that explains in reasonable detail (i) the cost impact to Seller and the Facility that result from the applicable New PV Trade Measure Event, and (ii) how the Proposed Contract Price Increase was determined, including an explanation of why the Proposed Contract Price Increase is reasonably necessary to keep Seller whole with respect to the cost increase that Seller expects as a result of the New PV Trade Measure Event (“Independent Report”). Cost impacts shall be shown in the Independent Report in terms of $/WAc to explain changes to the Contract Price. The Independent Report shall be subject to Article 18 of this Agreement and made available only to Buyer’s personnel and representatives who have a need to review the Independent Report in connection with their role for Buyer in implementing this Agreement, and who confirm their agreement to maintain the confidentiality of the Independent Report. Pursuant to the confidentiality requirements of this Agreement, Buyer shall cooperate with Seller to strive to protect the Independent Report from disclosure under the California Public Records Act pursuant to Article 18. If Buyer does not provide written acceptance of the Proposed Contract Price Increase to Seller within sixty (60) days after Buyer’s receipt of the Proposed Contract Price Increase notice from Seller, then Seller may terminate this Agreement upon written notice to Buyer; provided, if such termination Notice is not provided by Seller within ten (10) Business Days after the sixty (60) 28 day period has ended, such termination right under this paragraph is forfeited and the terms and conditions of this Agreement will remain unchanged, including the Contract Price. Neither Party shall have any liability to the other Party as a result of any termination of this Agreement under this Section 2.5(b), and within ten (10) Business Days each Party shall return any Development Security or Buyer Security then held by such Party to Seller or Buyer, as applicable.

2.6 Seller’s Pre-COD Termination Right. Notwithstanding anything to the contrary in this Agreement, and without limiting Seller’s rights to terminate for other reasons set forth in this the Agreement, Seller shall have the right to terminate this Agreement for convenience at any time prior to the Commercial Operation Date in exchange for payment of the Damage Payment to Buyer. Seller’s exercise of such termination right shall require that Seller provide at least ten (10) Business Days’ Notice of such termination signed by a duly-authorized officer of Seller which specifically provides that Seller is exercising its right to terminate this Agreement and specifically provides that such termination is being made pursuant to this Section 2.6 of the Agreement.

2.7 CEQA.
(a) The Parties agree that pursuant to Section 2.2(f), Buyer has no obligation to accept or pay for any Product or Test Energy under this Agreement until the date on which all of the following have occurred (such date, the “CEQA Completion Date”): (a) any applicable review under CEQA has been completed by the Lead Agency and all necessary CEQA approval(s) (the “CEQA Approval(s)”) for the Facility have been issued by the Lead Agency; and (b) (i) the applicable period for any judicial challenges to the CEQA Approval(s) relating to the Facility has expired without any such challenge having been filed in court, or (ii) in the event of any such challenge, the challenge has been dismissed, or (iii) in the event of any such challenge, there is not pending any motion for preliminary injunction or stay pending appeal and such CEQA Approval(s) by the Lead Agency have not been enjoined or stayed by a court having competent jurisdiction over such CEQA Approval(s). The Delivery Term shall not occur without the occurrence of the CEQA Completion Date.
(b) Buyer reserves the right to participate in the CEQA review of the Facility by the Lead Agency.

ARTICLE 3

PURCHASE AND SALE

3.1 Purchase and Sale of Product. Subject to the terms and conditions of this Agreement, during the Delivery Term, Buyer will purchase and receive all of the Product produced by or associated with the Facility at the Contract Price and in accordance with Exhibit C, and Seller shall supply and deliver to Buyer all of the Product produced by or associated with the Facility.

At its sole discretion, Buyer may during the Delivery Term re-sell or use for another purpose all or a portion of the Product, provided that no such re-sale or use shall relieve Buyer of any obligations hereunder. During the Delivery Term, Buyer will have exclusive rights to offer, bid, or otherwise submit the Product, or any component thereof, from the Facility after the Delivery Point for resale into the market or to any third party, and retain and receive any and all related revenues.
29 3.2 Sale of Green Attributes. During the Delivery Term, Seller shall sell and deliver to Buyer, and Buyer shall purchase and receive from Seller, all Green Attributes attributable to the Facility Energy generated by the Facility.

3.3 Imbalance Energy. Buyer and Seller recognize that in any given Settlement Period there may be Imbalance Energy. Except as otherwise set forth in Exhibit D-1, to the extent there is any Imbalance Energy, any amounts payable or receivable related to such Imbalance Energy shall be for the account of Buyer.

3.4 Ownership of Renewable Energy Incentives. Seller shall have all right, title and interest in and to all Renewable Energy Incentives. Buyer acknowledges that any Renewable Energy Incentives belong to Seller. If any Renewable Energy Incentives, or values representing the same, are initially credited or paid to Buyer, Buyer shall cause such Renewable Energy Incentives or values relating to same to be assigned or transferred to Seller without delay. Buyer shall reasonably cooperate with Seller, at Seller’s sole expense, in Seller’s efforts to meet the requirements for any certification, registration, or reporting program relating to Renewable Energy Incentives.

