Healdsburg City Council
February 18, 2025

CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

REGULAR MEETING AGENDA
City Hall Council Chamber Meeting Date: February 18, 2025 401 Grove Street Time: 6:00 PM
Healdsburg, CA 95448 Date Posted: February 12, 2025
(707) 431-3317
www.healdsburg.gov
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Vice Mayor Herrod will be participating in the meeting remotely from Ohio University Hotel and Conference Center
331 Richland Avenue, Athens OH, 45701
The agenda shall be posted at this location.

Councilmember Kelley will be participating in the meeting remotely from Maui Meeting Place
30 East Lapoa, Kihei, HI 96753
The agenda shall be posted at this location.

To join by computer, tablet, or mobile device:

Go to https://zoom.us/join and type in the Webinar ID: 815 8894 3494 or follow this link:
healdsburg.gov/zoom (Pre-registration for the meeting is not required.) To view the agenda online, visit healdsburg.gov/agendas. To view the Council Meeting PowerPoint presentations or correspondence received after the agenda packet has been posted, visit healdsburg.gov/presentations. To electronically submit correspondence regarding an item on the agenda, please email [email protected]. Documents and correspondence received 72 hours prior to the meeting will be posted by 10:00 a.m. the following business day.

1. CALL TO ORDER/ROLL CALL
A. Pledge of Allegiance
B. Approval of Agenda

2. REPORT ON CLOSED SESSION(S)

3. ANNOUNCEMENTS/PRESENTATIONS
A. Spay/Neuter Month Awareness Proclamation
B. Presentation from the Healdsburg High School Art Club

4. CITY MANAGER REPORTS
City Council/RSA Regular Meeting Agenda
February 18, 2025

5. PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON

AGENDA ITEMS
This time is set aside to receive comments from the public regarding matters of general interest not on the agenda, but related to City Council/RSA business. Pursuant to the Brown Act, however, the City Council cannot consider any issues or take action on any requests during this comment period. Public comment on non-agenda items is limited to thirty (30) minutes total for all speakers, with each speaker given no more than three (3) minutes. If there are more than ten (10) audience/public comment speakers, the Mayor may reduce each speaker’s time from three (3) minutes so that all speakers have an equal time to speak. At the Mayor’s discretion, the public comment period may be extended past 30 minutes. Members from the public wishing to speak on a Consent Agenda item should notify the Mayor during Public Comments.

6. CONSENT CALENDAR
The following items listed on the Consent Calendar are considered routine in nature or have been previously reviewed by the Council and require little or no further discussion by the Council, public, or applicant and action will be taken by the City Council by a single motion. A Councilmember may request that an item be removed from the Consent Calendar and action taken separately. Consent by a majority of the Councilmembers present will be required in order to remove the item. In the event an item is removed, the matter will be considered immediately following the adoption of the Consent Calendar.

A. Audited Financial Statement for the Fiscal Year Ending June 30, 2024 By motion, approve the fiscal year 2023-24 audited financial statements based on an audit performed in accordance with Government Auditing Standards.

B. Landscaping and Lighting Assessment District
Adopt a Resolution appointing Coastland Civil Engineering as Engineer of Work, to direct the preparation of the annual Engineer’s Report and to describe the potential changes to the City of Healdsburg’s Fiscal Year 2025-26 Landscaping and Lighting Assessment District in accordance with the provisions of the Landscaping and Lighting Act of 1972.

C. Agreement with Development Group Inc. for Network Systems Equipment and Installation at Foley Pavilion
Adopt a Resolution authorizing the City Manager to execute a purchase agreement with Development Group, Inc., in the amount of $112,335.90 for Foley Pavilion Network Systems Equipment and Installation.

D. Agreement with eSolutionsOne Inc. for Service Now Service Desk Development, Implementation, and as-needed services
City Council/RSA Regular Meeting Agenda
February 18, 2025

Adopt a Resolution authorizing the City Manager to execute a purchase agreement with eSolutionsOne Inc. in the amount of $129,937 for Service Now development and authorizing the City Manager to execute a purchase agreement with eSolutionsOne Inc. in the amount of $50,000 and amendments not to exceed $150,000 over 3 years for “asneeded” system development support services.

E. Approval of Minutes
By motion, approve the March 18, 2024 Regular Meeting Minutes and the April 1, 2024 Regular Meeting Minutes.

7. PUBLIC HEARINGS
A. To Start at a Time Certain of 6:30 p.m. - Third Public Hearing to Receive Community Input and Provide Direction to Staff Regarding the Submitted Draft Maps and Sequence of Elections for District Based Elections Conduct the third public hearing to receive community input and provide direction to staff regarding the submitted draft maps and sequence of elections for district-based council elections.

8. OLD BUSINESS
A. Fiscal Year 2024-25 Mid-Year Budget Review
Adopt a Resolution amending the Fiscal Year 2024-25 budget.

9. NEW BUSINESS
None.

10. COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE

PREVIOUS REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS

11. ADJOURN CITY COUNCIL / RSA MEETING

12. FUTURE AGENDA ITEMS
A. Future Agenda Items for 2025
SB 343 - DOCUMENTS RELATED TO OPEN SESSION AGENDAS: Any writings or documents provided to a majority of the City Council/Redevelopment Successor Agency Board regarding any item on this agenda after the posting of this agenda and not otherwise exempt from disclosure, will be made available for public review in the City Clerk's Office located at City Hall, 401 Grove Street, Healdsburg, during normal business hours. If supplemental City Council/RSA Regular Meeting Agenda
February 18, 2025

materials are made available to the members of the City Council/Redevelopment Successor Agency Board at the meeting, a copy will be available for public review at the City Hall Council Chambers, 401 Grove Street, Healdsburg, CA 95448.

These writings will be made available in appropriate alternative formats upon request by a person with a disability, as required by the Americans with Disabilities Act.

DISABLED ACCOMMODATIONS: The City of Healdsburg will make reasonable accommodations for persons having special needs due to disabilities. Please contact Raina Allan, City Clerk, at Healdsburg City Hall, 401 Grove Street, Healdsburg, California, 431-3317, at least 72 hours prior to the meeting, to ensure the necessary accommodations are made.

CIUDAD DE HEALDSBURG

CONSEJO DE LA CIUDAD/AGENCIA SUCESORA A LA DE
REURBANIZACIÓN
ORDEN DEL DÍA DE LA REUNIÓN ORDINARIA
Sala del Consejo del Ayuntamiento Fecha de la reunión: 18 de febrero de 2025 401 Grove Street Hora: 6:00 PM
Healdsburg, CA 95448 Fecha de publicación: 12 de febrero de 2025 (707) 431-3317
www.healdsburg.gov
.

Para unirse por computadora, tableta o dispositivo móvil:

Conéctese a https://zoom.us/joiny escriba la clave del seminario web: 815 8894 3494 o siga este enlace: healdsburg.gov/zoom (no es necesario el registro previo para asistir a la reunión.) Para consultar el orden del día en línea, conéctese a healdsburg.gov/agendas. Para ver las presentaciones en powerpoint de la reunión del consejo o la correspondencia recibida después de que se haya publicado el paquete del orden del día, conéctese a healdsburg.gov/presentations.

Para enviar electrónicamente correspondencia sobre un tema del orden del día, envíe un correo electrónico a [email protected]. Los documentos y la correspondencia que se reciban 72 horas antes de la reunión se publicarán antes de las 10:00 a. M. Del siguiente día laborable.

El Vicealcalde Herrod participará en la reunión a distancia desde Hotel y centro de conferencias de la universidad de ohio 331 Richland Avenue, Athens OH, 45701
El orden del día se publicará en este lugar.

El Concejal Kelley participará en la reunión a distancia desde Lugar de reunión de maui
30 East Lapoa, Kihei, HI 96753
El orden del día se publicará en este lugar.

1. INICIO DE JUNTA/TOMA DE ASISTENCIA
A. Juramento de lealtad
B. Aprobación del orden del día

2. INFORME SOBRE SESIÓN(ES) A PUERTA CERRADA

3. ANUNCIOS/PRESENTACIONES
A. Proclamación del Mes de Concientización sobre la Esterilización de Animales B. Recibir presentación del Club de Arte de Healdsburg High School Orden del día de la reunión ordinaria del Consejo de la Ciudad/RSA 18 de febrero de 2025
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4. INFORMES DEL ADMINISTRADOR DE LA CIUDAD

5. COMENTARIOS DEL PÚBLICO SOBRE ASUNTOS DEL ORDEN DEL DÍA ACORDADO Y PUNTOS NO INCLUIDOS EN EL ORDEN DEL DÍA
Este tiempo se reserva para recibir comentarios del público sobre asuntos de interés general que no figuran en el orden del día, pero que están relacionados con los asuntos del Consejo de la Ciudad/RSA. Sin embargo, de conformidad con la Ley Brown, el Consejo de la Ciudad no debe considerar ningún asunto ni tomar medidas sobre ninguna solicitud durante este período de comentarios. El tiempo total para los comentarios del público sobre asuntos no incluidos en el orden del día está limitado a treinta (30) minutos para todos los oradores, y cada orador dispondrá de un máximo de tres (3) minutos. Si hay más de diez (10) oradores de comentarios del público, el alcalde podrá reducir el tiempo de cada orador de tres (3) minutos para que todos los oradores tengan el mismo tiempo para hablar. A discreción del alcalde, el período para comentarios del público puede extenderse más allá de los 30 minutos. Los miembros del público que deseen hablar sobre un tema del orden del día acordado deben notificarlo al alcalde durante los comentarios del público.

6. ORDEN DEL DÍA ACORDADO
Los siguientes puntos del orden del día acordado se consideran de rutina o han sido revisados previamente por el Consejo y requieren poca o ninguna discusión adicional por parte del Consejo, el público o el solicitante, y el Consejo de la Ciudad tomará medidas mediante una sola moción.

Un miembro del Consejo puede solicitar que se elimine un punto del orden del día acordado y que se tomen medidas por separado. La eliminación de un punto requerirá el consentimiento de la mayoría de los miembros del Consejo presentes En caso de que se elimine un punto, el asunto se considerará inmediatamente después de la adopción del orden del día acordado.

A. Estado financiero auditado para el año fiscal que finaliza el 30 de junio de 2024 Por moción, aprobar los estados financieros auditados del año fiscal 2023-24 en base a una auditoría realizada de conformidad con las Normas de Auditoría del Gobierno.

B. Distrito de tasación para áreas verdes y alumbrado
Adoptar una resolución que designe a Coastland Civil Engineering como ingeniero de obra, para dirigir la preparación del informe anual de ingeniería y describir los posibles cambios en el Distrito de tasación para áreas verdes y alumbrado de la Ciudad de Healdsburg para el año fiscal 2025-26 de conformidad con las disposiciones de la Ley de áreas verdes y alumbrado de 1972.

C. Acuerdo con Development Group Inc. para el equipo e instalación de sistemas de red en Foley Pavilion.

Adoptar una resolución que autorice al Administrador de la Ciudad a celebrar un acuerdo de compra con Development Group, Inc., por una cantidad de $112,335.90 para el equipo e instalación de sistemas de red en Foley Pavilion.

Orden del día de la reunión ordinaria del Consejo de la Ciudad/RSA 18 de febrero de 2025
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D. Acuerdo con eSolutionsOne Inc. para el desarrollo, la implementación y los servicios necesarios de un servicio de soporte ServiceNow
Adoptar una resolución que autorice al Administrador de la Ciudad a celebrar un acuerdo de compra con eSolutionsOne Inc. por una cantidad de $129,937 para el desarrollo del servicio ServiceNow y que autorice además al Administrador de la Ciudad a celebrar un acuerdo de compra con eSolutionsOne Inc. por una cantidad de $50,000 y modificaciones que no superen los $150,000 en un plazo de 3 años para servicios de apoyo al desarrollo de sistemas según sea necesario.

E. Aprobación de las minutas
Por moción, aprobar las minutas de la reunión ordinaria del 18 de marzo de 2024 y las minutas de la reunión ordinaria del 1 de abril de 2024.

7. AUDIENCIAS PÚBLICAS
A. Comenzará a la hora determinada de 6:30 p.m. - La tercera audiencia pública para recibir las opiniones de la comunidad y brindar orientación al personal con respecto a los borradores de mapas presentados y la secuencia de elecciones para las elecciones basadas en distritos
Realizar la tercera audiencia pública para recibir las opiniones de la comunidad y brindar orientación al personal con respecto a los borradores de mapas presentados y la secuencia de elecciones para las elecciones basadas en distritos.

8. ASUNTOS PENDIENTES
A. Revisión presupuestaria de mitad de año para el año fiscal 2024-25 Adoptar una resolución que modifique el presupuesto del año fiscal 2024-25.

9. NUEVOS ASUNTOS
Ninguno

10. INFORMES DEL CONSEJO SOBRE ASUNTOS DE INTERÉS OCURRIDOS DESDE LA ÚLTIMA REUNIÓN ORDINARIA/INFORMES DE REEMBOLSO DE GASTOS

11. SE CIERRA LA REUNIÓN DEL CONSEJO MUNICIPAL/RSA

12. FUTUROS ASUNTOS DEL ORDEN DEL DÍA
A. Puntos futuros del orden del día para 2025
Orden del día de la reunión ordinaria del Consejo de la Ciudad/RSA 18 de febrero de 2025
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SB 343 - DOCUMENTOS RELACIONADOS CON LOS ÓRDENES DEL DÍA DE SESIONES ABIERTAS: Cualquier escrito o documento que se entregue a la mayoría del Consejo de la Ciudad/Consejo de la Agencia Sucesora a la de Reurbanización en relación con cualquier punto de este orden del día después de la publicación de este orden del día y que no esté exento de divulgación, estará disponible para su revisión por parte del público en la Oficina del Secretario de la Ciudad, ubicada en City Hall, 401 Grove Street, Healdsburg, durante el horario laboral normal. Si en la reunión se ponen materiales complementarios a disposición de los miembros del Consejo de la Ciudad/Consejo de la Agencia Sucesora a la de Reurbanización, habrá una copia de dichos materiales disponible para su revisión por parte del público en City Hall Council Chambers, 401 Grove Street, Healdsburg, CA 95448.

Estos escritos estarán disponibles en formatos alternativos apropiados a petición de una persona con discapacidad, tal y como exige la Ley de Estadounidenses con Discapacidades.

ADAPTACIONES PARA PERSONAS INCAPACITADAS: La Ciudad de Healdsburg hará adaptaciones razonables para las personas con necesidades especiales debido a incapacidades.

Por favor, comuníquese con Raina Allan, Secretario de la Ciudad, en Healdsburg City Hall, 401 Grove Street, Healdsburg, California, 431-3317, al menos 72 horas antes de la reunión, para asegurarse de que se hagan las adaptaciones necesarias.

CITY OF HEALDSBURG

PROCLAMATION

A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG DECLARING FEBRUARY 2025
SPAY/NEUTER AWARENESS MONTH AND FEBRUARY 25,
2025 WORLD SPAY DAY IN THE CITY OF HEALDSBURG
WHEREAS, the concept of celebrating a dedicated month to spread awareness about spaying and neutering was first discussed in early 2000s by a number of veterinary associations around the world who wanted to raise awareness about pet overpopulation; and WHEREAS, every year, millions of healthy, adoptable cats and dogs are euthanized due to lack of space in shelters or re-homing opportunities; and WHEREAS, spaying or neutering pets promotes the health of companion animals, has been shown to significantly reduce pet overpopulation and helps to eliminate or decrease several pet health problems that can be difficult or expensive to treat; and WHEREAS, domestic animals have provided companionship to people throughout history, and today, companion animals offer affection and an improved sense of well-being to millions; and
WHEREAS, all animals deserve loving homes and proper care throughout their lifetimes; and
WHEREAS, we encourage all to learn about options to spay and neuter your pets this month and encourage you to support our local animal shelters, rescue groups and spay neuter organizations that are leading the way in promoting and protecting animal welfare.

NOW THEREFORE: BE IT PROCLAIMED the City Council of the City of Healdsburg hereby recognizes February 2025 as Spay/Neuter Awareness Month and February 25, 2025 as World Spay Day in the City of Healdsburg.

DATED: February 18, 2025
SO ORDERED:
__________________________________
Evelyn L. Mitchell, Mayor

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Attachment: Proclamation (4746 : Spay/Neuter Awareness Month Proclamation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation) Native Planting with HUSD, Rotary, and COH

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

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Attachment: City Council Presentation (4756 : HUSD - Art Presentation)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 18, 2025
SUBJECT: Audited Financial Statement for the Fiscal Year Ending June 30, 2024 PREPARED BY: Katie Edgar, Finance Director
STRATEGIC INITIATIVE(S):

Provide Effective Governance
RECOMMENDED ACTION(S):

By motion, approve the fiscal year 2023-24 audited financial statements based on an audit performed in accordance with Government Auditing Standards.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

The City is required by the State of California Government Code to complete an independent audit of its financial statements at the end of each fiscal year. The City prepares annual financial statements in accordance with generally accepted accounting principles. The City’s auditor has recently completed its audit of the City’s fiscal year 2023-24 statements and found no errors or issues with the City’s statements.

DISCUSSION/ANALYSIS:

Badawi & Associates has completed the fiscal year 2023-24 audit of the City’s financial statements. Staff is pleased to report that, as in previous years, the auditor’s opinion on the City’s fiscal year 2023-24 financial statements is without exception or unqualified. That is, the auditor’s report is not restricted (qualified) in some manner, nor does it take exception to any of the information contained in the City’s financial statements. While a qualification or exception is not necessarily detrimental, staff is proud to report that the City’s financial statements continue to earn a “clean opinion.”
The Annual Financial Report includes Management’s Discussion and Analysis, which provides a simple narrative introduction, overview and analysis of the basic financial statements. The first two statements, the Statement of Net Position and the Statement of Activities, provide information about the activities of the City as a whole. These statements include all assets and

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liabilities using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Capital assets, including infrastructure and long-term liabilities, are included on a City-wide Statement of Net Position.

Overall, the City’s net position increased by $15.10 million. Over time, increases or decreases in net financial position may serve as a useful indicator of whether the financial position of the City is improving or declining. From the most basic view, the net position is the difference between the assets and the liabilities. The fiscal year 2023-24 net position increase is 18.47% greater than the prior fiscal years change in net position. Citywide revenues increased $13.33 million from the previous fiscal year while expenses increased $10.98 million.

The revenue increases were driven by a $6.73 increase in capital grants and contributions, $5.27 million increase in charges for services, $2.06 million increase in use of money and property, $425 thousand increase in property and other taxes, offset by $718 thousand decrease in operating grants and contributions and $437 thousand decrease in transient occupancy taxes. The increase in capital grants and contributions was attributed to the receipt of $3.4 million in developer contributions toward the construction of a new fire station, $1.03 million in American Rescue Plan Act funds also largely supporting the fire station construction and $1.15 million in Coastal Conservancy Grants for the Fitch Mountain Park and Open Space Preserve Project. The increase in charges for services was largely associated with the scheduled utility rate increases for Electric, Water and Sewer Services. The increase in use of money and property reflects the increase in interest earnings.

The expense increase of $10.98 million was comprised of governmental activities totaling $7.57 million and business type activities totaling $3.41 million. The increase in governmental activity expenses were driven by $2.60 million in general government activity, $3.12 million in public safety activity, $2.02 million in streets and road activity, $1.93 million in community services activity, and $817 thousand in community development activity. In fiscal year 2022-2023, depreciation totaled $2.89 million and was unallocated for governmental activities. During the current fiscal year depreciation totaled $3.12 million and was allocated among the six major governmental activity programs. Expenses for streets and roads activity were impacted the most by this allocation, with depreciation expense representing 49.68% of the current year expense.

The increase in business type activity expenses were driven by $1.12 million in water fund activity, $1.55 million in sewer fund activity, and $1.01 million in airport fund activity. The increases in both governmental and business type expenses were primarily the result of on-going large project expenditures during the current year, most notably the Fire Substation, Fitch Mountain Open Space Preserve, and the Municipal Recycled Water Pipeline The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds are found on pages 27 and 29, and present information in a manner more consistent with how the City prepares its budget. The unassigned fund balance of the combined General Fund was $10.86 million, while the total fund balance was $16.23 million. The unassigned classification represents the fund balance that has not been legally restricted, committed, or assigned to specific purposes within the General Fund. For financial statement reporting purposes, the combined General Fund includes eight funds. Following the basic

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financial statements is the Notes section beginning on page 39. The Notes provide a description of accounting policies used by the City and additional information regarding the financial statements. The Required Supplementary Information Section of the report begins on page 99 and includes a Schedule of the Local Government’s Proportionate Share of the Net Pension Liability, Schedule of Pension Contributions, Schedule of Change in Net OPEB Liability and Related Ratios, Schedule of OPEB Contributions, and Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual. The Supplementary Information Section begins on page 111 and includes the Nonmajor Governmental Funds, General Fund Activities combining statements, Water Fund Activities combining statements, Sewer Fund Activities combining statements, Electric Fund Activities combining statements, Internal Service Funds combining statements and the Private-purpose Trust Funds combining statements.

Badawi & Associates also provided the City with a Management Report. The Management Report is intended to provide management and those charged with governance with valuable information regarding the organization. In an audit of financial statements, professional standards require that auditors obtain an understanding of internal controls to the extent necessary to plan the audit. Auditors evaluate each internal control deficiency noted during the audit to determine whether the deficiency, or a combination of deficiencies, is severe enough to be considered a material weakness or significant deficiency. The results of Badawi & Associates’ tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

Staff does not recommend any alternatives as the City is required by the State of California Government Code to complete an independent audit of its financial statements at the end of each fiscal year.

FISCAL IMPACT:

There is no fiscal impact as a direct result of the proposed action ENVIRONMENTAL ANALYSIS:

Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

ATTACHMENT(S):

Financial Statements FY2023-2024

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CITY OF HEALDSBURG, CALIFORNIA

BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Basic Financial Statements
For the year ended June 30, 2024
Table of Contents
Page
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INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ..................................................................................................................................... 20 Statement of Activities .......................................................................................................................................... 22 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ............................................................................................................. 27 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position .............................................................................................................................. 28 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .................................................................................................................. 29 Reconciliation of the Governmental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ....................................... 30 Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds ............................................................................................. 32 Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds ................................................................................................................. 34 Statement of Cash Flows – Proprietary Funds ............................................................................................... 35 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................... 37 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .......................................................... 38 Notes to Basic Financial Statements ....................................................................................................................... 41 Required Supplemental Information:

Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ....................................................................................................................................................... 101 Community Services Special Revenue Fund .................................................................................................. 102 Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date - CalPERS Pension Plan Last Ten Years ............................................................. 104 Schedule of Plan Contributions - CalPERS Pension Plan ................................................................................. 106 Schedule of Changes in the Total OPEB Liability and Related Ratios ............................................................ 108 Notes to Required Supplementary Information ................................................................................................ 110

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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Basic Financial Statements
For the year ended June 30, 2024
Table of Contents
Page
ii
FINANCIAL SECTION, Continued
Supplementary Information:

Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Street Capital Project Fund ................................................................................................................................ 113 Nonmajor Governmental funds:

Combining Balance Sheet – Nonmajor Governmental Funds .......................................................................... 114 Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................................................... 118 Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Nonmajor Special Revenue Funds:

Gas Tax Special Revenue Fund ...................................................................................................................... 123 North Area ........................................................................................................................................................ 124 Benjamin Way Maintenance District ............................................................................................................. 125 Public Safety Special Revenue Fund ............................................................................................................. 126 Strong Motion Education and Data Special Revenue Fund ....................................................................... 127 Area A Lighting and Landscaping Special Revenue Fund ........................................................................ 128 Media Center Special Revenue Fund ............................................................................................................ 129 Parking Impact Fees ......................................................................................................................................... 130 Housing Successor Agency Special Revenue Fund .................................................................................... 131 Opioid Settlements ........................................................................................................................................... 132 TOT Housing Fund .......................................................................................................................................... 133 Fire Impact Fees ................................................................................................................................................ 134 Senior Trust Center .......................................................................................................................................... 135 Misc. Projects .................................................................................................................................................... 136 General Debt Service Fund ............................................................................................................................. 137 General Fund Activities:

Combining Balance Sheet – General Fund ...................................................................................................... 138 Combining Statement of Revenues, Expenditures,
and Changes in Fund Balance – General Fund ............................................................................................ 140 Water Fund Activities:

Combining Statement of Net Position – Water Fund ..................................................................................... 142 Combining Statement of Revenues, Expenses, and Changes in Net Position – Water Fund ................... 143 Sewer Fund Activities:

Combining Statement of Net Position – Sewer Fund ..................................................................................... 144 Combining Statement of Revenues, Expenses, and Changes in Net Position – Sewer Fund ................... 145 Electric Fund Activities:

Combining Statement of Net Position – Electric Fund .................................................................................. 146 Combining Statement of Revenues, Expenses, and Changes in Net Position – Electric Fund ................ 147

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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Basic Financial Statements
For the year ended June 30, 2024
Table of Contents
Page
iii
FINANCIAL SECTION, Continued
Internal Service Funds:

Combining Statement of Net Position ........................................................................................................... 148 Combining Statement of Revenues, Expenses, and Changes in Net Position ......................................... 149 Combining Statement of Cash Flows ............................................................................................................ 150 Private-Purpose Trust Funds:

Combining Statement of Fiduciary Net Position ......................................................................................... 151 Combining Statement of Changes in Fiduciary Net Position .................................................................... 152

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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Healdsburg
Healdsburg, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Healdsburg (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

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

We did not audit the financial statements of the Northern California Power Agency, which represent 13 percent, 15 percent, and 35 percent, respectively, of the assets, net position, and operating revenues of the Electric Fund. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the City’s equity in Northern California Power Agency is based solely on the reports of the other auditors.

