Agenda Item #L. 1.
CITY OF IONE
Larry Bain, CPA,
An Accounting Corporation
2148 Frascati Drive
El Dorado Hills, CA 95762
This representation letter is provided in connection with your audits) of the financial statements of City of lone, which comprise the respective financial position of the governmental activities, the business-type activities, the fiduciary activity, each major fund, and the aggregate remaining fund information as of June 30, 2024, and the related notes to the financial statements, for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors.
We confirm, to the best of our knowledge and belief, as of the last date this letter is signed, the following representations made to you during your audit.
Financial Statements
1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated October 28, 2025, including our responsibility for the preparation and fair presentation of the financial statements and for preparation of the supplementary information in accordance with the applicable criteria. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 3) We acknowledge our responsibility 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.
4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
5) Significant assumptions we used in making accounting estimates are reasonable. 6) Related party relationships and transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 7) All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements [or in the schedule of findings and questioned costs]. 8) The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements for each opinion unit. A list of the uncorrected misstatements is attached to the representation letter (if any).
9) The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP.
10) Guarantees, whether written or oral, under which the City is contingently liable, if any, have been properly recorded or disclosed.
2 Information Provided
11) We have provided you with:
a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters [and all audit or relevant monitoring reports, if any, received from funding sources]. b) Additional information that you have requested from us for the purpose of the audit. c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
d) Minutes of the meetings of Board of Directors or summaries of actions of recent meetings for which minutes have not yet been prepared.
12) All material transactions have been recorded in the accounting records and are reflected in the financial statements [and the schedule of expenditures of federal awards]. 13) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
14) We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
a) Management,
b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financial statements. 15) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial statements communicated by employees, former employees, regulators, or others, except for the potential of those listed as other matters in the financial statements. 16) We have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements.
17) We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. 18) We have disciosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware.
Government-specific
19) We have made available to you all financial records and related data [and all audit or relevant monitoring reports, if any, received from funding sources].
20) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices.
21) We have taken timely and appropriate steps to remedy violations of regulations, contracts, or grant agreements that you have reported to us
22) We have a process to track the status of audit findings and recommendations. 23) Weaves antied to yelated recoumedit, a nave oren implemens, and other studies related to the audit 24) We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report.
25) The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity.
regulations, and provisions of contracts and grant
agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds.
27) There are no violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. 28) As part of your audit, you assisted with preparation of the financial statements and related notes. We have designated an individual with suitable skill, knowledge, or experience to oversee your services and have assumed all management responsibilities. We have reviewed, approved, and accepted responsibility for those financial statements and related notes.
29) The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral.
30) The City has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
31) We have followed all applicable laws and regulations in adopting, approving, and amending budgets. 32) The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 33) The financial statements properly classify all funds and activities. 34) All funds that meet the quantitative criteria in GASBS Nos. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users.
35) Components of net position (net investment in capital assets; restricted; and unrestricted) and equity amounts are properly classified and, if applicable, approved.
36) Investments, derivative instruments, and land and other real estate held by endowments are properly valued. 37) Provisions for uncollectible receivables have been properly identified and recorded. 38) Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 39) Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 40) Deposits and investment securities and derivative instruments are properly classified as to risk and are properly disclosed.
41) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated
42) We have appropriately disclosed the City's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have determined that net position is properly recognized under the policy. 43) We are following our established accounting policy regarding which resources (that is, restricted, committed, assigned, or unassigned) are considered to be spent first for expenditures for which more than one resource classification is available. That policy determines the fund balance classifications for financial reporting purposes.
4 44) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 45) With respect to the supplementary information
a) We acknowledge our responsibility for presenting the combining fund financial statements in accordance with accounting principles generally accepted in the United States of America, and we believe the combining fund financial statements, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the combining fund financial statements have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information.
Management Signature: Governance Signature: _
Title: Title:
Date: Date:
CITY OF IONE
FINANCIAL STATEMENTS
JUNE 30, 2024
DRAFT
CITY OF IONE
Table of Contents
Independent Auditor's Report 1
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position
Statement of Activities.
Fund Financial Statements:
Governmental Funds:
Balance Sheet 6
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position - Governmental Activities. 8 Statement of Revenues, Expenditures and Changes in Fund Balances. 9 Reconciliation of the Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Government-Wide Statement of Activities - Governmental Activities. 11
Proprietary Funds:
Statement of Net Position 12
Statement of Revenues, Expenses and Changes in Net Position 13 Statement of Cash Flows 14
Fiduciary Funds:
Statement of Fiduciary Net Position-Custodial Funds... 15 Statement of Changes in Fiduciary Net Position-Custodial Funds 16 Notes to Financial Statements 17
Required Supplementary Information:
Budgetary Comparison Schedules:
General Fund 43
Measure M Fund 45
ARPA Fund 46
Schedule of the Plan's Proportionate Share of the Net Pension Liability. 47 Schedule of City Contributions 48
Other Postemployment Benefits (OPEB) Plan Schedule of Changes in the District's Net OPEB Liability and Related Ratios. 49 Note to Required Supplementary Information .50
Supplementary Information:
Combining Fund Financial Statements:
Nonmajor Governmental Funds:
Combining Balance Sheet 51
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. 52 Nonmajor Special Revenue Funds
Combining Balance Sheet 53
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. 55 Nonmajor Capital Projects Funds
Combining Balance Sheet 57
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. 58
LARRY BAIN, CPA
An Accounting Corporation
2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]
DRAFT
INDEPENDENT AUDITOR'S REPORT
To the City Council
City of lone
lone, California
Qualified Opinion
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information and the fiduciary fund of the City of lone, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, except for the effects of the matter discussed in the basis for qualified opinion, the financial statements referred generally accepted in the United States of America.
Basis for Qualified Opinion
Because the City of lone did not perform year-end close procedures related to accounts payable for the fiscal year ending June 30, 2023, and there was no detail schedule to support the amount reported as of June 30, 2023 and material invoices for July 2023 were missing, we were unable to satisfy ourselves as to the beginning accounts payable balances, which could have an effect on the beginning fund balances and net position and current year expenditures. The amounts by which the financial statements are misstated as a result of the scope limitation noted above is not determinable.
The City was unable to provide support that a $250,000 advance from the sewer tertiary fund to the general fund, established during the 2021/22 fiscal year resulting from an interfund loan document dated April 19, 2000, was a valid interfund loan.
There was no evidence that the cash was transferred from the sewer tertiary fund to the general fund during the 1999/2000 fiscal year. As a result we do not give an opinion as to the remaining $218,695 advance to other funds in the sewer fund and $218,695 advance from other fund in the general fund, or the reduction in the advance to/from since the establishment of the advance in the 2021/22 fiscal year.
The lone Firefighters' Association Nonprofit Corporation and the Ione Police Foundation Nonprofit Corporation are separate entities and are not part of the City of lone audit. The Non Profit entities raise funds to purchase equipment, and support other community activities on the City Fire and Police Department's behalf. The financial activity of the Nonprofit Corporations were not included as component units in these financial statements and the amounts by which the financial statements are misstated as the result of the omission is not determinable.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 of lone 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 opinion.
DRAP!
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of lone's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
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 opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards 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, including omissions, 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 generally accepted auditing standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of lone's internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of lone'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.
Other Matters
Required Supplementary Information
Management has omitted the management's discussion and analysis and the budgetary comparison schedules that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements are not affected by this missing information.
The required supplementary information other than MD&A, is listed in the table of contents as the budgetary comparison schedules General fund, Measure A fund and ARPA fund on pages 43-46, the City's Employees' Retirement System Schedule of the City's Proportionate Share of the Net Pension Liability and the Retirement System Schedule of the City's Contributions on pages 47-48 and as the City's Other Postemployment Benefits (OPEB) Plan Schedule of Changes in the City's Net OPEB Liability and Related Rations on page 49, be presented to supplement the basic financial statements. Such information, 2 although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and related directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures in accordance with auditing standards generally accepted in the Unites States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, il all material respects, in relation to the basic financial statements as a whole DRAFT
Larry Bain, CPA,
An Accounting Corporation
July 14, 2026
CITY OF IONE
STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental Business-type
Activities Activities Total
Assets
Cash and investments $ 2,857,254 $ 2,416,755 $ 5,274,009 Restricted cash and investments 10,186,354 10,186,354
Accounts receivables 208,568 335,236 543,804
Due from other agencies 103,008 103,008
Due from other governments 368,411 26,899 395,310
Deposits with others 7,331 8,631 15,962
Leases receivable 10,542 10,542
Total current assets 13,741,468 2,787,521 16,528,989
Non Current Assets
Internal balances (487,962) 487,962
Interest receivable 381,264 381,264
Loans receivable 1,009,142 1,009,142
Leases receivable 725,906 725,906
Capital assets
Land 29,696,609 3,873,444 33,570,053
Construction in progress 1,852,948 1,852,948
Structures 3,950,498 1,460,112 5,410,610
Site improvements 1,458,258 622,755 2,081,013
Vehicles and equipment 4,038,293 799,021 4,837,314
Infrastructure 2,959,806 10,695,753 13,655,559
Accumulated depreciation (7,837,193) (6,719,054) (14,556,247) Total capital assets, net 34,266,271 12,584,979 46,851,250 Total assets 49,636,089 15,860,462 65,496,551
Deferred Outflows of Resources
Deferred outflows-OPEB 466,419 75,804 542,223
Deferred outflows-pensions 1,265,540 156,131 1,421,671
Total deferred outflows of resources 1,731,959 $ 231,935 $ 1963,894 Liabilities
Current liabilities:
Accounts payable $ 348,525 $ 89,361 $ 437,886
Accrued payroll 163,803 167 163,970
Due to other governments 603,624 603,624
Deposits from others 81,717 11,724 93,441
Unearned revenue 158,400 158,400
Accrued interest payable 20,732 20,732
Due within one year 36,296 95,811 132,107
Noncurrent liabilities:
Due in more than one year 5,111,433 2,999,865 8,111,298 Total Liabilities 6,503,798 3,217,660 9,721,458
Deferred Inflows of Resources
Deferred inflows-leases 696,622 696,622
Deferred inflows-OPEB 1,006,279 163,540 1,169,819
Deferred inflows-pensions 262,220 78,312 340,532
Total deferred inflows of resources 1,965,121 241,852 2,206,973 Net Position
Net investment in capital assets 34,105,253 10,181,379 44,286,632 Restricted for capital replacement
Unrestricted 8,793,876 2,451,506 11,245,382
Total net position 42,899,129 $ 12,632,885 $ 55,532,014 The notes to the financial statements are an integral part of this statement 4 CITY OF IONE
STATEMENT OF ACTIVITIES
JUNE 30, 2024
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Charges for Capital Grants Operating Governmental Business-type Functions/programs Expenses Services and Contributions Grants Activities Activities Total Governmental Activities:
General government $ 1,464,088 $ 113,932 S 11,812 $ - $ (1,338,344) $ - $ (1,338,344) Public safety 2,550,269 650,706 636,446 400,944 (862,173) (862,173) Community development 719,959 19,575 (700,384) (700,384) Public works 571,097 281,273 (289,824) (289,824)
Streets and roads 242,147 28,094 515,569 301,516 301,516 Parks and recreation 534,564 88,815 147,157 (298,592) (298,592) Interest on debt 10,681 (10,681) (10,681)
Total Governmental Activities 6,092,805 1,065,486 765,167 1,063,670 (3,198,482) (3,198,482) Business-type Activities:
Wastewater 2,011,661 1,550,729 197,031 (263,901) (263,901) Interest on debt 61,335 (61,335) (61,335)
Total Business-type Activities 2,072,996 1,550,729 197,031 (325,236) (325,236) Total Government $ 8,165,801 $ 2,616.215 $ 962,198 $ 1,063,670 (3,198,482) (325,236) (3,523,718) General Revenues:
Taxes:
Property taxes 1,239,734 1,239,734
Sales and use tax 267,386 267,386
Transient occupancy tax 2,130 2,130
Franchise tax 157,188 157,188
Motor vehicle in lieu tax 1,578,385 1,578,385
Other taxes 41,988 41,988
Internal transfers (3,922) 3,922
Insurance proceeds 61,958 61,958
Rental and investment income 266,845 59,046 325,891
Total general revenues 3.611692 62,968 3.674,659
Change in net position 413,210 (262,269) 150,942
Net position - beginning 42,485,919 12,895,154 55,381,073 Net Position - ending $ 42,899,129 $ 12,632,885 $ 55,532,015 The notes to the financial statements are an integral part of this statement
CITY OF IONE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2024
Major Special Revenue Funds
Home Program ARPA
General Gas Tax Measure M Fund Fund
Assets
Cash and investments 2,857,254 - $
Restricted cash and investments 1,362,976 1,367,443 837,222 463,687 Receivables
Accounts (net of allowance) 208,568
Due from other agencies 1,608 6,265
Due from other governments 149,079 63,190 156,142
Interest receivable-loans 303,703
Loans receivable 701,273
Deposits with others 2,331
Due from other funds 147,663
Advances to other funds 579,230 208,697 296,870
Total assets 3,943,402 1,643,459 1,820,455 1,842,198 463,687 Liabilities, Deferred Inflows of Resources
_and Fund Balances
Liabilities
Accounts payable $ 228,912 $ 6,028 13,880 $ $ -
Accrued payroll 163,792 11
Due to others 603,624
Deposits from others 66,646
Unearned revenue 158,400
Due to other funds 57,829
Advances from other funds 1,572,485
Total liabilities 2,693,288 164,439 13,880
Deferred Inflows of Resources
Unavailable revenue 121,425 112,782
Unavailable revenue-loan interest receivable 303,703
Unavailable revenue-loan principal receivable 701,273
Total deferred inflows of resources 121,425 112,782 1,004.976 Fund Balances
Non-spendable for advances 579,230 208,697 296,870
Restricted for public safety 1,396,923
Restricted for community development 837,222 463,687
Restricted for streets and roads 1,270,323
Restricted for capital projects
Unassigned 549,459
Total Fund Balances 1,128,689 1,479,020 1,693,793 837,222 463,687 Total Liabilities, Deferred inflows
of Resources and Fund Balances $ 3,943,402 $ 1,643,459 $ 1,820,455 $ 1,842,198 463,687 The notes to the financial statements are an integral part of this statement
CITY OF IONE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2024
Major Capital Project Funds Other Total
Governmental Local Traffic Fire Services Nonmajor Governmental Impact Fees Mitigation Impact Fees Funds Funds
$ $ $ - $ $ 2,857,254
167,428 1, 85,005 4,202,593 10,186,354
208,568
95,135 103,008
368,411
77,561 381,264
307,869 1,009,142
5,000 7,331
147,663
25,000 157,386 1,255,971 2,523,154
192,428 1,942,391 5,944,129 7,792,14
$ - $ $ - $ 99,711 $ 348,531
- 163,803
603,624
15,071 81,717
158,400
82,286 7,547 147,662
545,485 893,146 3,011,116
-
545,485 975,432 122,329 4,514,853
94,663 328,870
77,561 381,264
311,470 1,012,743
483,694 1,722,877
25,000 157,386 1,255,971 2,523,154
1,747,149 3,144,072
572,436 1,873,345
169,414 1,439,737
1,785,005 1,599,299 3,384,304
(378,057) (975,432) (6,163) (810,193)
(353,057) 1,942,391 (975,432) 5,338,106 11,554,419
$ 192,428 $ 1,942,391 0.92 $ 5,944,129 $17,792,149
The notes to the financial statements are an integral part of this statement
CITY OF IONE
RECONCILIATION OF GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
Fund balances of governmental funds $ 11,554,419
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets, net of accumulated depreciation, are not current financial resources and are not included in the governmental funds. 34,266,271 Certain amounts have been recorded as lease receivable and deferred inflows of resources for leases that are not due and payable and not reported in the funds. 39,826
Deferred outflows related to long-term loan and interest receivables and unavailable revenue are not due and payable in the current period and therefore are not reported in the funds. 1,722,877
Some liabilities, including long-term debt, compensated absences, OPEB net pension liability and deferred inflows/outflows are not due and payable in the current period and therefore are not reported in the funds. (4,684,263) Net position of governmental activities 42,899,129