3.5 Future Environmental Attributes.
(a) The Parties acknowledge and agree that as of the Effective Date, environmental attributes sold under this Agreement are restricted to Green Attributes; however, if, after the Effective Date the Facility is able to provide Future Environmental Attributes for any reason, including due to a change in market conditions or Law, Buyer shall have the exclusive right to such Future Environmental Attributes and there shall be no increase in the Contract Price; provided, however, that such right shall be subject to this Section 3.5(a) and Section 3.5(b) and Buyer shall bear all costs and risks associated with the transfer, qualification, verification, registration and ongoing compliance for such Future Environmental Attributes. Upon Seller’s receipt of Notice from Buyer of Buyer’s intent to claim such Future Environmental Attributes, the Parties shall determine the necessary actions and additional costs associated with such Future Environmental Attributes. Seller shall have no obligation to bear any costs, losses or liability, or alter the Facility or the operation of the Facility, unless the Parties have agreed on all necessary terms and conditions relating to such alteration or change in operation and Buyer has agreed to reimburse Seller for all costs, losses, and liabilities associated with such alteration or change in operation.
(b) If Buyer elects to receive Future Environmental Attributes pursuant to, and subject to the requirements of, Section 3.5(a), Seller agrees to work with Buyer in good faith to provide reasonably requested documentation and execute reasonable documentation necessary to effectuate the transfer and registration of such Future Environmental Attributes, including agreement with respect to (i) appropriate transfer, delivery and risk of loss mechanisms, and (ii) appropriate allocation of any additional costs to Buyer, as set forth above (in any event subject to Section 3.9); provided, that the Parties acknowledge and agree such terms shall not alter the other material terms of this Agreement.

3.6 Test Energy. No less than fourteen (14) days prior to the first day on which Test Energy is expected to be available from the Facility, Seller shall notify Buyer of the availability of 30 the Test Energy. If and to the extent the Facility generates Test Energy, Seller shall sell and Buyer shall purchase from Seller all Test Energy and any associated Products on an as-available basis.

As compensation for such Test Energy and associated Product, the payment by Buyer to Seller shall be in the amount of seventy percent (70%) of the Contract Price (the “Test Energy Rate”).

For the avoidance of doubt, the conditions precedent in Section 2.2 are not applicable to the Parties’ obligations under this Section 3.6.

3.7 CEC Certification and Verification. Subject to Section 3.9, Seller shall take all necessary steps including, but not limited to, making or supporting timely filings with the CEC to obtain and maintain CEC Certification and Verification for the Facility throughout the Delivery Term, including compliance with all applicable requirements for certified facilities set forth in the current version of the RPS Eligibility Guidebook (or its successor). Seller shall obtain CEC Precertification by the Commercial Operation Date. Within thirty (30) days after the Commercial Operation Date, Seller shall apply with the CEC for final CEC Certification and Verification.

Within one hundred eighty (180) days after the Commercial Operation Date, Seller shall, subject to Section 3.9 or CEC error or omission, obtain and maintain throughout the remainder of the Delivery Term the final CEC Certification and Verification. Seller must promptly notify Buyer and the CEC of any changes to the information included in Seller’s application for CEC Certification and Verification for the Facility.

3.8 RPS Standard Terms and Conditions.
(a) Tracking of RECs in WREGIS. Seller warrants that all necessary steps to allow the Renewable Energy Credits transferred to Buyer to be tracked in the Western Renewable Energy Generation Information System will be taken prior to the first delivery under the contract. [STC REC-2].
(b) Transfer of Renewable Energy Credits. Seller and, if applicable, its successors, represents and warrants that throughout the Delivery Term of this Agreement the Renewable Energy Credits transferred to Buyer conform to the definition and attributes required for compliance with the California Renewables Portfolio Standard, as set forth in California Public Utilities Commission Decision 08-08-028, and as may be modified by subsequent decision of the California Public Utilities Commission or by subsequent legislation. To the extent a change in law occurs after execution of this Agreement that causes this representation and warranty to be materially false or misleading, it shall not be an Event of Default if Seller has used commercially reasonable efforts to comply with such change in law. [STC REC-1]. (c) Eligibility. Seller, and, if applicable, its successors, represents and warrants that throughout the Delivery Term of this Agreement that: (i) the Project qualifies and is certified by the CEC as an Eligible Renewable Energy Resource (“ERR”) as such term is defined in Public Utilities Code Section 399.12 or Section 399.16; and (ii) the Project’s output delivered to Buyer qualifies under the requirements of the California Renewables Portfolio Standard. To the extent a change in law occurs after execution of this Agreement that causes this representation and warranty to be materially false or misleading, it shall not be an Event of Default if Seller has used commercially reasonable efforts to comply with such change in law. [STC 6]. 31 (d) With respect to the immediately preceding paragraphs (a) – (c), (i) the reference in Section 3.8(a) to “first delivery under the contract” has the same meaning as “first delivery of Facility Energy under this Agreement”, (ii) the references in Section 3.8(c) to “Project” have the same meaning as “Facility”, (iii) the reference in Section 3.8(c)(ii) to “the Project’s output” has the same meaning as “the Facility Energy”, (iv) “qualifies and is certified by the CEC” includes for up to six (6) months after COD CEC pre-certification of the Facility, (v) each reference in the last sentences of Section 3.8(b) and Section 3.8(c) to “commercially reasonable efforts” means efforts consistent with and subject to Section 3.9 below, and (vi) the references in Section 3.8(a) and Section 3.8(b) to “Renewable Energy Credits” means “PCC1 Renewable Energy Credits”.