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

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

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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) To the Honorable Mayor and Members of the City Council
of the City of Healdsburg
Healdsburg, California

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, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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.
x 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. x 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.
x 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.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) To the Honorable Mayor and Members of the City Council
of the City of Healdsburg
Healdsburg, California

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue fund, and the required pension and OPEB schedules on pages 5-16 and 101-110 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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 budgetary comparison schedule for the streets capital project fund, the combining and individual nonmajor governmental fund statements, the budgetary comparison schedules for the nonmajor governmental funds and the combining General Fund Activities, Water Fund Activities, Sewer Fund Activities, Electric Fund Activities, Internal Service Funds, and Fiduciary Funds are presented for purposes of additional analysis and are not required parts of the basic financial statements.

The budgetary comparison schedule for the streets capital project fund, the combining and individual nonmajor governmental fund statements, the budgetary comparison schedules for the nonmajor governmental funds and the combining General Fund Activities, Water Fund Activities, Sewer Fund Activities, Electric Fund Activities, Internal Service Funds, and Fiduciary Funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, The budgetary comparison schedule for the streets capital project fund, the combining and individual nonmajor governmental fund statements, the budgetary comparison schedules for the nonmajor governmental funds and the combining General Fund Activities, Water Fund Activities, Sewer Fund Activities, Electric Fund Activities, Internal Service Funds, and Fiduciary Funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) To the Honorable Mayor and Members of the City Council
of the City of Healdsburg
Healdsburg, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 3, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
February 3, 2025
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
As management of the City of Healdsburg (“City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with the accompanying Independent Auditor’s Report, the financial statements, and the accompanying notes to the financial statements.

Financial Highlights
 Total City assets exceeded liabilities by $254.18 million (net position) at June 30, 2024, an increase of $15.10 million, or 6.32% over the prior fiscal year net position.  The City’s current fiscal year change in net position of $15.10 million was 18.47% greater than the prior fiscal year change in net position of $12.75 million. Citywide revenues increased $13.33 million from the previous fiscal year while expenses increased $10.98 million.
 The revenue increases were driven by a $6.73 increase in capital grants and contributions, $5.27 million increase in charges for services, $2.06 million increase in use of money and property, $425 thousand increase in property and other taxes, offset by $718 thousand decrease in operating grants and contributions and $437 thousand decrease in transient occupancy taxes. The increase in capital grants and contributions was attributed to the receipt of $3.4 million in developer contributions toward the construction of a new fire station, $1.03 million in American Rescue Plan Act funds also largely supporting the fire station construction and $1.15 million in Coastal Conservancy Grants for the Fitch Mountain Park and Open Space Preserve Project. The increase in charges for services was largely associated with the scheduled utility rate increases for Electric, Water and Sewer Services. The increase in use of money and property reflects the increase in interest earnings.  The expense increase of $10.98 million was comprised of governmental activities totaling $7.57 million and business type activities totaling $3.41 million. The increase in governmental activity expenses were driven by $2.60 million in general government activity, $3.12 million in public safety activity, $2.02 million in streets and road activity, $1.93 million in community services activity, and $817 thousand in community development activity. In fiscal year 2022-2023, depreciation totaled $2.89 million and was unallocated for governmental activities. During the current fiscal year depreciation totaled $3.12 million and was allocated among the six major governmental activity programs. Expenses for streets and roads activity were impacted the most by this allocation, with depreciation expense representing 49.68% of the current year expense. The increase in business type activity expenses were driven by $1.12 million in water fund activity, $1.55 million in sewer fund activity, and $1.01 million in airport fund activity. The increases in both governmental and business type expenses were primarily the result of on-going large project expenditures during the current year, most notably the Fire Substation, Fitch Mountain Open Space Preserve, and the Municipal Recycled Water Pipeline.  At the close of fiscal year 2023-24, City governmental funds reported combined ending fund balance of $34.94 million, an increase of $3.01 million or 9.43% from the prior fiscal year. 5 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
x At the end of fiscal year 2023-24, unassigned fund balance for the General Fund was $10.86 million, or 47.57% of total General Fund expenditures. This represents a $2.1 million growth in the unassigned fund balance from the prior year largely associated with Measure T funds allocated to support the fire station project and several street infrastructure projects that have not been expended yet. The General Fund Balance sheet is on page 27.

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

REQUIRED COMPONENTS OF THE ANNUAL FINANCIAL REPORT
Summary Detail
Government-wide Financial Statements. The government-wide financial statements are comprised of the Statement of Net Position and Statement of Activities. These two statements are designed to provide readers with a broad overview of the City’s finances utilizing the full accrual method of accounting, in a manner similar to a private-sector business. Under the full accrual method of accounting, transactions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, assets, liabilities, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (e.g. uncollected revenues and accrued but unpaid interest expense).

The Statement of Net Position presents information on all of the City’s assets and liabilities, including capital assets and long-term liabilities, with the difference between the two 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 as a whole is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. Functional activities are highlighted in this statement, whereby direct and indirect functional costs are shown net of related program revenue. This statement shows the extent to which the various functions depend on general taxes and non-program revenues for support.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Both 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). The governmental activities of the City include general government, public safety, community development and housing, community services and streets capital projects. The business-type activities of the City include the water, sewer and electric utilities, and other programs.

Fund Financial Statements. The fund financial statements focus on current available resources and are organized and operated on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

The City adopts an annual appropriated budget for all governmental and proprietary funds.

Budgetary comparison statements for the General Fund and all major special revenue funds are required and included in the basic financial statements. The Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – General Fund on page 101, reflect both the original and final budget figures for the General Fund. Additionally, budgetary schedules for the other governmental funds have been provided as required to demonstrate compliance with the budget.

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, the governmental funds financial statements utilize the modified accrual method of accounting, which focuses on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements.

The City maintains twenty-three individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Community Services, and Capital Projects as they are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of supplementary combining statements.

Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges outside customers, or internal departments of the City. Proprietary funds provide the same type of information as shown in the government-wide statements, only in more detail. The City maintains the following two types of proprietary funds:
x Enterprise Funds. These funds are used to report the same functions presented as businesstype activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of water, sewer, electric, and airport. 7 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
x Internal Service Funds. These funds are used to report activities that provide internal services for the City. The City uses internal service funds to account for its insurance and benefits, vehicle maintenance, information systems, and building maintenance. Because internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.

Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the government-wide and fund financial statements.

Other Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents combining statements referred to earlier in connection with other governmental funds and the internal service funds. Also included are the budgetary comparison Statement of Revenues, Expenditures, and Changes in Fund Balances for all other special revenue funds, capital project funds and all debt service funds.

Government-Wide Financial Analysis. Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed net position for both governmental and business-type activities.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
By far the largest portion of the City’s net position (80.23%) reflects its net investment in capital assets (e.g. land, buildings, utility plants, machinery, equipment, vehicles, and infrastructure), net of any related outstanding debt used to acquire those assets. The City uses these assets to provide services to citizens; consequently, these assets 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 needed to repay this debt must be provided from other sources, since the capital assets themselves are not normally used to liquidate these liabilities.

Another portion of the City’s net position ($35.94 million or 14.14%) represents resources that are subject to external restrictions on how they may be used, noted above as restricted and committed net position.

The following table reflects the change in net position for both governmental and business-type activities.

ASSETS 2024 2023 2024 2023 2024 2023
Current and other assets $ 59,383,660 $ 56,486,974 $ 45,302,937 $ 40,473,447 $ 104,686,597 $ 96,960,421 Capital assets 122,445,549 116,407,669 103,103,093 103,068,284 225,548,642 219,475,953 Total assets 181,829,209 172,894,643 148,406,030 143,541,731 330,235,239 316,436,374

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts on Refundings - - 602,136 656,876 602,136 656,876 Deferred Pension Related Items 13,634,088 13,752,602 5,295,785 5,278,010 18,929,873 19,030,612 Deferred OPEB Related Items 104,889 120,012 70,995 55,031 175,884 175,043 Total deferred outflows 13,738,977 13,872,614 5,968,916 5,989,917 19,707,893 19,862,531

LIABILITIES
Current Liabilities 13,672,228 16,091,393 5,239,071 3,255,721 18,911,299 19,347,114 Long-term liabilities 38,469,879 36,719,400 35,636,212 36,624,578 74,106,091 73,343,978 Total liabilities 52,142,107 52,810,793 40,875,283 39,880,299 93,017,390 92,691,092

DEFERRED INFLOWS OF RESOURCES
Lease 286,420 301,930 - - 286,420 301,930
Deferred Pension Related Items 1,332,265 2,572,948 749,374 1,224,087 2,081,639 3,797,035 Deferred OPEB Related Items 224,971 295,645 152,281 135,568 377,252 431,213 Total deferred inflows 1,843,656 3,170,523 901,655 1,359,655 2,745,311 4,530,178

NET POSITION
Net Investment
in Capital Assets 122,297,964 115,992,639 81,619,006 79,775,942 203,916,970 195,768,581 Restricted 18,150,194 17,857,947 17,792,791 15,221,782 35,942,985 33,079,729 Committed - - - - - -
Assigned - - - - - -
Unrestricted 1,134,255 (3,064,646) 13,186,211 13,293,970 14,320,466 10,229,324 Total net position $ 141,582,413 $ 130,785,940 $ 112,598,008 $ 108,291,694 $ 254,180,421 $ 239,077,634 Governmental Activities Business-type Activities Total Government

NET POSITION
June 30, 2024 and 2023
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
The Change in Net Position shows how the government’s net position changed during fiscal year 2023-24 as compared to fiscal year 2022-23. The City’s current fiscal year change in net position of $15.10 million, compared to the prior fiscal year change in net position of $12.75 million, resulted in an increase of $2.35 million (18.47%).

Governmental Activities. Net Governmental activities (before transfers) decreased $657 thousand during the fiscal year ended June 30, 2024. Revenue increased 6.91 million or 18.56%, and expenses increased $7.57 million or 29.18%. Factors contributing to the current fiscal year increase in revenue include:
x Capital grants and contributions increased $5.87 million x Use of money and property increased $1.37 million
x Operating grants and contributions decreased $718 thousand 2024 2023 2024 2023 2024 2023

PROGRAM REVENUES
Charges for Services $ 4,820,219 $ 4,421,908 $ 34,854,058 $ 29,981,566 $ 39,674,277 $ 34,403,474 Operating Grants and Contributions 3,263,373 3,981,680 - 3,263,373 - 3,981,680 Capital Grants and Contributions 6,915,053 1,048,884 2,026,319 1,163,423 8,941,372 2,212,307

GENERAL REVENUES
Property and Other Taxes 3,520,106 3,094,769 - 3,520,106 - 3,094,769 Sales and Use Taxes 9,126,222 9,277,749 - 9,126,222 - 9,277,749 Motor Vehicle in Lieu 2,011,172 1,868,973 - 2,011,172 - 1,868,973 Franchise Fees 846,932 789,088 - - 846,932 789,088
Business License Taxes 314,129 302,636 - - 314,129 302,636 Transient Occupancy Taxes 9,367,408 9,804,566 - 9,367,408 - 9,804,566 Use of Money and Property 2,273,836 900,543 1,404,420 716,338 3,678,256 1,616,881 Other Revenues (Misc) 1,688,068 1,746,298 - 1,688,068 - 1,746,298 TOTAL REVENUES $ 44,146,518 $ 37,237,094 $ 38,284,797 $ 31,861,327 $ 82,431,315 $ 69,098,421

EXPENSES
Governmental Activities
General Government $ 6,348,178 $ 3,744,233 $ - $ 6,348,178 - $ $ 3,744,233 Public Safety 14,158,629 11,039,857 - 14,158,629 - 11,039,857 Community Development 2,250,564 1,433,300 - 2,250,564 - 1,433,300 Community Services 7,505,885 5,577,915 - 7,505,885 - 5,577,915 Streets and Roads 3,224,688 1,199,594 - 3,224,688 - 1,199,594 Interest on Long Term Debt 3,560 36,703 - - 3,560 36,703 Unallocated Depreciation 2,893,849 - - - 2,893,849 -
Business Type Activities
Water - 5,948,010 - 4,826,995 5,948,010 4,826,995
Sewer - 10,506,689 - 8,959,877 10,506,689 8,959,877
Electric - 15,951,109 - 16,216,357 15,951,109 16,216,357 Non-Major Enterprise Funds (Airport) - 1,431,216 - 421,495 1,431,216 421,495 TOTAL EXPENSES $ 33,491,504 $ 25,925,451 $ 33,837,024 $ 30,424,724 $ 67,328,528 $ 56,350,175

EXCESS (DEFICIENCY)OF REVENUES
OVER EXPENSES BEFORE TRANSFERS $ 10,655,014 $ 11,311,643 $ 4,447,773 $ 1,436,603 $ 15,102,787 $ 12,748,246 Transfers
Transfers In (Out) $ 141,459 $ 159,920 $ (141,459) $ (159,920) $ - $ - TOTAL TRANSFERS $ 141,459 $ 159,920 $ (141,459) $ (159,920) $ - $ - CHANGE IN NET POSITION $ 10,796,473 $ 11,471,563 $ 4,306,314 $ 1,276,683 $ 15,102,787 $ 12,748,246 NET POSITION JULY 1 130,785,940 119,314,377 108,291,694 107,015,011 239,077,634 226,329,388

RESTATEMENT OF NET POSITION - - - - - -
NET POSITION JUNE 30 $ 130,785,940 141,582,413 $ 112,598,008 $ 108,291,694 $ 254,180,421 $ 239,077,634 $

CHANGE IN NET POSITION
FOR THE FISCAL YEARS ENDED JUNE 30, 2024 and 2023
Government Activities Business-Type Activities Totals
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
x Transient occupancy tax decreased $437 thousand
x Property and other taxes increased $425 thousand
x Charges for services increased $398 thousand
The chart below reflects information from the Statement of Activities, page 11 of the Financial Statements. The largest revenue source for governmental activities is transient occupancy taxes (21.22%), followed by sales and use tax (20.67%), Capital Grants & Contributions (15.66%), and property taxes (12.53%).

REVENUES BY SOURCE – GOVERNMENTAL ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2024
As for expenditures, public safety expenses including both police and fire services are the most significant (42.28%) of all governmental activity expenses, followed by community services (22.41%), general government (18.95%), streets and roads (9.63%) and community development (6.72%). Interest on long term debt is 0.01% of the total expenses for governmental activities. The chart below reflects information from the Financial Statements, Statement of Activities on page

11. Property Taxes

12.53%
Franchise Fees

1.92%
Sales & Use Taxes

20.67%
Transient Occupancy
Taxes

21.22%
Business License
Taxes

0.71%
Use of Money and
Property

5.15%
Capital Grants &
Contributions

15.66%
Miscellaneous

3.83%
Charges for Services

10.92%
Operating Grants &
Contributions

7.39%
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
EXPENSES BY FUNCTION/PROGRAM – GOVERNMENTAL ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2024
The chart below is a side-by-side comparison of program expenses and revenue for governmental activities. For the fiscal year 2023-2024, program expenses exceeded program revenues for all six of the major governmental activity programs.

COMPARISON OF EXPENSES AND PROGRAM REVENUES

GOVERNMENTAL ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2024
Business-Type Activities. As of June 30, 2024, the total net position of business-type activities was $112.60 million.
x Total revenue of $38.28 million is mainly comprised of charges for services of $34.85 million, capital grants and contributions of $2.03 million associated largely with the Municipal Recycled Water Pipeline Project and use of money and property of $1.40 million representing interest earnings on investments.

General Government

18.95%
Public Safety

42.28%
Community
Development

6.72%
Community Services

22.41%
Streets and Roads

9.63%
Interest on LongTerm Debt

0.01%
$­
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
General
Government
Public Safety Community
Development
Community
Services
Streets and
Roads
Interest on
Long­Term
Debt
Program Revenues Expenses
12 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
x Revenue exceeded operating expenses of $33.84 million, resulting in a current fiscal year net position increase of $4.30 million.

REVENUES BY SOURCE – BUSINESS-TYPE ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2024
The chart below is a side-by-side comparison of program expense and revenue for business-type activities. For the fiscal year 2023-24, program revenue exceeded program expenses for Water, Electric, and Non-major Airport Fund.

EXPENSES AND PROGRAM REVENUES

BUSINESS-TYPE ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2024
Governmental Funds. The City uses fund accounting to ensure and demonstrate compliance with finance-related 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, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2024, the City’s governmental funds Balance Sheet on page 27, reported total ending fund balances of $34.94 million, an increase of $3.01 million from the prior fiscal year.

Approximately 30.76% of the total ending fund balances ($10.75 million) is unassigned and Charges for Service

91.04%
Capital Grants &
Contributions

5.30%
Investment Earnings

3.66%
$­
$4,000,000
$8,000,000
$12,000,000
$16,000,000
Water Sewer Electric Non­major
Enterprise Funds
Program Revenues Expenses
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
available for spending in the future at the government’s discretion. It is important to note that in the General Fund a significant portion of this unassigned fund balance is specifically held as an operating reserve to support essential services programs during periods of economic downturn or unforeseen catastrophic events. The remainder of the fund balance is either non-spendable, restricted, or assigned. The most significant of these reserved fund balances are restricted for affordable housing ($9.72 million), pension stabilization ($5.62 million), community services ($4.34 million), and streets and roads ($3.01 million).

General Fund revenues were $3.58 million (15.52%) more than in the prior fiscal year, and expenditures were $1.96 million (9.39%) more than the prior year. The increase in revenues was the result of an increase in other, donations and reimbursements of $3.49 million, associated largely with the receipt of $3.4 million in developer contributions towards the construction of a new fire station, use of money and property of $548 thousand representing additional interest earnings, intergovernmental of $453 thousand largely associated with American Rescue Plan Act funds, property tax of $312 thousand, license and permits of $299 thousand, offset by a decrease in sales and other taxes of $1.55 million. The decrease in sales and other taxes was a result of a change in the classification for the Transient Occupancy Tax Housing Fund (TOT Housing); moving the fund from General Fund, page 140, to a Special Revenue Fund on the Nonmajor Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances, page 120. The change in sales and other taxes excluding the TOT Housing fund was nominal, only decreasing 1.3% in the current fiscal year.

Proprietary Funds. The City’s proprietary funds Revenues, Expenses, and Changes in Net Position, page 34, provide the same type of information found in the government-wide financial statements, but in more detail. The City’s major enterprise funds are Water, Sewer, and Electric.

The major changes in enterprise net position are an increase in the Water Fund of $2.25 million to $24.12 million, an increase in the Sewer Fund of $123 thousand to $46.65 million and an increase in the Electric Fund of $1.36 million to $37.48 million.

The Internal Service Funds had an increase in net position of $516 thousand during the fiscal year, ending with a net position of $10.39 million. This increase is attributable to contributions and transfers of $1.30 million offset by an operating loss of $787 thousand, largely driven by vehicle purchases. The operating revenue is made up of the service fees charged to each operating fund.

CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities at June 30, 2024, amounted to $225.32 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, equipment, vehicles, infrastructure, and construction in progress. Depreciation expenses for the fiscal year 2023-2024 totaled $8.67 million.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
Additional information on the City’s capital assets can be found in Note 8 of the basic financial statements.

Long-Term Liabilities. The City’s outstanding long-term liabilities, including bonds, loans payable, net pension liability, claims, capital leases, OPEB, and compensated absences totaled $74.14 million at June 30, 2024. Of this total, $38.47 million (51.91%) was in governmental activities and $35.64 million (48.09%) was in business-type activities.

Additional information on the City’s long-term liabilities can be found in Notes 10-14 of the basic financial statements.

Long-Term Liabilities
Footnote 10
2024 2023 2024 2023
Net Pension Liability 34,807,395 32,546,984 13,756,857 12,903,870 Certificates of Participation - - 1,070,000 1,220,000
HUSD Capital Lease Payable - - --
Equipment Finance Purchase - - --
Revenue Bonds - - 19,157,219 20,840,600
Compensated Absences 1,706,698 2,025,725 --
Successor Agency Payable 1,063,108 1,167,966 1,212,452 1,332,040 Capital Leases 24,225 56,381 - -
Claims Payable 218,319 206,903 --
OPEB 650,134 715,442 439,684 328,068
Total 38,469,879 $ 36,719,401 $ 35,636,212 $ 36,624,578 Governmental Activities Business-type Activities
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2024
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The financial outlook of the City is cautiously optimistic as we continue to operate in an uncertain economy. While the Consumer Price Index (CPI) for All Urban Consumers in the San Fransisco Area was at 3.7% in June of 2024 the federal funds target rate remained at 5.25-5.5%. The Fiscal Year 2024-25 budget reflects conservative growth projections of major general fund revenue sources that are historically more vulnerable to economic conditions including Sales Tax and Transient Occupancy Tax. Property Tax, which is considerably more stable, is projected to continue to increase with anticipated development, providing sufficient revenues to support operational cost increases associated with inflation. Interest earnings are expected to remain meaningful due to strong market performance and a sound investment strategy. City Council approved a series of rate increases for Water, Sewer, and Electric utilities representing a path forward towards meaningful investment in capital infrastructure and operating stability. The City has many large capital projects included in the upcoming budget funded in large part by grants and developer contributions. The City remains committed to evaluating our governmental practices, opportunities for greater operational efficiencies, and ensuring the best possible utilization of taxpayer provided resources.