The notes to the financial statements are an integral part of this statement
CITY OF IONE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2024
- Major Special Revenue Funds
Home Program ARPA
General Cas Tax Measure M Fund Fund
Revenues
Taxes $ 1,540,084 $ - $ - $ -
Special assessment/impact fees 606,094
Licenses and permits 317,774
Use of money and property 105,669 23,679 24,075 13,412 12,463 Intergovemmental 1,716,931 498,735 16,834
Fines, forfeitures and penalties 9,378
Charges for current services 103,390
Program income 173,295
Other 28,207
Total Revenues 3,821,433 522,414 647,003 186,707 12,463 Expenditures
Current:
General govemment 1,258,537
Public ways and facilities/
transportation 279,681 128,065
Public safety 1,396,613 439,607
Community development 512,034 33,275 521,647
Capital outlay
Debt service
Principal
Interest 7,321
Total expenditures 3,454,186 128,065 439,607 33,275 521,647 Excess (deficit) of revenues over
expenditures 367,247 394,349 207,396 153,432 (509,184)
Other Financing Sources (Uses)
Proceeds of insurance 61,958
Operating transfers in 449,446
Operating transfers out (453,368)
Total other financing
sources (uses) 58,036
Net change in fund balances 425,283 394,349 207,396 153,432 (509,184) Fund balances, beginning of fiscal year 703,406 1,084,671 1,486,397 683,790 972,871 Fund balances, end of fiscal year $ 1,128,689 $ 1,479,020 $1,693,793 837,222 463,687 The notes to the financial statements are an integral part of this statement
CITY OF IONE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Major Capital Project Funds Other Total
Governmental Local Traffic Fire Services Nonmajor Governmental Impact Fees Mitigation Impact Fees Funds Funds
$ 1,108 $ 1,541,193
11,812 8,131 20,002 582,386 1,228,425
317,774
3,585 31,915 90,375 305,174
186,159 2,418,659
9,378
98,533 201923
173,295
28,207
15,397 40,046 20,002 958,561 6,224,028
3,581 1,262,118
218,058 625,804
515,447 2,351,667
21,775 1,088,731
- 93,654 93,654
34,986 34,986
3,284 10,605
38.270 852,515 5,467,565
15,397 40,046 (18,268) 106,046 756,463
61,958
449,446
(453,368)
58,036
15,397 40,046 (18,268) 106,046 814,497
(368,454) 1,902,345 (957,164) _ 5,232,060 10,739.922
(353,057). $ 1,942,391 _ S (975,432). $ 5,338,106 $11.554.419 The notes to the financial statements are an integral part of this statement 10 CITY OF IONE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Net change in fund balances - total governmental funds $ 814,497 Amounts reported for governmental activities in the statement of activities differs from the amounts reported in the statement of revenues, expenditures and changes in fund balances because:
Governmental funds report capital outlays as expenditures, however, in the statement of activities the costs of those assets is allocated over their estimated useful lives as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. The net activity is reconciled as follows:
Cost of assets capitalized 93,654
Depreciation expense (466,826)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 149,678 Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 34,910
Changes in the pension and OPEB liabilities reported in the statement of activities do not require the use of current financial resources and therefore are not reported in governmental funds. (207,709) Changes in compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported in governmental funds. (4,994)
Change in net position of governmental activities $ 413,210 The notes to the financial statements are an integral part of this statement
CITY OF IONE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Sewer
Fund
Current Assets:
Cash and investments 2,416,755
Receivables
Accounts 335,236
Due from other governments 26,899
Deposits with others 8,631
Total current assets 2,787,521
Non Current Assets
Advances to other funds 487,962
Capital assets
Land 3,873,444
Construction in progress 1,852,948
Structures 1,460,112
Site improvements 622,755
Vehicles and equipment 799,021
Infrastructure 10,695,753
Accumulated depreciation (6,719,054)
Total capital assets 12,584,979
Total assets 15,860,462
Deferred Outflows of Resources
Deferred Outflows-OPEB 75,804
Deferred Outflows-Pensions 156,131
Total deferred outflows of resources 231,935
Liabilities
Current liabilities:
Accounts payable $ 89,361
Accrued payroll and benefits 167
Refundable deposits 11,724
Interest payable 20,732
Current portion of note payable 95,811
Total current liabilities 217,795
Noncurrent liabilities:
Net OPEB-liability 300,279
Note payable 2,307,791
Net pension liability 390,243
Compensated absences 1,552
Total noncurrent liabilties 2,999,865
Total liabilities 3,217,660
Deferred Inflows of Resources
Deferred inflows-OPEB 163,540
Deferred inflows-pensions 78,312
Total deferred inflows of resources 241,852
Net position:
Net investment in capital assets. 10,181,379
Unrestricted net position (accumulated deficit) 2,451,506 Total net position (accumulated deficit) 12,632,885
The notes to the financial statements are an integral part of this statement
CITY OF IONE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Sewer
Fund
perating Revenue
Charges for servic $ 1,453,806
96.923
Total operating revenues 1,550,729
Operating Expenses
Salaries and benefits 155,624
Services and supplies 1,497,377
Depreciation expense 358,661
Total operating expenses 2,011,662
Operating income (loss) (460,933)
Non-Operating Revenues (Expenses)
Interest expense (61,335)
Interest income 59,046
Total non-operating revenues (expenses) (2,289)
Income (loss) before capital contributions
and transfers (463,222)
Capital Contributions and Transfers
Connection fees 197,031
Operating transfers in 36,973
Operating transfers out (33,051)
Total capital contributions and transfers 200,953
Net income (loss) (262,269)
Net position beginning of fiscal year 12,895,154
Net position end of fiscal year $12,632,885
The notes to the financial statements are an integral part of this statement
CITY OF IONE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
JUNE 30, 2024
Sewer
Fund
Cash Flows from Operating Activities
Cash received from customers $1,396,724
Cash payments to suppliers (1,543,303)
Cash payments to employees (148,364)
Net cash provided by (used for) operating activities (294,943) Cash Flows from Capital and Related Financing Activities Purchase of fixed assets (22,618)
Connection and impact fees 197,031
Principal payments on long-term debt (93,639)
Interest paid on debt (62,142)
Interfund lending 23,031
Net transfers from (to) other funds 3,922
Net cash provided by (used for) capital and related
financing activities 45,585
Cash Flows from Investing Activities:
Interest income 59,046
Net cash provided by investing activities 59,046
Net increase (decrease) in cash and cash equivalents (190,312) Cash and cash equivalents-beginning 2,607,067
Cash and cash equivalents-ending S2,416,755
Reconciliation of Cash and Cash Equivalents:
Cash and investments $2,416,755
Restricted cash and investments
Total cash and cash equivalents, June 30 52.416,755
Reconciliation of Operating Income to Net Cash
Provided by (Used For) Operating Activities
Operating income (loss) $ (460,933)
Adjustments to operating income:
Depreciation expense 358,661
(Increase) decrease in accounts receivable (153,647)
(Increase) decrease in due from other governments
(Increase) decrease in deposits with others
Increase (decrease) in accounts payable (45,925)
Increase in accrued payroll (7,837)
Increase (decrease) in customer deposits (358)
Increase in OPEB 4,272
GASB 68-pension adjustments 9,862
Change in compensated absences 962
Net cash provided by (used for) operating activities $ (294,943) The notes to the financial statements are an integral part of this statement 14 CITY OF IONE
STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2024
Custodial Funds
Community Regional Traffic Asset Seizure
Facilities Districts Mitigation Police Total
Assets
Cash and investments (108,881) 144,110 8,662 $ 43,891
Cash with fiscal agent 654,029 654,029
Due from others 112,471 112,471
Special assessements receivable 3,034,460 3.034,460
Total assets 3,692,079 144,110 8,662 3,844,851
Liabilities
Accounts payable 6,593 6,593
Due to others 155,365 155,365
Special assessment debt with no government
commitment-current 153,550 153,550
Total current liabilities 160,143 155,365 - 315,508
Special assessment debt with no government
commitment-noncurrent 2,880,910 2,880,910
Total noncurrent liabilties 2,880,910 2,880,910
Total liabilities 3,041,053 155,365 3,196.418
Net Position
Restricted for individuals or bondholders $ 651,026 $ (11,255) $ 8,662 $ 648,433 Total net position $ 651,026 $ (11,255) 8,662 $ 648.433 The notes to the financial statements are an integral part of this statement
CITY OF IONE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2024
Custodial Funds
Community Regional Asset
Facilities Traffic Seizure
District Mitigation Police Total
Additions:
Special assessments 42,227 $ - $ - $ 42,227
Impact fees
Investment income 28,128 2,501 147 30,777
-
Total additions 70,355 2,501 147 73,004
Deductions:
Administration 22,986 22,986
Distributions to other governments 13,756 13,756
Interest expense on debt 191,844 191,844
Total deductions = 214,830 13,756 228,586
Net increase in fiduciary net position (144,474) (11,255) 147 (155,582) Net position-beginning of fiscal year 795,500 8,515 804,015 Net position-end of fiscal year 651,026 $ (11,255) $ 8,662 $ 648,433 The notes to the financial statements are an integral part of this statement
CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 1: Summary of Significant Accounting Policies
The City of lone, California (the City) was incorporated in 1953, as a municipal corporation operating under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: general government, public works, public safety, parks and recreation, low income housing support and general administrative support.
The following is a summary of the more significant policies:
A. Reporting Entity
The City has defined its reporting entity in accordance with U.S. generally accepted accounting principles, which provides guidance for determining which governmental activities, organizations and functions should be included in the reporting entity. In evaluating how to define the City for financial reporting purposes, management ha:
considered all potential component units. The primary criterion for including a potential component unit withi the reporting entity is the governing body's financial accountability. A primary governmental entity is financially accountable if it appoints a voting majority of a component unit's governing body and it is able to impose its will on the component unit, or if there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government may also be financially accountable if a component unit is fiscally dependent on the primary governmental entity regardless of whether the component unit has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board. All such component units have been "blended" with the City's other fund types and account groups. All of the blended component units have June 30 year-ends.
Based upon the aforementioned oversight criteria, the following are the component units:
The Local Transportation Commission is a blended component unit and its activities are shown as a non-major special revenue fund (TDA) in the City's basic financial statements.
The Wildflower Community Facilities District is a blended component unit and its activities are shown as a non- major special revenue fund.
The City participates in a number of joint powers authorities in which the City only has a residual equity interest in the related entity. The City is generally not liable for the liabilities of the entities if they dissolve. However, California Assembly Bill (AB) 1912 requires member agencies of a joint powers authority that participates in, or contracts with, a public retirement system to mutually agree as to the apportionment of the joint power authority's retirement obligation among themselves prior to filing a notice of termination. AB 1912 could result in the City being held responsible for a portion of a joint powers authority's retirement obligation if the joint powers authority does not have sufficient assets to fund the obligation. The City participates in the following Joint Powers Authorities: The Amador County Integrated Solid Waste Management Agency, Amador Fire Protection Authority, and Amador Regional Transit System.
B. Basis of Accounting
The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned or, for property tax revenues, in the period for which levied. Expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Revenue from sales tax is recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.
17 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) B. Basis of Accounting (Continued)
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when both measurable and available. Measurable means the amount of the transaction can be determined and available means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Resources not available to finance expenditures and commitments of the current period are recognized as deferred revenue or as a reservation of fund balance. "he City considers property taxes available if they are collected within sixty-days after year-end. Expenditure re recorded when the related fund liability is incurred. Principal and interest on general long-term debt, as we as compensated absences and claims and judgments are recorded only when payment is due.
General capital acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financial sources.
When applicable, the City reports deferred revenue on its combined balance sheet. Deferred revenue arises when a potential revenue source does not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has legal claim to them, as when grant monies are received prior to the occurrences of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has legal claim to the resources, deferred revenue is removed from the combined balance sheet and revenue is recognized.
C. Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the primary government (the City) and its blended component units. These statements include the financial activities of the overall government, except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the City. 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 charged to external parties.
The statement of activities demonstrates the degree to which the program expenses of a given function are offset by program revenues. Program expenses include direct expenses, which are clearly identifiable with a specific function. Program revenues include 1) charges paid by the recipient of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.
When both restricted and unrestricted net position are available, unrestricted resources are used only after the restricted resources are depleted.
Fund Financial Statements
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 governmental and enterprise funds, each displayed in separate columns. All remaining governmental and enterprise funds are separately aggregated and reported as non-major funds.
CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) C. Basis of Presentation (Continued)
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non- exchange transactions or ancillary activities.
The City reports the following major governmental funds:
General Fund - This fund accounts for all the financial resources not required to be accounted for in another fund. This fund consists primarily of general government type activities.
Gas Tax - This fund is used to account for the revenues and expenditures of the State Gas Tax.
Measure M- This fund accounts for revenues and expenditures for firefighter related activities funded by the Measure M tax that was approved by voters in Amador County.
HOME Program - This fund was established to account for funds received by the City and loaned to homeowners for the sole purpose of affordable housing in the City limits.
ARPA Funds - This fund was established to account for funds received from the federal relief package to help recover from the COVID-19 pandemic.
Governmental Impact Fee - This fee is collected for the future City administration facility and for the general plan services fee.
Local Traffic Mitigation Fee - This fee in imposed on residential, commercial and industrial building permits and is for construction, improvement and maintenance of public roads within the City of lone.
Fire Services Impact Fee - This fee is for the maintenance of fire facilities and vehicles. The fee is also for the cost of future new facilities and equipment necessary to accommodate future anticipated growth and development.
The City reports the following major enterprise funds.
Sewer Fund, O & M and Capital Funds - account for the operation of the City's sewer utilities. Activities of these funds include administration, operation and maintenance of the water and sewer systems and billing and collection activities. These Funds also accumulate resources for future expansion. All costs are financed through charges made to utility customers and developers with rates reviewed regularly and adjusted if necessary to ensure the integrity of the Funds.
The City also reports the following Fiduciary Fund type:
Custodial Fund - is used to account for assets held by the City in a custodial capacity for other governments, developers or landowners.
D. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 19 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) E. Cash Equivalents
For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
Restricted cash and unrestricted pooled cash and investments held by the City are considered cash equivalents for purposes of the combined statement of cash flow's because the City's cash management pool and funds invested by the City possess the characteristics of demand deposit accounts.
F. Fixed Assets
Capital assets, recorded at historical cost or estimated historical cost if actual historical cost is not available, are reported in governmental activities column of the government-wide financial statements. Business type capital assets are recorded in the proprietary fund statement of net position and the business-type activities column of the government-wide financial statements. Contributed fixed assets are valued at their estimated fair market value.
Capital assets include land, buildings and site improvements, equipment and vehicles, and infrastructure. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation is recorded in the government-wide financial statements on the straight-line basis over the useful life of the assets as follows:
Assets Useful Life
Buildings 20-30 years
Building improvements 10-15 years
Site improvements 15-20 years
Equipment and machinery 3-20 years
Infrastructure 7-50 years
G. Balance Sheet Classifications
Certain resources are classified as restricted assets as their use is restricted for specific purposes by bond agreements, lease agreements, trust agreements, grant agreements, City Charter provisions, or other requirements.
Governmental fund types' restricted assets are for grant and bond agreements. Proprietary fund types' restricte assets are for renewal and replacement of equipment and for unspent bond proceeds 20 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) H. Property Tax
Amador County is responsible for assessing, collecting and distributing property taxes in accordance with enabling legislation. Revenue received is based on an allocation factor calculated by the County under the provisions of Proposition 13 plus a percentage of the increase in market value in specific areas. The City's property tax is levied each July 1 on the assessed values as of the prior January 1 for all real and personal property located in the City.
Property sold after the assessment date (January 1) is reassessed and the amount of property tax levied is prorated.
Secured property taxes are due in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Unsecured property tax is levied on July 1 and due on July 31 and becomes delinquent on August 31.