3.9 Compliance Expenditure Cap.
(a) If a Change in Law occurring after the Effective Date has increased Seller’s known or reasonable expected costs to comply with Seller’s obligations to cause the Green Attributes to be compliant with the California RPS Program and Section 399.16(b)(1) of the California Public Utilities Code, then the Parties agree that the maximum aggregate amount of outof-pocket costs and expenses (“Compliance Costs”) that Seller shall be required to bear during the Contract Term to comply with all of such obligations shall be capped at Thirty Thousand Dollars ($30,000) per MWAC of Guaranteed Capacity (“Compliance Expenditure Cap”). Seller’s internal administrative costs association with obtaining, maintaining, conveying or effectuating, Buyer’s use of (as applicable) any Product are excluded from the Compliance Expenditure Cap. (b) Any actions required for Seller to comply with its obligations set forth in the first paragraph above, the Compliance Costs of which will be included in the Compliance Expenditure Cap, shall be referred to collectively as the “Compliance Actions.” (c) If Seller reasonably anticipates the need to incur Compliance Costs in excess of the Compliance Expenditure Cap in order to take any Compliance Action Seller shall provide Notice to Buyer of such anticipated Compliance Costs. Buyer will have sixty (60) days to evaluate such Notice (during which time period Seller is not obligated to take any Compliance Actions described in the Notice) and shall, within such time, either (1) agree to reimburse Seller for all or some portion of the Compliance Costs that exceed the Compliance Expenditure Cap (such Buyer-agreed upon costs, the “Accepted Compliance Costs”), or (2) waive Seller’s obligation to take such Compliance Actions, or any part thereof for which Buyer has not agreed to reimburse Seller.
(d) If Buyer agrees to reimburse Seller for the Accepted Compliance Costs, then Seller shall take such Compliance Actions covered by the Accepted Compliance Costs as agreed upon by the Parties and Buyer shall reimburse Seller for Seller’s actual costs to effect the Compliance Actions, not to exceed the Accepted Compliance Costs, within sixty (60) days from the time that Buyer receives an invoice and documentation of such costs from Seller. (e) If Buyer does not respond to a Notice given by Seller under this Section 3.9 within sixty (60) days, or if Buyer does not timely pay the costs and expenses in excess of the Accepted Compliance Costs, Buyer shall be deemed to have waived its rights to require Seller to take the Compliance Actions that are the subject of the Notice, and Seller shall have no further 32 obligation to take, and no liability or obligation under this Agreement for any failure to take, such Compliance Actions.
(f) If a Change in Law makes it infeasible for Seller to comply with its obligations under this Section 3.9, and it is not possible to overcome the Change in Law through Compliance Actions or the expenditure of money, then, except as otherwise provided or contemplated in this Agreement with respect to how a Change in Law will be addressed, then in each case (i) Seller shall be excused from the corresponding Compliance Actions under this Agreement, and (ii) Buyer shall continue to pay Seller under this Agreement without any reduction in revenues that otherwise would result from the Change in Law.

3.10 Project Configuration. In order to optimize the benefits of the Facility, Buyer and Seller each agree that if requested by the other Party, then Buyer and Seller will discuss in good faith potential reconfiguration of the Facility or Interconnection Facilities; provided, neither Party shall be obligated to agree to any changes under this Agreement, or to incur any expense in connection with such changes, except under terms mutually acceptable to both Parties (and Seller’s Lenders) as set forth in a written agreement executed by the Parties. For the avoidance of doubt, and notwithstanding anything in this Agreement to the contrary: (a) as of the Effective Date, the Facility has Energy-Only Deliverability Status; and (b) Seller makes no representation or warranty that the Facility will obtain deliverability or any allocation of TP Deliverability, or achieve Full Capacity Deliverability Status or Interim Deliverability Status.

ARTICLE 4

OBLIGATIONS AND DELIVERIES

4.1 Delivery.
(a) Energy. Subject to the provisions of this Agreement, commencing on the Commercial Operation Date and through the end of the Contract Term, Seller shall supply and deliver the Product to Buyer at the Delivery Point, and Buyer shall take delivery of the Product at the Delivery Point in accordance with the terms of this Agreement. Seller shall be responsible for paying or satisfying when due any costs or charges imposed in connection with the delivery of Facility Energy to the Delivery Point, including without limitation, Station Use, Electrical Losses, and any operation and maintenance charges imposed on Seller by the Transmission Provider directly relating to the Facility’s operations. Buyer shall be responsible for all costs, charges and penalties, if any, imposed in connection with the delivery of Facility Energy at and after the Delivery Point, including without limitation transmission costs and transmission line losses and imbalance charges. The Facility Energy will be Scheduled with the CAISO by Buyer (or Buyer’s designated Scheduling Coordinator for the Facility) in accordance with the CAISO Tariff, and the Scheduling and operating procedures developed under Exhibit D-2. (b) Green Attributes. All Green Attributes associated with the Facility Energy during the Delivery Term are exclusively dedicated to and will be conveyed to Buyer. Seller represents and warrants that Seller holds the rights to all Green Attributes from the Facility Energy, and Seller agrees to convey and hereby conveys all such Green Attributes to Buyer as included in the delivery of the Product from the Facility.
33 (c) Scheduling Coordination. The Parties agree to coordinate with respect to the dispatch of Energy from the Facility on a periodic basis. The Parties further agree to update Sections 4.3 to 4.4 or Exhibit D-2 as needed by mutual written agreement.

4.2 Title and Risk of Loss.
(a) Energy. Title to and risk of loss related to the Facility Energy, shall pass and transfer from Seller to Buyer at the Delivery Point. Seller warrants that all Product delivered to Buyer is free and clear of all liens, security interests, claims and encumbrances of any kind. (b) Green Attributes. Title to and risk of loss related to the Green Attributes associated with the Facility Energy shall pass and transfer from Seller to Buyer upon the transfer of such Green Attributes in accordance with WREGIS Operating Rules, or other applicable rules and requirements in the event WREGIS is no longer used to transfer Green Attributes.

4.3 Forecasting. Seller shall provide or cause to be provided the forecasts described below at its sole expense and in a format reasonably acceptable to Buyer (or Buyer’s designee).