The City prepares a biennial budget based on long-term financial viability which allows decision makers to understand the on-going impact of current policy decisions. Through the budget, the council sets the direction of the City, including allocating resources and establishing priorities. The biennial budget 2024-25 and 2025-26 was adopted June 2024. The 2024-25 budget had approved expenditures totaling $109.41 million and the 2025-26 budget has approved expenditures totaling $127.70 million.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Katie Edgar, Finance Director, City of Healdsburg, [email protected] or at 401 Grove Street, Healdsburg, CA 95448-4723. 16 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) BASIC

FINANCIAL STATEMENTS
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 38,631,378 $ 26,786,481 $ 65,417,859 Cash and investments with fiscal agent 312,247 2,220 314,467 Pension stabilization investments 5,619,517 2,372,514 7,992,031 Investment in NCPA Reserves 5,729,441 - 5,729,441
Accounts receivable 3,318,253 4,787,260 8,105,513
Loans and notes receivable 9,569,267 9,569,267 -
Interest receivable 189,792 157,275 347,067
Intergovernmental receivable 3,276,650 1,070,355 4,347,005 Lease receivable 68,251 - 68,251
Internal balances (1,629,634) 1,629,634 -
Inventory 24,688 2,767,757 2,792,445
Prepaid items 3,251 - 3,251
Total current assets 59,383,660 45,302,937 104,686,597
Noncurrent assets:

Lease receivable 227,613 - 227,613
Capital assets:

Nondepreciable 36,816,256 5,246,707 42,062,963
Depreciable 138,968,243 166,423,610 305,391,853
Less accumulated depreciation (53,566,563) (68,567,224) (122,133,787) Total noncurrent assets 122,445,549 103,103,093 225,548,642 Total assets 181,829,209 148,406,030 330,235,239

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 602,136 602,136
Pension related 13,634,088 5,295,785 18,929,873
OPEB related 104,889 70,995 175,884
Total deferred outflows of resources 13,738,977 5,968,916 19,707,893 Primary Government
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
Primary Government

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,928,727 2,295,758 5,224,485 Retentions payable 91,204 59,224 150,428
Interest payable - 205,776 205,776
Unearned revenue 7,492,983 7,492,983 -
Deposits payable 1,601,477 743,705 2,345,182
Compensated absences - due within one year 1,306,007 1,306,007 - Claims and judgements - due within one year 96,126 - 96,126 Other post-employment benefits liability - due within one 18,690 13,020 31,710 Other long-term liabilities - due within one year 137,014 1,921,588 2,058,602 Total current liabilities 13,672,228 5,239,071 18,911,299 Noncurrent liabilities:

Compensated absences, due in more than one year 1,706,698 1,706,698 - Claims payable, due in more than one year 218,319 - 218,319 Net pension liability 34,807,395 13,756,857 48,564,252
Other long-term liabilities, due in more than one year 1,087,333 21,439,671 22,527,004 Other post-employment benefits liability 650,134 439,684 1,089,818 Total noncurrent liabilities 38,469,879 35,636,212 74,106,091 Total liabilities 52,142,107 40,875,283 93,017,390

DEFERRED INFLOWS OF RESOURCES
Lease 286,420 - 286,420
Pension related 1,332,265 749,374 2,081,639
OPEB related 224,981 152,281 377,262
Total deferred inflows of resources 1,843,666 901,655 2,745,321

NET POSITION
Net investment in capital assets 122,297,964 81,619,006 203,916,970 Restricted for:

Lighting and landscaping 396,998 - 396,998
Pension - - -
Capital projects 430,536 17,792,791 18,223,327
Community services 4,345,445 4,345,445 -
Nonexpendable permanent endowments 312,247 - 312,247
Debt service 164,943 - 164,943
Streets and roads 2,598,394 2,598,394 -
Public safety 184,017 - 184,017
Housing 9,717,614 9,717,614 -
- Total restricted 18,150,194 17,792,791 35,942,985
Unrestricted 1,134,255 13,186,211 14,320,466
Total net position $ 141,582,413 $ 112,598,008 $ 254,180,421 21 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Activities
For the year ended June 30, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:

General government 6,348,178 $ 337,788 $ - $ 789,978 $
Public safety 14,158,629 704,194 370,807 4,431,978
Streets and roads 3,224,688 360,176 1,445,395 333,263
Community development 2,250,564 2,142,678 1,184,550 -
Community services 7,505,885 1,275,383 262,621 1,359,834 Interest and fiscal charges 3,560 - - -
Total governmental activities 33,491,504 4,820,219 3,263,373 6,915,053 Business-type Activities:

Water 5,948,010 7,736,487 241,603 -
Sewer 10,506,689 9,485,148 694,161 -
Electric 15,951,109 16,461,465 270,533 -
Airport 1,431,216 1,170,958 820,022 -
Total business-type activities 33,837,024 34,854,058 2,026,319 - Total primary government $ 67,328,528 $ 39,674,277 $ 3,263,373 $ 8,941,372 General Revenues:

Taxes:

Transient occupancy taxes
Sales taxes
Property taxes
Franchise taxes
Business license taxes
Motor vehicle in lieu, unrestricted
Use of money and property
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) Governmental Business-T
ype
Total Activitie
s Activities Total
$ (5,220,412) 1,127,766 $ - $ (5,220,412) $
(8,651,650) 5,506,979 - (8,651,650)
2,138,834 (1,085,854) (1,085,854) -
3,327,228 1,076,664 1,076,664 -
2,897,838 (4,608,047) (4,608,047) -
- (3,560) - (3,560)
14,998,645 (18,492,859) (18,492,859) -
7,978,090 2,030,080 - 2,030,080
10,179,309 (327,380) - (327,380)
16,731,998 780,889 - 780,889
1,990,980 559,764 - 559,764
36,880,377 3,043,353 - 3,043,353
$ 51,879,022 (18,492,859) 3,043,353 (15,449,506)
9,367,408 9,367,408 -
9,126,222 9,126,222 -
3,520,106 3,520,106 -
846,932 846,932 -
314,129 314,129 -
2,011,172 2,011,172 -
2,273,836 1,404,420 3,678,256
1,688,068 1,688,068 -
141,459 (141,459)-
29,289,332 1,262,961 30,552,293
10,796,473 4,306,314 15,102,787
130,785,940 108,291,694 239,077,634
$ 141,582,413 $ 112,598,008 $ 254,180,421
and Changes in Net Position
Net (Expense) Revenue
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Balance Sheet
Governmental Funds
June 30, 2024
Special
Revenue
Fund
Capital
Projects Fund Nonmajor Total
Community Governmental Governmental
Services Streets Funds Funds
ASSETS
Cash and investments 11,793,546 $ 10,622,111 $ 1,905,632 $ 4,649,664 $ 28,970,953 $ Cash and investments with fiscal agents - - - 312,247 312,247 Pension stabilization investments 4,945,288 485,296 188,933 - 5,619,517 Accounts receivable 1,040,126 1,874,080 10,912 270,013 3,195,131 Loans and notes receivable 93,157 - 9,472,702 - 9,565,859 Interest receivable 78,355 63,227 9,335 12,720 163,637
Intergovernmental receivable 2,168,628 824,956 199,682 83,384 3,276,650 Lease receivable 295,864 - - 295,864 -
Due from other funds 1,523,626 - - 1,523,626 -
Inventory - 9,048 - 9,048 -
Prepaid items 3,251 - - 3,251 -
Total assets $ 21,941,841 $ 13,869,670 $ 2,323,542 $ 14,800,730 $ 52,935,783

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 829,102 $ $ 743,288 $ 141,188 $ 151,101 $ 1,864,679 Due to other funds 321,195 646,737 - 145,694 1,113,626
Deposits payable 1,569,176 6,931 19,358 1,601,477 6,012 Retention payable 91,204 - - 91,204 -
Unearned revenue 670,001 6,631,475 109,780 81,727 7,492,983 Advances from other funds 2,039,634 - - 2,039,634 -
Total liabilities 5,429,108 7,472,898 917,063 384,534 14,203,603 Deferred Inflows of Resources
Lease 286,420 - - 286,420 -
Unavailable revenue - others 1,570,070 - - 1,570,070 -
Unavailable revenue - interest - - 1,931,775 - 1,931,775 Total deferred inflows of resources 286,420 1,570,070 1,931,775 - 3,788,265 Fund Balances:

Nonspendable 3,251 9,048 - 312,247 324,546
Restricted 4,945,288 4,826,702 1,397,431 12,288,043 23,457,464 Committed 39,389 - - 39,389 -
Assigned 373,785 - - 373,785 -
Unassigned 10,864,600 - (115,869) - 10,748,731
Total fund balances 16,226,313 4,826,702 1,406,479 12,484,421 34,943,915 Total liabilities, deferred inflows of
resources and fund balances $ 21,941,841 $ 13,869,670 $ 2,323,542 $ 14,800,730 $ 52,935,783 General
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 34,943,915 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

GovernmentWide
Statement of
Net Position
Internal
Service
Funds Total
Nondepreciable $ - 36,816,256 $ 36,816,256 $
Depreciable, net 85,401,680 (5,011,477) 80,390,203
Total capital assets $ (5,011,477) 122,217,936 $ 117,206,459 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 10,392,648 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 3,501,845 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

GovernmentWide
Statement of
Net Position
Internal
Service
Funds
Deferred outflows of resources related to pension 13,634,088 $ - $ 13,634,088 Deferred outflows of resources related to OPEB 104,889 - 104,889 Deferred inflows of resources related to pension (1,332,265) - (1,332,265) Deferred inflows of resources related to OPEB - (224,981) (224,981) Long-term liabilities were not due and payable in the current period.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

GovernmentWide
Statement of
Net Position
Internal
Service
Funds Total
Compensated absences - due within one year (1,306,007) $ 1,306,007 $ - $ Compensated absences - due in more than one year (1,706,698) 1,706,698 - Long-term debt - due within one year (137,014) 32,156 (104,858) Long-term debt - due in more than one year (1,087,333) 24,225 (1,063,108) Net pension liability (34,807,395) - (34,807,395)
OPEB liability - due within one year (18,690) (18,690)
OPEB liability - due in more than one year (650,134) - (650,134) Total long-term liabilities $ 3,069,086 (39,713,271) $ (36,644,185) Net Position of Governmental Activities $ 141,582,413
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
Special
Revenue
Fund
Capital
Projects Fund Nonmajor Total
Community Governmental Governmental
Services Streets Funds Funds
REVENUES:

Property taxes 5,275,497 $ - $ - $ 255,781 $ 5,531,278 $ Sales and other taxes 11,012,930 6,855,779 133,651 1,338,201 19,340,561 Development fees 439,967 20,376 158,437 27,383 646,163
Intergovernmental 1,805,784 1,398,109 280,903 607,164 4,091,960 Fines and forfeitures 43,008 - - - 43,008
Licenses and permits 1,973,447 - - - 1,973,447
Use of money and property 959,800 550,316 81,685 159,017 1,750,818 Charges for services 1,014,985 1,255,007 4,276 - 2,274,268 Other, donations, and reimbursements 4,117,612 258,845 584,375 116,613 5,077,445 Total revenues 26,643,030 10,338,432 1,243,327 2,504,159 40,728,948 EXPENDITURES:

Current:

General government 9,427,439 - - - 9,427,439
Public safety 12,642,318 - - 37,238 12,679,556
Streets and roads - - 2,076,853 2,700 2,079,553
Community development 766,536 - - 1,067,272 1,833,808
Community services - 11,217,986 - - 11,217,986
Debt service:

Principal retirement - - - 104,597 104,597
Interest and fiscal charges - - -3,181 3,181
Total expenditures 22,836,293 11,217,986 2,076,853 1,214,988 37,346,120

REVENUES OVER (UNDER)
EXPENDITURES 3,806,737 (879,554) (833,526) 1,289,171 3,382,828 OTHER FINANCING SOURCES (USES):

Transfers in 226,437 - 1,842,038 125,124 2,193,599
Transfers out (1,825,349) (125,124) - (615,285) (2,565,758) Total other financing sources (uses) (1,598,912) (125,124) 1,842,038 (490,161) (372,159) Net change in fund balances 2,207,825 (1,004,678) 1,008,512 799,010 3,010,669 FUND BALANCES:

Beginning of year, as previously presented 16,291,955 4,717,348 397,967 10,525,976 31,933,246 Change within financial reporting entity (2,273,467) 1,114,032 - 1,159,435 - Beginning of year, as restated 14,018,488 5,831,380 397,967 11,685,411 31,933,246 End of year $ 16,226,313 $ 4,826,702 $ 1,406,479 $ 12,484,421 $ 34,943,915 General
See accompanying Notes to Basic Financial Statements.
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Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds $ 3,010,669 Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 9,086,349 Donated capital assets was reported in the Government-Wide Statement of Activities as revenues, whereas, donated capital assets was not reported as revenues in the governmental funds 510,410
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (3,118,049) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position.

Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments 104,597
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 5,404,952 Pension income/(expense) is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (6,543,194)
OPEB expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. 102,159
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 1,722,299
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 516,281 Change in Net Position of Governmental Activities $ 10,796,473 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities -
Non-major Internal Service
Airport Fund Totals Funds
ASSETS
Current Assets:

Cash and investments $ 4,527,621 $ 8,976,677 $ 12,883,123 $ 399,060 $ 26,786,481 $ 9,660,425 Cash and investments
with fiscal agents 2,164 56 - - 2,220 -
Pension stabilization investments 566,776 830,925 974,813 - 2,372,514 - Investment in NCPA reserves - - 5,729,441 - 5,729,441 - Accounts receivable 1,146,967 1,287,373 2,341,260 11,660 4,787,260 123,122 Loans and notes receivable - - - - -3,408
Interest receivable 26,884 51,768 76,225 2,398 157,275 26,155 Intergovernmental receivable 965,024 914 - 104,417 1,070,355 - Due from other funds - 291,343 15,000 57,745 364,088 -
Inventory 103,930 20,089 2,598,795 44,943 2,767,757 15,640 Total current assets 7,337,258 11,461,253 24,618,657 620,223 44,037,391 9,828,750 Noncurrent:

Advances to other funds - 1,019,817 1,019,817 - 2,039,634 - Capital assets:

Land 310,781 766,902 48,360 119,834 1,245,877 -
Construction in progress 2,515,265 409,003 1,076,559 3 4,000,830 - Depreciable buildings and
improvements 258,359 1,443,869 447,835 890,807 3,040,870 - Depreciable utility systems 36,686,712 86,470,891 31,682,816 - 154,840,419 - Depreciable operations - - - 4,866,909 4,866,909 -
Depreciable equipment 655,480 1,808,823 1,001,599 209,510 3,675,412 15,432,803 Accumulated depreciation (16,380,021) (34,331,850) (15,672,867) (2,182,486) (68,567,224) (10,421,326) Net capital assets 25,232,086 55,382,128 18,584,302 3,904,577 103,103,093 5,011,477 Total noncurrent assets 25,232,086 56,401,945 19,604,119 3,904,577 105,142,727 5,011,477 Total assets 32,569,344 67,863,198 44,222,776 4,524,800 149,180,118 14,840,227

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding - 602,136 - - 602,136 - Pension related 1,564,664 1,564,664 2,166,457 - 5,295,785 - OPEB related 24,110 33,662 13,223 - 70,995 -
Total deferred outflows
of resources 1,588,774 2,200,462 2,179,680 5,968,916 - - Business-Type Activities
Water Fund Sewer Fund Electric Fund
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities -
Non-major Internal Service
Airport Fund Totals Funds
Business-Type Activities
Water Fund Sewer Fund Electric Fund

LIABILITIES
Current liabilities:

Accounts payable and
accrued liabilities 122,835 1,243,782 831,360 97,781 2,295,758 1,064,048 Due to other funds - 716,343 - 57,745 774,088 -
Deposits payable 14,133 150 710,704 18,718 743,705 -
Retention payable 59,224 - - - 59,224 -
Interest payable 45,308 157,138 3,330 - 205,776 -
Bonds payable - current 612,000 1,190,000 - - 1,802,000 - Loans payable - current - - 119,588 - 119,588 -
Lease liabilities - current - - - - - 32,156
Compensated absences - current - - - - - 1,306,007
OPEB liability - current 4,422 6,173 2,425 - 13,020 -
Claims payable - current - - - - - 96,126
Total current liabilities 1,978,869 2,192,639 1,667,407 174,244 6,013,159 2,498,337 Noncurrent liabilities:

Bonds payable 3,572,000 16,655,219 - - 20,227,219 -
Loan payable - - 1,212,452 - 1,212,452 -
Lease liabilities - - - - - 24,225
Compensated absences - - - - - 1,706,698
Claims payable - - - - - 218,319
Net pension liability 4,064,526 4,064,526 5,627,805 - 13,756,857 - Net OPEB liability 149,317 208,473 81,894 - 439,684 -
Total noncurrent liabilities 7,785,843 20,928,218 6,922,151 - 35,636,212 1,949,242 Total liabilities 9,764,712 23,120,857 8,589,558 174,244 41,649,371 4,447,579

DEFERRED INFLOWS OF RESOURCES
Pension related 221,406 221,406 306,562 - 749,374 -
OPEB related 51,715 72,203 28,363 - 152,281 -
Total deferred inflows
of resources 293,609 273,121 334,925 - 901,655 -

NET POSITION
Net investment in capital assets 20,988,918 38,141,209 18,584,302 3,904,577 81,619,006 4,955,096 Restricted 2,191,638 8,703,326 6,897,827 - 17,792,791 - Unrestricted 939,729 (195,341) 11,995,844 445,979 13,186,211 5,437,552 Total net position $ 46,649,194 24,120,285 $ 37,477,973 $ 4,350,556 $ 112,598,008 $ 10,392,648 $ 33 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Non-major
Internal
Service
Airport Fund Totals Funds
OPERATING REVENUES:

Charges for services $ 6,235,537 $ 8,425,663 $ 15,065,604 $ 213,120 $ 29,939,924 $ 7,391,643 Development fees 112,059 336,592 82,841 6,097 537,589 - Rental income - - - 209,214 209,214 -
Intergovernmental 1,347,012 914 - 742,184 2,090,110 -
Other 41,879 721,979 1,313,020 343 2,077,221 112,301
Total operating revenues 9,485,148 7,736,487 16,461,465 1,170,958 34,854,058 7,503,944 OPERATING EXPENSES:

Purchase of power - - 5,312,034 - 5,312,034 -
Salaries and benefits 2,689,757 3,467,616 3,208,219 13,245 9,378,837 3,207,491 Maintenance and operations 1,195,472 2,657,813 5,121,912 1,247,370 10,222,567 3,505,921 Administration 1,011,329 1,316,112 1,652,847 44,865 4,025,153 431,610 Amortization - - - - - 31,971
Depreciation 860,091 2,401,842 652,768 125,736 4,040,437 1,508,770 Total operating expenses 5,756,649 9,843,383 15,947,780 1,431,216 32,979,028 8,685,763 Operating income (loss) 1,979,838 (358,235) 513,685 (260,258) 1,875,030 (1,181,819) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 217,272 405,133 769,259 12,756 1,404,420 387,983 Interest expense (191,361) (663,306) (3,329) - (857,996) (379) Gain (loss) on sale of fixed assets - - - - -6,900
Total nonoperating revenues (expenses) 25,911 (258,173) 765,930 12,756 546,424 394,504 Income before contributions
and transfers 2,005,749 (616,408) 1,279,615 (247,502) 2,421,454 (787,315) CONTRIBUTIONS AND TRANSFERS:

Transfers in 44,978 - - - 44,978 513,618
Transfers out - (186,437) - (186,437) - -
Capital contributions 241,603 694,161 270,533 820,022 2,026,319 789,978 Total contributions and transfers 241,603 739,139 84,096 820,022 1,884,860 1,303,596 Change in net position 2,247,352 122,731 1,363,711 572,520 4,306,314 516,281 NET POSITION:

Beginning of year 21,872,933 46,526,463 36,114,262 3,778,036 108,291,694 9,876,367 End of year $ 46,649,194 24,120,285 $ 37,477,973 $ 4,350,556 $ 112,598,008 $ 10,392,648 $ Business-Type Activities
Water Fund Sewer Fund Electric Fund
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Internal
Service
Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 5,634,677 $ 8,691,650 $ 15,041,011 $ 209,415 $ 29,576,753 $ 7,347,185 $ Receipts from other operating activities 1,388,891 722,893 1,313,020 951,741 4,376,545 112,301 Payments to suppliers (1,020,912) (3,984,870) (11,756,882) (1,242,479) (18,005,143) (4,540,125) Payments to employees (2,521,118) (3,262,664) (3,095,926) (13,245) (8,892,953) (3,027,287) Net cash provided (used)
by operating activities 2,167,009 3,481,538 1,501,223 (94,568) 7,055,202 (107,926) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund borrowing - 425,000 - - 425,000 -
Transfers in - 44,978 - - 44,978 557,416
Transfers out - - (186,437) - (186,437) (43,798)
Net cash provided (used) by
non-capital financing activities 469,978 - (186,437) - 283,541 513,618 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Interest paid (199,440) (674,709) (3,627) - (877,776) (379) Principal payment on debt (749,000) (1,171,381) (119,290) - (2,039,671) (31,992) Cash received from sale of capital assets - - - - - 6,900 Acquisition and construction of capital assets (1,818,656) 109,860 (209,500) 150,735 (1,767,561) (82,320) Net cash provided (used) by
capital and related financing activities (2,767,096) (1,736,230) (332,417) 150,735 (4,685,008) (107,791) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 202,326 378,241 765,792 11,414 1,357,773 375,627 Net cash provided (used) by
investing activities 378,241 202,326 765,792 11,414 1,357,773 375,627 Increase (Decrease) in cash and
cash equivalents 1,278,998 916,768 1,748,161 67,581 4,011,508 673,528

CASH AND INVESTMENTS -
Beginning of Fiscal Year 8,530,768 4,177,685 12,109,775 331,479 25,149,707 8,986,897

CASH AND INVESTMENTS -
End of Fiscal Year $ 9,809,766 5,094,453 $ 13,857,936 $ 399,060 $ 29,161,215 $ 9,660,425 $

RECONCILIATION OF CASH & CASH EQUIVALENTS
Cash and investments $ 4,527,621 $ 8,976,677 $ 12,883,123 $ 399,060 $ 26,786,481 $ 9,660,425 Cash and investments with fiscal agents 56 2,164 - - 2,220 - Pension stabilization investments 566,776 830,925 974,813 - 2,372,514 - $ 5,094,453 $ 9,809,766 $ 13,857,936 $ 399,060 $ 29,161,215 $ 9,660,425 Business-Type Activities
Water Fund Sewer Fund Electric Fund Airport Fund
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Internal
Service
Totals Funds

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

Operating income (loss) 1,979,838 (358,235) 513,685 (260,258) 1,875,030 (1,181,819) Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating) operating activities:

Depreciation and amortization 860,091 2,401,842 652,768 125,736 4,040,437 1,540,741 Changes in assets and liabilities: -
(Increase) decrease in receivable (705,922) (69,805) (365,860) (9,802) (1,151,389) (44,458) (Increase) decrease in inventories (5,765) 377 (237,133) (29,051) (271,572) (6,457) Increase (decrease) in prepaid items - - - - - 54,063
Increase (decrease) in deferred outflows of resources - OPEB related (8,054) (12,821) 4,911 (15,964) - -
Increase (decrease) in deferred outflows of resources - pension related (5,252) (5,252) (7,271) - (17,775) -
Increase (decrease) in accounts payable and accrued
liabilities 1,132,430 (11,322) 567,044 78,807 1,766,959 (650,200) Increase (decrease) in in deposits payable (6,997) (800) 258,426 - 250,629 - Increase (decrease) in retention payable 59,224 - - - 59,224 - Increase (decrease) in claims payable - - - - - 16,460
Increase (decrease) in OPEB 58,021 90,401 (23,786) - 124,636 - Increase (decrease) in net pension liabilitity 252,019 252,019 348,949 - 852,987 - Increase (decrease) in compensated absences - - - - - 163,744 Increase (decrease) in deferred inflows of resources -
OPEB related 12,161 20,861 (16,309) 16,713 - -
Increase (decrease) in deferred inflows of resources -
pension related (140,256) (140,256) (194,201) - (474,713) - Net cash provided by operating activities $ 2,167,009 3,481,538 $ 1,501,223 $ (94,568) $ 7,055,202 $ (107,926) $

NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contribution 241,603 $ 694,161 $ 270,533 $ 820,022 $ 2,026,319 $ 789,978 $ Amortization related to deferred loss on debt
refunding $ 54,740 - $ - $ - $ 54,740 $ - $
Business-Type Activities
Water Fund Sewer Fund Electric Fund Airport Fund
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Private Purpose Custodial Fund
Trust Fund Cultural Center
ASSETS
Cash and investments $ 82,437 3,793,142 $
Cash and investments with fiscal agents 2,618,775 -
Loans and notes receivable 2,609,931 -
Interest receivable 26,398 479
Nondepreciable capital assets 528,300 -
Total assets 82,916 9,576,546

LIABILITIES
Interest payable 535,362 -
Long-term liabilities: -
Long-term debt - due within one year 2,496,800 -
Long-term debt - due in more than one year 29,545,729 - Total liabilities - 32,577,891

NET POSITION
Net position held for private purposes (23,001,345) -
Net position held for Individuals, organizations, and other governments - 82,916 Total Net Position $ 82,916 (23,001,345) $
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Private Purpose Custodial Fund
Trust Fund Cultural Center
ADDITIONS:

Property taxes $ 3,914,620 $ -
Use of money and property 291,316 3,741
Total additions 4,205,936 3,741
DEDUCTIONS:

Community development 5,350 -
Interest expense 1,136,641 -
Administrative expense 250,000 -
Total deductions 1,391,991 -
Change in net position 2,813,945 3,741
NET POSITION:

Beginning of year (25,815,290) 79,175
End of year $ (23,001,345) $ 82,916
See accompanying Notes to Basic Financial Statements.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

NOTES TO BASIC

FINANCIAL STATEMENTS
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Healdsburg (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles. The more significant of the government’s accounting policies are described below.