Based on a policy by the County called the Teeter Plan, 100% of the allocated secured taxes are transmitted by the County to the City, eliminating the need for an allowance for uncollectible taxes. The County, in return, receives all penalties and interest on the related delinquent taxes.
I. Fund Equity
The unassigned fund balances for governmental fund represents the amount available for budgeting future operations. Unrestricted net position represents the net position available for future operations.
Restrictions of fund balances of governmental funds are established to either (1) satisfy legal covenants that require a portion of fund balance to be segregated or (2) identify the portion of the fund balance that is not appropriable for future expenditures. Restricted net position represents the net position legally identified for specific purposes.
J. Compensated Absences
City employees are granted vacation in varying amounts based on classification and length of service. Upon termination or retirement, the City is to pay 100% of the vacation time accrued. If hired before November 1, 2008 employees can be paid sick leave in excess of 24 days accruals or can have unlimited sick leave accrued and be paid 50% unused sick leave at time of separation up to 120 days, or as provided by the PERS sick leave credit option in the City's MOU's.
Governmental Funds - Governmental Funds record expenditures for compensated absences as they are taken by employees. A year-end accrual for compensated absences has not been made in the Governmental Funds as of June 30, 2024, because the City does not believe any of the available year-end resources will be required to fund the year-end compensated absences liability.
Proprietary Funds - Proprietary funds accrue a liability for unused compensated absences earned through year-end. An expense is recognized for the increase in liability from the prior year. 21 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) K. Intergovernmental Revenues
Federal and state governments reimburse the City for costs incurred on certain fixed asset construction projects under capital grant agreements. Amounts claimed under such grants are credited to intergovernmental revenues if the project is being administered by a Capital Projects Fund or to contributed capital if administered by a Proprietary Fund. Additionally, the City receives reimbursement from federal and state governments for other programs, such as housing and rehabilitation. These reimbursements are recorded in the fund administering the program as intergovernmental revenues with the related program costs included in expenditures.
The respective grant agreements generally require the City to maintain accounting records and substantiating evidence to determine if all costs incurred and claimed are proper and that the City is in compliance with other terms of the grant agreements. These records are subject to audit by the appropriate government agency. Any amounts disallowed will reduce future claims or be directly recovered from the City.
L. GASB Statement No. 87 Leases
In June 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset.
A. Lessor
The City acts as the lessor for leasing City owned property at the Golf Course. The City recognizes leases receivable and deferred inflows of resources in the government-wide financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses an estimated incremental borrowing rate as the discount rate for the lease. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the leases receivable.
22 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 2: Cash and Investments
Cash and investments are classified in the financial statements as follows:
Cash and investments $ 5,274,009
Restricted cash and investements 10,186,354
Cash and investments, statement of net assets 15,460,362 Cash and investments, statement of fiduciary assets 697,920 Total cash and investments $16,158,283
Checking and saving accounts $14,950,665
Certificates of deposit 217,501
Local agency investment fund 228,622
Money market accounts 761,495
Total cash and investments $16,158,283
A. Investments Authorized by the California Government Code and the Entity's Investment Policy The table below identifies the investment types that are authorized for the City of lone (City) 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 trustees 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 investment policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
Local agency bonds 5 years None None
U.S. treasury obligations 5 years None None
State of California obligations 5 years None None
U.S. agency securities 5 years None None
Banker's acceptances 180 days 40% 30%
Commercial paper 270 days 40% 10%
Negotiable CDs 5 years 30% None
Repurchase agreements 1 years None None
Reverse repurchase agreements 92 days 20% None
Medium term notes 5 years 30% None
Mutual/money market funds 5 years*
Collateralized bank deposits 5 years
Mortgage pass-through securities 5 years
Local Agency Investment Fund (LAIF) 5 years *
* The five year maximum maturity can be extended by the Board of Directors. Also, the maximum maturity can be extended if the funds are reserved for bond, COP or note payments to coincide with the required repayments.
23 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 2: Cash and Investments (Continued)
B. 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 and investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.
Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investment by maturity:
Remaining
12 Months 13-48
Investment Type Totals or Less Months
State Investment Pool* 228,622 $ 228,622 $
Held by Trustee
Money Market* 761,495 761,495
Totals 990,117 $ 990,117 $
*Not subject to categorization
C. Concentrations 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 to one issuer exceeding those limits.
D. 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 deposit 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 of 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 secured 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 deed mortgage notes having a value of 150% of the secured public deposits.
At June 30, 2024, the City's deposits balance including certificates of deposits was $15,209,385 and the carrying amount was $15,177,678. The difference between the bank balance and the carrying amount was due to normal outstanding checks and deposits in transit. Of the bank balance, $522,840 was covered by the Federal Depository Insurance and the remainder by collateral held in the pledging bank's trust department in the District's name.
E. Investment in State Investment Pool
LAIF is included in the State's Pooled Money Investment Account. The total amount invested by all public agencies in the State's Pooled Money Investment Account approximates $179.047 billion. Of the $179.047 billion managed by the State Treasurer, 100% is invested in non-derivative financial products and 3.00% is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by state statute. 24 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 2: Cash and Investments (Continued)
E. Investment in State Investment Pool (Continued)
Investments are accounted for in accordance with the provisions of GASB Statement No. 31, which requires governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding hange in fair value of investments in the year in which the change occurred. The City reports its investments a fair value based on quoted market information obtained from fiscal agents or other sources if the change is material to the financial statements.
Note 3: Capital Assets
Capital asset activity for the year ended June 30, 2024 was as follows:
Balance Balance
Governmental Activities July 1, 2023 Additions Retirements June 30, 2024 Capital assets, not being depreciated:
Land $ 29,696,609 $ $ - $ 29,696,609
Construction in progress
'apital assets, being depreciated
Suildings and improvements 3,914,129 36,369 3,950,498
Site improvements 1,458,258 1,458,258
Vehicles and equipment 3,838,173 200,120 4,038,293
Infrastructure 2,959,806 2,959,806
Total capital assets, being depreciated 12,170,366 236,489 12,406,855 Less accumulated depreciation for:
Buildings and improvements (1,819,191) (91,083) (1,910,274) Site Improvements (902,128) (62,957) (965,085)
Vehicles and Equipment (2,735,345) (179,080) (2,914,425) Infrastructure (1,913,703) (133,706) (2,047,409)
Total accumulated depreciation (7,370,367) (466,826) (7,837,193) Total capital assets, being depreciated, net 4,799,999 (230,337) 4,569,662 Governmental activities capital assets, net $ 34,496,608 $ (230,337) $ $ 34,266,271 Business-Type Activities
Capital assets, not being depreciated:
Land $ 3,873,444 $ - $ - $ 3,873,444
Construction in progress 1,852,948 1,852,948
Capital assets, being depreciated:
Buildings and improvements 1,460,112 1,460,112
Site improvements 622,755 622,755
Vehicle and equipment 776,403 22,618 799,021
Infrastructure 10,695,753 10,695,753
-
Total capital assets, being depreciated 13,555,023 22,618 13.577,641 Less accumulated depreciation for:
Buildings and improvements (1,050,609) (35,271) (1,085,880) Site improvements (421,459) (14,663) (436,122)
Vehicle and equipment (648,649) (24,721) (673,370)
Infrastructure (4,239,675) (284,006) (4,523,681)
Total accumulated depreciation (6.360,392) (358,661) (6,719,053) Total capital assets, being depreciated, net 7,194,631 (336,043) 6,858,588 Business- type activities capital assets, net 12,921,023 (336,043) $ $ 12,584,980 25 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 3: Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the City as follows:
Governmental Activities
General government $ 52,230
Public safety 125,944
Public works 34,210
Streets and roads 111,180
Parks 143,262
Total 466,826
Note 4: Long-term Liabilities
A summary of the changes in the City's governmental activities long-term liabilities reported in the government-wide financial statements for the year ended June 30, 2024:
Balance Additions/ Retirements/ Balance Due Within
July 1, 2023 Adjustments Adjustments June 30, 2024 One Year Compensated absences 96,870 4,997 $ - $ 101,867 $
Net pension liability 2,698,131 339,072 3,037,203
Net OPEB liability 1,882,981 (35,340) 1,847,641
Capital lease-firehouse 195,928 (34,910) 161,018 36,296 Total 4,873,910 $ 344,069 (70,250) $ 5,147,729 $ 36,296 Governmental Activities:
Capital Lease
On August 28, 2008 the City entered into a capital lease in the principal amount of $560,000 to partially finance the construction of a new Firehouse. The lease is payable in monthly instalments of $3,979 and commenced on September 28, 2008. The term of the capital lease is 20 years, and the final payment is due August 1, 2028. The lease carries a nominal annual interest rate of 5.901%. On July 9, 2013 the lease was refunded resulting in a lower interest rate of 3.90% and monthly payments of $3,494.32. All other terms of the original loan remain fin full force and effect. The City shall have the option to purchase all of the equipment by paying to the lessor all rent payments then due (including accrued interest, if any) plus the termination value as stipulated in the lease agreement.
Fiscal Year Ended
June 30, Principal Interest Total
2025 36,296 5,363 41,659
2026 37,738 4,194 41,932
2027 39,236 2,696 41,932
2028 40,794 1,138 41,932
2029 6,954 34 6,988
Totals 161,018 13,425 174,443
26 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 4: Long-term Liabilities (Continued)
Business-Type Activities:
A summary of changes in the City's business-type activities long-term liabilities for the year ended June 30, 2024:
Balance Balance Due Within
July 1, 2023 Additions Retirements June 30, 2024 One Year Compensated absences $ 590 $ 962 $ - $ 1,552 $
Net pension liability 379,917 10,326 390,243
Net OPEB Liability 306,023 (5,744) 300,279 -
I-Bank installment loan 2,497,239 (93,638) 2,403,601 95,811 Total $ 3,183,769 11,288 (99,382) $ 3,095,675 95,811
Installment Sale Agreement
Effective September 1, 2013 the City entered into an instalment sale agreement with the California Infrastructure and Economic Development Bank to borrow $3,250,000 for use on the City's Wastewater Compliance Project. The interest rate is 2.07% and principal payments will commence on August 1, 2014 with final payment date of August 1, 2043. The following is the amortization schedule for this loan:
Fiscal Year Ended
June 30, Principal Interest
2025 $ 95,811 $ 55,974 $ 152,154
2026 98,034 53,680 152,548
2027 100,308 51,333 152,948
2028 102,636 48,932 153,360
2029 105,017 46,475 151,492
2030-2034 562,780 193,474 756,254
2035-2039 631,162 122,911 754,073
2040-2044 707,853 43,770 751,623
Totals $ 2,403,601 $ 616,549 $ 3,020,150
Note 5: Defined Benefit Pension Cost-Sharing Employer Plan A. General Information about the Pension Plans
Plan Descriptions - All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension 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. CaPERS 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 CaPERS website. 27 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 5: Defined Benefit Pension Cost-Sharing Employer Plan (Continued) 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 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 1st Tier Plan Miscellaneous 2nd Tier Plan PEPRA Miscellaneous Plan Prior to On or after On or after
Hire date January 1, 2013 April 10,2011 January 1,2013
Benefit formula 2.5% @ 55, 2% @55 2% @ 60 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 So+ 50+ 52-62
Monthly benefits, as a % of eligible compensation 2.2% to 2.7% 1.09%-2.42% 1% to 2% Required employee contribution rates 0.00% 7.00% 7.75%
Required employer rates (net of UAL contribution) 0.00% 10.10% 7.68% Safety Police Ist Tier Plan Safety Police and Tier Plan PEPRA Safety Police Plan Prior to On or after On or after
Hire date January 1, 2013 October 9, 2011 January 1, 2013 Benefit formula 3% @ 50 3% @55 2.7% @57
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 45-50 50-55 50-57
Monthly benefits, as a % of eligible compensation 2.5% to 3% 2.4%-3% 2% to 2.7% Required employee contribution rates 9.00% 9.00% 13.75% Required employer rates (net of UAL contribution) 25.65% 22.83% 13.54% Safety Fire Ist Tier Plan PEPRA Safety Fire Plan
Prior to On or after
Hire date January 1, 2013 January 1,2013
Benefit formula 2% @55 2% @57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 45+ 50-57
Monthly benefits, as a % of eligible compensation 1.426%-2% 1.426%-2% Required employee contribution rates 7.00% 11.00%
Required employer rates (net of UAL contribution) 16.45% 10.85% 28 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 5: Defined Benefit Pension Cost-Sharing Employer 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 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CaPERS. 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 year ended June 30, 2024, contributions recognized as part of pension expense for each Plan were as follows:
Contributions-employer $ 438,707
Contributions-employee (paid by employer) $
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported net pension liabilities for its proportionate share of the Plan as follows:
Proportionate share of
Net pension liability
Miscellanous Plan $ 1,355,729
Safety Plan $ 2,071,717
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability.
The net pension liability of each of the Plans is measured as of June 30, 2023, and the total pension liability for each Plan used to calculate the net pension liability was determined by an 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 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 as of June 30, 2023 and June 30, 2024 (measurement date) was:
Miscellaneous Plans Safety Plans
Proportion - June 30, 2023 0.02559% 0.02821%
Proportion - June 30, 2024 0.02772% 0.02711%
Change - Increase (Decrease) 0.00213% -0.00109%
29 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 5: Defined Benefit Pension Cost-Sharing Employer Plan (Continued) For the year ended June 30, 2024, the City recognized pension expense of $502,177. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ 221,360 (23,766) Changes of assumptions 202,760
Net difference between projected and actual earnings
on pension plan investments 503,019
Changes in proportion 49,348 (183,017)
Change in proportionate share of contributions 6,477 (133,748) City contributions subsequent to the measurement date 438,707 Total 1.421,671 (340,531)
$438,707 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period
Ended June 30:
2025 $ (192,357)
2026 (24,891)
2027 (410,969)
2028 (14,216)
Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Plan and
Actuarial Assumptions Safety Plans
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.50%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%
Discount Rate - The discount rate used to measure the total pension liability was 6.90% for each cost-sharing multiple employer Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaPERS stress tested plans that would most likely result in a discount rate that vould be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans ru but of assets. Therefore, the current cost sharing 6.90 percent discount rate is adequate and the use of th municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be 30 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 5: Defined Benefit Pension Cost-Sharing Employer Plan (Continued) applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CaPERS website.
Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2023-24 fiscal year. CaPERS will continue to check the materiality of the difference in calculation until such time as we have changed our methodology.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11- calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
New Strategic Real Return
Asset Class Allocation Years 1-10 (1)(2)
Global equity-cap weighted 30.0% 4.45%
Global equity non-cap weighted 12.0% 3.84%
Private equity 13.0% 7.28%
Treasury 5.0% 27.00%
Mortgage backed securities 5.0% 50.00%
Investment grade corporates 10.0% 1.56%
High yield 5.0% 2.27%
Emerging market debt 5.0% 2.48%
Private debt 5.0% 3.57%
Real assets 15.0% 3.21%
Leverage -5.0% -0.59%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021-22 Asset Liability Management study. 31 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 5: Defined Benefit Pension Cost-Sharing Employer Plan (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Discount Rate -1% Current Discount Rate Discount Rate +1% (5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plans 2,236,527 $ 1,355,729 685,743
Safety Plans $ 3,133,080 $ 2,071,717 $ 1,122,026
Note 6: Other Postemployment Benefits (OPEB)
General Information about the OPEB Plan
Eligible employees may retire and receive District-paid contributions towards healthcare upon attainment of age 50 and 5 years of service (or age 52 and 5 years of service for those hired on or after January 1, 2013). The District- paid contribution varies by date of hire.
Employees hired prior to July 1, 2019 can choose between Option A and Option B.
Option A provides a City-paid contribution up to $1,400 per month for the retiree and any covered dependents.
Upon the retiree's death, any eligible survivors may continue coverage with City-paid contributions equal to a percentage of their premium based on the retiree's years of service as follows:
Years of Service Percentage
0 to 4 0%
5 to 9 50%
10 to 14 75%
15 or more 100%
Option B provides a City-paid contribution up to $1,250 per month for the retiree and any covered dependents.