Seller shall use reasonable efforts to provide forecasts that are accurate and, to the extent not inconsistent with the requirements of this Agreement, shall prepare such forecasts, or cause such forecasts to be prepared, in accordance with Prudent Operating Practices; provided, however, the Parties acknowledge that the Real-Time Forecast is provided by an Approved Forecast Vendor which, at least as of the Effective Date, is not Seller but the CAISO and Seller undertakes no obligations with respect to the accuracy of such CAISO forecasts. (a) Annual Forecast of Energy. No less than thirty (30) days before (i) the first day of the first Contract Year of the Delivery Term and (ii) at the beginning of each calendar year for every subsequent Contract Year during the Delivery Term, Seller shall provide to Buyer and the SC (if applicable) a non-binding forecast of each month’s average-day expected Energy, by hour, for the following calendar year in a form substantially similar to the table found in Exhibit F1, or as reasonably requested by Buyer. (b) Monthly Forecast of Energy and Available Generating Capacity. No less than thirty (30) days before the beginning of Commercial Operation, and thereafter at least ten (10) Business Days before the beginning of each month during the Delivery Term, Seller shall provide to Buyer and the SC (if applicable) a non-binding forecast of the hourly expected Energy and expected Available Generating Capacity for each day of the following month in a form substantially similar to the table found in Exhibit F-2, or as reasonably agreed to by the Parties (“Monthly Delivery Forecast”).
(c) Day-Ahead Forecast. By 5:30 AM Pacific Prevailing Time on the Business Day immediately preceding the date of delivery, or as otherwise specified by Buyer consistent with Prudent Operating Practice, Seller shall provide Buyer with a non-binding forecast of Available Generating Capacity, and an Approved Forecast Vendor shall provide Buyer with a nonbinding forecast of hourly expected Energy for each Settlement Interval of each hour of the immediately succeeding day (“Day-Ahead Forecast”). A Day-Ahead Forecast provided in a day prior to any non-Business Day(s) shall include non-binding forecasts for the immediate day, each succeeding non-Business Day and the next Business Day. Each Day-Ahead Forecast shall clearly 34 identify, for each Settlement Interval of each hour, Seller’s best estimate of the Available Generating Capacity, and the Approved Forecast Vendor’s best estimate of the hourly expected Energy. These Day-Ahead Forecasts shall be sent to Buyer. If Seller or an Approved Forecast Vendor fails to provide Buyer with a Day-Ahead Forecast as required herein for any period, then for such unscheduled delivery period only Buyer shall rely on any Real-Time Forecast provided in accordance with Section 4.3(d) or the Monthly Delivery Forecast or Buyer’s best estimate based on information reasonably available to Buyer.
(d) Real-Time Forecasts. During the Delivery Term, Seller shall notify Buyer of any changes from the Day-Ahead Forecast of Available Generating Capacity of one (1) MW or more, and an Approved Forecast Vendor shall provide Buyer with an updated hourly expected Energy forecast for each Settlement Interval of each hour of the current operating day. The updated forecast of Available Generating Capacity and the hourly expected Energy shall be provided to Buyer as soon as reasonably possible, but no later than one (1) hour prior to the deadline for submitting Schedules to the CAISO in accordance with the rules for participation in the Real-Time Market (“Real-Time Forecast”). Such Real-Time Forecasts of Energy shall be provided by an Approved Forecast Vendor each hour and shall contain information regarding the beginning date and time of the event resulting in the change in Available Generating Capacity or the total amount of hourly expected Energy, as applicable, the expected end date and time of such event, and any other information required by the CAISO or reasonably requested by Buyer. With respect to any Forced Facility Outage, Seller shall use commercially reasonable efforts to notify Buyer of such outage within ten (10) minutes of the commencement of the Forced Facility Outage.

Seller shall inform Buyer of any developments that will affect either the duration of such outage or the availability of the Facility during or after the end of such outage. These Real-Time Forecasts shall be communicated in a method reasonably acceptable to Buyer; provided that Buyer specifies the method no later than fifteen (15) Business Days prior to the effective date of such requirement.

In the event Buyer fails to provide Notice of an acceptable method for communications under this Section 4.3(d), then Seller shall send such communications by telephone and e-mail to Buyer. (e) Forced Facility Outages. Notwithstanding anything to the contrary herein, Seller shall promptly notify Buyer of Forced Facility Outages and Seller shall keep Buyer informed of any developments that will affect either the duration of the outage or the availability of the Facility during or after the end of the outage.
(f) CAISO Tariff Requirements. To the extent such obligations are applicable to the Facility, Seller will comply with all applicable obligations for Variable Energy Resources under the CAISO Tariff and the Eligible Intermittent Resource Protocol, including providing appropriate operational data and meteorological data, and will fully cooperate with Buyer and CAISO, in providing all data, information, and authorizations required thereunder.