A. Reporting Entity
The basic financial statements of the City of Healdsburg (City) include the financial activities of the City and its component unit: the Healdsburg Public Financing Authority (HPFA).

The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board Statement (GASB) No.14 as amended by GASB No. 39, No. 61 and No. 80. The City of Healdsburg is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component units’ Board or because the component unit will provide a financial benefit or impose a financial burden on the City.

The component unit has been accounted for as a “blended” component unit of the City. Despite being legally separate, the HPFA is so intertwined with the City that it is, in substance, part of the City’s operations. Accordingly, the balances and transactions of this component unit are reported within the funds of the City. HPFA transactions are recorded in the Sewer Enterprise Fund. The following criteria were used in determining that the component unit was blended:

The members of the City Council or other members appointed by the City Council act as governing body of the HPFA. In addition, the HPFA provide services, which benefit the City. No separate financial statements are issued for HPFA.

The City participates in one joint power activity and one pooled arrangement through formally organized and separate entities. The financial activities of the Northern California Power Agency and the Redwood Empire Municipal Insurance Fund are not included in the accompanying basic financial statements as they are administered by boards separate from and independent of the City.

The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Certain eliminations have been made as prescribed by GASB Statement No. 34 regarding 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. 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 that are clearly identifiable with a specific function or segment.

Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and grant and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 41 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government-wide and Fund Financial Statement
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

Separate financial statements are provided for governmental funds, the proprietary fund, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the reporting government as a whole except for its fiduciary activities.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government (including its blended component units) is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units. For the most part, the effect of interfund activity has been removed from these statements.

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

The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for all proprietary funds.

Internal service funds are also presented in these statements. Internal service balances and activities have been allocated between governmental activities and business-type activities in the government-wide financial statements. These internal service funds account for charges to other funds and departments for insurance, maintenance, and information services.
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements and fiduciary fund statements. Under the economic resources measurement focus, all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include property taxes, grants, entitlements, and donations.

On the accrual basis, revenue from property taxes is recognized in the fiscal year in which the taxes are levied. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all the eligibility requirements have been satisfied.

Proprietary funds distinguish operating revenues from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

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

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets despite their spending measurement focus.

However, special reporting treatments are used to indicate that they should not be considered available spendable resources” since they do not represent net current assets. Recognition of governmental fund type revenue represented by noncurrent receivables is deferred until they become current receivables. 43 6.A.a
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Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued Under the modified accrual basis of accounting, revenues are available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims payable, and compensated absences which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds and proceeds of long-term liabilities are reported as other financing sources.

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

Fiduciary funds focus on net position and changes in net position. Trust funds use the flow of economic resources measurement focus and the accrual basis of accounting, except for the recognition of certain liabilities of defined benefit pension plans. Custodial funds also use the accrual basis of accounting, but, since they are custodial in nature and do not involve the measurement of results of operations, they do not have a measurement focus.

Fund Classifications - The funds designated as major funds are determined by a mathematical calculation consistent with GASB Statement No. 34.

Major Governmental Funds
The General Fund is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund.

The Community Services Special Revenue Fund accounts for Transient Occupancy Tax funds received that are restricted for community services.

The Street Capital Project Fund accounts for the acquisition and construction of major streets and roads capital projects throughout the City.

Major Enterprise Funds
The Water Fund accounts for the activities of providing water utilities to the residents of the City.

The Sewer Fund accounts for the activities of providing sewer utilities to the residents of the City.

The Electric Fund accounts for the activities of the electric distribution operations. 44 6.A.a
Packet Pg. 84
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued The City’s fund structure includes the following fund types:

Governmental Fund Types
Special Revenue Funds are used to account for, and report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

These funds are required by statute or ordinance to finance particular functions or activities of government.

Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal, interest, and related costs on long-term obligations.

Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets (other than those financed by proprietary funds and trust funds).

Permanent Funds are used to account for and report financial resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support City programs.

Proprietary Fund Types
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges.

Internal Service Funds are used to account for the financing of special activities that provide services within the City. These activities include insurance and benefits, vehicle maintenance, information services, and building maintenance.

Fiduciary Fund Types
Private Purpose Trust Funds are used to report trust arrangements under which principal and income benefits to support private organizations or other governments.

Custodial Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments.
45 6.A.a
Packet Pg. 85
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment.

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

In compliance with the applicable State statute, the Statement of Investment Policy is adopted annually by the City Council. Investments authorized under the Investment Policy include:
¾ Local Agency Investment Fund (LAIF) – State of California Investment Pool ¾ Sonoma County Pooled Fund
¾ U.S. Treasury Obligations
¾ U.S. Government Agency Issues
¾ Certificates of Deposit
¾ Money Market Funds
¾ Medium-term Notes
¾ Commercial Paper
¾ Repurchase Agreements
The City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 31, “Accounting and Financial Reporting for Certain Investments and External Pools”, which require governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred.

The City’s investments are carried at fair value which approximates cost. 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 its 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.

Changes in fair value are allocated to each participating fund.

For purposes of the statement of cash flows for the proprietary fund, all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased are considered cash equivalents.

Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as interfund receivables/interfund payables (i.e., the current portion of interfund loans) or advances to/from other funds (the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as interfund receivables or interfund payables. 46 6.A.a
Packet Pg. 86
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Encumbrances
Encumbrance accounting is employed as an extension of the budgetary process. This method records purchase orders, contracts, and other commitments for the expenditure of funds to reserve that portion of the applicable appropriation. The City Council honors encumbrances outstanding at fiscal year-end.

Receivables and Payables
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in the applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and tax receivables are shown net of an allowance for uncollectible accounts if applicable, and estimated refunds due.

Lease Receivable
The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee’s revenue. The variable payments are recorded as an inflow of resources in the period the payment is received.

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. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.

Inventory
Inventory is valued at cost using the weighted average method. Inventory of the Enterprise Funds consists primarily of materials and supplies for utility operations.

Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value. For this report, the following timeframes are used:
x Valuation Date: June 30, 2022
x Measurement Date: June 30, 2023
x Measurement Period July 1, 2022 through June 30, 2023 47 6.A.a
Packet Pg. 87
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
x Valuation Date: June 30, 2024
x Measurement Date: June 30, 2024
x Measurement Period July 1, 2023 through June 30, 2024 Property Taxes
Property Tax Levy, Collection and Maximum Rates - The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation debt has been approved by voters.

Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be adjusted by no more than two percent per year unless the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts, and other districts.

Sonoma County assesses properties, bills for, and collects secured and unsecured property taxes as follows:

The term “unsecured” refers to taxes on personal property. These taxes are secured by liens on the property being taxed. The City accrues only those taxes, which are levied for the tax year and received within sixty days after fiscal year-end.

Property Tax Administration Fees – The State of California FY 1990-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administrative fees withheld during the fiscal year.

Prepaid Items
Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. 48 6.A.a
Packet Pg. 88
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Claims Payable
The City reports its risk activities in the Insurance and Benefit Service Fund for its workers compensation and Building Maintenance Fund for its general liability. When it is probable that a claim liability has been incurred at fiscal year-end, and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program. Estimated claims losses, if any, include an accrual for IBNR (“incurred but not reported”) claims. Small dollar claims are recorded as expenditures when paid.

Capital Assets
Capital Assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets received prior to the implementation of GASB Statement No. 72 were recorded at fair value on the date of donation. Donated capital assets received after the implementation of GASB Statement No. 72 are recorded at acquisition value as of the date received. Generally, capital asset purchases more than $5,000 are capitalized if they have an expected useful life of 3 years or more.

Capital assets include additions to public domain (infrastructure) including certain improvements such as pavement, curb and gutter, sidewalks, traffic control devices, bridges, and right-of-way corridors within the City.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government-wide Financial Statements and in the Fund Financial Statements of the Proprietary Funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the statement of net position. The lives used for depreciation purposes of each capital asset class are:

Right to Use Assets
The City has recorded right to use lease assets as a result of implementing GASB Statement No.87. The right to use assets are initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right to use assets are amortized on a straight-line basis over the life of the related lease.
49 6.A.a
Packet Pg. 89
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet reports 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 reports 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.

Compensated Absences
Vested Vacation and Sick Leave obligations are fully funded and recorded in the Insurance and Benefit Internal Service Fund as accrued compensated absences.

Long-Term Obligations
In the government-wide financial statements, and proprietary type in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bonds payable are reported net of the applicable bond premium or discount. Amortization of bond premiums and discounts are included in interest expense. Debt from direct placements and direct borrowings are disclosed as such in the notes to the financial statements.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the period issued. The face amount of debt issued is reported as other financing sources.

Premiums received are reported as other financing sources, while discounts are reported as other financing uses.
50 6.A.a
Packet Pg. 90
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted.

In the government-wide financial statements, proprietary fund financial statements, and fiduciary fund financial statements, net position is reported in three categories: net investment in capital assets, restricted, and unrestricted. Net position that is net investment in capital assets consists of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position represents the portion of net position that has external constraints placed on it by parties outside of the City, such as creditors, grantors, contributors, or laws and regulations of other governments, or through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position.

Fund Balance
Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:

Nonspendable – The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. It also includes the long-term amount of interfund loans.

Restricted – Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation (City ordinances).

Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandates payment of resources (from external resource providers) and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means that the City can be compelled by an external party-such as citizens, public interest groups, or the judiciary to use resources created by enabling legislation only for the purposes specified by the legislation. 51 6.A.a
Packet Pg. 91
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Committed – The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the City Council, as resolutions and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. In contrast to fund balance that is restricted by enabling legislation, committed fund balance classification may be redeployed for other purposes with appropriate due process. Constraints imposed on the use of committed amounts are imposed by City Council, separate from the authorization to raise the underlying revenue; therefore, compliance with these constraints is not considered to be legally enforceable. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned – Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by City Council or a City official delegated that authority by City Charter or ordinance.

Unassigned – Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the fiscal year.

The City’s policy is to apply restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.

Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

E. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses/expenditures during the reporting period. Actual results could differ from those estimates. 52 6.A.a
Packet Pg. 92
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. New Accounting Pronouncements
In 2024, the City adopted new account standards in order to confirm with the following Government Accounting Standards Board Statements:

GASB Statement No. 100 – Accounting Changes and Error Corrections – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.

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. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements. The City restated its beginning fund balances as part of implementing this standard. 53 6.A.a
Packet Pg. 93
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Control and Accounting
General Budget Policies
The City Council reviews and adopts an annual budget for the General, Special Revenue, Debt Service, and Capital Projects Funds. The City Council holds public hearings and may modify the appropriations by general approval. Budgeted amounts may be transferred between departments with the City Manager’s approval. The legal level of expenditure control is at the fund level. Operating appropriations lapse at the end of each fiscal year.

The budget is reported on the same basis as the fund types and on a basis consistent with accounting principles generally accepted in the United States of America. Additional appropriations or other changes during the fiscal year may be submitted by each department for Council review and approval.

B. Excess Expenditures over Appropriations
Excess of expenditures over appropriations in individual funds are as follows:

C. Deficit Fund Balances
The North Area Special Revenue Fund and the Fire Impact Special Revenue Fund, both classified as nonmajor governmental funds, currently have a deficit fund balance of $13,338 and $102,531 respectively.

These deficits are expected to be alleviated as additional development contributions and benefit assessments are received
54 6.A.a
Packet Pg. 94
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Cash and investments as of June 30, 2024 consist of the following:

The table below identifies the investment types that are authorized for the City of Healdsburg by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California government Code or the City’s investment policy.
55 6.A.a
Packet Pg. 95
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
A. Investments Authorized by the California Government Code and the City’s Investment Policy The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

The table below identifies the Investment types that are authorized for investments held by bond trustee.

The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized Investment Type
Maximu
m
Maturity
Percentage
of
Portfolio*
Maximum
Investment in
One Issuer
Credit/Minimum
Quality
Requirements
US Treasury Bills, Bonds and Notes None 100% None N/A
Federal Agency Securities None 100% None N/A
Local Agency Bonds None 30% 5% per single issuer A or its equivalent State of California Obligations None 30% 5% per single issuer A or its equivalent CA Local Agency Obligations None 30% 5% per single issuer A or its equivalent Obligations of other 49 States None 30% 5% per single issuer A or its equivalent U.S Government Money Market Funds 90 Days 20% 10% per single issuer N/A Commercial Paper 270 Days 25% 5% per single issuer A-1, P-1 Negotiable Certificates of Deposit 5 years 30% 5% per single issuer A or its equivalent Repurchase Agreements 92 Days 20% 5% per single issuer N/A Medium-term Corporate Bonds 5 years 30% 5% per single issuer A or its equivalent Mortgage Pass-Though Securities and
Collateralized Mortgage Obligations 5 years 10% 5% per single issuer AA or its equivalent Supranationals 5 years 30% 10% per single issuerAA or its equivalent Joint Powers Authority (Local
Government Investment Pools) N/A 100% None
Multiple
requirements
Local Agency Investment Fund N/A 100% State maximum N/A Sonoma County Pooled Fund N/A 10% 10% of total portfolio N/A *Excluding amounts held by bond trustee and the Pension Stabilization trustee that are not restricted by the California Government Code.
56 6.A.a
Packet Pg. 96
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
B. Investments Authorized by Debt Agreements, Continued C. Disclosures Relating to 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 maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk 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.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Investment Type Totals
12 Months
or Less
13 to 24
Months
25 - 60
Months
More than
60 Months
Corporate Issues 16,629,510 3,330,743 $ 454,393 $ 5,407,832 $ 7,436,542 Commercial Paper 2,296,384 2,296,384 - - ­
Municipal Bonds 540,664 - 540,664 - ­
U.S. Treasury Securities 9,180,934 3,339,368 1,215,760 2,244,525 2,381,281 Federal Agency Bonds 4,494,775 748,995 3,745,780 ­ ­
Federal Agency Mortgage-Backed Security - 8,198,733 1,233,572 5,188,173 1,776,988 State Investment Pool (LAIF) 20,851,516 20,851,516 - - - Held by Fiscal Agents:

County Investment Pool 312,247 312,247 - - -
Money Market Mutual Funds 2,620,996 2,620,996 - - -
Total $ 65,125,759 $ 33,500,249 $ 6,649,505 $ 10,106,765 $ 14,869,240 (Remaining maturity in Months)
57 6.A.a
Packet Pg. 97
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

F. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments. 58 6.A.a
Packet Pg. 98
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another 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 deposits or investments, other than the following provision for deposits; the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the government unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The City’s deposits with financial institutions in excess of federal depository insurance limits are legally required by the California Government Code, to be collateralized as noted above.

As of June 30, 2024, the City investments in the following investment types were held by the same brokerdealer (counterparty) that was used by the City to buy securities:

H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 59 6.A.a
Packet Pg. 99
Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
I. Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. These principles recognize a three-tiered fair value hierarchy, as follows:
¾ Level 1: Investments reflect prices quoted in active markets; ¾ Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and, ¾ Level 3: Investments reflect prices based upon unobservable sources.

The City has the following recurring fair value measurements as of June 30, 2024:

The City investments in LAIF, money market mutual funds, and the Sonoma County Investment Pool are not required to be measured under Level 1, 2, or 3.

J. Pension Stabilization Investment Program
Investments of funds held in the Pension Stabilization Investment Program are governed by the Investment Guidelines Document for the investment account and by the agreement for administrative services with the Public Agency Retirement Services (PARS), rather than the general provisions of the California Government Code or the City’s investment policy. The Pension Stabilization Investment Program’s investment policy is established and can be modified by the City. The goal of the Pension’s investment program is to provide a reasonable level of growth which, will result in sufficient assets to pay the present and future obligations of the City’s retirement Plan. The assets in this program will eventually be used to fund Pension Plan obligations for assets managed in the CalPERS Trust. The assets are also available to mitigate the potential negative impact of future rate hikes from CalPERS. The account’s risk tolerance has been rated moderately conservative, which demonstrates that the account can accept some price fluctuations to pursue its investment objectives. 60 6.A.a
Packet Pg. 100 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
J. Pension Stabilization Investment Program, Continued
As for duration, the investment manager will maintain the portfolio duration within +/- 25% of the benchmark duration at all times. The benchmark duration is the BC Aggregate Bond benchmark. At June 30, 2024, the benchmark duration was 6.14 years, and the plan’s overall duration was 5.99. The target asset allocation of the portfolio is 20-40% to equity investments, 50-80% to fixed income investments, and 0- 20% to cash. Specifically identifiable investments are recorded by the Trustee in its records. All investments are either held by the counterparty or the counterparty’s trust department or agent, but not in the City’s name directly.

Pension volatility mitigation-contributions from the Fund can be either transferred to CalPERS or the City at the City’s discretion to offset fluctuations in the required annual contributions. Assets can be accessed anytime to fund the City’s pension obligations and defray reasonable expenses associated therewith.

The table below identifies the investment types that are authorized for investments held in the pension stabilization investment program. The table also identifies certain provisions of policy that address interest rate risk, credit risk, and concentration of credit risk.

Pension stabilization investments held and the percentage of the pension investment portfolio at June 30, 2024 was as follows:

Pension Stabilization Investments Fair Value % of Portfolio Federal Agency Securities
F.H.L.M.C $ 1,053,896 13.19%
F.N.M.A 873,515 10.93%
U.S Treasury Securities 1,191,563 14.91%
Corporate Bonds 1,858,797 23.26%
Mutual Funds 2,708,990 33.90%
Municipal Issues 55,872 0.70%
Foreign Issues 81,940 1.03%
Money Market Mutual Funds 167,458 2.10%
Total Pension Stabilization Investments $ 7,992,031 100% 61 6.A.a
Packet Pg. 101 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
J. Pension Stabilization Investment Program, Continued
Information about the sensitivity of the fair values of the City’s pension stabilization investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Generally, credit risk is the risk that an issuer of an investment will not fulfil its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the City’s pension stabilization investment policy and the actual rating, by Standard and Poor’s, as of fiscal year end for each investment type:
62 6.A.a
Packet Pg. 102 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. CASH AND INVESTMENTS, Continued
J. Pension Stabilization Investment Program, Continued
The pension stabilization investment policy of the City contains limitations on the amount that can be invested in any one issuer. Pension stabilization investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City’s pension stabilization investments are as follows:

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City’s pension stabilization investments have the following recurring fair value measurements as of June 30, 2024:
63 6.A.a
Packet Pg. 103 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

4. ACCOUNTS RECEIVABLE
The following is a list of accounts receivable at June 30, 2024:

5. LEASE RECEIVABLE
Metro PCS
In November 2007, the City entered into a lease with Metro PCS to allow a portion of their property to be utilized for a cellular tower. The lease term is 5 years and includes four additional optional 5 year terms which are exercised unless written notification of cancellation occurs within 90 days prior to the expiration of the existing lease term. Annual rent shall be adjusted as of the fifth (5th) anniversary of the Commencement date of the term and of any five (5) year renewal term by an increase of 15% of the annual rent paid during the previous term of five (5) year renewal term. Payments received during the current fiscal year were $34,853. The current 5 year term will expire in August 2027.

Verizon
In May 2023, the City entered into a lease with Metro PCS to allow a portion of their property to be utilized for a cellular tower. The lease term is for a period of 5 years. Monthly rent for the first year shall be $2,157 commencing on May 2023 and increasing by 3 percent each year thereafter.

Sonic.Net
In April 2024, the City entered into a lease with Sonic Telecom, LLC to allow a portion of their property to be utilized for installation of fiber optic cable. The lease term is for a period of 5 years. Monthly rent for the first year shall be $300 commencing on April 2024.

The City’s lease receivable activities for the year ended June 30, 2024 were as follows:
64 6.A.a
Packet Pg. 104 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

6. NOTES AND LOANS RECEIVABLE
The following schedule summarizes notes and loans receivable as of June 30, 2024:

Notes receivable in the amount of $9,569,267 consists of the combination of the following:

Notes Receivable Amount
Governmental Activities:

Individuals $ 2,192,653
Business Stabilization Loans 97,257
Riverfield Homes 298,540
Healdsburg Family Limited Partnership 4,692,995
Healdsburg Pacific Associates 2,246,477
Burbank Housing 1,516,663
Eden Mill District LP 258,660
Monte Vina 4,455,362
Subtotal 15,758,607
Less: Allowances for uncollectible loans (6,192,748)
Mutual Agreement loan
Employee computer loans 3,408
Total net notes and loan receivable $ 9,569,267
65 6.A.a
Packet Pg. 105 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. INTERFUND ACTIVITY
A. Due To/ From Other Funds
Current interfund balances arise in the normal course of business and to assist funds with negative cash balance at the fiscal year end. They are expected to be repaid shortly after the end of the fiscal year. The City allocates negative interest to funds that have a negative cash balance.

The following represents the interfund activity of the City for the fiscal year ended June 30, 2024:

Fund
Due From
Other Funds
Due to
Other Funds
Major governmental funds
General fund $ 1,523,626 $ 321,195
Capital projects fund 646,737 -
Major enterprise funds
Sewer Fund 425,000 -
Nonmajor governmental funds
Gas Tax fund 23,062 -
Media Center special revenue fund 4,945 -
Fire Impact Fees Fund 102,687 -
Sub-total 1,523,626 1,523,626
Major enterprise funds
Sewer Fund 291,343 291,343
Sub-total 291,343 291,343
Major enterprise funds
Electric Fund 15,000 -
Nonmajor governmental funds
North Area special revenue fund 15,000 -
Sub-total 15,000 15,000
Nonmajor enterprise fund
Airport fund 57,745 57,745
Totals $ 1,887,714 $ 1,887,714
66 6.A.a
Packet Pg. 106 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. INTERFUND ACTIVITY, Continued
B. Transfers
With council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to reimburse a fund that has made expenditures on behalf of another fund.

C. Advances To/ From Other Funds
At June 30, 2024, advances to/advances from other funds were as follows:

On January 7, 2017, the Sewer Enterprise Fund and the Electric Enterprise Fund advanced each in the amounts $1,587,500 to the General Fund for the City Hall renovation. The advance bears interest rate adjusted on July 1 of each year to equal the then LAIF rate on May 31 of the prior fiscal year. The principal and interest payments are due in 15 equal installments. As of June 30, 2024, the outstanding amount of the advance was $2,039,634.
67 6.A.a
Packet Pg. 107 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. CAPITAL ASSETS
The City has reported all capital assets including infrastructure in the government-wide Statement of Net Position. The City elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructure reporting, whereby depreciation expense and accumulated depreciation have been recorded.

A summary of changes in capital assets for the City’s governmental activities for the fiscal year ended June 30, 2024 is as follows:

Depreciation and amortization were charged to functions/programs of the primary government as follows:
68 6.A.a
Packet Pg. 108 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. CAPITAL ASSETS, Continued
A summary of changes in property, improvements, and equipment in the Enterprise Funds for the fiscal year ended June 30, 2024 is as follows:

Depreciation expense was charged to the following functions:
69 6.A.a
Packet Pg. 109 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

9. RIGHT TO USE LEASE ASSETS
The City has recorded one right to use leased asset. The asset is right to use asset for leased equipment.

The related lease is discussed in the Leases subsection of the Liabilities section of this note. The right to use lease asset is reported in the capital assets schedule and is amortized on a straight-line basis over the term of the related lease.