Upon the retiree's death, any eligible survivors may continue coverage with City-paid contributions at the same rate for the remainder of their lifetime.
Employees hired on or after July 1, 2019 may receive a City-paid contribution equal to the PEMHCA statutory minimum for the duration of their lifetime with no surviving spouse benefit.
The total City expense, on the pay as you go basis for postretirement health benefits in the 2023/2024 fiscal year was $59,443. As of June 30, 2024, eight retired employees were receiving postretirement health benefits. The City has not established a funding plan to prefund the post-retirement health care benefits.
Funding Policy
As of June 30, 2024 the City Council has not adopted a funding policy. The City is on the pay as you go basis for paying the post-retirement health care benefits.
32 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 6: Other Postemployment Benefits (OPEB) (Continued) Employees Covered By Benefit Terms
At the OPEB liability measurement date of June 30, 2023, the following employees were covered by the benefit terms:
Retirees currently receiving benefit payments 8
Active employees
Total 29
Contributions
The City's annual other post-employment benefit (OPEB) cost (expense) is calculated based on the actuarially letermined contribution of the employer (ADC), an amount actuarially determined in accordance with th arameters of GASB Statement 75. The ADC represents a level of funding that, if paid on an ongoing basis, i projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The contribution requirement of plan members is established by the City Council. The 2023-24 fiscal year actuarial determined contribution was not amortized because the City is currently financing benefits on a pay-as-you-go basis. For the fiscal year ending June 30, 2024 the City contributed $0 to towards the unfunded actuarial accrued liability (UAAL). The City did not choose a trustee for the plan as of June 30, 2024. The City made the required contribution for fiscal year end June 30, 2024 directly to health insurance providers totalling $59,443.
Net OPEB Liability: At June 30, 2024 the City reported a net OPEB liability of $2,147,920. The net OPEB liability was measured from July 1, 2022 to June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation with a valuation date of June 30, 2023.
Actuarial Assumptions
The net OPEB liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2023
Measurement Date July 1, 2022 to June 30, 2023
Actuarial Assumptions:
Discount Rate 3.86%
Healthcare trend rates 4.00% to 5.50%
Salary increase 2.80%
Age adjustment factor 4.00%
Inflation rate 2.30%
Investment Rate of Return N/A
33 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 6: Other Postemployment Benefits (OPEB) (Continued) OPEB Assets
The table below reflects the long-term expected real rate of return by asset class.
Long-term Expected
Asset Class Asset Allocation Real Rate of Return
Pay as you go N/A N/A
Total 0.00%
In September 2022, the City Council approved participation in the Public Agency Retirement Solutions (PARS) Post-Employment Benefits Trust Program, allowing the City to contribute funds to a trust fund for OPEB benefits.
The discount rate used to measure the total OPEB liability was 3.86 percent. The projection of cash flows used to determine the discount rate assumed the City's contributions will continue based upon the current OPEB funding benicy. Bayed on those assumptions, there would be no OPEB plans fiduciary net position available to make future Changes in the Net OPEB Liability
Than able belory she nethe cles in the ins ope labity period fing ony me 0,2023 lie. far alue of Increase (Decrease)
Plan Fiduciary
Total OPEB Liability Net Position Net OPEB Liability
(a) (b) (c)
Balances at 6/30/2023 $ 2.189,004 $ $ 2,189,004
Changes for the year:
Service cost 257,297 257,297
Interest 88,784 88,784
Difference in experience (273,277) (273,277)
Change in assumptions and other inputs (32,675) (32,675) Contribution-employer 81,213 (81,213)
Net investment income :
Benefit payments (81,213) (81,213)
Net changes (41,084) 41,084
Balances at 6/30/24 2,147.920 $ 2,147,920
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the City's share of the net OPEB liability if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase
2.86% 3.86% 4.86%
Net OPEB liability (asset) 2,453,137 $ 2,147,920 $ 1,898,796 34 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 6: Other Postemployment Benefits (OPEB) (Continued) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease Trend Rate 1% Decrease
(4.50% current, (5.50% current, (6.50% current,
3.00% ultimate, 4.00% ultimate, 5.00% ultimate,
3.00% Medicare) 4.00% Medicare) 5.00% Medicare)
Net OPEB liability (asset) $ 1,869,294 $ 2,147,920 $ 2,495,782 OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $111,775. OPEB expense represents the change in the net OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, and actuarial assumptions or methods. At June 30, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ 146,604 $ (544,140) Changes in assumptions 336,175 (625,679)
Net difference between projected and actual earnings on retirement plan investments
District contributions subsequent to measurement date 59,443 Totals 542,222 $ (L169,819)
$59,443 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended June 30,
2025 $ (234,306)
2026 (216,218)
2027 (18,203)
2028 (18,203)
2029 (43,341)
2030 (43,341)
2031 (85,628)
2032 (27,800)
Total $ (687,040)
35 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 7: Conduit Debt
During the 1989-90 fiscal year, the City of lone created two Community Facilities Districts. The City Council and management are responsible for the administration of the Community Facilities Districts formed under the provisions of Mello-Roos. The City is not obligated to repay the special assessment debt to the debt holders.
On August 16, 2006 the 1989-1 and 1989-2 Community Facilities District special assessment debt, with no governmental commitment was redeemed resulting in a repayment and defeasance. The total amount repaid and defeased was $13,365,000 principal along with $3,703,335 of interest that was in default and on August 16, 2006 was cured. Furthermore $18,475,000 Community Facilities District special assessment debt with no governmental commitment was issued and additional Community Facility Districts were established to pay for the limited liability debt. Reserve funds totalling $671,250 were established and $1,786,710 was paid out for cost of issuance, underwriter's discount, release of set aside funds and private placement fees.
The amount of the special assessment debt with no governmental commitment at June 30, 2024, is:
Community Facilities District 2005-2IA1 $ 1,934,460
Community Facilities District 2005-2IA3 1,100,000
Total $ 3,034,460
Note 8: Supplementary Retirement Plan
(A) Plan Description
The City has established a supplementary retirement plan through Public Agency Retirement System (PARS) PARS administers the single-employer, defined benefit plan on behalf of the City. Benefits under the plan are available only to employees who were full-time with the City on November 1, 2011, were at least 50 years of age and had completed five years of service with the City on January 30, 2012, had terminated employment with the City by no later than that date, and retired under the City's regular CaPERS miscellaneous plan no later than January 31, 2012. An application for benefits was required from eligible employees. The plan pays members 7% of final pay each year throughout their retirement. Copies of audited financial reports may be obtained from PARS, 4350 Von Karman Avenue, Newport Beach, California 92660.
(B) Funding Policy
To fund the supplemental retirement plan, the City's annual required contribution was $53,042 per year for five years beginning in 2011-2012, which was the fixed price of the annuity purchased from Pacific Life Insurance Company to pay the benefits. The contribution amounts and benefit provisions were established through an agreement between the City and PARS, and may be amended only by mutual agreement. There were no employee contributions. As of June 30, 2024 there was no additional annual pension cost due from the City and $0 net pensior liability as a result of this supplementary retirement plan. 36 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 9: Risk Management
The City is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty two other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article I, Chapter 5, Division 7, Title I of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers' compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides claims processing administrative services, risk management services and actuarial studies. A member from each city governs the NCCSIF. The City Council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the extent of any deficiency in its equity balance.
The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors. A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.
Settlements have not exceeded the insurance coverage for the past three fiscal years. There have not been any significant reductions in insurance coverage over the prior year. The audited financial statements of the JPA are available at the NCCSIF's office at 2180 Harvard Street, Suite 460, Sacramento, CA 95815.
Note 10: Leases Receivable
On July 30th, 1990, the City entered into an agreement with Portlock International to lease the City owned property for the operation of a public golf course. The term of the lease is fifty-five years commencing in June 1994. On July 5,2011 the lease was amended to include payment terms for years July 1, 2010-June 30, 2018 at $43,000 per year and years July 1, 2018 to the end of the lease term at $40,000 per year, plus 1% of all yearly gross revenue generated at the golf course above $2,200,000.
The City derives a portion of its revenue from the rental of the property that is being used by the Golf Course. The lease is treated as finance leases for accounting purposes under Governmental Accounting Board Statement No. 87.
The initial lease term started was from July 1, 2018 and goes through June 5, 2059. The lease can be terminated by the lessee at any time and without cause by giving the City written notice of termination. The rent is $40,000 annually.
A summary of changes in lease receivable for the fiscal year ended June 30, 2024 is as follows:
Due in
Balance Retirements/ Balance Due within More Than
7/1/2023 Additions Adjustments 6/30/2024 One Year One Year Leases receivable $ 746,584 $ - (10,137) $ 736,447 $ 10,542 725,905 37 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 10: Leases Receivable (Continued)
Lease receivable are due in the upcoming years as follows:
Year Ending
June 30, Principal Interest Total
2025 10,542 29,458 $ 40,000
2026 10,964 29,036 40,000
2027 11,402 28,598 40,000
2028 11,858 28,142 40,000
2029 12,333 27,667 40,000
2030-2034 69,470 130,530 200,000
2035-2039 84,521 115,479 200,000
2040-2044 102,833 97,167 200,000
2045-2049 125,112 74,888 200,000
2050-2054 152,217 47,783 200,000
2055-2058 145,195 14,805 160,000
Total $ 736,447 623,553 $ 1,360,000
Note 11: Interfund Transactions
Operating transfers are transactions to allocate resources from one fund to another fund not contingent on the incurrence of specific expenditures in the receiving fund. Interfund transfers are generally recorded as operating transfers in and operating transfers out in the same accounting period. saler snapre sente leningborowing between un do the fiscaly and are reported as either of nee "advances to/from other funds" (non-current portions of interfun lending/borrowing transactions). Advances other funds are offset by a fund balance reserve in applicable governmental funds to indicate they are not expendable available financial resources.
Interfund transactions for the fiscal year ended June 30, 2024 are summarized as follows:
Advances Advances Operating Operating
To Other From Other To Other From Other Transfers Transfers Fund Typ Funds Funds
General $ 579,230 $ 1,572,485 57,829 147,663 449,446 453,368 Gas Tax 208,697 -
Measure M Fund 296,870
Local Traffic 157,386
Sewer Fund 487,962 36,973 33,051
Special Revenue 459,167 7,547
Capital Projects 821,804
Total 3,011,116 147,663 S 486,419 486-419
38 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 11: Interfund Transactions (Continued)
(a) The General Fund advanced $375,000 to the Governmental Impact Fees Fund and $287,453 to the Fire Services Impact Fees Fund to fund construction and expansion of capital facilities. A resolution approved on June 2, 2015 indicated reimbursement from the General Plan Impact Fees Fund and Fire Impact Fees Fund is expected to be made from future development impact fees.
(b) The Measure M Fund advanced $364,107 to the General Fund to cover the structural deficit in the General Fund.
A resolution approved on December 6, 2011 indicates that total amount of advanced monies owed to the Measure M Fund will be repaid on a semi-annual basis over the next ten years at an interest rate of 1% per annum. As of June 30, 2024, $67,237 was paid on the advance and the outstanding balance was $296,870. (c) On October 2, 2018, $180,000 was advanced from the Local Traffic Mitigation Fund to the General Fund to cover a legal settlement. Currently no repayment schedule has been approved by the City Council to reimburse the Traffic Mitigation Fund.
(d) On June 12, 2014 the Sewer Enterprise Fund advanced $244,800 to the General Fund to be reimbursed by the General Fund when the Howard Property Trust provides sewer connection fee credits and/or annexation fees per the agreement between the City and Howard Property Trust. Also, $69,155 of Amador Regional Sanitation Agency Funds were transferred by the Sewer Fund to the General Fund to be repaid as funds become available per a resolution approved on June 2, 2015. As of June 30, 2021, $13,935 was paid on the advance and the outstanding balance was $55,220. On April 19, 2000 the Sewer Tertiary Enterprise Fund advanced the General Fund $250,000 for the construction of the equestrian/multipurpose arena. (e) A resolution approved June 2, 2015 indicated $208,230 was advanced to the General Fund from the Gas Tax Fund to cover the structural deficit in the General Fund, which is subject to interest payments at the LAIF yield. As of June 30, 2024, $34,119 was paid on the advance and the outstanding balance was $174,111. (f) The Transportation Development Act Fund advanced $563,356 to the General Fund to cover the City's structural deficit. A resolution adopted on December 6, 2011 indicates the total amount of advanced monies owed to the City's Transportation Development Act Fund will be repaid on a semi-annual basis over the next ten years at the LAIF yield. As of June 30, 2024, $104,189 was paid on the advance and the outstanding balance was $459,167. (g) Various nonmajor governmental funds advanced $864,804 to other nonmajor governmental funds as follows:
(1) A resolution approved June 2, 2015 indicated the Gas Tax Fund advanced $43,000 to Governmental Impact Fees Fund to fund a structural deficit. (2) A resolution approved June 2, 2015 indicated the Police Services Impact 39 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 12: Stewardship, Compliance and Accountability
A. Excess of Expenditures Over Appropriations
The final amended general fund budget had the following accounts with excess expenditures over appropriations.
Final
Amended Actual (Unfavorable)
Budget Expenditures Variance
General Government
City clerk $ 26,783 $ 31,171 $ (4,388)
Legal 36,000 157,924 (121,924)
Public Safety
Fire 127,971 213,189 (85,218)
Interest expense 7,321 (7,321)
Measure M Fund
Public safety 338,000 439,607 (101,607)
B. Deficit Fund Balances
Two major governmental funds have deficit fund balances at June 30, 2024. The governmental impact fee had a deficit fund balance of $405,571 and the fire impact fee fund has a deficit fund balance of $1,011,543. The Sewer Tertiary Plant fund, a sub fund of the Sewer Fund had a deficit net position of $882,748. The non-major lone District COIC had a deficit fund balance of $18,604 and the Safer Grant Fund had a deficit fund balance of $7,547. The deficit balances are expected to be eliminated upon receipt of funding from impact fees, granting authorities or through matching funds/subsidies from the General fund of the City.
Note 13: Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with the Internal Revenue Service Code Section 457. Under this plan participants are not taxed on the deferred portion of their compensation until distributed; distributions are defined under the plan. The contribution is made by the participant and the City does not match any portion of the contribution. The City does make contributions to certain management employee deferred compensation accounts as authorized under individual employment contracts. The plan trustee is the California Public Retirement System.
The laws governing deferred compensation plans, requires plan assets to be held in trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under this plan are not the City's property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements.
Note 14: Revenue Limitations Imposed by California Proposition 218 Proposition 218, which was approved by the voters in November 1996, regulates the City's ability to impose, increase, ad extend taxes and assessments. Any new increase or extended taxes and assessments subject to the provisions ( oposition 218, requires voter approval before they can be implemented. Additionally, Proposition 218 provides th these taxes and assessments are subject to voter initiative and may be rescinded in the future years by the voters. 40 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 15: Gann Limit
Proceeds subject to the limit for 2023-24 $ 4,720,358
Amount of limit for 2023-24 5,644,299
Amount (under)/over the limit $ (923,941)
Per Capita Percentage Change 4.44%
Population Change* -0.48%
Note 16: Commitments and Contingencies
Grants:
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
Sewer Plant Cease-and-Desist Order:
On April 8, 2011 the Central Valley Regional Water Quality Control Board (the Board) issued a Cease and Desist Order (the "Order") requiring the City to take certain actions to address violations of waste discharge requirements related to operations of the City's wastewater treatment facilities. The Order does not impose any fines or penalties The Order requires the City to take actions to correct violations in accordance with a specified timeframe. If the City fails to meet the requirements of the Order, the Board has the authority to impose fines and penalties.
Lawsuits:
Various claims have been filed against the City. In the opinion of the City's management and legal counsel, the likelihood of an unfavourable outcome and the dollar range of potential loss was not determinable.