4.4 Dispatch Down/Curtailment.
(a) General. Seller agrees to reduce the amount of Facility Energy produced by the Facility, by the amount and for the period set forth in any Curtailment Order, Buyer Curtailment Order, or notice received from CAISO in respect of a Buyer Bid Curtailment. (b) Buyer Curtailment. Buyer shall have the right to order Seller to curtail 35 deliveries of Facility Energy through Buyer Curtailment Orders and/or Buyer Bid Curtailments; provided, Buyer shall pay Seller for all Deemed Delivered Energy associated with any Buyer Curtailment Period as set forth in Section (b) of Exhibit C. (c) Failure to Comply. If Seller fails to comply with Curtailment Order, Buyer Curtailment Order, or notice received from CAISO in respect of a Buyer Bid Curtailment, then, for each MWh of Facility Energy that is delivered by the Facility to the Delivery Point in contradiction to the Curtailment Order, Buyer Curtailment Order, or notice received from CAISO in respect of a Buyer Bid Curtailment, Seller shall pay Buyer for each such MWh at an amount equal to the sum of (A) + (B) + (C), where: (A) is the amount, if any, paid to Seller by Buyer for delivery of such excess MWh and, (B) is the sum, for all Settlement Intervals with a Negative LMP during the Buyer Curtailment Period or Curtailment Period, of the absolute value of the product of such excess MWh in each Settlement Interval and the Negative LMP for such Settlement Interval, and (C) is any penalties assessed by the CAISO or other charges assessed by the CAISO resulting from Seller’s failure to comply with the Curtailment Order, Buyer Curtailment Order, or notice received from CAISO in respect of a Buyer Bid Curtailment. (d) Seller Equipment Required for Curtailment Instruction Communications.

Seller shall acquire, install, and maintain such facilities, communications links and other equipment, and implement such protocols and practices, as necessary to respond and follow instructions, including an electronic signal conveying real time and intra-day instructions, to operate the Facility as reasonably directed by the Buyer in accordance with this Agreement or a Governmental Authority, including to implement a Buyer Curtailment Order, Buyer Bid Curtailment, or Curtailment Order in accordance with the then-current methodology used to transmit such instructions as it may change from time to time (including adjustments to megawatt output in real-time by means of set points received by the Facility controller of Seller, provided that the dispatch order is consistent with the Facility’s operational characteristics as then-currently modeled in the CAISO Master File). If at any time during the Delivery Term Seller’s facilities, communications links or other equipment, protocols or practices are not in compliance with thencurrent methodologies, Seller shall take the steps necessary to become compliant as soon as reasonably possible. Seller shall be liable pursuant to Section 4.4(c) for failure to comply with a Buyer Curtailment Order, Buyer Bid Curtailment, or Curtailment Order, during the time that Seller’s facilities, communications links or other equipment, protocols or practices are not in compliance with then-current methodologies. For the avoidance of doubt, a Buyer Curtailment Order, Buyer Bid Curtailment, or Curtailment Order communication via such systems and facilities shall have the same force and effect on Seller as any other form of communication.

4.5 Reduction in Delivery Obligation. For the avoidance of doubt, and in no way limiting Section 3.1 or Exhibit G:
(a) Facility Maintenance. In developing the Operating Coordination Scheduling and operating procedures set forth in Exhibit D-2, the Parties will work together on a mutually acceptable template to document how maintenance and outages will impact the availability of the Facility to be bid and Scheduled in the CAISO market. Subject to providing Buyer at least sixty (60) days’ prior Notice, Seller shall be permitted to reduce deliveries of Product during any period of scheduled maintenance on the Facility, provided, that (i) Seller may adjust the dates of any scheduled maintenance with fewer than sixty (60) days’ prior Notice to Buyer so 36 long as (X) Seller makes its request more than ten (10) days prior to the expected start date of such scheduled maintenance and (Y) the requested alternate date is acceptable to Buyer in its reasonable discretion not to be unreasonably withheld, conditioned or delayed. All scheduled maintenance and outages requested by Seller shall comply with the requirements of the CAISO Tariff. To the extent notice is not already required under the terms hereof, Seller shall notify Buyer as soon as practicable of any extensions to scheduled maintenance and expected end dates thereof. Between June 1st and September 30th, Seller shall not schedule non-emergency maintenance that reduces the energy generation of the Facility by more than ten percent (10%), unless (i) such outage is required to avoid an emergency or damage to the Facility, (ii) such maintenance is necessary to maintain equipment warranties and cannot be scheduled outside the period of June 1st to September 30th, (iii) such outage is required in accordance with Prudent Operating Practices, (iv) such outage is in connection with Force Majeure events, (v) such outage is required by Law, the requirements of CAISO or the interconnecting utility, and/or other applicable Governmental Authority, or (vi) the Parties agree otherwise in writing (each scheduled maintenance permitted under this clause (a) and each of the foregoing outages described in foregoing clauses (a)(i) – (a)(vi), a “Planned Outage”).
(b) Forced Facility Outage. Seller shall be permitted to reduce deliveries of Product during any Forced Facility Outage. Seller shall provide Buyer with Notice and expected duration (if known) of any Forced Facility Outage in accordance with the requirements of the CAISO Tariff.
(c) System Emergencies and other Interconnection Events. Seller shall be permitted to reduce deliveries of Product during any period of System Emergency, Buyer Curtailment Period or upon Notice of a Curtailment Order pursuant to the terms of this Agreement, the Interconnection Agreement or applicable tariff.
(d) Force Majeure Event. Seller shall be permitted to reduce deliveries of Product during any Force Majeure Event.
(e) Health and Safety. Seller shall be permitted to reduce deliveries of Product as necessary to maintain health and safety pursuant to Section 6.2.