10. LONG-TERM LIABILITY
A. Changes in Long-term Liability
Summary of changes in long-term liabilities for governmental activities is as follows:

Summary of changes in long-term liabilities for business-type activities is as follows:
70 6.A.a
Packet Pg. 110 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. LONG-TERM LIABILITY, Continued
E. Payable to the Successor Agency
In 2008, the former Redevelopment Agency of the City of Healdsburg (RDA) loaned the City of Healdsburg $4,495,000 ($2,395,000 to the Electric Fund for upgrades to Badger Substation and $2,100,000 to the Community Services Fund for long-term lease of a school facility) in accordance with executed loan agreements. In January 2012, the Board of Directors for the RDA adopted a resolution forgiving the loans between the RDA and the City. In June 2015, the California Department of Finance disallowed the forgiveness of the loans. The Successor Agency to the former RDA is now responsible for the collection of this loan payment. The loans are payable annually over a period of 20 years at an interest rate of .25%.

As of June 30, 2024, the amount due from Governmental Activities and the Electric Fund was $1,167,966 and $1,332,040, respectively. The Community Services Special Revenue fund is expected to be responsible for principal and interest payments for the portion related to Governmental Activities. 71 6.A.a
Packet Pg. 111 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. LONG-TERM LIABILITY, Continued
F. Leases
The City has entered into agreements to lease certain equipment. The lease agreements qualify as other than short-term leases under GASB Statement No. 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

On April 1, 2021, the City entered into an agreement to lease seven copy machines which requires 60 monthly payments of $2,698. There are no variable payment components of the lease. The lease liability is measured at a discount rate of 0.51% based on the Sonoma County discount rate as of 7/1/2021. As a result of the lease, the City has recorded a right to use asset with a net book value of $55,949 at June 30, 2024. The right to use asset is discussed in more detail in Note 1.D.

The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2024, were as follows:

Business-type Activities:

G. 2005 Series D CSCDA Water/Sewer Revenue Bonds
In October 2005, the City, through the California Statewide Communities Development Authority, issued $6,505,000 in bonds to provide funds to defease the 1996 Sewer Improvement Certificates and the 2000 Series B Water and Sewer CSDA Certificates, which were originally issued to finance sewer improvements. Interest on the 2005 bonds is payable semiannually, on April 1 and October 1, with the principal payments due annually on October 1 of each year. Net revenues of the water and wastewater utilities are pledged as security for the bonds. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.

In July 2015, the City issued the 2015 Wastewater Revenue Refunding Bonds, which defeased the remaining Sewer Bonds of the 2005 CSDA Bonds of $2,440,000. The 2005 CSDA Sewer Bonds are considered to be defeased and the liability has been removed from long-term debt. See the 2015 Wastewater Revenue Refunding Bonds, Series A for more information on the refunding. 72 6.A.a
Packet Pg. 112 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. LONG-TERM LIABILITY, Continued
G. 2005 Series D CSCDA Water/Sewer Revenue Bonds, continued The following represents the future debt service requirements for the 2005 Series D CSCDA Water Revenue Bonds:

H. 2014 Water Refunding Bonds
In February 2014, the City issued $7,965,000 in Water Revenue Refunding Bonds, to refund the 2001 A and 2002 C outstanding bonds (current refunding). Proceeds from the 2014 bonds were placed in escrow to refund in full the 2001 A and 2002 C bonds, and to pay costs of issuance. The bonds carry interest rates in the range from 4.30% to 5%. The final maturity is October 1, 2032. Semi-annual payments of principal and interest are due each April 1 and October 1. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.

The following represents the future debt service requirements:
73 6.A.a
Packet Pg. 113 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. LONG-TERM LIABILITY, Continued
I. 2015 Wastewater Revenue Refunding Bonds, Series A
In July 2015, the City issued $26,625,000 in Wastewater Revenue Refunding Bonds, Series A, to refund the 2005 and 2006 Wastewater Revenue bonds (current refunding). Proceeds from the 2015 bonds were placed in escrow to refund in full the 2005 and 2006 bonds, and to pay costs of issuance. The bonds carry interest rates in the range from 2.0% to 3.75%. The final maturity is October 1, 2035. Semi-annual payments of principal and interest are due each April 1 and October 1. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately. The following represents the future minimum debt service requirements for the 2015 Wastewater Revenue Refunding Bonds:

J. Compensated Absences:

Compensated absences are liquidated by the Insurance and Benefit Internal Service Fund and are reported as a liability of the governmental activities. As of June 30, 2024, the City’s compensated absences activity was as follows:

11. PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS Financial Office. 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. Pension liabilities are typically liquidated in the General Fund for governmental activities or in the respective enterprise fund.
74 6.A.a
Packet Pg. 114 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

11. PENSION PLAN, Continued
A. General Information about the Pension Plan
Plan Descriptions - All qualified employees are eligible to participate in the City’s Miscellaneous (all other) Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans 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 with statutorily reduced benefits. PEPRA Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is the Basic 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, 2024, are summarized as follows:

Miscellaneous
Classic Member
Miscellaneous
2nd Tier
Miscellaneous
PEPRA
Hire Date
16,
2012
On and after
December 16, 2012
January 1,
2013
Benefit Formula 2.5% @ 55 2% @ 62 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 55 60 62
Monthly benefits, as a % of eligible compensation 2.5% 2% 2% Required employee contribution rates 8% 7% 7%
Required employer contribution rates 14.92% 10.87% 8.00% Unfunded liability $2,111,563 $0 $0
Safety Safety PEPRA
Hire Date
Prior to January 1,
2013
On and after
January 1, 2013
Benefit Formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 57
Monthly benefits, as a % of eligible compensation 3% 2.7% Required employee contribution rates 9% 11.5%
Required employer contribution rates 27.11% 13.54%
Unfunded liability $1,167,750 $12,388
75 6.A.a
Packet Pg. 115 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

11. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued 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 l 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 rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the measurement period June 30, 2023, the City’s contribution for the plan was as follows:

B. Pension Liability, Pension Expenses, and Deferred Outflow/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Plan as follows:

C. Net Pension Liability
The City’s net pension liability of the Plan is measured as the proportionate share of net pension liability.

The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023 was as follows:
76 6.A.a
Packet Pg. 116 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

11. PENSION PLAN, Continued
C. Net Pension Liability, Continued
For the fiscal year ended June 30, 2024, the City recognized pension expense/(income) of $6,894,693, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows of resources reported as $5,395,952 related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and will be recognized as pension expense as follows:
77 6.A.a
Packet Pg. 117 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

11. PENSION PLAN, Continued
C. Net Pension Liability, Continued
Actuarial Assumptions - The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

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

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

The expected real rates of return by asset class are on the next page:
78 6.A.a
Packet Pg. 118 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

11. PENSION PLAN, Continued
C. Net Pension Liability, Continued
Discount Rate
The discount rate used to measure the total pension liability as of the measurement date of June 30, 2023 for the Plan was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. A detailed report testing these projections can be obtained from the CalPERS website.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:

Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS’ financial reports.

Discount Rate - 1%

5.90%
Rate

6.90%
Discount Rate +1%

7.90%
Net Pension Liability 70,444,791 $ 48,564,252 $ 30,596,892 $ 79 6.A.a
Packet Pg. 119 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. RISK MANAGEMENT (CIRA)
Risk Management
The City is exposed to various risk of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City currently reports all of its risk management activities in its Insurance and Benefit internal service fund.

Risk Pool Arrangements
The City is an associate member of the California Intergovernmental Risk Authority (CIRA), a public entity pool comprised of forty-nine northern California member cities/towns and one fire district. CIRA is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of CIRA is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage and provide risk management services.

For each of its insurance programs, CIRA has a multilevel risk-sharing arrangement. Each individual member participating in a program initially assumes its own losses up to a predetermined deductible/retention level. Losses and claims in excess of the deductibles and within CIRA’s stated retention limits are paid out of a central pool maintained by CIRA. This central pool is funded by all of the participating members in that program through premiums and contributions. CIRA purchases excess loss insurance policies (reinsurance) to provide coverage for losses and claims in excess of CIRA’s stated retention limits up to specified amounts. Losses and claims ceded to reinsurers would represent a contingent liability to CIRA if the reinsurers were unable to meet their existing obligations under the reinsurance agreements. Losses and claims which surpass the limits of the excess of loss insurance policies are the responsibility of the individual City in which the loss or claim originates.

CIRA programs do not insure the losses resulting from events that occurred prior to July 1, 2021. Losses from March 1, 1993, the date on which the City became an associate member of REMIF, through June 30, 2021, are covered by the Redwood Empire Municipal Fund (REMIF).

Effective July 1, 2021, REMIF merged with the Public Agency Risk Sharing Authority of California (PARSAC) to form CIRA.

The City of Healdsburg participates in the following CIRA programs:

General Liability Insurance – Annual premiums are paid by the member cities and are adjusted retrospectively to cover costs. The City of Healdsburg self-insures for the first $5,000 of each loss and pays 100% of all losses incurred under $5,000. The City does not share or pay for the losses of other members within their deductible/retention levels. Participating members share in losses above their deductible/retention levels up to the pool retention level. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, professional liability, and certain other coverage. CIRA is a member of the Public Risk Innovation, Solution, and Management (PRISM) pool, which provides CIRA with an additional $39,000,000 liability insurance coverage over and above CIRA’s retention level of $1,000,000.
80 6.A.a
Packet Pg. 120 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. RISK MANAGEMENT (CIRA), Continued
Worker’s Compensation – Contributions are paid by members and are adjusted retrospectively to cover costs. The City of Healdsburg is self-insured for the first $25,000 of each loss and pays 100% of all losses incurred under $25,000.

Losses about the member’s deductible/retention levels are shared among all members. Losses in excess of $1,000,000 are covered by excess insurance purchased by participating cities, as part of the pool, to State statutory limits.

Property Insurance – The City participates in CIRA’s property insurance program. The annual premiums paid by participating member cities are based on deductible levels and are not subject to retroactive adjustments. The City of Healdsburg has a deductible level of $10,000. The City purchases additional earthquake coverage.

The City participates in Cyber Liability, Pollution Liability, Crime/Fidelity, and Deadly Weapons Response Coverage pass-through programs. Members are charged a premium for coverage, and each loss is subject to a member deductible. There is no risk-sharing component to these coverages.

The year-end financial statements and audit for CIRA are currently in process and once complete will be available online at www.cira-jpa.org.

The June 30, 2024 financial statements for REMIF are available online at www.remif.com. The assets of each pool remain separate from CIRA and those assets will be used to pay any liabilities of the respective organizations.

Changes in the Internal Service Funds claims liabilities amounts in fiscal year 2024, 2023, and 2022 were as follows:

The total claims liability of $311,445 includes the assessments of $171,000 and $143,445, Liability and Worker’s Compensation programs, respectively.
81 6.A.a
Packet Pg. 121 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. NORTHERN CALIFORNIA POWER AGENCY
Background
The City is a member of the Northern California Power Agency (NCPA), headquartered in Roseville, California. NCPA is a joint exercise of powers agency formed in 1968 under the Joint Exercise of Powers Act, Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”).

NCPA’s Members currently consist of twelve cities with publicly owned electric utility distribution systems, a public utility district, a city port department, a transit district and a rural electric cooperative as Members. Under the terms of the NCPA Joint Powers Agreement entered into by all Members, NCPA possesses the general powers to acquire, purchase, generate, transmit, distribute and sell electrical capacity and energy. Specific powers include the power to enter into contracts, acquire and construct electric generating facilities, issue revenue bonds and notes and acquire property by eminent domain.

The member Services Agreements, dated as of February 12, 1981, and the Facilities Agreement, dated as of September 22, 1993, provide for the development of projects undertaken by NCPA in three separate phases: (i) the initial phase of general investigation funded by NCPA’s general fund; (ii) the second phase whereby Members of NCPA electing to participate in the project execute a project agreement to provide for the cost of development of the project (now referred to as an “NCPA Project”); and (iii) the third phase during which all remaining aspects, including financing, construction and operation of the NCPA Project are undertaken.

Organization and Management
NCPA’s governing body (the “Commission”) is composed of one representative from each Member, each such representative being designated a Commissioner. The Commission is given the general management of the affairs, property and business of NCPA and is vested with all powers of NCPA.

The management of NCPA is responsible for various areas of administration and planning of NCPA’s operations and affairs. The overall management is under the direction of NCPA’s General Manager, who serves at the discretion of the Commission. NCPA is organized into four separate divisions: (i) generation services, (ii) power management, (iii) legislative and regulatory, and (iv) administrative services.

Today, the organization is guided by an ethic of environmental stewardship, fiscal responsibility, and community service, coupled with a strong sense of mission to advance the state of the art in renewable energy. Each NCPA Member has agreed to fund a pro rata share of certain assessments by NCPA and enter into power supply contract with NCPA to purchase power in support of bearing the costs of NCPA operations, energy and facilities. While governed by its Members, none of NCPA’s obligations are those of its Members unless expressly assumed by them. As computed by NCPA amounts paid by the City to NCPA during the fiscal year ending June 30, 2024 were $5.3 million for electric power acquisition charges and are reported as an expense of the Electric Utility Fund. 82 6.A.a
Packet Pg. 122 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. NORTHERN CALIFORNIA POWER AGENCY, Continued
Additionally, the NCPA Commission identified and approved the funding of specific reserves for working capital, accumulated employee’s post-retirement medical benefits, and billed property taxes for the geothermal project. The Commission also identified a number of contingent liabilities that may or may not be realized, the cost of which in most cases is difficult to estimate at this time. One such contingent liability is the steam filed depletion which will require funding to cover debt service and operational cost in excess of the expected value of the electric power. The General Operating Reserve (the “GOR”) is intended to minimize the number and amount of individual reserves needed for each project, protect NCPA’s financial condition and maintain its credit worthiness. These funds are available on demand, but the City has left them with NCPA as a reserve against these contingencies identified by NCPA. The City’s GOR balance as computed by NCPA was $5,729,441 as of June 30, 2024. The most recent estimated funding recommended by NCPA equaled $1,763,149.

NCPA Power Pool
The City is a member of a power pool operated by NCPA that also includes the following Members:

Alameda, Biggs, Gridley, Lodi, Lompoc, Palo Alto, Plumas Sierra Rural Electric Cooperative, the Port of Oakland and Ukiah (each, an “NCPA Pool Member”). The ten NCPA Pool Members’ service areas are connected to the CAISO-controlled grid. NCPA operates a central dispatch facility at NCPA’s headquarters. The Central Dispatch Center balances loads and resources pursuant to CAISO tariff rules, for the ten NCPA Pool Members, and Santa Clara.

NCPA Geothermal Project
NCPA has developed a geothermal project (the “Geothermal Project”) located on federal land in certain areas of Sonoma and Lake Counties, California (the “Geysers Area”). NCPA formed two not-for-profit corporations controlled by its Members to own the generating plants of the Geothermal Project. NCPA manages the Geothermal Project for the corporations and is entitled to all the capacity and energy generated by the Geothermal Project.

Combustion Turbine Project
The original project consisted of five combustion turbine units, each nominally rated at approximately 25 megawatts. Concurrent with the final project bond maturity, two units located in Roseville were acquired by an NCPA member. The remaining project consists of two units in Alameda and one in Lodi. The project provides capacity during peak load periods and emergency capacity reserves. Excess capacity and energy from the project are also sold to other entities from time to time. The City is obligated to pay 3.5% of the debt service and operating costs.
83 6.A.a
Packet Pg. 123 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. NORTHERN CALIFORNIA POWER AGENCY, Continued
Lodi Energy Center
The project is a 296 MW base load, combined cycle, natural gas-fired combustion turbine generating station (one gas turbine and one steam turbine) located in Lodi, California, next to the Capital Facilities Project discussed above. Pursuant to the Lodi Energy Center Power Sales Agreement, the NCPA agreed to operate the LEC and has sold all of the capacity and energy of the LEC to thirteen participants (including four non-members) in accordance with their respective Generation Entitlements Share (GES).

Each participant has agreed to unconditionally provide for its share of the operation and maintenance expenses and all capital improvements based on its GES.

Hydroelectric Project
The NCPA contracted to finance, manage, construct, and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District. In exchange, the Agency has the right to the electric output of the project for 50 years from February 1982. The Agency also has an option to purchase power from the project in excess of the District's requirements for the subsequent Federal Energy Regulatory Commission project license term of 30 to 50 years.

As part of a refinancing plan in November 2004, the Agency entered into two forward starting interest rate swaps in an initial notional amount of $85,160,000 and $1,574,000. Payments under the swap agreements with Citigroup Financial Products, Inc. began on April 2, 2008. To complete the refinancing transaction and realize the debt service savings under the 2004 swap agreement, on April 2, 2008 the Agency completed a bond refunding of 2023 to 2032 maturities of the 1998 Hydroelectric Refunding Series A bonds. These fixed rate bonds were refinanced through the issuance of tax-exempt 2008 Hydroelectric Refunding Series A ($85,160,000) bonds and taxable 2008 Hydroelectric Refunding Series B ($3,165,000) bonds. Both issues were variable interest rate bonds bearing interest at weekly interest rates, payable semi‐annually on July 1 and January 1 each year.

To support this financing, the NCPA entered into two irrevocable direct pay letter of credit agreements with Citibank that have since expired, being substituted with letters of credit with the Bank of Montreal in 2014. On April 30, 2019, the NCPA terminated the 2008 Hydroelectric, Series B swap with Citigroup, and on May 14, the outstanding principal of $910,000 on the 2008 Hydroelectric, Series B bonds was called for redemption. On June 24, 2019 the NCPA completed a Letter of Credit substitution for the 2008 Hydroelectric, Series A bonds replacing the Bank of Montreal with Bank of America. The Letter of Credit expires on June 21, 2024.

The remaining swap for the 2008 Hydroelectric Refunding Series A ($85,160,000) was a separate pay‐ fixed, receive-variable interest rate swap to produce savings or to result in lower costs over the life of the transaction than what the Agency would have paid using fixed‐rate debt. While the swap was a derivative instrument and carried additional risks, the Agency’s swap policy and favorable negotiations helped to reduce such risks.
84 6.A.a
Packet Pg. 124 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. NORTHERN CALIFORNIA POWER AGENCY, Continued
On May 5, 2022, the Agency redeemed the outstanding 2008 Hydroelectric Refunding Series A variable rate bonds with proceeds from the 2022 Hydroelectric Refunding Series A fixed rate bonds. In conjunction with this redemption, NCPA terminated the remaining 2008 Hydroelectric Refunding Series A swap with Citigroup and made a swap termination payment fee of $11,928,000. The termination fee payment was funded with proceeds from the 2022 Hydroelectric Refunding Series B fixed rate bonds in addition to $630,322 paid directly by NCPA from the Hydroelectric Project revenue account. Concurrently, NCPA terminated the Letter of Credit with Bank of America.

The payment of principal and interest on the outstanding 2008 Hydroelectric Refunding Series A ($85,160,000) bonds are not covered by any financial guaranty insurance policies. This 2008 Hydroelectric Refunding and the associated interest rate swaps are estimated to have reduced project debt service by $11.8 million over the life of the debt providing the NCPA with an estimated economic gain (difference between the present values of the old and new debt service payments) of approximately $5.9 million. The actual total savings at the time of the variable rate bond redemption and the termination of the swap and letter of credit was $14,300,000.

The NCPA deferred the loss on the swap termination and recorded $11,928,000 in deferred outflows that will be amortized over the ten‐year life of the 2022 Hydroelectric Refunding Series B fixed rate bonds when the amounts will be recovered through rates.

As noted, the swap was terminated on May 5, 2022 and as a result, there was no remaining notional value or fair value due from (to) the counterparty at June 30, 2022.

NCPA Financial Information
NCPA’s financial statements are available on their website at www.ncpa.com. 85 6.A.a
Packet Pg. 125 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POST-RETIREMENT PLAN
The City reports the following total OPEB liability as of the June 30, 2024 measurement date:

Description
The City’s defined benefit OPEB plan, (the Plan), provides OPEB for all eligible miscellaneous and public safety employees of the City. The plan is a single-employer defined benefit OPEB plan administered by the City. The benefit terms are defined in the applicable Memorandum’s of Understanding for each bargaining unit and may be amended by City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust.

At retirement, employees can elect to receive Blue Cross, Sutter, or Kaiser medical coverage through the City medical plan at the retiree’s expense. Retirees (service or disability retiring through CalPERS directly through the City who are age 50 or over and who have a minimum of 10 years of service) are eligible to obtain medical coverage. While the City does not directly contribute towards the cost of insurance premiums for retirees, the ability to obtain coverage at an active employee rate constitutes a significant economic benefit to the retirees, called an ‘implicit subsidy” under GASB Statement No. 75. Medical coverage is provided for the surviving spouse of retired employees and the surviving spouse of active employees who upon death had attained age 50 and who had a minimum of 10 years of service with a City. The Plan does not provide a publicly available financial report.

As of measurement date June 30, 2024, the following current and former employees were covered by the benefit terms under the Plan:

Contributions
The City’s adopted policy is to contribute an amount sufficient to pay the current fiscal year’s premium.

See above section “Description” for more information.
86 6.A.a
Packet Pg. 126 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POST-RETIREMENT PLAN, Continued
Total OPEB Liability
The City’s total OPEB liability was measured and determined based on the following dates, actuarial methods, and assumptions:

Discount Rate
The discount rate estimates investment earnings for assets earmarked to cover retiree health benefit liabilities. The discount rate depends on the nature of underlying assets for funded plans. The rate used for a funded plan is the real rate of return expected for plan assets plus long-term inflation assumption.

For an unfunded plan, the discount rate is based on an index of 20-year General Obligation municipal bonds. For partially funded plans, the discount rate is a blend of the funded and unfunded rates. The discount rate used to measure the total OPEB liability was 3.65 percent.

Changes in Total OPEB Liability
The Changes in the total OPEB liability were as follows:
87 6.A.a
Packet Pg. 127 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POST-RETIREMENT PLAN, Continued
Sensitivity to the total OPEB Liability to Changes in the Discount Rate and Healthcare Trend Rate The following presents the total OPEB liability of the City if it were calculated using discount rate that is one percentage point lower or one percentage point higher than the current rate:

The following presents the total OPEB liability of the City if it were calculated using healthecare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:

Recognition of Deferred Outflows and Deferred Inflows of Resources and OPEB expense For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $59,047. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
88 6.A.a
Packet Pg. 128 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POST-RETIREMENT PLAN, Continued
Recognition of Deferred Outflows and Deferred Inflows of Resources and OPEB expense, Continued Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB and will be recognized as pension expense as follows:

15. COMMITMENTS AND CONTINGENCIES
There are pending claims and litigation against the City, which are considered normal to the City’s operation. City management is of the opinion that potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City beyond funded reserves.

The City has entered into long-term electric power purchase generation assets and electric transmission contracts. These contracts were entered into by NCPA on behalf of various members (see Note 13) including the City. Under the terms of its NCPA joint venture agreement, the City is contingently liable for a portion of the bonded indebtedness issued by these agencies under take-or-pay or similar agreements. The City’s estimated share of such debt outstanding at June 30, 2024 was $8.1 million.

Under certain circumstances, such as default or bankruptcy of other participants, the City may also be liable to pay a portion of the debt of these joint ventures on behalf of the other participants.

California-Oregon Transmission Project
The City is a member of the Transmission Agency of Northern California (TANC), a California joint powers agency. TANC, a combination of cities, Western Area Power Administration, and four other California Districts and authorities are participants in the California-Oregon Transmission Project (COTP). The COTP is a transmission project between southern Oregon and Central California. COTP provides a transmission path between the electric systems of the Pacific Northwest and those in California. The City’s share is 0.2456%. Each member of TANC is responsible for developing its own uses for its share of the COTP transfer capability
For the
Fiscal Year
Ending June 30
Recognized Net
Deferred Outflows
(Inflows) of Resources
2025 (24,845) $
2026 (24,845)
2027 (23,845)
2028 (20,845)
2029 (22,845)
Thereafter (84,153)
Total $ (201,378)
89 6.A.a
Packet Pg. 129 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

15. COMMITMENTS AND CONTINGENCIES, Continued
Western Area Power Administration
In addition to commitments for power acquisitions through NCPA, the City has entered into a contract with the Western Area Power Administration (Western). Western is a federal Power Management Agency of the U.S. Department of Energy, which among other things is responsible for marketing electricity generated by the Central Valley Project. The contract with Western was renewed for the period January 1, 2005, through December 31, 2024. The City further renewed the contract with Western to acquire power from 2025 through 2054.