Contract Commitments:
On June 26, 2023 the City entered into an agreement with the James Water Service (JWS), which was then assigned to Waterstone, LLC on July 26, 2023, for the operation and maintenance of the Wastewater Treatment Facility, the Tertiary Treatment Facility and the Sewer Collection System owned by the City. The agreement is effective for one year and may be extended for three (3)-year periods as mutually agreed by the parties hereto. The monthly cost for the 2023/24 fiscal year was $46,750.
The City has entered into various professional service agreements including engineering, legal and construction contracts.
Development Agreements:
The City collects impact fees under development agreements to reimburse the City for estimated financial impacts of the development on the City's police, fire, parks, streets, administration and sewer infrastructure. These fees are restricted for the related activities as reported in capital projects funds and the Sewer Fund. The fees are contractually determined, and it is not certain that the fees will be sufficient to make the necessary improvements to the related infrastructure.
41 CITY OF IONE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
Note 16: Commitments and Contingencies (Continued)
Solar Energy Power Commitment:
On December 4, 2019, the City approved a solar energy power purchase agreement with IW Solar, LLC, to install, finance, own or control and operate a solar energy generation facility within the City to provide power to the wastewater plant. The initial term is 25 years with three additional 5-year automatic extensions unless terminated by the City. Under the agreement the City would purchase 100% of the energy output from the solar generation facility for the term of the agreement for a fixed rate of $0.1275/kWh. The City has the option to purchase the solar generation facility from IW Solar, LLC at the 10th, 15th and last year of the initial or extension term anniversary date of operation. The purchase price is the greater of the fair value of the solar generation facility based on an independent appraisal or a buyout price equal to 120% of the remaining debt used to finance the solar generation facility. If the City defaults under the agreement, the City is required to pay IW Solar, LLC the greater of the termination value specified in the contract plus removal costs or the difference between the contract amount expected to be paid by the City under the agreement over the initial term and the actual revenues received from the of the system's output. The termination value begins at $1.5 million and declines to $816,962 in year 25.
Contingent Revenue:
The City has initiated litigation to force payment of $39,522 owed to the City for nonpayment of rent on the Ed Hughes Memorial Arena during the COVID pandemic. Under GASB Statement No. 62, this amount is considered contingent revenue that should be recognized when the contingency is resolved. The amount will be recognized if the City prevails in the litigation and receives payment of the amount due.
Note 17: Subsequent Events
• In July 2024, an agreement was approved for wastewater treatment plant equipment and installation for $179,028. • On June 4, 2024 the City and Waterstone Services, LLC agreed to extend by three (3) additional years the agreement for the operation and maintenance of the Wastewater Treatment Facility, the Tertiary Treatment Facility and the Sewer Collection System. The extended term expires on June 26, 2027, unless sooner terminated by either party. The monthly fee for the 2024-25 fiscal year is $38,000 with a 4% CPI increase. • In January 2025, an agreement was approved for a new fire engine in the amount of $322,787. • On May 1, 2025 the City and Portlock International, LTD ("Sang-Hai") and the Hahn Family Foundation (the Foundation together with Sang-Hai referred to as lessee) entered into an agreement for temporary management of the Castle Oaks Golf Course, pursuant to which the City assumed operation and management of the Castle Oaks Golf Course for a temporary period ("Temporary Management Agreement"). The lessee then agreed to transfer its interest in the Castle Oaks Golf Course to SGM, Inc. (SGM). On July 1, 2025 the City and SGM executed a new lease agreement for the Castle Oaks Golf Course management. The payment terms of the lease are for the first 25 years the rent shall be $1 per year. For years 26 through 50 the lessee shall pay rent of $25,000 per year and commencing in year 29 and every third year thereafter, the rent shall be adjusted by the average of the CPI for All Urban Consumers for the prior 3 years. For years 51 through 100 the rent shall be $40,000 per year. Commencing in year 54 and every third year thereafter, the rent shall be adjusted by the average of the CPI for All Urban Consumers for the prior 3 years. SGM also agreed to spend not less than $400,000 in capital improvements during the first 10 years of the lease and not less than $800,000 capital improvements during the first 20 years of the lease. 42 CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Final Variance
Original Original Favorable
Budget Budget Actual (Unfavorable)
Revenues
Taxes
Property tax $ 1,132,083 $ 1,132,083 $ 1,234,381 $ 102,298 Sales tax 265,000 265,000 266,277 1,277
Transient occupancy 19,000 19,000 2330 (16,870)
Sales tax - public safety 13,000 13,000 (5,660)
Real property transfer 50,000 50,000 29,956 (20,044)
1,479,083 1,479,083 1,540,084 61,001
Licenses and Permits
Franchise fee 150,000 150,000 157,188 7,188
Business license 28,000 28,000 12,032 (15,968)
Building permits and inspections 183,850 183,850 134,569 (49,281) Burn permits 400 400 10,205 9,805
Encroachment permit 3,780 3,780
Total licenses and permits 362,250 362,250 317,774 (44,476) Intergovernmental
Motor vehicle 1,387,760 1,387,760 1,564,421 176,661
HOPTR 10,295 10,295 5,353 (4,942)
Grants/reimbursements 147,157 147,157
Total untergovernmental 1,398,055 1.398.055 1,716,931 318,876 Fines, Forfeitures and Penalties
arking citations and other fine 2,500 2,500 9,378 6,878 Total fines, forfeitures and penaltie: 2,500 2,500 9,378 6,878 Charges for Current Services
Planning and building inspection fees 84,500 84,500 63,031 (21,469) Engineering fees 30,000 30,000 (30,000)
Finance - 410 410'
Parks and community services 19,575 19,575
Police department services 165,000 165,000 14,716 (150,284) Fire department services 100,000 100,000 5,657 (94,343) Total charges for current services 372,500 379,500 103,390 (276,110) Use of Money and Property
Interest and investment income 39,000 39,000 34,340 (4,660) 78,000 78,000 (6,671)
Total use of money and property 117,000 117,000 123320 (11,331) Miscellaneous - all others 7,000 7,000 28,207 21,207
Total other 7,000 7,000 28,207 21,207
Total revenues $ 3,745,388 $ 3,745,388 3,821,433 76,045 The note to the required supplementary information is an integral part of this schedule 43 CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE (CONTINUED)
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Final Variance
Original Original Favorable
Budget Budget Actual (Unfavorable)
Total Revenues (Continued) 3,745,388 $ 3,745,388 3,821,433 76,045 Expenditures
General Government
City council 32,483 32,483 16,982 15,501
City clerk 26,783 26,783 31,171 (4,388)
Admin/finance 1,132,375 1,132,375 1,049,612 82,763
City treasurer 2,897 2,897 2,848 49
Fleet maintenance
Legal 36.000 36,000 157,924 (121,924)
Total general government 1,230,538 1,230,538 1,258,537 (27,999) Public Ways and Facilities/Transportation
Planning 57,741 57,741 23,042 34,699
Building inspection 253,869 253,869 208,913 44,956
Engineering 90,000 90,000 47,726 42,274
Total public ways and facilities/transportation 401,610 401,610 279,681 121,929 Public Safety
Police 1,221,859 11,221,859 11,183,424 38,435
Fire 127,971 127,971 213,189 (85,218)
State of emergency
Total public safety = 1,349,830 1,349,830 1,396,613 (46,783) Community Development
Parks and recreation 523,008 523,008 512,034 10,974
Total community development 523,008 523,008 512,034 10,974 Principal expense
Interest expense 7,321 (7,321)
Capital outlay 68,600 68,600 68,600
Total expenditures 3,573,586 3,573,586 3,454,186 126,721 Excess (deficit) of revenues over expenditures
before other financing sources 171,802 171,802 367,247 195,445 Other Financing Sources
Proceeds of insurance 61,958 61,958
Operating transfers in 27,741 27,741 449,446 421,705
Operating transfers out (453,368)
Total other financing sources 227,741 27,74L 58,036 483,663 Excess (deficit) of revenues and other financing
sources over expenditures 199,543 $ 199,543 425,283 $ 679,109 Fund balance-beginning of fiscal year 758,888
Fund balance, end of fiscal year $ 1,184,171
The note to the required supplementary information is an integral part of this schedule
CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
SPECIAL REVENUE FUND-MEASURE M
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Final Variance
Original Original Favorable
Budget Budget Actual (Unfavorable)
-
Revenues
Measure M
Special assessments/impact fee: $ 600,000 $ 600,000 $ 606,094 $ 6,094 Jse of money 24,075 24,075
Intergovernmental 85,000 85,000 16,834 (68,166)
-
Total revenues 685,000 685,000 647,003 (37,997)
-
Expenditures
Public safety 338,000 338,000 439,607 (101,607)
-
Total expenditures 338,000 338,000 439,607 (101,607)
Net change in fund balances 347,000 $ 347,000 207,396 $ (139,604) Fund balance-beginning of fiscal year 1,486,397
Fund balance, end of fiscal year $ 1,693,793
The note to the required supplementary information is an integral part of this schedule 45 CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
SPECIAL REVENUE FUND-ARPA
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Final Variance
Original Original Favorable
Budget Budget Actual (Unfavorable)
-
Revenues
Use of money and property $ - $ - $ 12,463 $ 12,463
Total revenues - 12,463 12,463
Expenditures
Community development 521,647 521,647
-
Total expenditures 521,647 521,647
-
Net change in fund balances $ (521,647) (509,184) $ 12,463 Fund balance-beginning of fiscal year 972,871
Fund balance, end of fiscal year $ 463,686
The note to the required supplementary information is an integral part of this schedule
CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE PLAN'S PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY
JUNE 30, 2024
City's proportionate share
City's proportion City's proportionate of the net pension liability Plan fiduciary net position of the net pension share of the net pension City's covered (asset) as a percentage of its liability (asset) liability (asset) employee payroll covered employee payroll 6/30/2015 0.03283% $2,017,127
6/30/2016 0.03218% $2,271,408 $1,007,814 225.38% 70.86% 6/30/2017 0.03033% $2,604,553 $1,007,465 258.53% 67.14% 6/30/2018 0.02865% $2,842,254 $1,017,722 279.28% 66.53% 6/30/2019 0.02833% $2,729,538 $1,069,246 255.28% 68.70% 6/30/2020 0.02731% $2,798,560 $1,025,773 272.82% 70.03% 6/30/2021 0.02734% $2,974,887 $1,204,236 247.04% 69.52% 6/30/2022 0.03475% $1,879,219 $1,102,414 170.46% 69.13% 6/30/2023 0.02665% $3,078,048 $1,087,681 282.99% 78.86% 6/30/2024 0.02747% $3,427,446 $1,522,516 225.12% 68.95% *information not available
The note to the required supplementary information is an integral part of this schedule
CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CITY CONTRIBUTIONS
JUNE 30, 2024
Contributions in relation Contribution as a
Contractually to the contractually Contribution City's covered percentage of covered required contribution required contribution deficiency (excess) employee payroll employee payroll 6/30/2015 $209,467 ($209,467) $0 $790,982 26.48%
6/30/2016 $308,706 ($308,706) $0 $1,007,814 30.63%
6/30/2017 $324,467 ($324,467) $1,007,465 32.21%
6/30/2018 $355,084 ($355,084) $0 $1,017,722 34.89%
6/30/2019 $305,254 ($305,254) $0 $1,069,246 28.55%
6/30/2020 $375,960 ($375,960) $1,025,773 36.65%
6/30/2021 $401,370 (S401,370) $0 $1,204,236 33.33%
6/30/2022 $428,520 ($428,520) $0 $1,102,414 38.87%
6/30/2023 $458,878 ($458,878) $0 $1,087,681 42.19%
6/30/2024 $438,707 ($438,707) $0 $1,522,516 28.81%
The note to the required supplementary information is an integral part of this schedule
CITY OF IONE
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN SCHEDULE OF CHANGES
IN THE DISTRICT'S NET OPEB LIABILITY AND RELATED RATIOS JUNE 30, 2024
Last 10 Fiscal Years*
Total OPEB liability $ 2,024 $ 2,023 $ 2,022 $ 2,021 $ 2,020 $ 2,019 2018 Service cost $ 257,297 $ 260,057 $ 212,846 $ 199,359 $ 229,483 $ 403,832 $ 404,341 Interest 88,784 53,648 48,411 48,736 92,023 76,138 50,970 Changes in benefit terms 140,911
Differences between expected and actual experience (273,277) 217,542 (1,056,718) Changes of assumptions (32,675) (624,960) 349,632 201,104 (315,368) (142,637) Benefit payments** (81,213) (67,343) (47,584) (39,999) (50,281) (56,601) (53,530) Net change in total OPEB liability (41,084) (378,598) 780,847 409,200 (959.950) 280.732 401,781 Total OPEB liability-begining (a). 2,189,004 2,567,602 1,786,755 1,377,555 2,337,505 2,056,773 1,654,992 Total OPEB liability-ending (b) $2,147,920 $2,189,004 $2,567,602 $ 1,786,755 $ 1,377,555 $2,337,505 $2,056,773 Plan fiduciary net position
Contributions-employer** $ 81,213 $ 67,343 $ 47,584 $ 39,999 $ 50,281 $ 56,60l $ 53,530 Net investment income
Benefit payments (81,213) (67,343) (47,584) (39,999) (50,281) (56,601) 53,530) Administrative expenses
Net change in plan fiduciary net position
Plan fiduciary net position-beginning (c)
Plan fiduciary net position-ending (d)
Net OPEB liability-beginning (a)(c) $2,189,004 $2,567,602 $1,786,755 $1,377,555 $2,337,505 $2,056,773 $1,654,992 Net OPEB liability-ending (b)-(d) $2,147,920 $2,189,004 $2,567,602 $1,786,755 $1,377,555 $2,337,505 $2,056,773 Plan fiduciary net position as a percentage of the total OPEB liability 0% 0% 0% 0% 0% 0% 0% Covered-employee payroll $1,792,622 $1,590,668 $1,480,940 $1,581,416 $1,067,483 $1,017,722 $1,007,465 District's net OPEB liability as a percentage of covered-employee payroll 120% 138% 173% 113% 129% 230% 204% Discount Rate 3.86% 3.69% 1.92% 2.45% 3.13% 3.62% 3.13% Measurement date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 * Amounts presented above were determined as of June 30. Additional years will be presented as they become available.
** Amount includes implicit subsidy associated with benefits paid.
The note to the required supplementary information is an integral part of this schedule
CITY OF IONE
NOTES REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
Budgets and Budgetary Accounting
The City prepares and adopts a balanced operating budget. Public hearings were conducted on the proposed budget to review all appropriations and the sources of financing. Any shortfall in revenue requires an equal reduction in financing requirements.
Budgets for the general, special revenue and capital project funds are adopted on the modified accrual basis of ccounting. The budgets for the general and special revenue funds are the only adopted budgets. Budgets for th apital project funds and proprietary funds are used for management and control purposes only At the fund level, actual expenditures cannot exceed budgeted appropriations. In order to accommodate operat, nal chen in that may result during the course of a bedle year dies ement can ridi in linen od a transfers between general fund departments; and transfers that affect capital projects cannot be made without Council approval.