4.6 Guaranteed Energy Production. Seller shall be required to deliver to Buyer no less than the Guaranteed Energy Production in each Performance Measurement Period. For purposes of determining whether Seller has achieved the Guaranteed Energy Production, in addition to the Facility Energy delivered during the relevant Performance Measurement Period, Seller shall be deemed to have delivered to Buyer (1) any Deemed Delivered Energy during such Performance Measurement Period, (2) Energy in the amount it could reasonably have delivered to Buyer during such Performance Measurement Period but was prevented from delivering to Buyer by reason of any Force Majeure Events, System Emergency, and Curtailment Periods (“Lost Output”). Lost Output shall be measured in the same manner as Deemed Delivered Energy. If Seller fails to achieve the Guaranteed Energy Production amount in any Performance Measurement Period (as determined in Exhibit G), Seller shall pay Buyer damages calculated in accordance with Exhibit G, which, except as set forth in Section 11.1(b)(iii), shall be Buyer’s sole and exclusive remedy in connection with Seller’s failure to meet the achieve the Guaranteed Energy Production amount.
37 4.7 WREGIS. Seller shall, at its sole expense, but subject to Section 3.9, take all actions and execute all documents or instruments necessary to ensure that all WREGIS Certificates associated with all PCC1 Renewable Energy Credits corresponding to all Facility Energy (net of any losses if required by Law) are issued and tracked for purposes of satisfying the requirements of the California Renewables Portfolio Standard and transferred in a timely manner to Buyer for Buyer’s sole benefit. Seller shall transfer the PCC1 Renewable Energy Credits to Buyer. Seller shall comply with all Laws, including the WREGIS Operating Rules, regarding the certification and transfer of such WREGIS Certificates to Buyer and Buyer shall be given sole title to all such WREGIS Certificates. In addition:
(a) Seller shall ensure all applicable steps have been taken to register the Facility with WREGIS that are reasonably capable of being completed prior to the Commercial Operation Date under WREGIS rules, and, within the administrative timeframe set forth in the WREGIS Operating Rules, but no longer than ninety (90) days after Commercial Operation, Seller shall ensure the Facility is registered with active status in WREGIS and is associated with an active account in WREGIS (“Seller’s WREGIS Account”), which Seller shall maintain until the end of the Delivery Term. Seller shall transfer the WREGIS Certificates using “Recurring Certificate Transfers” (as described in the WREGIS Operating Rules) from Seller’s WREGIS Account to the WREGIS account(s) of Buyer or the account(s) of a designee that Buyer identifies by Notice to Seller (“Buyer’s WREGIS Account”). Seller shall be responsible for all expenses associated with registering the Facility with WREGIS, establishing and maintaining Seller’s WREGIS Account, paying WREGIS Certificate issuance and transfer fees, transferring WREGIS Certificates from Seller’s WREGIS Account to Buyer’s WREGIS Account, and acquiring and arranging for a Qualified Reporting Entity for the Facility and any applicable QRE agreements.

Buyer shall be responsible for establishing and maintaining Buyer’s WREGIS Account. (b) Seller shall cause Recurring Certificate Transfers to occur on a monthly basis in accordance with the WREGIS Operating Rules. Since WREGIS Certificates will only be created for whole MWh amounts of Facility Energy generated (net of any losses if required by Law), any fractional MWh amounts (i.e., kWh) will be carried forward until sufficient generation is accumulated for the creation of a WREGIS Certificate. (c) Seller shall, at its sole expense, ensure that the WREGIS Certificates for a given calendar month correspond with the Facility Energy for such calendar month as evidenced by the Facility’s metered data (net of any losses if required by Law). (d) Due to the administrative delay in the creation of WREGIS Certificates, as further set forth in the WREGIS Operating Rules, relative to the timing of invoice payment under Section 8.2, Buyer shall make an invoice payment for a given month in accordance with Section

8.2 before the WREGIS Certificates for such month are formally transferred to Buyer in accordance with the WREGIS Operating Rules and this Section 4.7. Notwithstanding this delay, Buyer shall have all right and title to all such WREGIS Certificates upon payment to Seller in accordance with Section 8.2.
(e) A “WREGIS Certificate Deficit” means any deficit or shortfall in WREGIS Certificates delivered to Buyer for a calendar month as compared to the Facility Energy for the same calendar month (“Deficient Month”) caused by an error or omission of Seller. If any 38 WREGIS Certificate Deficit is caused, or the result of any action or inaction by Seller, then the amount of Facility Energy (net of any losses if required by Law) in the Deficient Month shall be reduced by the amount of the WREGIS Certificate Deficit for purposes of calculating Buyer’s payment to Seller under Article 8 and the Guaranteed Energy Production for the applicable Contract Year; provided, however, that such adjustment shall not apply to the extent that Seller either (x) resolves the WREGIS Certificate Deficit within one hundred eighty (180) days after the Deficient Month or (y) provides Replacement Green Attributes (as defined in Exhibit G) delivered to CAISO as Scheduled Energy within ninety (90) days after the Deficient Month (i) upon a schedule reasonably acceptable to Buyer and (ii) provided that such deliveries do not impose additional costs upon Buyer for which Seller refuses to provide reimbursement. If a WREGIS Certificate Deficit is caused by an error or omission of WREGIS or the CEC, the Parties shall cooperate in good faith to cause WREGIS or the CEC, as applicable, to correct its error or omission.
(f) Subject to Section 3.9, if WREGIS changes the WREGIS Operating Rules after the Effective Date or applies the WREGIS Operating Rules in a manner inconsistent with this Section 4.7 after the Effective Date, the Parties promptly shall modify this Section 4.7 as reasonably required to cause and enable Seller to transfer to Buyer’s WREGIS Account a quantity of WREGIS Certificates for each given calendar month that corresponds to the Facility Energy in the same calendar month.

4.8 Interconnection Costs. As between Buyer and Seller, Seller is responsible for all costs and charges associated with Interconnection Facilities and Network Upgrades necessitated by the interconnection of the Facility.