Construction Commitments
The estimated amount of remaining construction contract obligations at fiscal year-end is $15,655,206.

16. NET POSITION AND FUND BALANCES
GASB Statement No. 34, modified by GASB Statement No. 63, adds the concept of Net Position, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis.

Net Position
Net position is divided into three captions under GASB Statement No. 34. These captions apply only to net position as determined at the government-wide level, and are described below:

Net Investment in Capital Assets describes the portion of net assets which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements, and redevelopment funds restricted to low and moderate income housing purposes.

Unrestricted describes the portion of net position which is not restricted as to use. 90 6.A.a
Packet Pg. 130 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

16. NET POSITION AND FUND BALANCES, Continued
Fund Balances
Fund balance is classified as nonspendable, restricted, committed, assigned, and/or unassigned based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented as follows:

Fund Balances General
Community
Services
Streets
Capital
Project Fund
Nonmajor
Governmental
Funds Total
Nonspendable:

Prepaid expenditures $ 3,251 $ - -$ $ 3,251 - $
Inventory - - 9,048 9,048 -
Legally Contractually required
to be maintained intact - - 312,247 - 312,247
Total Nonspendable 3,251 - 9,048 312,247 324,546
Restricted for:

Lighting and landscaping - - 396,998 - 396,998
Community services 4,341,406 - - 4,345,444 4,038
Affordable housing - - 9,717,614 - 9,717,614
Parking expansion - - 430,536 - 430,536
Public safety - - 175,853 - 175,853
Pension rate stabilization 4,945,288 485,296 188,933 5,619,517 - Streets and roads - 1,208,498 - 1,389,896 2,598,394
Strong motion - - - 8,165 8,165
Deb service - - 164,943 - 164,943
Total Restricted 4,945,288 4,826,702 1,397,431 12,288,043 23,457,464 Committed for:

Community benefit grant 39,389 - - 39,389 -
Total Committed 39,389 - - 39,389 -
Assigned for:

Plaza Flowers 4,472 - - 4,472 -
General plan update 369,313 - - 369,313 -
Total Assigned 373,785 - - 373,785 -
Unassigned 10,864,600 - (115,869) - 10,748,731
Total Fund Balances $ 16,226,313 $ 1,406,479 4,826,702 $ 12,484,421 $ $ 34,943,915 91 6.A.a
Packet Pg. 131 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Healdsburg that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or other unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 12.

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

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the state Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

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

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

Prior to that date, the final seven months of activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
92 6.A.a
Packet Pg. 132 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss).

Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.

Capital asset activities for the fiscal year ended June 30, 2024 were as follows:

The following is a schedule of long-term liabilities for the fiscal year ended June 30, 2024:

Balance at
July 1, 2023 Additions Reductions
Balance at
June 30, 2024
Due Within
One Year
2022 Series B 860,000 $ - $ (80,000) $ 780,000 $ 80,000 $ 2014 Series A 6,187,100 (599,000) - 5,588,100 619,400
2014 Series B 2,431,700 (235,400) - 2,196,300 241,600
2015 Series A 6,177,000 (468,200) - 5,708,800 481,300
2015 Series B 2,880,200 (273,700) - 2,606,500 289,500
2017 Refunding 14,180,000 (740,000) - 13,440,000 785,000 Unamortized bond premium 1,879,450 (156,621) - 1,722,829 - Total other Long-term debt $ - 34,595,450 $ (2,552,921) $ $ 2,496,800 32,042,529 $ 93 6.A.a
Packet Pg. 133 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued A. 2002 Series B
In August 2004, the Agency issued $1,800,000 Series B 2002 Tax Allocation Bonds. The Bonds were issued for the purpose of providing funds to finance the construction of the Alliance Medical Clinic, which the Agency determined is a benefit to the Sotoyome Project Area. Interest on the bonds is at 4.75% with semiannual debt service payments due February 1 and August 1, with principal maturing annually August 1, 2005 through 2031. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately. Debt service payments will be made from tax increment revenue received by the Trust. Future debt service on these bonds is as follows:

B. 2014 Series A and B
In May 2014, the Successor Agency issued $10,876,000 in 2014 Tax Allocation Refunding Bonds, Series A, to refund the outstanding 2002 Tax Allocation Bonds, Series A (current refunding). Proceeds from the 2014 Series A bonds were used to refund in full the 2002 Series A bonds, to establish a reserve fund, and to pay costs of issuance. As a result, the 2002 Series A bonds are considered defeased and the liability has been removed from these financial statements.

In May 2014, the Successor Agency issued $4,279,400 in 2014 Tax Allocation Refunding Bonds, Series B, to refund the outstanding 2002 Tax Allocation Bonds, Series C (current refunding). Proceeds from the 2014 Series B bonds were used to refund in full the 2002 Series C bonds, to establish a reserve fund, and to pay costs of issuance. As a result, the 2002 Series C bonds are considered defeased. Interest on the bonds is set at 3.4% with semi-annual debt service payments due on February 1 and August 1 of each year, with principal maturing annually August 1, 2014 through 2031. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
94 6.A.a
Packet Pg. 134 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued B. 2014 Series A and B, Continued
Debt service payments will be made from tax increment revenue received by the Trust. The following represents the future minimum debt service requirements:

C. 2015 Series A and B
In January 2015, the Successor Agency issued $9,568,200 in 2015 Tax Allocation Refunding Bonds, Series A, and $4,750,800 in 2015 Tax Allocation Refunding Bonds, Series B, to refund the outstanding 2003 Tax Allocation Bonds, Series A and B (current refunding). Interest on the 2015 bonds is 4.25% with semiannual debt service payments due on February 1 and August 1 of each year, with principal maturing annually August 1, 2015 through 2031. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.

Fiscal Year Principal Interest Total
2025 619,400 $ 179,466$ 798,866$
2026 639,000 158,073 797,073
2027 662,600 135,946 798,546
2028 685,300 113,031 798,331
2029 707,000 89,362 796,362
2030-2033 2,274,800 117,803 2,392,603
Totals 5,588,100 $ 793,681 $ $ 6,381,781
Fiscal Year Principal Interest Total
2025 241,600 $ 70,567$ 312,167$
2026 252,500 62,167 314,667
2027 263,100 53,402 316,502
2028 268,200 44,370 312,570
2029 277,900 35,086 312,986
2030-2032 893,000 46,302 939,302
Totals 2,196,300 $ 311,894 $ $ 2,508,194
2014 Tax Allocation Bond Series A
2014 Tax Allocation Bond Series B
95 6.A.a
Packet Pg. 135 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued C. 2015 Series A and B, Continued
Future debt service payments will be made from tax increment revenue received by the Trust, and is as follows:

D. 2017 Tax Allocation Refunding Bonds
In December 2017, the Successor Agency issued $17,150,000 in 2017 Tax Allocation Refunding Bonds to refund the outstanding 2010 Tax Allocation Bonds (advanced refunding). Proceeds from the 2017 Bonds were used to refund in full the 2010 Bonds and to pay issuance costs. As a result, the 2010 bonds are considered defeased and the liability has been removed from these financial statements. As of June 30, 2018, $21,103,793 was held in escrow to refund the 2010 Bonds. Interest on the 2017 bonds ranges from 2% to 5% with semi-annual debt service payments due on February 1 and August 1 of each year, with principal maturing annually August 1, 2018 through 2034.

The Successor Agency refunded the 2010 Bonds to reduce total debt service by approximately $3.6 million, and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $3 million. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
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Packet Pg. 136 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued D. 2017 Tax Allocation Refunding Bonds, Continued
Future debt service payments will be made from tax increment revenue received by the Trust, and is as follows:

18. RESTATEMENTS
In accordance with the provisions of GASB Statement No. 100, the City has restated its financial statement for the prior period due to changes in the classification of the following funds:
x Measure S Fund – Previously reported as part of the General Fund, the Measure S Fund is now reclassified as a nonmajor governmental fund due to enabling legislation. x Fire Impact Fee Fund – Previously reported in the General Fund, the Fire Impact Fee Fund is now reclassified as a nonmajor governmental fund. This fund accounts for development impact fees collected for the sole purpose of replacing and maintaining an aerial ladder truck x Park Development Impact Fee Fund – Previously reported as a nonmajor governmental fund, the Park Development Impact Fee Fund is now grouped with the Community Services Major Governmental Fund.

Summary of the restatements are as follows:
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REQUIRED

SUPPLEMENTARY INFORMATION
99 6.A.a
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100

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Packet Pg. 140 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes 4,819,597 $ 5,289,606 $ 5,275,497 $ (14,109) $ Sales and other taxes 11,492,958 11,019,537 11,012,930 (6,607) Development fees 348,333 348,333 439,967 91,634
Intergovernmental 636,884 1,156,106 1,805,784 649,678
Fines and forfeitures 60,000 60,000 43,008 (16,992)
Licenses and permits 1,445,236 1,315,236 1,973,447 658,211 Use of money and property 186,219 394,423 959,800 565,377 Charges for services 578,208 833,131 1,014,985 181,854
Other, donations, and reimbursements 148,432 3,702,993 4,117,612 414,619 Total revenues 19,715,867 24,119,365 26,643,030 2,523,665 EXPENDITURES:

Current:

General government 4,930,632 13,299,752 9,427,439 3,872,313 Public safety 12,463,291 12,892,204 12,642,318 249,886
Community development 990,084 1,049,832 766,536 283,296 Total expenditures 18,384,007 27,241,788 22,836,293 4,405,495

REVENUES OVER (UNDER)
EXPENDITURES 1,331,860 (3,122,423) 3,806,737 6,929,160
OTHER FINANCING SOURCES (USES):

Transfers in 1,569,222 5,621,693 226,437 (5,395,256)
Transfers out (3,555,343) (8,442,074) (1,825,349) 6,616,725 Total other financing sources (uses) (1,986,121) (2,820,381) (1,598,912) 1,221,469 Net change in fund balances $ (654,261) $ (5,942,804) 2,207,825 8,150,629 $ FUND BALANCES:

Beginning of year, as previously presented 16,291,955
Change within financial reporting entity (2,273,467)
Beginning of year, as restated 14,018,488
End of year $ 16,226,313
Budgeted Amounts
101

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Packet Pg. 141 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Services
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales and other taxes 8,387,571 $ 7,189,223 $ 6,855,779 $ (333,444) $ Development fees - - 20,376 20,376
Intergovernmental 477,500 2,312,850 1,398,109 (914,741) Use of money and property 25,638 185,840 550,316 364,476 Charges for services 549,325 674,325 1,255,007 580,682
Other, donations, and reimbursements 7,582,280 8,335,989 258,845 (8,077,144) Total revenues 17,022,314 18,698,227 10,338,432 (8,359,795) EXPENDITURES:

Current:

Community services 14,869,765 22,495,118 11,217,986 11,277,132 Total expenditures 14,869,765 22,495,118 11,217,986 11,277,132

REVENUES OVER (UNDER)
EXPENDITURES 2,152,549 (3,796,891) (879,554) 2,917,337
OTHER FINANCING SOURCES (USES):

Transfers in 2,433,720 3,975,955 - (3,975,955)
Transfers out (2,541,498) (3,691,079) (125,124) 3,565,955 Total other financing sources (uses) (107,778) 284,876 (125,124) (410,000) Net change in fund balances $ (3,512,015) 2,044,771 $ (1,004,678) 2,507,337 $ FUND BALANCES:

Beginning of year, as previously presented 4,717,348
Change within financial reporting entity 1,114,032
Beginning of year, as restated 5,831,380
End of year $ 4,826,702
Budgeted Amounts
102

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Packet Pg. 143 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Required Supplementary Information
For the year ended June 30, 2024
Schedule of the Local Government’s Proportionate Share of the Net Pension Liability – Last 10 Years
Miscellaneous
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 proportion of the Net pension liability 0.28460% 0.33530% 0.33897% 0.33985% proportionate share of the net pension liability 17,713,031 $ $ 23,014,464 $ 29,331,189 $ 33,703,985 Plan's covered payroll $ 7,808,757 $ 8,299,645 $ 9,243,834 $ 9,958,349 Plan's proportionate share of
the net pension liability as percentage
of its covered payroll 226.84% 277.29% 317.31% 338.45%
Fiduciary net position as a percentage of the
total pension liability 82.46% 77.62% 72.92% 71.61%
Notes to the schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, decreased from 7.65% to 7:15% in fiscal year 2018, and then decreased from 7.15% to 6.9% in fiscal year 2023 The CalPERS mortality assumptions were adjusted in fiscal year 2019 104

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Packet Pg. 144 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023

0.34843% 0.35464% 0.36105% 0.46138% 0.39349% 0.38928%
$ 33,575,940 $ 36,340,001 $ 39,284,228 $ 24,952,824 $ 45,450,854 $ 48,564,252 $ 10,170,288 $ 11,027,420 $ 14,438,000 $ 16,188,697 $ 16,715,521 $ 17,847,293 330.14% 329.54% 272.09% 154.14% 271.91% 272.11%

72.96% 72.41% 71.82% 69.89% 76.68% 76.21%
105

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Packet Pg. 145 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Pension Plan Contributions - Last 10 Fiscal Years Miscellaneous
Fiscal Year Ended 2015 2016 2017 2018
Contractually Required Contributions $ 1,707,064 $ 2,208,239 $ 2,494,953 $ 2,791,313 Contributions in relation to actuarially
Determined contributions (1,707,064) (2,208,239) (2,494,953) (2,791,313) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 8,299,645 $ 9,243,834 $ 9,958,349 $ 10,170,288 Contributions as a percentage of
covered payroll 20.57% 23.89% 25.05% 27.45%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Valuation date 6/30/2021
Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Asset valuation method Market value
Inflation 2.50%
Salary increase Depending on age, service, and type of employment Investment rate of return 7.00%
Retirement age Depending on age, service, and type of employment Mortality Based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board
106

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Packet Pg. 146 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) 2019 2020 2021 2022 2023 2024
$ 3,263,776 $ 3,824,645 $ 3,321,038 $ 4,808,270 $ 5,068,606 $ 5,395,952 (3,263,776) (3,824,645) (3,321,038) (4,808,270) (5,068,606) (5,395,952) $ - $ - $ - $ - $ - $ -
$ 11,027,420 $ 14,438,000 $ 16,188,697 $ 16,715,521 $ 17,847,293 $ 18,913,932

29.60% 26.49% 20.51% 28.77% 28.40% 28.53%
107

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Packet Pg. 147 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Required Supplementary Information
For the year ended June 30, 2024
Schedule of the Change in Total OPEB Liability and Related Ratios - Last 10 Fiscal Years Measruement Date 6/30/2018 6/30/2019 6/30/2020 6/30/2021

TOTAL OPEB LIABILITY
Service cost 52,000 $ 51,000 $ 56,673 $ 70,471 $
Interest on the Total OPEB Liability 33,000 36,000 37,159 29,725 Difference between Expected and Actual
Experience - - (31,683) -
Changes of Assumptions (39,000) 53,000 220,458 10,405
Benefit payments (15,000) (16,000) (16,000) (10,000)
Net change in the total OPEB liability 124,000 31,000 266,607 100,601 Total OPEB liability - beginning 858,000 889,000 1,013,000 1,279,607 Total OPEB liability - ending (a) $ 889,000 $ 1,013,000 $ 1,279,607 $ 1,380,208 Plan Fiduciary Net Position as
a Percentage of the Total OPEB Liability n/a n/a n/a n/a Covered employee payroll1 $ 11,027,420 10,170,288 $ 14,438,000 $ 16,188,697 $ Total OPEB liability as a percentage of covered
payroll 8.74% 9.19% 8.86% 8.53%
Notes to the Schedule:

Changes in Assumptions:

For fiscal year ended June 30, 2018, the discount rate changed from 3.58% to 3.87% For fiscal year ended June 30, 2020, the discount rate changed from 3.50% to 2.21% For fiscal year ended June 30, 2019, the discount rate changed from 3.87% to 3.50% For fiscal year ended June 30, 2021, the discount rate changed from 2.21% to 2.16% For fiscal year ended June 30, 2022, the discount rate changed from 2.16% to 3.54% For fiscal year ended June 30, 2022, the discount rate changed from 2.16% to 3.54% For fiscal year ended June 30, 2024, the discount rate changed from 3.54% to 3.65% Mortality improvement scale was updated to Scale MP-2021 *Fiscal year 2018 was the first year of implementation, therefore only five years are shown. 108

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Packet Pg. 148 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) 6/30/2022 6/30/2023 6/30/2024
$ 73,355 $ 44,669 $ 44,822
31,288 36,570 39,070
(201,375) - 25,008
(273,231) (14,231) 4,939
(10,000) (23,743) (35,821)
(379,963) 43,265 78,018
1,380,208 1,000,245 1,043,510
$ 1,000,245 $ 1,043,510 $ 1,121,528
n/a n/a n/a
$ 16,715,251 $ 17,847,293 $ 18,913,932

5.98% 5.85% 5.93%
109

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Packet Pg. 149 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Notes to Required Supplementary Information
For the year ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Budgetary Data
• Governmental Activities
• Business-Type Activities
Budgets and Budgetary Accounting

1. Prior to June 30 of each fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted at the City Hall to obtain citizen input.

3. Prior to July 1, the budget is adopted through passage of a resolution and is not included herein but is published separately.

4. The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revision that increases the total appropriations of any fund must be approved by the City Council. The appropriated budget is prepared by fund, function, and department.

5. Formal budgetary integration is employed as a management control device during the fiscal year for all funds.

6. Budgets for General, Special Revenue, Debt Service, and Capital Projects Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

7. The City does not formally adopt budgets for the North Area, Park Development fees, Parking Impact Fees, and Misc. Projects non-major governmental funds.

8. The City does not formally adopt budgets for the permanent fund.

The City uses the following procedures in establishing the budgetary data reflected in the financial statements:

Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities.

The Annual Budget assures the efficient and effective uses of the City’s economic resources, as well as establishing that the highest priority objectives are accomplished.

The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees, and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City’s performance.

The City collects and records revenue and expenditures within the following categories:

The Governmental Funds include the General Fund, Special Revenue, Debt Service, and Capital Projects funds. All funding sources are kept separate for both reporting and the use of money. The General Fund is where most City services are funded that are not required to be segregated. 110

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Packet Pg. 150 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

SUPPLEMENTARY INFORMATION
111

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112

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Packet Pg. 152 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales and other taxes 145,006 $ 145,006 $ 133,651 $ (11,355) $ Development fees - - 158,437 158,437
Intergovernmental 125,000 1,215,682 280,903 (934,779)
Use of money and property 13,797 13,797 81,685 67,888
Charges for services - - 4,276 4,276
Other, donations, and reimbursements 250,000 901,858 584,375 (317,483) Total revenues 533,803 2,276,343 1,243,327 (1,033,016)
EXPENDITURES:

Current:

Streets and roads 2,802,324 5,179,696 2,076,853 3,102,843 Total expenditures 2,802,324 5,179,696 2,076,853 3,102,843

REVENUES OVER (UNDER)
EXPENDITURES (2,268,521) (2,903,353) (833,526) 2,069,827 OTHER FINANCING SOURCES (USES):

Transfers in 2,801,247 3,631,985 1,842,038 (1,789,947)
Total other financing sources (uses) 2,801,247 3,631,985 1,842,038 (1,789,947) Net change in fund balances $ 728,632 532,726 $ 1,008,512 279,880 $ FUND BALANCES:

Beginning of year 397,967
End of year $ 1,406,479
Budgeted Amounts
113

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Packet Pg. 153 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments 1,318,274 $ 1,662 $ 8,244 $ 120,197 $ Cash and investments with fiscal agents - - - -
Accounts receivable 53,300 - - -
Loans and notes receivable - - - -
Interest receivable 8,453 - 48 -
Intergovernmental receivable 77,939 - 5,445 -
Total assets $ 1,404,666 $ 54,962 $ 8,292 $ 125,642

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ - $ - $ - $ - Due to other funds 23,062 15,000 - -
Deposits payable - - 5,656 -
Unearned revenue 53,300 - - -
Total liabilities 23,062 68,300 5,656 -
Deferred Inflows of Resources
Unavailable revenue - interest - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable - - - -
Restricted 1,381,604 8,292 - 119,986
Committed - - - -
Assigned - - - -
Unassigned (13,338) - - -
Total fund balances 1,381,604 (13,338) 8,292 119,986
Total liabilities, deferred inflows of
resources and fund balances $ 54,962 1,404,666 $ 8,292 $ 125,642 $ Gas Tax North Area
Benjamin
Way
Maintenance
District
Special Revenue Funds
Public Safety
114

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Packet Pg. 154 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) $ 411,533 8,118 $ $ - $ 428,052 - $ $ 160,260 $ 59,249
- - - - - - -
4,624 - 8,984 - 16,976 - -
- - - - 8,694,275 - -
47 2,282 - 2,484 - - -
- - - - - - -
$ 8,165 $ 418,439 $ 8,984 $ 430,536 - $ $ 8,871,511 $ 59,249 $ 21,441 - $ $ - $ - $ - $ - $ 3,383
- 4,945 - - - - -
- - - - - - -
- - - - - - -
21,441 - 4,945 - - - 3,383
- - - - 1,931,775 - -
- - - - 1,931,775 - -
- - - - - - -
8,165 396,998 4,039 430,536 - 6,939,736 55,866
- - - - - - -
- - - - - - -
- - - - - - -
8,165 396,998 4,039 - 430,536 6,939,736 55,866
$ 8,165 $ 418,439 $ 8,984 $ 430,536 - $ $ 8,871,511 $ 59,249 Area A
Lighting and
Landscaping Media Center
Park
Development
Fees
Parking
Impact Fees
Housing
Successor
Agency
Opioid
Settlement
Strong
Motion
Education
and Data
Special Revenue Funds
115

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Packet Pg. 155 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments 1,967,578 $ $ 750 $ - $ -
Cash and investments with fiscal agents - 312,247 - -
Accounts receivable 186,577 - - -
Loans and notes receivable 778,427 - - -
Interest receivable - (594) - -
Intergovernmental receivable - - - -
Total assets $ 2,932,582 $ 312,247 156 $ $ -

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 126,277 $ - $ - $ - Due to other funds 102,687 - - -
Deposits payable - - - -
Unearned revenue 28,427 - - -
Total liabilities 154,704 102,687 - -
Deferred Inflows of Resources
Unavailable revenue - interest - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable 312,247 -
Restricted 2,777,878 - - -
Committed - - - -
Assigned - - - -
Unassigned (102,531) - - -
Total fund balances 2,777,878 (102,531) 312,247 -
Total liabilities, deferred inflows of
resources and fund balances $ 2,932,582 $ 156 $ 312,247 $ - Capital
Projects Fund
Permanent
Fund
Senior Trust
Center Misc. Projects
Fire Impact
Fees
TOT Housing
Fund
Special Revenue Funds
116

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Packet Pg. 156 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) Total Nonmajor
Governmental
Fund
s
$ 165,747 $ 4,649,664
- 312,247
(448) 270,013
9,472,702 -
- 12,720
- 83,384
$ 165,299 $ 14,800,730
$ - $ 151,101
- 145,694
356 6,012
- 81,727
356 384,534
1,931,775 -
1,931,775 -
- 312,247
164,943 12,288,043
--
--
(115,869) -
164,943 12,484,421
$ 165,299 $ 14,800,730
General Debt
Service
Debt Service
Fund
117

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Packet Pg. 157 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
REVENUES:

Property taxes - $ - $ - $ - $
Sales and other taxes ----
Development fees ----
Intergovernmental 607,164 - - -
Use of money and property 56,684 - 374 -
Other, donations, and reimbursements - - - 35,917
Total revenues 663,848 - 374 35,917
EXPENDITURES:

Current:

Public safety - - - 20,056
Streets and roads 2,700 - - -
Community development ----
Debt service:

Principal retirement ----
interest and fiscal charges ----
Total expenditures 2,700 - - 20,056

REVENUES OVER (UNDER)
EXPENDITURES 661,148 - 374 15,861
OTHER FINANCING SOURCES (USES):

Transfers in ----
Transfers out (410,000) - - -
Total other financing sources (uses) (410,000) - - -
Net change in fund balances 251,148 - 374 15,861
FUND BALANCES:

Beginning of year, as previously presented 1,130,456 (13,338) 7,918 104,125 Change within financial reporting entity ----
Beginning of year, as restated 1,130,456 (13,338) 7,918 104,125 End of year $ (13,338) 1,381,604 $ 8,292 $ 119,986 $
Special Revenue Funds
Gas Tax North Area
Benjamin
Way
Maintenance
District Public Safety
118

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Packet Pg. 158 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) $ 256,229 - $ - $ - $ - $ - $ - $
-------
-------
-------
338 16,067 - - 19,658 28,340 -
902 - 36,667 - - - 39,270
1,240 272,296 36,667 - 19,658 28,340 39,270
- - - - - -17,182
-------
- 230,698 - - - 4,102 -
-------
-------
- 230,698 - - - 4,102 17,182
1,240 41,598 36,667 - 19,658 24,238 22,088
- 17,346-----
- - (40,000) - - - (26,913)
- 17,346 (40,000) - - - (26,913)
1,240 58,944 (3,333) - 19,658 24,238 (4,825)
6,925 338,054 7,372 1,114,032 410,878 6,915,498 60,691
- - -(1,114,032)- - -
6,925 338,054 7,372 - 410,878 6,915,498 60,691
$ 396,998 8,165 $ 4,039 $ - $ 430,536 $ 6,939,736 $ 55,866 $ Media Center
Park
Development
Fees
Parking
Impact Fees
Housing
Successor
Agency
Opioid
Settlement
Special Revenue Funds
Strong
Motion
Education
and Data
Area A
Lighting and
Landscaping
119

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Packet Pg. 159 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
REVENUES:

Property taxes - $ - $ - $ - $
Sales and other taxes 1,338,201 ---
Development fees - 27,383 - -
Intergovernmental ----
Use of money and property 122 (1,305) 38,739 -
Other, donations, and reimbursements 3,857 - - -
Total revenues 1,342,180 26,078 38,739 -
EXPENDITURES:

Current:

Public safety ----
Streets and roads ----
Community development 828,006 - 4,466 -
Debt service:

Principal retirement ----
interest and fiscal charges ----
Total expenditures 828,006 - 4,466 -

REVENUES OVER (UNDER)
EXPENDITURES 514,174 26,078 34,273 -
OTHER FINANCING SOURCES (USES):

Transfers in ----
Transfers out - (138,372) - -
Total other financing sources (uses) - (138,372) - -
Net change in fund balances 514,174 (112,294) 34,273 -
FUND BALANCES:

Beginning of year - - 277,974 -
Change within financial reporting entity 2,263,704 9,763 - - Beginning of year, as restated 2,263,704 9,763 277,974 - End of year $ (102,531) 2,777,878 $ 312,247 $ - $
Capital
Projects Fund
Permanent
Fund
Senior Trust
Center Misc. Projects
TOT Housing
Fund
Special Revenue Funds
Fire Impact
Fees
120

6.A.a
Packet Pg. 160 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) Total Nonmajor
Governmental
Funds
$ 255,781 (448) $ - 1,338,201 - 27,383
-607,164
-159,017
-116,613
(448) 2,504,159 - 37,238
-2,700
- 1,067,272
104,597 104,597
3,181 3,181
107,778 1,214,988
(108,226) 1,289,171
107,778 125,124
- (615,285)
107,778 (490,161)
(448) 799,010
165,391 10,525,976
- 1,159,435
165,391 11,685,411
$ 164,943 $ 12,484,421
Debt Service
Fund
General Debt
Service
121

6.A.a
Packet Pg. 161 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) This page intentionally left blank
122

6.A.a
Packet Pg. 162 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 635,822 $ 635,822 $ 607,164 $ (28,658) $ Use of money and property 8,296 8,296 56,684 48,388
Total revenues 644,118 644,118 663,848 19,730
EXPENDITURES:

Current:

Streets and roads 2,900 2,900 2,700 200
Total expenditures 2,900 2,900 2,700 200

REVENUES OVER (UNDER)
EXPENDITURES 641,218 641,218 661,148 19,930
OTHER FINANCING SOURCES (USES):

Transfers out (736,000) (736,000) (410,000) 326,000
Total other financing sources (uses) (736,000) (736,000) (410,000) 326,000 Net change in fund balances $ (94,782) (94,782) $ 251,148 345,930 $ FUND BALANCES:

Beginning of year 1,130,456
End of year $ 1,381,604
Budgeted Amounts
123

6.A.a
Packet Pg. 163 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual North Area
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - - $ - $ - $
FUND BALANCES:

Beginning of year (13,338)
End of year $ (13,338)
Budgeted Amounts
124

6.A.a
Packet Pg. 164 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Benjamin Way Maintenance District
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 39 $ 39 $ 374 $ 335 $
Total revenues 39 39 374 335
Net change in fund balances $ 39 39 $ 374 335 $
FUND BALANCES:

Beginning of year 7,918
End of year $ 8,292
Budgeted Amounts
125

6.A.a
Packet Pg. 165 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other, donations, and reimbursements $ - - $ $ 35,917 $ 35,917 Total revenues - - 35,917 35,917
EXPENDITURES:

Current:

Public safety - 24,000 20,056 3,944
Total expenditures - 24,000 20,056 3,944
Net change in fund balances $ - $ (24,000) 15,861 $ 39,861 FUND BALANCES:

Beginning of year 104,125
End of year $ 119,986
Budgeted Amounts
126

6.A.a
Packet Pg. 166 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Strong Motion Education and Data
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 26 $ 26 $ 338 $ 312 $
Other, donations, and reimbursements 200 200 902 702
Total revenues 226 226 1,240 1,014
Net change in fund balances $ 226 226 $ 1,240 1,014 $
FUND BALANCES:

Beginning of year 6,925
End of year $ 8,165
Budgeted Amounts
127

6.A.a
Packet Pg. 167 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Area A Lighting and Landscaping
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes 254,374 $ 254,374 $ 256,229 $ 1,855 $
Use of money and property 1,049 1,049 16,067 15,018
Total revenues 255,423 255,423 272,296 16,873
EXPENDITURES:

Current:

Community development 209,441 298,086 230,698 67,388
Total expenditures 209,441 298,086 230,698 67,388

REVENUES OVER (UNDER)
EXPENDITURES 45,982 (42,663) 41,598 84,261
OTHER FINANCING SOURCES (USES):

Transfers in - 17,346 17,346 -
Total other financing sources (uses) - 17,346 17,346 -
Net change in fund balances $ (25,317) 45,982 $ 58,944 84,261 $ FUND BALANCES:

Beginning of year 338,054
End of year $ 396,998
Budgeted Amounts
128

6.A.a
Packet Pg. 168 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Media Center
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other, donations, and reimbursements 40,000 $ 40,000 $ 36,667 $ (3,333) $ Total revenues 40,000 40,000 36,667 (3,333)
OTHER FINANCING SOURCES (USES):

Transfers out (40,000) (40,000) (40,000) -
Total other financing sources (uses) (40,000) (40,000) (40,000) - Net change in fund balances $ - - $ (3,333) (3,333) $
FUND BALANCES:

Beginning of year 7,372
End of year $ 4,039
Budgeted Amounts
129

6.A.a
Packet Pg. 169 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parking Impact Fees
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 2,019 $ 2,019 $ 19,658 $ 17,639 $ Total revenues 2,019 2,019 19,658 17,639
OTHER FINANCING SOURCES (USES):

Transfers out - (410,000) - 410,000
Total other financing sources (uses) - (410,000) - 427,639 Net change in fund balances $ (407,981) 2,019 $ 19,658 427,639 $ FUND BALANCES:

Beginning of year 410,878
End of year $ 430,536
Budgeted Amounts
130

6.A.a
Packet Pg. 170 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Successor Agency
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property - $ - $ 28,340 $ 28,340 $
Total revenues - - 28,340 28,340
EXPENDITURES:

Current:

Community development 1,016 4,516 4,102 414
Total expenditures 1,016 4,516 4,102 414
Net change in fund balances $ (4,516) (1,016) $ 24,238 28,754 $ FUND BALANCES:

Beginning of year 6,915,498
End of year $ 6,939,736
Budgeted Amounts
131

6.A.a
Packet Pg. 171 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Opioid Settlement
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other, donations, and reimbursements - $ - $ 39,270 $ 39,270 $ Total revenues - - 39,270 39,270
EXPENDITURES:

Current:

Public safety - 19,300 17,182 2,118
Total expenditures - 19,300 17,182 2,118

REVENUES OVER (UNDER)
EXPENDITURES - (19,300) 22,088 41,388
OTHER FINANCING SOURCES (USES):

Transfers out - (26,913) (26,913) -
Total other financing sources (uses) - (26,913) (26,913) - Net change in fund balances $ (46,213) - $ (4,825) 41,388 $ FUND BALANCES:

Beginning of year 60,691
End of year $ 55,866
Budgeted Amounts
132

6.A.a
Packet Pg. 172 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual TOT Housing
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales and other taxes $ 1,640,161 $ 1,400,652 $ 1,338,201 $ (62,451) Use of money and property -- 122 122
Other, donations, and reimbursements - - 3,857 3,857
Total revenues 1,640,161 1,400,652 1,342,180 (58,472)
EXPENDITURES:

Current:

Community development 560,076 850,133 828,006 22,127
Total expenditures 560,076 850,133 828,006 22,127

REVENUES OVER (UNDER)
EXPENDITURES 1,080,085 550,519 514,174 (36,345)
Net change in fund balances $ 1,080,085 $ 550,519 514,174 (36,345) $ FUND BALANCES:

Beginning of year, as previously presented -
Change within financial reporting entity (major
to nonmajor fund) 2,263,704
Beginning of year, as restated 2,263,704
End of year $ 2,777,878
Budgeted Amounts
133

6.A.a
Packet Pg. 173 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Impact Fees
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Development fees $ - - $ $ 27,383 $ 27,383
Use of money and property 1,178 1,178 (1,305) (2,483)
Total revenues 1,178 1,178 26,078 24,900
OTHER FINANCING SOURCES (USES):

Transfers out (138,372) (138,372) (138,372) -
Total other financing sources (uses) (138,372) (138,372) (138,372) - Net change in fund balances $ (137,194) $ (137,194) (112,294) 24,900 $ FUND BALANCES:

Beginning of year, as previously restated -
Change within financial reporting entity (major
to nonmajor fund) 9,763
Beginning of year, as restated 9,763
End of year $ (102,531)
Budgeted Amounts
134

6.A.a
Packet Pg. 174 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Senior Trust Center
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 11,749 $ 11,749 $ 38,739 $ 26,990 $ Total revenues 11,749 11,749 38,739 26,990
EXPENDITURES:

Current:

Community development 4,000 4,000 4,466 (466)
Total expenditures 4,000 4,000 4,466 (466)

REVENUES OVER (UNDER)
EXPENDITURES 7,749 7,749 34,273 26,524
Net change in fund balances $ 7,749 7,749 $ 34,273 26,524 $ FUND BALANCES:

Beginning of year 277,974
End of year $ 312,247
Budgeted Amounts
135

6.A.a
Packet Pg. 175 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Misc. Projects
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - - $ - $ - $
FUND BALANCES:

Beginning of year -
End of year $ -
Budgeted Amounts
136

6.A.a
Packet Pg. 176 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Debt Service
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes $ - - $ $ (448) $ (448)
Total revenues -- (448) (448)
EXPENDITURES:

Debt service:

Principal retirement 104,597 104,597 104,597 -
interest and fiscal charges 8,181 8,181 3,181 5,000
Total expenditures 112,778 112,778 107,778 5,000

REVENUES OVER (UNDER)
EXPENDITURES (112,778) (112,778) (108,226) 4,552
OTHER FINANCING SOURCES (USES):

Transfers in 107,778 107,778 107,778 -
Total other financing sources (uses) 107,778 107,778 107,778 - Net change in fund balances $ (5,000) $ (5,000) (448) $ 4,552 FUND BALANCES:

Beginning of year 165,391
End of year $ 164,943
Budgeted Amounts
137

6.A.a
Packet Pg. 177 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Balance Sheet
General Fund Activities
June 30, 2024
ASSETS
Cash and investments 6,152,947 $ 313,836 $ 4,862,060 $ 50,981 $ - $ Pension stabilization investments 4,945,288 - - - -
Accounts receivable 991,006 49,120 - - -
Loans and notes receivable - 93,157 - - -
Interest receivable 43,348 34,484 - 296 -
Intergovernmental receivable 1,248,388 515,528 - - -
Lease receivable 295,864 - - - -
Due from other funds 1,523,626 - - - -
Prepaid items 3,251 - - - -
Total assets $ 15,203,718 $ 313,836 $ 5,554,349 $ 51,277 $ -

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 530,897 $ $ 56,181 $ 119,783 $ - $ - Due to other funds - - - --
Deposits payable 1,569,176 - - - -
Unearned revenue 670,001 - - - -
Advances from other funds - 2,039,634 - - -
Total liabilities 2,770,074 2,095,815 119,783 - -
Deferred Inflows of Resources
Lease related 286,420 - - - -
Total deferred inflows of resources 286,420 - - - -
Fund Balances:

Nonspendable 3,251 - - - -
Restricted 4,945,288 - - -
Committed - - - - -
Assigned 369,313 - - - -
Unassigned 6,829,372 (1,781,979) 5,434,566 51,277 -
Total fund balances 12,147,224 (1,781,979) 5,434,566 51,277 - Total liabilities, deferred inflows of
resources and fund balances $ 313,836 15,203,718 $ $ 5,554,349 $ 51,277 $ - General
Capital
Replacement
Transaction &
Use Tax
Economic
Development TOT Housing
138

6.A.a
Packet Pg. 178 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) Total General
Funds
$ - - $ - $ 4,815 $ 39,162 $ 369,745 $ 11,793,546 $
- - - - - 4,945,288 -
- - - - - 1,040,126 -
- - - - - 93,157 -
- - - - 227 78,355 -
- 404,712 - - - 2,168,628 -
- - - - - 295,864 -
- - - - - 1,523,626 -
- - - - - 3,251 -
$ - $ 404,712 - $ $ 4,815 $ 39,389 $ 369,745 $ 21,941,841 $ - $ 121,467 - $ $ 343 $ - $ 829,102 431 $
- - 321,195 - - - 321,195
- - - - - 1,569,176 -
- - - - - 670,001 -
- - - - - -2,039,634
- 442,662 - 343 - 5,429,108 431
- - - - - 286,420 -
- - - - - 286,420 -
- - - - - 3,251 -
- - - 4,945,288 -
- - - 39,389 - 39,389 -
- - 4,472 - 373,785
- (37,950) - - 369,314 - 10,864,600
-- (37,950) 4,472 39,389 369,314 16,226,313
$ - - $ 404,712 $ 4,815 $ 39,389 $ 369,745 $ 21,941,841 $ Long Range
Tree Mitigation Planning Fund
Fire Facilities
Impact Fees
L&M
Village
Community
Benefit
Plaza Flowers
Veterans
139

6.A.a
Packet Pg. 179 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Fund Activities
For the year ended June 30, 2024
REVENUES:

Property taxes 5,275,497 $ - $ - $ - $ - $
Sales and other taxes 8,197,258 - 2,815,672 - -
Development fees 439,967----
Intergovernmental 1,365,429----
Fines and forfeitures 43,008----
Licenses and permits 1,973,447----
Use of money and property 729,273 - 226,438 2,313 -
Charges for services 971,590----
Other, donations, and reimbursements 672,895 3,401,438 - - - Total revenues 19,668,364 3,401,438 3,042,110 2,313 -
EXPENDITURES:

Current:

General government 4,738,463 4,273,397 415,579 - -
Public safety 12,642,318----
Community development -----
Total expenditures 17,380,781 4,273,397 415,579 - -

REVENUES OVER (UNDER)
EXPENDITURES 2,287,583 (871,959) 2,626,531 2,313 -
OTHER FINANCING SOURCES (USES):

Transfers in 1,085,257 1,118,097 - - -
Transfers out (1,771,448) - (2,030,818) - -
Total other financing sources (uses) (686,191) 1,118,097 (2,030,818) - - Net change in fund balances 1,601,392 246,138 595,713 2,313 - FUND BALANCES:

Beginning of year, as previously presented 10,545,832 (2,028,117) 4,838,853 48,964 2,263,704 Change within financial reporting entity - - - -(2,263,704) Beginning of year, as restated 10,545,832 (2,028,117) 4,838,853 48,964 - End of year $ (1,781,979) 12,147,224 $ 5,434,566 $ 51,277 $ - $ General
Capital
Replacement
Transaction &
Use Tax
Economic
Development TOT Housing
140

6.A.a
Packet Pg. 180 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) Total General
Funds
$ - - $ - $ - $ - $ - $ 5,275,497 $
- - - - - - 11,012,930
- - - - - - 439,967
- - 440,355 - - - 1,805,784
- - - - - - 43,008
- - - - - - 1,973,447
- - - - 1,776 - 959,800
- - - - - 43,395 1,014,985
- - - 5,666 37,613 - 4,117,612
- - 440,355 5,666 39,389 43,395 26,643,030
- - - - - - 9,427,439
- - - - - - 12,642,318
- - 765,342 1,194 - - 766,536
- - 765,342 1,194 - - 22,836,293
- - (324,987) 4,472 39,389 43,395 3,806,737
- - - - - - 2,203,354
- - - - - - (3,802,266)
- - - - - - (1,598,912)
- - (324,987) 4,472 39,389 43,395 2,207,825
- 9,763 287,037 - - 325,919 16,291,955
- (9,763) - - - (2,273,467)
-- 287,037 -- 325,919 14,018,488
$ - - $ (37,950) $ 4,472 $ 39,389 $ 369,314 $ 16,226,313 $ Tree Mitigation
Fire Facilities
Impact Fees
L&M
Village
Long Range
Planning Fund
Community
Benefit
Plaza Flowers
Veterans
141

6.A.a
Packet Pg. 181 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Net Position
Water Fund Activities
June 30, 2024
Totals
ASSETS
Current Assets:

Cash and investments $ 2,065,214 $ 1,034,802 $ 1,427,605 - $ $ 4,527,621 Cash and investments with fiscal agents 56 - - - 56
Pension stabilization investments 566,776 - - - 566,776 Accounts receivable 1,133,825 - - 13,142 1,146,967
Interest receivable 18,446 - - 8,438 26,884
Intergovernmental receivable 6,403 958,621 - - 965,024
Inventory 103,930 - - - 103,930
Total current assets 3,894,650 1,993,423 - 1,449,185 7,337,258 Noncurrent:

Capital assets:

Land 310,781 - - - 310,781
Construction in progress - 2,515,265 - - 2,515,265
Depreciable buildings and improvements 1,443,869 - - - 1,443,869 Depreciable utility systems 36,686,712 - - - 36,686,712 Depreciable equipment 655,480 - - - 655,480
Accumulated depreciation (16,380,021) -- - (16,380,021) Net capital assets 22,716,821 2,515,265 - - 25,232,086
Total noncurrent assets 22,716,821 2,515,265 - - 25,232,086 Total assets 26,611,471 4,508,688 - 1,449,185 32,569,344

DEFERRED OUTFLOWS OF RESOURCES
Pension related 1,564,664 - - - 1,564,664
OPEB related 24,110 - - - 24,110
Total deferred outflows of resources 1,588,774 - - - 1,588,774

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 51,980 1,191,802 - - 1,243,782 Deposits payable 14,133 - - - 14,133
Retention payable - 59,224 - 59,224 -
Interest payable 45,308 - - - 45,308
Bonds payable - current 612,000 - - - 612,000
OPEB liability - current 4,422 - - - 4,422
Total current liabilities 727,843 1,251,026 - - 1,978,869 Noncurrent liabilities:

Bonds payable 3,572,000 - - - 3,572,000
Net pension liability 4,064,526 - - - 4,064,526
Net OPEB liability 149,317 - - - 149,317
Total noncurrent liabilities 7,785,843 - - - 7,785,843
Total liabilities 8,513,686 1,251,026 - - 9,764,712

DEFERRED INFLOWS OF RESOURCES
Pension related 221,406 - - - 221,406
OPEB related 51,715 - - - 51,715
Total deferred inflows of resources 273,121 - - - 273,121

NET POSITION
Net investment in capital assets 18,532,877 2,456,041 - - 20,988,918 Restricted 56 742,397 - 1,449,185 2,191,638
Unrestricted 880,505 59,224 - - 939,729
Total net position $ 3,257,662 19,413,438 $ - $ 1,449,185 $ 24,120,285 $ Water
Operations
Water Capital
Replacement
Water Debt
Service
Water
Capacity
142

6.A.a
Packet Pg. 182 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Water Fund Activities
For the year ended June 30, 2024
Totals
OPERATING REVENUES:

Charges for services $ - 6,235,537 $ - $ - $ 6,235,537 $ Development fees 39,100 - - 72,959 112,059
Intergovernmental 10,632 1,336,380 - - 1,347,012
Other 41,879 - - - 41,879
Total operating revenues 6,327,148 1,336,380 - 72,959 7,736,487 OPERATING EXPENSES:

Salaries and benefits 2,689,757 - - - 2,689,757
Maintenance and operations 1,195,472 - - - 1,195,472
Administration 1,011,329 - - - 1,011,329
Depreciation 860,091 - - - 860,091
Total operating expenses 5,756,649 - - - 5,756,649
Operating income (loss) 570,499 1,336,380 - 72,959 1,979,838 NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 153,021 - - 64,251 217,272
Interest expense (191,361) - - - (191,361)
Total nonoperating revenues (expenses) (38,340) - - 64,251 25,911 Income before contributions and transfers 532,159 1,336,380 - 137,210 2,005,749 CONTRIBUTIONS AND TRANSFERS:

Transfers in 21,534 48,541 - - 70,075
Transfers out (37,895) - - (32,180) (70,075)
Capital contributions 241,603 - - - 241,603
Total contributions and transfers 225,242 48,541 - (32,180) 241,603 Change in net position 757,401 1,384,921 - 105,030 2,247,352 NET POSITION:

Beginning of year 18,656,037 1,872,741 - 1,344,155 21,872,933 End of year $ 3,257,662 19,413,438 $ - $ 1,449,185 $ 24,120,285 $ Water
Operations
Water Capital
Replacement
Debt
Service
Water
Capacity
143

6.A.a
Packet Pg. 183 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Net Position
Sewer Fund Activities
June 30, 2024
Sewer
Operations Drainage
Sewer
Capital
Replacement
Sewer
Capacity
Drainage
Capacity Totals
ASSETS
Current Assets:

Cash and investments $ 2,327,889 $ 1,537,513 - $ $ 3,612,597 $ 1,498,678 $ 8,976,677 Cash and investments with
fiscal agents - 2,164 - - - 2,164
Pension stabilization investments 682,559 148,366 - - - 830,925 Accounts receivable 1,197,574 61,559 - 21,796 6,444 1,287,373 Interest receivable 21,417 - - 21,613 8,738 51,768
Intergovernmental receivable 653 261 - - -914
Due from other funds 291,343---- 291,343
Inventory 20,089 - - - -20,089
Total current assets 4,543,688 210,186 1,537,513 3,656,006 1,513,860 11,461,253 Noncurrent:

Advances to other funds - - 1,019,817 - - 1,019,817
Capital assets:

Land 682,880 84,022 - - - 766,902
Construction in progress - - 409,003 - - 409,003
Depreciable buildings and 258,359 - - - - 258,359
Depreciable utility systems 74,406,629 12,064,262 - - - 86,470,891 Depreciable equipment 1,808,823 - - - - 1,808,823
Accumulated depreciation (28,353,712) (5,978,138) - - - (34,331,850) Net capital assets 48,802,979 6,170,146 409,003 - - 55,382,128 Total noncurrent assets 48,802,979 6,170,146 1,428,820 - - 56,401,945 Total assets 53,346,667 6,380,332 2,966,333 3,656,006 1,513,860 67,863,198

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding 602,136---- 602,136
Pension related 1,564,664 - - - -1,564,664
OPEB related 33,662 - - - -33,662
Total deferred outflows 2,200,462 - - - -2,200,462

LIABILITIES
Current liabilities:

Accounts payable and 68,582 8,402 45,851 - - 122,835
Due to other funds 425,000 291,343 - - - 716,343
Deposits payable 150 - - - -150
Interest payable 157,138---- 157,138
Bonds payable - current 1,190,000 - - - - 1,190,000
OPEB liability - current 6,173 - - - - 6,173
Total current liabilities 1,847,043 299,745 45,851 - - 2,192,639 Noncurrent liabilities:

Bonds payable 16,655,219 - - - -16,655,219
Net pension liability 4,064,526 - - - -4,064,526
Net OPEB liability 208,473---- 208,473
Total noncurrent liabilities 20,928,218 - - - -20,928,218 Total liabilities 22,775,261 299,745 45,851 - - 23,120,857

DEFERRED INFLOWS OF RESOURCES
Pension related 221,406---- 221,406
OPEB related 72,203 - - - -72,203
Total deferred inflows 293,609---- 293,609

NET POSITION
Net investment in capital assets 31,562,060 6,170,146 409,003 - - 38,141,209 Restricted 2,164 - 3,531,296 3,656,006 1,513,860 8,703,326 Unrestricted 914,035 (89,559) (1,019,817) - - (195,341) Total net position $ 32,478,259 $ 6,080,587 $ 2,920,482 $ 3,656,006 $ 1,513,860 $ 46,649,194 144

6.A.a
Packet Pg. 184 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Sewer Fund Activities
For the year ended June 30, 2024
Sewer
Operations Drainage
Sewer
Capital
Replacement
Sewer
Capacity
Drainage
Capacity Totals
OPERATING REVENUES:

Charges for services $ 7,686,280 $ 739,383 $ - $ - $ 8,425,663 - $ Development fees 39,356 19,858 - 219,866 57,512 336,592 Intergovernmental 653 261 - - - 914
Other 20,200 701,779 - - - 721,979
Total operating revenues 7,746,489 1,461,281 - 219,866 57,512 9,485,148 OPERATING EXPENSES:

Salaries and benefits 3,070,750 396,866 - - - 3,467,616 Maintenance and operations 2,275,929 131,233 250,651 - - 2,657,813 Administration 1,152,287 163,825 - - - 1,316,112
Depreciation 2,143,956 257,886 - - - 2,401,842
Total operating expenses 8,642,922 949,810 250,651 - - 9,843,383 Operating income (loss) (896,433) 511,471 (250,651) 219,866 57,512 (358,235) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 165,675 9,277 - 163,158 67,023 405,133 Interest expense (663,306) - - - - (663,306)
Total nonoperating
revenues (expenses) (497,631) 9,277 163,158 - 67,023 (258,173) Income before contributions
and transfers (1,394,064) 520,748 (250,651) 383,024 124,535 (616,408) CONTRIBUTIONS AND TRANSFERS:

Transfers in 107,448 - 69,747 - - 177,195
Transfers out - (1,704) - (114,544) (15,969) (132,217)
Capital contributions 636,198 57,963 - - - 694,161
Total contributions and transfers 743,646 56,259 69,747 (114,544) (15,969) 739,139 Change in net position (650,418) 577,007 (180,904) 268,480 108,566 122,731 NET POSITION:

Beginning of year 33,128,677 5,503,580 3,101,386 3,387,526 1,405,294 46,526,463 End of year $ 32,478,259 $ 6,080,587 $ 2,920,482 $ 3,656,006 $ 1,513,860 $ 46,649,194 145

6.A.a
Packet Pg. 185 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Net Position
Electric Fund Activities
June 30, 2024
Electric
Operations
Capital
Replacement
Electric
Public
Benefit
Electric
Cap &
Trade
Electric
Capacity Totals
ASSETS
Current Assets: Cash and investments $ 7,415,923 $ 798,149 $ 1,598,321 $ 205 2,865,510 $ 12 ,220 $ ,883,123 Cash and investments with fiscal agents - - - - - -
Pension stabilization investments 974,813 - - - -974,813 Investment in NCPA reserves 5,729,441 - - - -5,729,441
Accounts receivable 2,340,654 - -606 -2,341,260
Loans and notes receivable - - - - - -
Interest receivable 48,875 - 26,157 - 1,193 76,225
Intergovernmental receivable - - - - - -
Lease receivable - - - - - -
Due from other funds 15,000 - - - - 15,000
Inventory 2,598,795 - - - -2,598,795
Total current assets 19,123,501 798,149 1,624,478 2,866,116 206,413 24,618,657 Noncurrent:

Advances to other funds - 1,019,817 - - - 1,019,817
Capital assets:

Land 48,360 - - -- 48,360
Construction in progress - 1,076,559 - -- 1,076,559
Depreciable buildings and improvements 447,835 - - -- 447,835 Depreciable utility systems 31,682,816 - - -- 31,682,816 Depreciable equipment 1,001,599 - - -- 1,001,599
Accumulated depreciation (15,672,867) - - -- (15,672,867) Net capital assets 17,507,743 1,076,559 - - -18,584,302 Total noncurrent assets 17,507,743 2,096,376 - - - 19,604,119 Total assets 36,631,244 2,894,525 1,624,478 2,866,116 206,413 44,222,776

DEFERRED OUTFLOWS OF RESOURCES
Pension related 2,166,457 - - - - 2,166,457
OPEB related 13,223 - - - -13,223
Total deferred outflows of resources 2,179,680 - - - - 2,179,680

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 736,830 57,425 1,437 35,668 - 831,360 Deposits payable 168,271 542,433 - - -710,704
Retention payable - - - - - -
Interest payable 3,330 - - - - 3,330
Loans payable - current 119,588 - - - -119,588
OPEB liability - current 2,425 - - - -2,425
Total current liabilities 1,030,444 599,858 1,437 35,668 -1,667,407 Noncurrent liabilities:

Loan payable 1,212,452 - - - - 1,212,452
Net pension liability 5,627,805 - - - -5,627,805
Net OPEB liability 81,894 - - - -81,894
Total noncurrent liabilities 6,922,151 - - - -6,922,151 Total liabilities 599,858 7,952,595 1,437 35,668 - 8,589,558

DEFERRED INFLOWS OF RESOURCES
Pension related 306,562 - - - - 306,562
OPEB related 28,363 - - - -28,363
Total deferred inflows of resources 334,925 - - - - 334,925

NET POSITION
Net investment in capital assets 17,507,743 1,076,559 - - -18,584,302 Restricted - 2,237,925 1,623,041 2,830,448 206,413 6,897,827 Unrestricted 13,015,661 (1,019,817) - - -11,995,844
Total net position $ 2,294,667 30,523,404 $ 1,623,041 $ 2,830,448$ 206,413$ $ 37,477,973 146

6.A.a
Packet Pg. 186 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Electric Fund Activities
For the year ended June 30, 2024
Electric
Operations
Capital
Replacement
Electric
Public
Benefit
Electric Cap
& Trade
Electric
Capacity Totals
OPERATING REVENUES:

Charges for services $ 14,665,995 $ 399,609 - $ $ - -$ 15,065,604 $ Development fees 9,803 - - - 73,038 82,841
Other 292,018 244,242 772,918 3,842 - 1,313,020
Total operating revenues 14,967,816 244,242 1,172,527 3,842 73,038 16,461,465 OPERATING EXPENSES:

Purchase of power 5,312,034 - - - - 5,312,034
Salaries and benefits - 3,071,404 104,756 32,059 - 3,208,219 Maintenance and operations 270,533 4,473,492 254,182 123,705 - 5,121,912 Administration - 1,652,847 - - - 1,652,847
Depreciation 652,768 - - - - 652,768
Total operating expenses 15,162,545 270,533 358,938 155,764 - 15,947,780 Operating income (loss) (194,729) (26,291) 813,589 (151,922) 73,038 513,685 NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 575,541 187,084 - - 6,634 769,259 Interest expense (3,329) - - - (3,329) -
Total nonoperating revenues (expenses) 572,212 187,084 - - 6,634 765,930 Income before contributions and transfers 377,483 1,000,673 (26,291) (151,922) 79,672 1,279,615 CONTRIBUTIONS AND TRANSFERS:

Transfers in 70,114 - - 2,982,370 - 3,052,484
Transfers out (219,963) - (3,018,958) -- (3,238,921)
Capital contributions 270,533 - - -- 270,533
Total contributions and transfers 70,114 50,570 (3,018,958) 2,982,370 - 84,096 Change in net position 43,823 428,053 (2,018,285) 2,830,448 79,672 1,363,711 NET POSITION:

Beginning of year 2,250,844 30,095,351 3,641,326 - 126,741 36,114,262 Restatements - - - - - -
Beginning of year, as restated 30,095,351 2,250,844 3,641,326 - 126,741 36,114,262 End of year $ 30,523,404 $ 2,294,667 $2 1,623,041 $2 ,830,448 $ 06,413 $ 37,477,973 147

6.A.a
Packet Pg. 187 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Insurance
and Benefit
Vehicle
Maintenance
Information
Services
Building
Maintenance
Vehicle
Replacement Totals
ASSETS
Current Assets:

Cash and investments 5,198,470 $ 94,385 $ 1,659,593 $ 468,312 $ 2,239,665 $ 9,660,425 $ Accounts receivable 20,700 3,753 2,940 95,729 123,122 - Loans and notes receivable - 3,408 - - 3,408 -
Interest receivable - 698 9,881 2,778 12,798 26,155
Inventory 15,640 - - - 15,640 -
Prepaid items - - - - - -
Total current assets 5,219,170 114,476 1,675,822 566,819 2,252,463 9,828,750 Noncurrent:

Capital assets:

Depreciable buildings and improvements - -- -- -
Depreciable equipment - 9,251,518 2,477,725 3,703,560 - 15,432,803 Accumulated depreciation - (6,112,511) (2,214,131) (2,094,684) - (10,421,326) Net capital assets 3,139,007 - 263,594 1,608,876 5,011,477 - Total noncurrent assets 3,139,007 - 263,594 1,608,876 5,011,477 - Total assets 5,219,170 3,253,483 1,939,416 2,175,695 2,252,463 14,840,227

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 911,506 39,989 58,499 29,998 24,056 1,064,048 Lease liabilities - current - - 32,156 - - 32,156
Compensated absences - current 1,306,007 - - - - 1,306,007 Claims payable - current 96,126 - - - - 96,126
Total current liabilities 2,313,639 39,989 90,655 29,998 24,056 2,498,337 Noncurrent liabilities:

Lease liabilities - - 24,225 - - 24,225
Compensated absences 1,706,698 - - - - 1,706,698
Claims payable 218,319 - - - - 218,319
Total noncurrent liabilities 1,925,017 24,225 - - 1,949,242 - Total liabilities 4,238,656 39,989 114,880 29,998 24,056 4,447,579

NET POSITION
Net investment in capital assets 3,139,007 - 207,213 1,608,876 4,955,096 - Unrestricted 980,514 74,487 1,617,323 536,821 2,228,407 5,437,552 Total net position $ 980,514 $ 3,213,494 $ 1,824,536 $ 2,145,697 $ 2,228,407 $ 10,392,648 148

6.A.a
Packet Pg. 188 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the year ended June 30, 2024
Insurance
and Benefit
Vehicle
Maintenance
Information
Services
Building
Maintenance
Vehicle
Replacement Totals
OPERATING REVENUES:

Charges for services $ 1,086,403 1,756,098 $ 3,071,726 $ 914,288 $ 563,128 $ 7,391,643 $ Other - 20,582 252 91,467 - 112,301
Total operating revenues 1,756,098 1,106,985 3,071,978 1,005,755 563,128 7,503,944 OPERATING EXPENSES:

Salaries and benefits 1,515,046 511,965 843,632 336,848 - 3,207,491 Maintenance and operations - 366,601 1,790,594 558,748 789,978 3,505,921 Administration - 171,861 176,201 83,548 - 431,610
Amortization - - 31,971 - - 31,971
Depreciation - 1,010,378 142,062 356,330 - 1,508,770
Total operating expenses 1,515,046 2,060,805 2,984,460 1,335,474 789,978 8,685,763 Operating income (loss) 241,052 (953,820) 87,518 (329,719) (226,850) (1,181,819) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) - 989 70,153 208,773 108,068 387,983 Interest expense -- (379) -- (379)
Gain (loss) on sale of fixed assets - - - - 6,900 6,900 Total nonoperating revenues
(expenses) - 989 69,774 208,773 114,968 394,504
Income before contributions
and transfers 241,052 (952,831) 157,292 (120,946) (111,882) (787,315) CONTRIBUTIONS AND TRANSFERS:

Transfers in - 486,705 - - 70,711 557,416
Transfers out - (43,798) - - - (43,798)
Capital contributions - 789,978 - - - 789,978
Total contributions and transfers - 1,232,885 - - 70,711 1,303,596 Change in net position 241,052 280,054 157,292 (120,946) (41,171) 516,281 NET POSITION:

Beginning of year 739,462 2,933,440 1,667,244 2,266,643 2,269,578 9,876,367 End of year $ 980,514 $ 3,213,494 $ 1,824,536 $ 2,145,697 $ 2,228,407 $ 10,392,648 149

6.A.a
Packet Pg. 189 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
Insurance
and Benefit
Vehicle
Maintenance
Information
Services
Building
Maintenance
Vehicle
Replacement Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 1,755,509 $ 1,082,650 $ 3,069,365 $ 876,533 $ 563,128 $ 7,347,185 Receipts from other operating activities - 20,582 252 91,467 - 112,301 Payments to suppliers 27,438 (1,015,150) (2,019,082) (705,368) (827,963) (4,540,125) Payments to employees (1,334,842) (511,965) (843,632) (336,848) (3,027,287) - Net cash provided by (used) by operating
activities 448,105 (423,883) 206,903 (74,216) (264,835) (107,926) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund borrowing - - - - - -
Transfers in - 486,705 - - 70,711 557,416
Transfers out - (43,798) - - - (43,798)
Principal payment on debt - (31,992) - - - (31,992)
Net cash provided (used) by
noncapital financing activities - 442,907 (31,992) - 70,711 481,626 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Interest paid - - (379) - - (379)
Cash received (loss) from sale of capital assets - - - - 6,900 6,900 Acquisition and construction of capital assets 1 - 1 (82,322) - (82,320) Net cash provided (used) by
capital and related financing activities 1 - (378) (82,322) 6,900 (75,799) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 573 - 64,890 207,375 102,789 375,627 Net cash provided by (used in) investing
activities 573 - 64,890 207,375 102,789 375,627
Net cash flows 19,598 448,105 239,423 50,837 (84,435) 673,528 CASH AND INVESTMENTS - Beginning of
year 74,787 4,750,365 1,420,170 417,475 2,324,100 8,986,897 CASH AND INVESTMENTS - End of year $ 94,385 5,198,470 $ 1,659,593 $ 468,312 $ 2,239,665 $ 9,660,425 $

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

Operating income (loss) $ (953,820) 241,052 $ 87,518 $ (329,719) $ (226,850) $ (1,181,819) $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation and amortization 1,010,378 - 174,033 356,330 - 1,540,741 (Increase) decrease in accounts receivables (3,753) (589) (2,361) (37,755) - (44,458) (Increase) decrease in inventory (6,457) - - - - (6,457) Increase (decrease) in prepaid items 17,717 - 36,346 - - 54,063 Increase (decrease) in accounts payable and
accrued liabilities (487,948) 27,438 (88,633) (63,072) (37,985) (650,200) Increase (decrease) in claims payable 16,460 - - - - 16,460 Increase (decrease) in compensated absences 163,744 - - - - 163,744 Net cash provided by (used in) operating
activities $ 448,105 $ (423,883) $ 206,903 $ (74,216) $ (264,835) $ (107,926)

NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contribution $ - $ 789,978 $ - $ - $ - $ 789,978 150

6.A.a
Packet Pg. 190 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30, 2024
ASSETS
Cash and investments $ 58 3,793,084 $ 3,793,142 $
Cash and investments with fiscal agents - 2,618,775 2,618,775 Interest receivable 26,398 - 26,398
Loans and notes receivable 2,609,931 - 2,609,931
Nondepreciable capital assets 528,300 - 528,300
Total assets 2,618,833 6,957,713 9,576,546

LIABILITIES
Interest payable - 535,362 535,362
Long-term liabilities:

Long-term debt - due within one year - 2,496,800 2,496,800 Long-term debt - due in more than one year - 29,545,729 29,545,729 Total liabilities 32,577,891 - 32,577,891

NET POSITION
Net position held for private purposes 6,957,713 (29,959,058) (23,001,345) Total Net Position $ (29,959,058) 6,957,713 $ (23,001,345) $ Total
Private Purpose Trust Funds
Post RDA
Successor
Agency
Post RDA Debt
Retirement
Fund
151

6.A.a
Packet Pg. 191 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24) City of Healdsburg
Combining Statement of Changes in Fiduciary Net Position Private-Purpose Trust Funds
For the year ended June 30, 2024
ADDITIONS:

Property taxes $ 3,914,620 $ 3,914,620 - $
Use of money and property 103,528 187,788 291,316
Transfers in 3,588,092 - 3,588,092
Total additions 4,018,148 3,775,880 7,794,028
DEDUCTIONS:

Community development 5,350 - 5,350
Interest expense 1,136,641 - 1,136,641
Administrative expense 250,000 250,000 -
Transfers out 3,588,092 3,588,092 -
Total deductions 3,843,442 1,136,641 4,980,083
Change in net position 174,706 2,639,239 2,813,945
NET POSITION:

Beginning of year 6,783,007 (32,598,297) (25,815,290)
End of year $ 6,957,713 $ (29,959,058) $ (23,001,345)
Total
Private Purpose Trust Funds
Post RDA
Successor
Agency
Post RDA Debt
Retirement
Fund
152

6.A.a
Packet Pg. 192 Attachment: Financial Statements FY2023-2024 [Revision 1] (4672 : Approve the Audited Financial Statements for FY 2023-24)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 18, 2025
SUBJECT: Landscaping and Lighting Assessment District
PREPARED BY: Jaime Licea, Parks & Open Space Superintendent STRATEGIC INITIATIVE(S):

Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution appointing Coastland Civil Engineering as Engineer of Work, to direct the preparation of the annual Engineer’s Report and to describe the potential changes to the City of Healdsburg’s Fiscal Year 2025-26 Landscaping and Lighting Assessment District in accordance with the provisions of the Landscaping and Lighting Act of 1972.

COMMUNITY ENGAGEMENT/OUTREACH:

As part of an ongoing effort to collaborate with residents, staff has been meeting with members of the Landscaping and Lighting Assessment District since 2020 to discuss concerns and identify opportunities related to the operation of the District. This working group convenes twice a year and helps identify the work to be completed in the Zones each year.

BACKGROUND:

The City of Healdsburg utilizes a Landscaping and Lighting Assessment District, formed during 1996 in accordance with the provisions of the Landscaping and Lighting Act of 1972, to fund the operation and maintenance of landscaping within specific public rights-of-way along city streets and the maintenance of riparian and park areas in the city. The assessment district consists of seven separate zones (areas) within the city. The funding sources for the assessment district are the parcels within the seven zone boundaries. These parcels are assessed through an annual process that begins with tonight’s City Council action and ends at a public hearing. This is the first of three City Council meetings regarding the assessment district.

DISCUSSION/ANALYSIS:

In order to levy annual assessments in any fiscal year, City Council is required by the California Streets and Highways Code to adopt a resolution appointing the Engineer of Work, directing the preparation of the annual Engineer’s Report, and describing the potential changes to the assessment district for the upcoming fiscal year. City Council has appointed the firm Coastland

6.B
Packet Pg. 193
Civil Engineering as the Engineer of Work in prior years. The firm has shown it has the experience and expertise necessary to perform the work required. Staff recommends its appointment as the Engineer of Work. The effect of adopting tonight’s resolution is to appoint Coastland Civil Engineering as the Engineer of Work and to instruct the Engineer of Work to analyze the assessments that would occur during FY 2025-26. These assessments would be subject to City Council approval of the engineer’s report at a future meeting.

The procedure for the FY 2025-26 levy of annual assessments for the City’s assessment district is as follows:
• Tonight, City Council considers the adoption of the attached resolution appointing the Engineer of Work and directing the preparation of the Engineer’s Report. • At the second Council meeting, City Council considers the adoption of a resolution preliminarily approving the annual Engineer’s Report and a notice of intention to levy and collect assessments for FY 2025-26 (this resolution also sets the time and date of an informal public information meeting, if required, and the public hearing). City Council can preliminarily approve the Engineer’s Report as submitted or modify it and preliminarily approve it as modified.
• If required, mailed notices and ballots are sent to all property owners specifically affected by proposed changes in the Assessment District. Staff then hold an informal public information meeting to discuss proposed changes. This is not a City Council meeting. • At the third Council meeting, City Council holds a public hearing and upon conclusion may adopt a resolution confirming the assessments (either as preliminarily approved at the second council meeting, or as modified by City Council at the conclusion of the public hearing).

The adoption of the resolution shall constitute authorization to levy assessments for FY 2025-26.

This procedure, as described, is required by the Landscaping & Lighting Act of 1972 of the California Streets and Highways Code.

ENVIRONMENTAL STEWARDSHIP:

The City has transitioned to drought-tolerant, and low-water use landscaping throughout the District. Future work will continue to focus on drought tolerant approaches.

ALTERNATIVES:

By virtue of the Streets and Highways Code (Code), the City is mandated to adhere to the recommendation in the Code to file an annual Engineer’s Report. By not filing the report, the City would not be in conformance with the rules and regulations of the Code and assessments could be subject to challenge. Accordingly, staff does not recommend options with respect to filing the annual Engineer’s Report.

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FISCAL IMPACT:

The Landscaping and Lighting Special Assessment District collects funds to support the operation and maintenance of certain areas within the city. The properties within the District pay the cost of the special benefits received. The City’s Community Services fund covers the cost of the general benefit to the City at large.

ENVIRONMENTAL ANALYSIS:

Activities associated with the Landscaping and Lighting Assessment District include maintenance of existing landscaping, native growth and related facilities. Per Section 15301(h) of Article 19 in Chapter 3 of Title 14 of the California Code of Regulations, these activities are considered Categorically Exempt.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. -2025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPOINTING COASTLAND CIVIL

ENGINEERING AS THE ENGINEER OF WORK FOR THE
CITY OF HEALDSBURG’S LANDSCAPING AND LIGHTING

ASSESSMENT DISTRICT AND DIRECTING THE
PREPARATION OF THE ENGINEER’S REPORT FOR FISCAL
YEAR 2025-26 PURSUANT TO THE LANDSCAPING AND
LIGHTING ACT OF 1972
WHEREAS, the City Council ordered the formation of an assessment district on November 6, 1996, to levy and collect assessments pursuant to the Landscaping and Lighting Act of 1972: and
WHEREAS, pursuant to Section 22620 of the Streets and Highways Code, the City Council must annually appoint the Engineer of Work and direct the preparation of the annual Engineer’s Report in order to levy and collect assessments for any following fiscal year; and WHEREAS, there may be potential changes in the FY 2025-26 assessment district as a result of parcels which have been subdivided or annexed into the assessment district since last year’s levying of assessments; and
WHEREAS, Coastland Civil Engineering has prepared the annual Engineer’s Report for the City’s Landscaping and Lighting Assessment District in prior years; and WHEREAS, Coastland Civil Engineering has shown the expertise and experience in the proceedings of the Landscaping and Lighting Act of 1972; and WHEREAS, activities associated with the Landscaping and Lighting Assessment District is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the following authorities: Section 15301(h) of Article 19 in Chapter 3 of Title 14 of the California Code of Regulations for maintenance of existing landscaping, native growth and related facilities.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Healdsburg hereby appoints Coastland Civil Engineering as the Engineer of Work for the City of Healdsburg's Fiscal Year 2025-26 Landscaping and Lighting Assessment District and hereby directs the preparation and filing of the annual Engineer’s Report, including any changes, pursuant to Section 22620 of the California Streets and Highway Code.

BE IT FURTHER RESOLVED that activities associated with the Landscaping and Lighting Assessment District are categorically exempt from CEQA in accordance with the CEQA guidelines as cited in this resolution.

6.B.a
Packet Pg. 196 Attachment: Resolution (4716 : Landscaping and Lighting Assessment District) Resolution No. -2025