50 CITY OF IONE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Capital
Revenue Projects
Funds Funds Total
Assets
Current Assets
Restricted cash and investments $ 2,588,223 $1,614,370 $ 4,202,593 Receivables
Due from other agencies 95,135 95,135
Interest receivable-loans 77,561 77,561
Loans receivable 286,823 21,046 307,869
Deposits with others 5,000 5,000
Advance to other funds 159,167 796,804 1,255,971
Total current assets $ 3,511,909 52,432,220 $ 5,944,129 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities
Accounts payable $ 99,711 $ - $ 99,711
Accrued payroll -
15,071 15,071
Deposits from others
Due to other funds 7,547 7,547
Total Liabilities 107,258 15,07L 122.329
Deferred Inflows of Resources
Unavailable revenue 94,663 94,663
Unavailable revenue-loan interest 77,561 77,561
Unavailable revenue-loan principal 290,424 21,046 311,470 Total deferred inflows of resources 462,648 21,046 483,694 Fund Balances
Non-spendable for advances 459,167 796,804 1,255,971
Restricted for public safety 1,747,149 1,747,149
Restricted for community development 572,436 572,436
Restricted for streets and roads 169,414 169,414
Restricted for capital projects 1,599,299 1,599,299
Unassigned (6,163) (6,163)
Total Fund Balance 2,942,003 2,396,103 5,338,106
Total liabilities, deferred inflows of
resources and fund balances $ 3,511,909 $2,432,220 $ 5,944,129
CITY OF IONE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN THE FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Capital
Revenue Project
Funds Funds Total
Revenues
Taxes $ 1,108 $ - $ 1,108
Special assessment/impact fees 473,608 108,778 582,386
Use of money and property 49,564 40,811 90,375
Intergovernmental 186,159 186,159
Charges for services 98,533 98,533
Total revenues 808,972 149,589 958,562
Expenditures
Current:
General government 3,581 3,581
Public ways and facilities/
transportation 218,058 218,058
Public safety 515,447 515,447
Community development 21,775 21,775
Capital outlay 21,398 72,256 93,654
Total expenditures 776,678 75,837 852,515
Net change in fund balances 32,294 73,752 106,046
Fund balance-beginning of fiscal year 2,909,709 2.322,351 5,232,060 Fund balance, end of fiscal year $ 2,942,003 $ 2,396,103 $ 5,338,106 52 CITY OF IONE
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
Public Safety COPS Prop 172 Conservation
Tone Dist 1 Maintenance SLESF Sales Tax Fire Break
TDA COIC District AB3229 Fire Assessment Railroad Depo! Assets
Cash and investments $ - $ - $ - $ - -
Restricted cash and investments 170,976 20,026 3,766 192,516 2,794 17,042 3,255 Due from other agencies - 94,663
Interest receivable-loans
Loans receivable
Deposits with others
Advances to other funds 459,167
Total Assets 5 630145 3 20026 3 3.766 5287179 3 2994 3 17042 3 3255 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities
Accounts payable $ 38,630 $ $ - $ - $ 1,871
Accrued payroll
Due to other funds
Total Liabilities 38,630 1,871
Deferred Inflows of Resources
Unavailable revenue 94,663
Unavailable revenue-loan interest
Unavailable revenue-loan principal
Total deferred inflows of resources 94,663
Fund Balances
Non-spendable for advances 459,167
Restricted for public safety 3,766 192,516 2,794
Restricted for community development
Restricted for streets and roads 170,976 (18,604) 17,042 Unassigned
Total Fund Balance 630,143 (18,604). 3,766 192,516 2,794 17,042 Total liabilities, deferred inflows of
resources and fund balances $ 630.143 S 20,026 S3.766 $287179 $ 2794 S 17042 ≤ 3,255 53 CITY OF IONE
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
Low Income Self Help CDBG Program Restricted Restricted Affordable Housing State Grant Housing Housing Housing Fund Police Fund Fire Fund Developer Fee $ 1,835 $ $ $ $ - 42,647 $ 14,728 $ $ 99,711
7,547
1,835 42,647 14,728 107,258
94,663
19,797 57,764 77,561
30,516 259,908 290,424
50,313 317,672 462,648
459,167
502,884 1,045,189 1,747,149
10,268 52,201 86,596 152,336 216,705 54,330 572,436
169,414
(6,163)
10,268 52,201 86,596 152,336 216,705 502,884 1,045,189 54,330 2,942,003 & 12,103 S 102,514 = 86,596 & 152336 = 534377 $ 545,531 $ 1059917 S 54,330 $ 3,511,909 54 CITY OF IONE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
Transportation Public Safety COPS Prop 172 Conservation Development lone Dist I Maintenance SLESF Sales Tax Fire Break Act Fund COIC District AB3229 Fire Assessment Rairoad Depot Safer Grant Revenues
Taxes $ - $ -$ - S
Special assessment impact fees
Use of money and property 7,947 552 1,070 3,596 32 289 37 292 Intergovernmental - 186,159
Charges for services 83,673
Other
Total revenues 7,947 84225 1,070 189,755 32 289 37 292
Expenditures
Current:
Public ways and facilities/
transportation 218,058
Public safety
Community development 13,450
Capital outlay 21,398
Total expenditures 218,058 34,848
Net change in fund balances 7,947 (133,833) 1,070 189,755 289 (34,811) 292 Fund balance-beginning of fiscal year 622,196 115,29 2,696 2,761 2,762 16,753 36,195 (7,839) Fund balance, end of fiscal year $ 630,143 $ (18.604) & 3,766 $ 192,516 $ 2,794 ≤ 17,042 $ 1,384 $(7,547) 55 CITY OF IONE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
Rehab Low Income Self Help CDBG Program Restricted Restricted Iffordable Housing State Grant Housing Housing Housing Fund Police Fund Fire Fund Developer Fee Totals $ - $ - $ $ - 1,108 $ $ - $ 1,108
236,804 236,804 473,608
195 942 1,471 2,634 3,681 9,56l 16,343 922 49,564
186,159
1,175 13,685 98,533
195 942 1,471 2,634 3,681 248,648 266,832 922 808.972
218,058
239,703 275,744 515,447
8,325 21,775
21,398
8325 239,703 275,744 776,678
195 942 1,471 (5,69l) 3,681 8,944 (8,911) 922 32,294
10,073 51,259 85,125 158,027 213,024 493,940 1,054,100 53,408 2.909,709 $ 10,268 52,201 $ 86,596 152,336 § 216,705 502,884 $ 1,05,189. 54,330 2,942,003 56 CITY OF IONE
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
JUNE 30, 2024
Police
Parks & Rec Drainage Services
Fund Fund Impact Fees Totals
-
Assets
Cash and investments $ $ $ $
Restricted cash and investments 1,180,259 128.427 305,684 1,614,370 Loans receivables | 21,046 21,046
Advance to other funds 796,804 796,804
-
Total assets 1,201,305 128,427 1,102,488 2,432,220
Liabilities Deferred Inflows of Resources
And Fund Balances
Liabilities
Accounts payable - $ - $ 15,071 $ 15,071
Total liabilities 15,071 15,071
Deferred Inflows of Resources
Loan principal receivable 21,046 21,046
Total deferred inflows of resources 21,046 21,046
Fund Balances
Non-spendable for advances 796,804 796,804
Restricted for capital projects 1,180,259 128,427 290,613 1,599,299 -
Total fund balances 1,180,259 128,427 1,087,417 2,396,103 Total liabilities, deferred inflows
of resources and fund balances $ 1,201,305 $ 128,427 $1,102,488 $2,432,220 =
57 CITY OF IONE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2024
Police
Parks & Rec Drainage Services
Impact Fund Fund Impact Fees Totals
Revenues
Impact fees $ 88,815 $ - $ 19,963 $ 108,778
Use of money and property 20,104 2,182 18,525 40,811
Total revenues 108,919 2,182 38,488 149,589
-
Expenditures
Current:
General government 3,581 3,581
Capital outlay 57,285 14,971 72,256
-
Total expenditures 57,285 18,552 75,837
Net change in fund balances 51,634 2,182 19,936 73,752
Fund balance-beginning of fiscal year 1,128,625 126.245 1,067,481 2.322,351 Fund balance, end of fiscal year $1,180,259 $128,427 $1,087,417 $2,396,103
CITY OF IONE
Management Report
Fiscal Year Ended June 30, 2024
LARKY KAIN 1, CPA
AN ACCOUNTING CORPORATION
2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]
COMMUNICATION OF SIGNIFICANT DEFICIENCIES AND MATERIAL WEAKNESSES To the City Council
City of Ione, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America the inancial statements of the governmental activities, the business-type activities, each major fund, the aggregat emaining fund information and the fiduciary fund of City of lone as of and for the fiscal year ended June 30, 2024 and have issued our report thereon dated July 14, 2026. In our report the opinion was qualified.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. We consider findings FS 2024-001 through FS 2024-009 in the following schedule of findings to be deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider findings FS 2024-010 through FS 2024-012 in the following schedule of findings to be deficiencies in internal control.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of management, the audit committee, City Council, the Inyo County Auditor Controller's Office, the California State Controller's Office, federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties.
Larry Bain, CPA,
An Accounting Corporation
July 14, 2026
1 CITY OF IONE
SCHEDULE OF FINDINGS
JUNE 30, 2024
Significant Deficiency and Material Weaknesses
FS 2024-001: During the fiscal year ended June 30, 2024, the City relied on the external auditor to ensure its financial statements were in accordance with GAAP. In addition, the City relied on the external auditor to ensure that all necessary disclosures are included in the notes to the financial statements. In accordance with AU-C 265 external auditors cannot be part of an entity's internal controls over preparation of the financial statements and are prohibited from auditing their own work, which would impair their independence. This condition could result in a qualified opinion. We noted the City did not retain an outside accounting consultants to assist with internal controls and some year-end close assistance, which is a departure from prior years.
The following material journal entries were detected as part of our audit procedures:
• Recognize $173,295 program income and reduce $56,295 deferred interest and $117,000 deferred loan principal for the Fischer Home Loan payoff.
• Reclassify $60,124 cash and $60,124 vacation payable from new vacation fund 9620 to appropriate funds. The intent was to use this fund as a vacation reserve fund, however it led resulted in commingling governmental and business- type activity and recorded a vacation liability in the funds, as opposed to the government-wide financial statements. • Reversed $74,272 from general fund accounts receivable and deferred revenue as a result of the T.O.T settlement agreement.
• As a result of our search for unrecorded receivables, we proposed a journal entry to accrue $13,964 VLF in excess receivable, $112,782 Strike Team receivable and $94,663 COPS growth allocation receivable. • Reclassified $23,791 from general fund deferred revenue to revenue for the final 2023/24 Portlock lease payment that was recorded as deferred revenue, but received on July 22,2024 and was not deferred revenue at June 30, 2024. • Reclassified $22,616 from sewer tertiary fund to sewer operating fund to capitalize capital asset additions that should be recorded in the sewer operating fund.
• Recorded $358,661 sewer depreciation expense based on the depreciation schedule prepared by the City. • Removed $30,835 donated capital assets that were recorded as donation revenue and capital expense in the fund financial statements, this is government-wide financial statement activity. • Reclassified $53,200 from grant revenue to operating transfers in. This was a transfer from fund 5119 to fund 7122 that was recorded as an operating transfer out in fund 5119 and should have been recorded as an operating transfer in, in the receiving fund.
• We also recorded other journal entries detected by the City after the start of the audit, recorded the entries to comply with GASB 68, GASB 75 and GASB 87, and we proposed other journal entries that were not considered material to the financial statements.
Recommendation: As part of year-end closing, we recommend the City accounting staff reconcile the general ledger to the underlying support, or utilize the outside accountant to verify the accuracy of the general ledger that is provided to the auditor.
Management Response:
FS 2024-002: During our audit we did not observe a current financial procedures manual that provides guidance on how to process financial transactions from the beginning to end. We noted that the one employee is trained in processing payroll mi ve did be observe entent from the Paychex pay registers into the general ledger, but there is no cross training for entering this activity and as a result the general ledger did not reflect timely information.
Recommendation: We recommend the City create an accounting financial procedures manual that provides step by step instruction for processing critical financial activity. The critical areas should be identified by the City and would include processing payroll, disbursements, sewer billings, receipting, bank reconciliations, accounts receivable, accounts payable and year-end procedures. We also recommend cross training staff in processing the critical financial activity.
Management Response:
2 CITY OF IONE
SCHEDULE OF FINDINGS
JUNE 30, 2024
Significant Deficiency and Material Weaknesses (Continued) FS 2024-003: During our audit we did not observe that the City was tracking the prepaid developer deposits. In years past certain developers had prepaid impact fees and sewer connection fees for a certain number of parcels. The City had developed a schedule to monitor these prepaid fees, however at some point the City stopped updating and monitoring the schedule.
Recommendation: We recommend the City update the prepaid developer fee schedules and determine if any of the developers have developed more parcels than were prepaid.
Management Response:
FS 2024-004: During our audit of beginning balances the City was unable to provide us with many of the July 2023 invoices to support beginning accounts payable balances and the City was unable to provide us with a detail list of what made up the $463,561 accounts payable balance at June 30, 2023. We qualified our opinion in the independent auditors report as a result of this condition.
Recommendation: We recommend retaining invoices to support all payments made by the City. Furthermore we recommend retaining a detail list of accounts payable that shows how much the City owes to each vendor and by fund at fiscal year end.
Management Response:
FS 2024-005: During our testing of the Community Facility District activity we noted that on September 18, 2019 the City requested U.S. Bank to transfer $111,595 for the remaining surplus funds in CFD No. 2005-2 (Improvement Area No. 2) after Special Tax Refunding bonds Series B of 2006 had been fully redeemed. The funds were deposited to the City general fund when received and then during the 2019/20 fiscal year the City auditor proposed a journal entry to reclassify from miscellaneous revenue to due to other government in the general fund and due from other governments in the CFD fund #9111 for the full $111,595. As of June 30, 2024 the due to/from other government was still recorded as a liability in the general fund and a due from other government was recorded as an asset in the Community Facility District fund 9111.
Recommendation: We recommend reviewing the activity and either reimburse qualified expenditures with the surplus funds or return the funds to the land owners who paid the assessments.
Management Response:
FS 2024-006: During our review of the Community Facility District (CFD) activity we noted that no employee of the City was reconciling the CFD fund 9111 general ledger activity to the underlying support. The cash with fiscal agent account had not been updated since June 30, 2021, the special tax liability account had a beginning balance of $513,589.28 whereas per our review it should have been $O, the tax and developer revenue were recorded to the liability account and the principal and interest payment on the CFD bonds were not recorded in the general ledger. Furthermore there did not appear to be a reconciliation/monitoring of the special assessments levied on the County tax roll to the amount collected and remitted to the City.
We noted the cash in the CFD fund pooled cash account at June 30, 2024 was negative $108,881 which represents an accumulation of payments made to David Taussig & Associates for CFD administration. USBank has an administration account that was established to pay administration expenses.
We noted on February 27, 2024 the City transferred $41,393.65 from the Bank of Marin cash account to USBank 2005-2 Area 1. On March 4, 2024, in the general ledger, the City recorded this activity clearing outstanding checks in the general fund totaling $9,460.01 and then plugging the remaining amount of $31,933.64 to administration cost expense account in the CFD fund 9111. The City should have recorded this activity in the CFD fund 9111 as a reduction to City pooled cash and an increase in USbank cash with fiscal agent in the amount of $41,393.65. 3 CITY OF IONE
SCHEDULE OF FINDINGS
JUNE 30, 2024
Significant Deficiency and Material Weaknesses (Continued) We noted in June 2023 the City recorded $90,757.27 CFD special assessment revenue to fund 9611 as opposed to the CFD fund 9111. The $90,757.27 transfer to USBank was made from fund 9111 leaving a $90,757.27 credit balance to fund 9611 special assessment liability account and a negative balance in fund 9111. We proposed a journal entry to reclassify the credit balance from fund 9611 to fund 9111.
Recommendation: We recommend the City monitor the activity in the CFD fund and agree the underlying activity to the general ledger. We recommend the City determine why the pooled cash in CFD fund 9111 is negative and take action to correct the negative balance.
Management Response:
FS 2024-007: During our review of material revenue we noted the City received $70,400 in Local Transportation funding and $88,000 from Amador County Transportation Commission to be used for road projects. While the funds were recorded in the City Gas Tax Fund, we did not see evidence of how the funds were expended. Furthermore the funds were recorded as revenue when received, we proposed a journal entry to reclassify the $158,400 to deferred revenue-unearned.
Recommendation: We recommend the City prepare a schedule to demonstrate how the funds are to be committed and then track the expenditures to ensure they are spent in accordance with LTF, RSTP and ACT rules. We also recommend recording revenue that is advanced and has restrictions on how the funds are to be spent as deferred revenue-unearned as opposed to recognizing the revenue when received. We recommend the City consider establishing a fund separate from the Gas Tax fund to account for this restricted revenue.