ARTICLE 5
TAXES

5.1 Allocation of Taxes and Charges. Seller shall pay or cause to be paid all Taxes on or with respect to the Facility or on or with respect to the sale and making available of Product to Buyer, that are imposed on Product prior to its delivery to Buyer at the time and place contemplated under this Agreement (other than withholding or other Taxes imposed on Buyer’s income, revenue, receipts or employees). Buyer shall pay or cause to be paid all Taxes on or with respect to the delivery to and purchase by Buyer of Product that are imposed on Product at and after its delivery to Buyer at the time and place contemplated under this Agreement (other than withholding or other Taxes imposed on Seller’s income, revenue, receipts or employees). If a Party is required to remit or pay Taxes that are the other Party’s responsibility hereunder, such Party shall promptly pay the Taxes due and then seek and receive reimbursement from the other for such Taxes.

5.2 Cooperation. Each Party shall use reasonable efforts to implement the provisions of and administer this Agreement in accordance with the intent of the Parties to minimize all Taxes, so long as no Party is materially adversely affected by such efforts. The Parties shall cooperate to minimize Tax exposure; provided, however, that neither Party shall be obligated to incur any financial or operational burden to reduce Taxes for which the other Party is responsible hereunder without receiving due compensation therefor from the other Party. All Product delivered by Seller to Buyer hereunder shall be a sale made at wholesale, with Buyer reselling such Product. 39 ARTICLE 6

OPERATIONS AND MAINTENANCE OF THE FACILITY

6.1 Operation and Maintenance of the Facility.
(a) Seller shall comply with Law and Prudent Operating Practice, and to the extent applicable the CAISO Tariff and the Interconnection Agreement, relating to the operation and maintenance of the Facility and the generation and sale of Product. Seller shall be responsible for maintenance of the Facility, and Buyer shall have no responsibility or liability for the maintenance of the Facility. Seller shall be responsible for the operation of the Facility, and Buyer shall have no responsibility or liability for the operation of the Facility other than with respect to its role as Scheduling Coordinator. Seller will maintain 24-7 remote monitoring of the Facility. This includes advanced alarm management, data analytics, emergency response, scheduling of preventative and corrective maintenance, troubleshooting, remote resets and dispatch of on-site resources.
(b) Seller shall, if applicable, obtain in its own name and at its own expense all pollution or environmental credits or offsets necessary to operate the Facility in compliance with any requirement of Law; provided for the avoidance of doubt, Seller shall not use any Green Attributes to satisfy the foregoing obligations, if any. (c) Without regard to whether or not there is any applicable Law requiring decommissioning or demolition of the Facility or any environmental or other liability associated with the decommissioning or demolition of the Facility, Buyer shall not be responsible for any cost of decommissioning or demolition of the Facility or any environmental or other liability associated with the decommissioning or demolition of the Facility without regard to the timing or cause of the decommissioning or demolition.

6.2 Maintenance of Health and Safety. Seller shall take reasonable safety precautions with respect to the operation, maintenance, repair and replacement of the Facility. If Seller becomes aware of any circumstances relating to the Facility that create an imminent risk of damage or injury to any Person or any Person’s property, Seller shall take prompt, reasonable action to prevent such damage or injury and shall give Notice to Buyer’s emergency contact identified on Exhibit N of such condition. Such action may include, to the extent reasonably necessary, disconnecting and removing all or a portion of the Facility, or suspending the supply of Energy to Buyer.

6.3 Shared Facilities. The Parties acknowledge and agree that certain of the Shared Facilities and Interconnection Facilities, and Seller’s rights and obligations under the Interconnection Agreement, may be subject to certain shared facilities or co-tenancy agreements to be entered into among Seller, the Participating Transmission Owner, Seller’s Affiliates, or other third parties pursuant to which certain Shared Facilities and Interconnection Facilities may be subject to joint ownership and shared maintenance and operation arrangements; provided that such agreements (i) shall permit Seller to perform or satisfy, and shall not purport to limit, its obligations hereunder, including providing the Dedicated Interconnection Capacity for the Facility in an amount not less than (and not greater than) the Guaranteed Capacity for Buyer’s sole use, (ii) provide for separate metering of the Facility, (iii) provide that any other generating or energy 40 storage facilities not included in the Facility but using Shared Facilities shall not be included within the Facility’s CAISO Resource ID, and (iv) provide that any curtailment of the Shared Facilities that is ordered by Transmission Provider that Seller and its Affiliates have discretion to allocate across generating or energy storage facilities using the Shared Facilities shall not be allocated to the Facility in an amount that is higher than Buyer’s pro rata portion of the total capacity of all generating or energy storage facilities using the Shared Facilities.