Management Response:
FS 2024-008: As of June 30, 2024 the sewer tertiary fund had a negative cash balance of $1,281,053 and a negative net position of $882,748. The fund has a structural deficit which is being subsidized by the sewer operations and maintenance Recommendation: We recommend the City review the fee structure of the sewer tertiary fund and take action to cure the negative cash and negative net positon of the fund.
Management Response:
FS 2024-009: During our review of interfund advances we noted during the 2021/22 fiscal year the City made an operating transfer and added $250,000 advance from the sewer tertiary fund to the general fund, no cash was exchanged in the 2021/22 fiscal year. This was the result of a loan document dated April 19, 2000 authorizing the general fund to borrow $250,000 from ARSA (sewer tertiary fund) to finance the equestrian multi-purpose arena. The City was unable to provide us with support that the cash was transferred from the sewer tertiary fund to the general fund back in 2000 and if there were any subsequent payments made on the advance. The general fund paid the sewer tertiary fund $10,435 in the 2021/22, 2022/23 and 2023/24 fiscal years to repay the $250,000 loan that was added in the 2021/22 fiscal year. As a result of the scope limitation we qualified our opinion in the independent auditors report.
Recommendation: We recommend the City review historical records to substantiate if the $250,000 cash was transferred from the sewer tertiary fund to the general fund and determine if any repayments were made from the general fund to the sewer tertiary fund. If no support exists that this loan was made then the City should consider having the sewer tertiary fund repay the general fund for any payments made since the 2021/22 fiscal year and removing the advance from the City general fund and sewer tertiary fund.
Management Response:
4 CITY OF IONE
SCHEDULE OF FINDINGS
JUNE 30, 2024
Significant Deficiencies and not Material Weaknesses
capable of handling all aspects of processing certain transactions from beginning to end. A lack of segregation of duties increases FS 2024-010: During the current fiscal year audit, we noted the City had a lack of segregation of duties, as one person is the risk of potential errors or irregularities; however, due to a limited number of personnel and staff turnover that occurred during the fiscal year under audit, an adequate segregation of duties was not possible without incurring additional costs. also plays a more vital oversight role in reviewing and authorizing accounting records such as cash disbursements, cash receipts, Recommendation: The City should attempt to segregate accounting functions to the greatest extent possible. The City Council cash transfers, account write-offs, payroll, journal entries and monthly bank reconciliations. The City has hired an outside consultant to review the current segregation of incompatible duties, which will assist the City in correcting the deficiency.
FS 2024-011: During our review of interfund loan activity (advances to/from) we noted that the City did not record interest 9515 offset to the general fund and gas tax fund as operating transfers in/out. We also noted several of the beginning balances revenue/expense for several of the advances. Furthermore the City recorded the interest revenue/expense for the fund 9511 and for interfund advances in the budget did not agree to the balances in the City tracking schedule or the general ledger.
Recommendation: While the City does maintain a tracking schedule for the interfund loans we recommend better monitoring to ensure that the interest revenue/expense is allocated and that the general ledger balances and budgets agree to the tracking schedule. We also recommend the City review the resolutions that established the advances and the interest rates that should be applied to the loans and then create an amortization schedule to be used for recording the annual repayment activity for principal and interest. The budget should also reflect the amount of interest applied to each advance.
Management Response:
FS 2024-012: During our testing of payroll we noted the following variances for a management public safety employee:
A. As a police officer the employee received a $50 clothing allowance, however when the employee became a management employee the allowance should have stopped. This resulted in an overpayment of $1,300 in the 2023/24 fiscal year.
B. Per the Employment Agreement effective 7/1/2023, Section 6 indicates the City will contribute $300 per month in the deferred comp program. The City made a lump sum payment of $2,700 in pay period ending 3/23/24 and then started contributing $150 per pay period. Because there are 26 pay periods the $150 per pay period results in an over contribution of $150 in the 2023/24 fiscal year. The contribution should be $138.46 per pay period C. The management position is an unrepresented position and should not be part of the IPOA. Starting with pay period ending December 30, 2023 the City was withholding $13 per pay period and then changed to $14 with pay period ending June 15, 2024. This resulted in the employee overpaying $197 in IPOA dues in the 2023/24 fiscal year.
D. Starting 7/1/2023, the management employee should have used the applicable insurance reimbursement per the City policy and not the IPOA. The City policy allows a $1,250 medical insurance reimbursement, whereas the management employee was being reimbursed under the IPOA policy at $1,400 per month (prior to implementation of cafeteria plan).
This resulted in an under deduction from the employee pay check of $1,799.98.
The total amount owed by the employee to the City for the above 2023/24 fiscal year discrepancies is $3,053.02.
Recommendation: We recommend the City perform an internal check of the above discrepancies to verify that the errors agree to the underlying support. We then recommend the City take action to collect the amount owed from the employee to the City.
The City should also perform internal checks of other employees to verify the accuracy of employee benefits paid on the employee's behalf and deductions made from employee paychecks.
Management Response:
5 LARRY BAIN, CPA
AN ACCOUNTING CORPORATION
2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]
July 14, 2026
To the City Council
City of lone
We have audited the financial statements of the governmental-type, business-type activities and fiduciary activity of City of lone for the year ended June 30, 2024, and have issued our report thereon dated July 14, 2026 Professional standards require that we provide you with the following information related to our audit.
Our responsibility under U.S.Generally Accepted Auditing Standards As stated in our engagement letter dated October 28, 2025, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.
Planned Scope and Timing of the Audit
We performed the audit beginning in April 2026 and issued the report in July 2026 in accordance with the planned scope and timing previously communicated on October 28, 2025.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by City of lone are described in Note 1 to the financial statements. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. No prior period adjustments were recorded to the financial statements.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the financial statements was (were):
Management's estimate of the useful lives of assets for calculating depreciation expense is based on GFOA recommended useful lives. We evaluated the key factors and assumptions used to develop the useful life estimates in determining that it is reasonable in relation to the financial statements taken as a whole.
Management's estimate in allocating salaries and certain liability accounts between governmental and business type funds are based on actual timesheets as well as estimated percentages of certain employee and management time based on historical activity. We reviewed the allocations and assumptions used by management in determining reasonableness to the financial statements. During the 2023/24 fiscal year management again reviewed the allocation and made adjustments as deemed necessary.
6 Management's estimate for allocating between governmental and business-type activities and functional expenses for post-retirement pension liabilities and post-retirement benefit liabilities and the related deferred inflows and outflows associated with those activities, are based on calculated averages of pension expense and salaries recorded to each of the activities and functions.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We provided management with all known adjusting entries and after review all entries were posted to the accounting system.
Several prior period adjustments were recorded, mainly to restate beginning net position as a result of recording the net pension liability and deferred inflows and outflows related to pensions. These entries are disclosed in the notes to the financial statements.
We also prepared entries to convert from fund financial statement presentation to government-wide presentation.
Disagreements with Management
For purpose of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significance to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated July 14, 2026.
Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
7 Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
This information is intended solely for the use of the City Council and management of City of lone and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
Larry Bain, CPA,
An Accounting Corporation
July 14, 2026
8 OF TONE Agenda Item #L. 2.
CITY OF IONE
IONE. (4 95640
DATE: AUGUST 4, 2026
TO: THE HONORABLE MEMBERS OF THE CITY COUNCIL
FROM: JANICE TRAVERSO, CITY CLERK
SUBJECT: INTERVIEW OF CANDIDATES TO FILL COUNCIL SEAT THROUGH DECEMBER 31, 2026 AND CONSIDER FORMAL APPOINTMENT
COMMENCING THE SECOND COUNCIL MEETING OF AUGUST
RECOMMENDED ACTION: Interview candidates to fill City Council seat through December 31, 2026 and consider formal appointment.
BACKGROUND/DISCUSSION: On July 7, 2026, Alison LaFayne resigned from the City Council effective immediately. Under the California Government Code, when a City Council seat becomes vacant during an existing term, the City Council must, within 60 days, either fill the vacancy by appointment or call a special election. The vacancy on the City Council was solicited from eligible residents with a deadline of July 30, 2026. A total of three letters of interest were received:
1. Larry Caputo
2. Greg Morris
3. Linda Smylie
The letters of interest from each applicant are included as attachments. The applicants were further invited to open session to respond to any further questions of the Council. The Council may consider a motion to appoint one of the applicants to the open seat.
ATTACHMENTS:
Letters of Interest from Applicants
Janice Traverso
From: Larry Caputo al
Sent: Thursday, July 23, 2026 9:27 AM
To: Janice Traverso
Subject: City Council Vacancy Application
Janice
I want to submit my request to fill the vacant City Council seat to the end of the current term.
The following are my qualifications;
I have had responsibility for multi billion dollar P&L as a VP for a high-tech company I have been involved in numerous multimillion dollar contract negotiations I have a real estate broker's license and 'm familiar with real estate law and real estate procedure procedures I was an executive with a construction company. Very famillar with construction procedures and bullding codes I am OSHA certified with many high-level OSHA certifications, including OSHA CHSP & ASP I am experienced with Golf Course management and managed a pro shop in addition, I have taken numerous prelaw courses in college I believe, for this reason, I am more than qualified to serve on the City Council I have served on both the Parks & Rec committee and the Planning Commission for lone Thanks
Larry Caputo
PLEASE CONFIRM YOU RECEIVED THIS
Sent from my iPhone
Janice Traverso
From: Linda Smylie <
Sent: Thursday, July 16, 2026 11:21 AM
To: Janice Traverso
Subject: lone City Council Vacancy
July 16, 2026
| Linda Smylie, hereby submit my letter of interest to be considered for appointment to the recent City Council vacancy.
My prior experience is as follows:
Six years as an lone City Council member.....1998-2004 Two or more years on the lone Planning Commission.... 2004-2006
It would be a great honor to serve the citizens of our awesome town.
Thank you for your consideration.
Linda Smylie
Sent from my iPhone
In the event the City appoints a replacement for the vacancy that exists on the Council, I would be honored to be considered for that position. I have set out below information that may be useful in consideration of my request. I have lived in lone for seven years and will spend the rest of my life here. I will not be a candidate for City Council at any time in the future and am offering myself only as a temporary replacement.
After four years in the USAF, I was a full-time Mountain View police officer for six years as l worked my way through Stanford University. Upon graduation, I worked three years for the city of Saratoga as an administrative assistant to the City Manager and served as staff to the city's Planning Commission as I worked my way through law school at Santa Clara University, where I was Student Body President and served as a law clerk (intern) with the California Supreme Court. I also have a Certificate in Municipal Management from Santa Clara University School of Business.
I served a term as a City Council member for the City of Sunnyvale and was appointed to positions on the County Council of Mayors, Santa Clara County Water Commission, and the Santa Clara County Regional Criminal Justice Planning Board. I practiced law here in California for forty-nine years, retiring two years ago. I briéfly served as a paid consultant with a national company engaged in the recruitment and hiring of City Attorneys. My legal practice and experience in city government should be helpful as the Council deals with the Grand Jury report and issues involved in the relationship with the City Attorney.
Please keep me in mind if you are considering a replacement for the missing Council member.
(e4 Martia
7/30/20260
OF TONE Agenda Item #L. 3.
CITY OF IONE
IONE, C4 95640)
DATE: AUGUST 4, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOSH VARINSKY, CITY ATTORNEY
SUBJECT: ORDINANCE TO ESTABLISH RULES FOR E-BIKES, E-SCOOTERS,
AND E-SKATEBOARDS
RECOMMENDED ACTION:
It is recommended that the City Council waive the first reading and introduce the attached ordinance, read by title only, adding Chapter 10.40, E-Bikes, E-Scooters, and E-Skateboards, to the lone Municipal Code.
BACKGROUND / DISCUSSION:
This ordinance was first discussed and received feedback at the City Council meeting of July 7, 2026.
There has been an increase in the use of electric bicycles, electric scooters, and electric skateboards (collectively referred to herein as "devices") within the City of lone ("City"). Although the California Vehicle Code generally regulates the operation of these devices, the City may adopt local regulations that do not conflict with state law.
State law defines and regulates these devices, including requirements related to equipment, age restrictions, license requirements, helmet use, speed limits, and traffic movements.' The City may not establish local regulations for the same or substantially similar conduct already regulated by the Vehicle Code, and citations for such conduct must be issued under the applicable Vehicle Code provision. (Veh. Code, § 21100(n)(1).) Accordingly, the Ordinance relies on the Vehicle Code for applicable enforcement while also identifying the relevant state law requirements to provide notice and guidance to local users. The rules of the road remain applicable to these devices.
The Ordinance also addresses conduct not already fully addressed by state law. These provisions are intended to further reduce unsafe operation of devices and to protect pedestrians. The provisions for additional local enforcement include:
• Prohibiting the operation of devices on sidewalks within the City; ' See Veh. Code, §§ 21200-21214.7 [e-bikes], 21220-21235 [e-scooters], 21290-21296 [e-skateboards]. • Allowing the Police Chief to post signs on particular paths, trails, parks, or other City- owned property to prohibit operation of the devices.
• Prohibiting the operation of devices within any designated area of a city special event, city- permitted festivals, street fair, or emergency operation area. • Establishing rules for parking of the devices.
• Prohibiting reckless operation of devices; and
• Prohibiting group rides of 3 or more people that endanger the public.
Violations punishable as City infractions are subject to fines of $50 for a first violation, $100 for a second violation, and $250 for each additional violation. Minors found in violation may also be required to attend a bicycle safety course provided by the Police Department. Any person issued a citation or penalty under Chapter 10.40 is entitled to an administrative hearing under the lone Municipal Code.
REVISIONS SINCE THE JULY 7, 2026 COUNCIL MEETING
Comments from Councilmembers and the public were raised at the prior Council meeting. Those comments are summarized below with responses, including explanation of the changes to the proposed ordinance since the first meeting.
• Clarification regarding the minimum ages for each device. • RESPONSE: This is governed by the Vehicle Code.
• Clarification regarding the age requirements for wearing helmets. • RESPONSE: This is governed by the Vehicle Code.
• The scope of the sidewalk prohibition.
• RESPONSE: Some of state law governs here also. E-scooters are not allowed on sidewalks under state law. The City can establish the scope of the sidewalk prohibition on e-bikes and e-skateboards. The ordinance proposes a ban on riding on sidewalks for all devices.
• The rules for parking on sidewalks and City property. • RESPONSE: This has been clarified to allow for parking in designated parking areas; upright on a curb in a manner that does not obstruct pedestrian traffic; or upright against City fences, poles, or trees.
• What constitutes an illegal group ride versus a lawful group ride? • RESPONSE: The group ride prohibition only applies to at least 3 riders riding "in a manner that demonstrates willful or wanton disregard for the safety or persons or property,..." Devices riding together in a lawful, safe manner would not be cited.
Further detail was also added regarding impoundment of devices. Seizure and impoundment of the devices can occur when they are being operated recklessly or in a way that presents a danger to the public. The City would have to establish the storage and recovery fees by separate resolution.
ATTACHMENTS:
1. Redline compare version of ordinance considered at the July 7, 2026 Council meeting
2. Ordinance No. 2026-
EXHIBIT A: Chapter 10.40 of the lone Municipal Code
Title 10 - VEHICLES AND TRAFFIC
Chapter 10.40 E-BIKES, E-SCOOTERS, E-SKATEBOARDS
Chapter 10.40 E-Bikes, E-Scooters, and E-Skateboards
Sections:
10.40.010 Purpose.
The purpose of this chapter is to regulate the safe use of electronic bikes, electronic scooters, and electronic skateboards to promote public peace, safety, morals, health, and welfare, and safety.
This chapter shall be interpreted consistent with the California Vehicle Code and shall not be construed to authorize any citation, penalty, restriction, fine, assessment, or fee that conflicts with state law. Where the California Vehicle Code provides a violation or penalty for the same or similar conduct, enforcement shall proceed under the applicable Vehicle Code provision.
This chapter does not apply to mobility devices authorized by the California Vehicle Code, the Americans with Disabilities Act, or other applicable law when used by persons with physical disabilities.