ARTICLE 7

METERING

7.1 Metering.
(a) Seller shall measure the amount of Facility Energy using the Facility Meter, which Facility Meter shall be dedicated exclusively to the Facility. Subject to meeting any applicable CAISO requirements, the Facility Meter shall be programmed to adjust for Electrical Losses and Station Use from the Facility to the Delivery Point in a manner subject to Buyer’s prior written approval, not to be unreasonably withheld. Seller shall arrange and bear all costs associated with the installation of the Facility Meter needed for the registration, recording and transmission of information regarding the Facility Energy. Seller hereby agrees to provide a mutually agreed set of meter data to Buyer in a format to be reasonably agreed to by the Parties. If the CAISO makes any adjustment to any CAISO meter data for a given time period, it will be addressed by the Parties consistent with Section 8.4 of this Agreement. The Facility Meter will be operated pursuant to applicable CAISO-approved calculation methodologies and maintained at Seller’s cost, and in accordance with the requirements of the MSA. The Parties intend as of the Effective Date that the applicable MSA will be a CAISO Metered Entity; provided, however, Seller may decide that the Facility should be a Scheduling Coordinator Metered Entity or the CAISO may require the Facility to be a Scheduling Coordinator Metered Entity, and in either case Seller, with the reasonable cooperation of Buyer, shall be responsible for the retention of a third-party qualified meter data management agent to perform any such required activities and functions on behalf of the Scheduling Coordinator including in connection with the development of a SQMD Plan and the collection, validation and submission of meter data to the CAISO in accordance with the CAISO Tariff. If Seller decides that the Facility should be a Scheduling Coordinator Metered Entity, or if CAISO requires the Facility to be a Scheduling Coordinator Metered Entity, Buyer or Buyer’s agent, in its role as Scheduling Coordinator for the Facility, shall reasonably cooperate with Seller and any meter data management agent retained by Seller to perform functions on behalf of the Scheduling Coordinator to enable Seller or such meter data management agent to submit the SQMD Plan and Facility Settlement Quality Meter Data to the CAISO, including granting Seller or any meter data management agent retained by Seller access to applicable CAISO system for such purpose (e.g., the CAISO Market Results Interface – Settlements or successor system) to comply with applicable Scheduling Coordinator Metered Entity requirements as set forth in the CAISO Tariff. Seller shall obtain and maintain a single CAISO resource ID dedicated exclusively to the Facility. Seller shall not obtain additional CAISO resource IDs for the Facility without the prior written consent of Buyer, which shall not be unreasonably withheld. Metering shall be consistent with the Metering Diagram set forth as Exhibit R. Each meter shall be kept under seal, such seals to be broken only when the meters are to be tested, adjusted, modified or relocated. In the event Seller breaks a seal, Seller shall notify Buyer as soon as practicable. In addition, Seller hereby agrees to provide all Facility Meter data to Buyer in a form reasonably acceptable to Buyer, 41 and consents to Buyer obtaining from CAISO the CAISO meter data directly relating to the Facility and all inspection, testing and calibration data and reports. Seller and Buyer, or Buyer’s Scheduling Coordinator, shall cooperate to allow both Parties to retrieve the meter reads from the CAISO Market Results Interface – Settlements (MRI-S) (or its successor) or directly from the CAISO meter(s) at the Facility.
(b) Section 7.1(a) is based on the Parties’ mutual understanding as of the Effective Date that (i) the CAISO requires the configuration of the Facility to include as the sole meter for the Facility, the Facility Meter, and (ii) the CAISO requires the Facility Meter to be programmed for Electrical Losses as set forth in the definition of Electrical Losses in this Agreement. If any of the foregoing mutual understandings in (i) or (ii) between the Parties become incorrect during the Delivery Term, the Parties shall cooperate in good faith to make any amendments and modifications to the Facility and this Agreement as are reasonably necessary to conform this Agreement to the CAISO Tariff and avoid, to the maximum extent practicable, any CAISO charges, costs or penalties that may be imposed on either Party due to non-conformance with the CAISO Tariff, such agreement not to be unreasonably delayed, conditioned or withheld.

7.2 Meter Verification. Annually, if Seller has reason to believe there may be a meter malfunction, or upon Buyer’s reasonable request, Seller shall test the meter. The tests shall be conducted by independent third parties qualified to conduct such tests. Buyer shall be notified at least seven (7) days in advance of such tests and have a right to be present during such tests. If a meter is inaccurate it shall be promptly repaired or replaced.

ARTICLE 8
INVOICING AND PAYMENT; CREDIT

8.1 Invoicing. Seller shall make good faith efforts to deliver an invoice to Buyer for Product within fifteen (15) Business Days after the end of the prior monthly billing period. Each invoice shall reflect (a) records of metered data, including CAISO metering and transaction data sufficient to document and verify the amount of Product delivered by the Facility for any Settlement Period during the preceding month and any other payment amounts under this Agreement, including the amount of Energy produced by the Facility as read by the Facility Meter, the calculation of Facility Energy, Deemed Delivered Energy, and Adjusted Energy Production, the LMP prices at the Delivery Point for each Settlement Period, and the Contract Price applicable to such Product in accordance with Exhibit C; (b) any records, including invoices or settlement data from the CAISO, necessary to verify the accuracy of any amount; and (c) be in a format reasonably specified by Buyer, covering the services provided in the preceding month determined in accordance with the applicable provisions of this Agreement. Buyer shall, and shall cause its Scheduling Coordinator to, provide Seller with all reasonable access (including, in real time, to the maximum extent reasonably possible) to any records, including invoices or settlement data from the CAISO, forecast data and other information, all as may be necessary from time to time for Seller to prepare and verify the accuracy of all invoices; provided, in the event the Facility is Scheduled in a scheduling coordinator portfolio that includes load and assets that are not directly related to the Facility, Buyer may provide such information to Seller in a format that is necessary to protect the confidentiality of settlement and market data that is not directly associated with the Facility.
42 8.2 Payment. Buyer shall make payment to Seller for Product by wire transfer or ACH payment to the bank account designated by Seller in Exhibit N, which may be updated by Seller by Notice hereunder. Buyer shall pay undisputed invoice amounts within thirty (30) days after receipt of the invoice or the end of the prior monthly billing period, whichever is later. If such due date falls on a weekend or legal holiday, such due date shall be the next Business Day. Payments made after the due date will be considered late and will bear interest on the unpaid balance. If the amount due is not paid on or before the due date or if any other payment that is due and owing from one Party to another with respect to this Agreement is not paid on or before its applicable due date, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on the prime rate published on the date of the invoice in The Wall Street Journal, or, if The Wall Street Journal is not published on that day, the next succeeding date of publication, plus two percent (2%) (the “Interest Rate”). If the due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day.

Gridley City CouncilJuly 15, 2024

Gridley City Council
July 15, 2024