10.40.020 Definitions.
An "electric bicycle" or "e-bike" means a bicycle equipped with fully operable pedals and an electric motor that does not exceed 750 watts of power, and that meets the criteria for a Class 1, Class 2, or Class 3 electric bicycle as defined in California Vehicle Code section 312.5.
An "electric scooter" or "e-scooter" has the same meaning as a "motorized scooter" under California Vehicle Code section 407.5, and means a two-wheeled device that has handlebars, has a floorboard designed to be stood upon when riding, and is powered by an electric motor.
An "electrically motorized board" or "e-skateboard" has the same meaning as set forth in California Vehicle Code section 313.5, and means a wheeled device designed to be stood upon by one person, with an electric propulsion system averaging less than one thousand (1,000) watts, and whose maximum speed on a paved level surface is no more than twenty (20) miles per hour.
"Device" as used in this chapter may be used collectively to refer to an e-bike, e-scooter, or e- skateboard.
A "group ride" means three or more individuals traveling together on a roadway or highway, each independently operating an e-bike, e-scooter, or e-skateboard.
10.40.030 Compliance with State Law; Rules of the Road.
Nothing in this chapter shall be construed to authorize the operation of an e-bike, e-scooter, or e-skateboard in a manner prohibited by the California Vehicle Code or any other applicable state law.
E-bikes, e-scooters, and e-skateboards shall be operated in accordance with all applicable provisions of the California Vehicle Code and this code, including, without limitation, those provisions governing the operation of bicycles and the rights and duties of bicyclists.
The City shall enforce such provisions as authorized by the California Vehicle Code and other applicable state law and this Code. Such rules include, but are not limited to, the following:
A. Not traveling over the speed limit, or otherwise traveling at a speed greater than is reasonable and prudent under the existing conditions, and in no event at a speed which endangers the safety of persons or property.
Being of the minimum age required to operate the device, as required by the California Vehicle Code.
Not operating a device while wearing headphones, earbuds, or any other object that obstructs and/or covers any portion of the ear canal.
D. Wearing a properly fitted and fastened helmet when riding a device within the city, as required by the California Vehicle Code.
When operating a device before sunrise and after sunset, utilizing the required front- facing and rear-facing lights with the minimum visibility.
Traveling in the same direction as vehicles are required to be driven upon the roadway.
Not allowing a person riding as a passenger, and a person shall not ride as a passenger, on any device other than upon or astride a separate seat attached thereto.
H. Stopping and yielding for pedestrians and persons on horseback.
1. Giving an audible signal before overtaking and passing bicycles, pedestrians, and persons on horseback.
1. Not carrying any package, bundle, or article that prevents the operator from keeping at least one hand upon the handlebars.
K. No person riding upon any device shall attach the same or themselves to any other device or vehicle on the roadway.
10.40.040 Local Riding Requirements; Parking; Other Prohibitions.
A. No person shall operate an e-bike, e-scooter, or e-skateboard on any sidewalk in the city.. except as reasonably necessary to enter or leave adjacent property.
The Chief of Police, or the Chief's designee, is authorized to post signs prohibiting or restricting the operation of e-bikes, e-scooters, or e-skateboards on bike paths, trails, parks, plazas, or other City-owned property where necessary to protect public safety.
C. No person shall operate a device within any designated area of a city special event, city- permitted festivals, street fair, or emergency operation area.
D. No person shall leave a devicepark, stand, or leave a device within a sidewalk or public roadway, unless in a parking area designated for such devices (e.g., bicycle racks or corrals) or as provided in this Section. The following requirements shall apply to parking of devices:
No device shall be parked or left lying on its side enwithin any sidewalk, nor park a device upen the or any public right-of-way, or leave a device against a building or at a_
Hi. The device shall be parked in an upright position in a designated parking area; on the curb except in such a manner as to afford the leastthat avoids obstruction of pedestrian traffic; or against a City pole, fence, or tree in such a manner that avoids obstruction to pedestrian traffic. ili. No device shall be parked in a manner that obstructs any driveway, curb ramp, parking access, utility access, transit stop, crosswalk, fire hydrant, or building entrance.
10.40.050 Reckless operation prohibited.
No person shall operate an e-bike, e-scooter, or e-skateboard with willful or wanton disregard for the safety of persons or property. Prohibited reckless operation includes, but is not limited to, swerving into oncoming traffic, riding into or toward pedestrians in a dangerous manner, obstructing traffic, riding against the flow of traffic, carrying passengers on devices not designed for multiple riders, performing stunts or tricks in a roadway, or operating in any manner that creates a substantial risk of injury to any person or damage to property.
10.40.060 Group Rides.
A. No person shall operate an e-bike, e-scooter, or e-skateboard during a group ride or similar event in a manner that demonstrates willful or wanton disregard for the safety of
persons or property, or in violation of this chapter or the applicable provisions of the California Vehicle Code.
B. No person shall organize, promote, direct, aid, or facilitate a group ride or similar event involving e-bikes, e-scooters, or e-skateboards where the person knows, or reasonably should know, that the event will result in violations of this chapter or the applicable provisions of the California Vehicle Code.
10.40.070 Violation
A. Unless otherwise provided, any violation of this chapter is an infraction punishable as provided in Chapters 1.08 and 1.10 of this Code.
B. In lieu of, or in addition to, any other enforcement remedy authorized by law, the Chief of Police or the Chief's designee may allow a minor who violates this chapter to attend a bicycle, e-bike, e-scooter, or e-skateboard safety course approved by the Chief of Police.
The purpose of the course is to educate minors regarding safe operation and applicable law.
C. The parent or legal guardian of the minor whose conduct receives a violation of this chapter shall be jointly and severally liable with the minor for the amount of the fine or fee imposed pursuant to this chapter.
Đ. This section shall not be interpreted to authorize a local fine, penalty, assessment, or fee where the California Vehicle Code provides a fine, penalty, assessment, or fee for the same or similar conduct.
D. 10.40.080 Vehicle
10.40.80 Seizure, Impounding, and Storage Fees.
A. In addition to any remedy authorized by state law or this Chapter, a peace officer may remove and impound a device when the rider of the device creates an immediate threat to public safety, engages in reckless operation of the device with disregard for the safety of persons or property, or when the device causes a dangerous hazard or obstruction interfering with pedestrian travel or the public right-of-way.
A.B. The City may recover its actual administrative costs incurred in connection with the removal, seizure, and storage of applicable vehicles seized and stored by a peace officer pursuant tein accordance with California Vehicle Code section 22651.08, as amended. The City's administrative costs relating to the removal, seizure, and storage costs shall be established by resolution of the City Council and posted on the City website.
B.C. _If the owner or person entitled to possession fails to claim a seized vehicle and pay the applicable fees within three (3) months after seizure, the vehicle shall be deemed unclaimed and may be disposed of in accordance with applicable law or policy.
10.40.090 Administrative Hearing
Any person issued a citation, notice of violation, seizure notice, release fee, storage fee, or other penalty under this chapter shall be entitled to an administrative hearing pursuant to the procedures set forth in Chapter 1.10g
Created: 2025-03-10 16:44:06 [EST]
(Supp. No. 13)
ORDINANCE NO. 537
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IONE
ADDING CHAPTER 10.40 (E-BIKES, E-SCOOTERS, AND E-SKATEBOARDS) TO THE
IONE MUNICIPAL CODE TO ESTABLISH RULES FOR ELECTRIC BICYCLES,
ELECTRIC SCOOTERS, AND ELECTRIC SKATEBOARDS
WHEREAS, the City of lone ("City") may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws. (Cal Const., Art. XI, § 7.) This police power extends to objectives in the furtherance of the public peace, safety, morals, health and welfare; and
WHEREAS, the City recognizes the increasing use of electric bicycles, electric scooters, and electric skateboards within the community; and
WHEREAS, the City recognizes the potential danger and risk to the public of improper use of electric bicycles, electric scooters, and electric skateboards; and WHEREAS, no provision in this Ordinance shall be construed to conflict with provisions of state law and the California Vehicle Code regulating such devices; and WHEREAS, the lone City Council desires to add Chapter 10.40 to the lone Municipal Code to regulate the use of electric bicycles, electric scooters, and electric skateboards in order to promote public health, safety, and welfare.
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF IONE DOES ORDAIN AS FOLLOWS:
SECTION 1. Addition to the lone Municipal Code. Chapter 10.40 is hereby added to the the lone Municipal Code to read as follows:
SEE ATTACHED EXHIBIT A
SECTION 2. Severability. If any section, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions thereof.
SECTION 3. Effective Date. This Ordinance shall take effect thirty (30) days after its passage by the City Council and following the affirmative vote of a majority of the members of the City Council. Within fifteen (15) days of its adoption, a summary of the ordinance shall be published in a newspaper of general circulation in the City of lone, California, which summary shall include the names of those Councilmembers voting for and against the ordinance. A certified copy of the full text of such adopted ordinance or amendment shall be on file in the office of the City Clerk.
The foregoing ordinance was duly introduced at a regular meeting of the City Council of the City of lone on the day of _ and adopted at a regular meeting of the City Council of the City of lone on the _ _day of by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Jody Maita,
Mayor of City of lone
ATTEST:
Janice Traverso
City Clerk
APPROVED AS TO FORM:
Josh Varinsky
City Attorney
Title 10 - VEHICLES AND TRAFFIC
Chapter 10.40 E-BIKES, E-SCOOTERS, E-SKATEBOARDS
Chapter 10.40 E-Bikes, E-Scooters, and E-Skateboards
Sections:
10.40.010 Purpose.
The purpose of this chapter is to regulate the safe use of electronic bikes, electronic scooters, and electronic skateboards to promote public peace, safety, morals, health and welfare.
This chapter shall be interpreted consistent with the California Vehicle Code and shall not be construed to authorize any citation, penalty, restriction, fine, assessment, or fee that conflicts with state law. Where the California Vehicle Code provides a violation or penalty for the same or similar conduct, enforcement shall proceed under the applicable Vehicle Code provision.
This chapter does not apply to mobility devices authorized by the California Vehicle Code, the Americans with Disabilities Act, or other applicable law when used by persons with physical disabilities.
10.40.020 Definitions.
An "electric bicycle" or "e-bike" means a bicycle equipped with fully operable pedals and an electric motor that does not exceed 750 watts of power, and that meets the criteria for a Class 1, Class 2, or Class 3 electric bicycle as defined in California Vehicle Code section 312.5.
An "electric scooter" or "e-scooter" has the same meaning as a "motorized scooter" under California Vehicle Code section 407.5, and means a two-wheeled device that has handlebars, has a floorboard designed to be stood upon when riding, and is powered by an electric motor.
An "electrically motorized board" or "e-skateboard" has the same meaning as set forth in California Vehicle Code section 313.5, and means a wheeled device designed to be stood upon by one person, with an electric propulsion system averaging less than one thousand (1,000) watts, and whose maximum speed on a paved level surface is no more than twenty (20) miles per hour.
"Device" as used in this chapter may be used collectively to refer to an e-bike, e-scooter, or e- skateboard
A "group ride" means three or more individuals traveling together on a roadway or highway, each independently operating an e-bike, e-scooter, or e-skateboard.
10.40.030 Compliance with State Law; Rules of the Road.
Nothing in this chapter shall be construed to authorize the operation of an e-bike, e-scooter, or e-skateboard in a manner prohibited by the California Vehicle Code or any other applicable state law.
E-bikes, e-scooters, and e-skateboards shall be operated in accordance with all applicable provisions of the California Vehicle Code and this code, including, without limitation, those provisions governing the operation of bicycles and the rights and duties of bicyclists.
The City shall enforce such provisions as authorized by the California Vehicle Code and other applicable state law and this Code. Such rules include, but are not limited to, the following:
A. Not traveling over the speed limit, or otherwise traveling at a speed greater than is reasonable and prudent under the existing conditions, and in no event at a speed which endangers the safety of persons or property.
B. Being of the minimum age required to operate the device, as required by the California Vehicle Code.
Not operating a device while wearing headphones, earbuds, or any other object that obstructs and/or covers any portion of the ear canal.
D. Wearing a properly fitted and fastened helmet when riding a device within the city, as required by the California Vehicle Code.
When operating a device before sunrise and after sunset, utilizing the required front- facing and rear-facing lights with the minimum visibility.
Traveling in the same direction as vehicles are required to be driven upon the roadway.
Not allowing a person riding as a passenger, and a person shall not ride as a passenger, on any device other than upon or astride a separate seat attached thereto.
H. Stopping and yielding for pedestrians and persons on horseback.
1. Giving an audible signal before overtaking and passing bicycles, pedestrians, and persons on horseback.
J. Not carrying any package, bundle, or article that prevents the operator from keeping at least one hand upon the handlebars.
K. No person riding upon any device shall attach the same or themselves to any other device or vehicle on the roadway.
10.40.040 Local Riding Requirements; Parking; Other Prohibitions.
A. No person shall operate an e-bike, e-scooter, or e-skateboard on any sidewalk in the city, except as reasonably necessary to enter or leave adjacent property.
B. The Chief of Police, or the Chief's designee, is authorized to post signs prohibiting or restricting the operation of e-bikes, e-scooters, or e-skateboards on bike paths, trails, parks, plazas, or other City-owned property where necessary to protect public safety.
No person shall operate a device within any designated area of a city special event, city- permitted festivals, street fair, or emergency operation area.
D. No person shall park, stand, or leave a device within a sidewalk or public roadway, unless in a parking area designated for such devices (e.g., bicycle racks or corrals) or as provided in this Section. The following requirements shall apply to parking of devices:
i. No device shall be parked or left lying on its side within any sidewalk or any public right-of-way.
ii. The device shall be parked in an upright position in a designated parking area; on the curb in such a manner that avoids obstruction of pedestrian traffic; or against a City pole, fence, or tree in such a manner that avoids obstruction to pedestrian traffic.
ili. No device shall be parked in a manner that obstructs any driveway, curb ramp, parking access, utility access, transit stop, crosswalk, fire hydrant, or building entrance.
10.40.050 Reckless operation prohibited.
No person shall operate an e-bike, e-scooter, or e-skateboard with willful or wanton disregard for the safety of persons or property. Prohibited reckless operation includes, but is not limited to, swerving into oncoming traffic, riding into or toward pedestrians in a dangerous manner, obstructing traffic, riding against the flow of traffic, carrying passengers on devices not designed for multiple riders, performing stunts or tricks in a roadway, or operating in any manner that creates a substantial risk of injury to any person or damage to property.
10.40.060 Group Rides.
A. No person shall operate an e-bike, e-scooter, or e-skateboard during a group ride or similar event in a manner that demonstrates willful or wanton disregard for the safety of persons or property, or in violation of this chapter or the applicable provisions of the California Vehicle Code.
B. No person shall organize, promote, direct, aid, or facilitate a group ride or similar event involving e-bikes, e-scooters, or e-skateboards where the person knows, or reasonably should know, that the event will result in violations of this chapter or the applicable provisions of the California Vehicle Code.
10.40.070 Violation
A. Unless otherwise provided, any violation of this chapter is an infraction punishable as provided in Chapters 1.08 and 1.10 of this Code.
In lieu of, or in addition to, any other enforcement remedy authorized by law, the Chief of Police or the Chief's designee may allow a minor who violates this chapter to attend a bicycle, e-bike, e-scooter, or e-skateboard safety course approved by the Chief of Police.
The purpose of the course is to educate minors regarding safe operation and applicable law.
C. The parent or legal guardian of the minor whose conduct receives a violation of this chapter shall be jointly and severally liable with the minor for the amount of the fine or fee imposed pursuant to this chapter.
D. This section shall not be interpreted to authorize a local fine, penalty, assessment, or fee where the California Vehicle Code provides a fine, penalty, assessment, or fee for the same or similar conduct.
10.40.80 Seizure, Impounding, and Storage Fees.
A. In addition to any remedy authorized by state law or this Chapter, a peace officer may remove and impound a device when the rider of the device creates an immediate threat to public safety, engages in reckless operation of the device with disregard for the safety of persons or property, or when the device causes a dangerous hazard or obstruction interfering with pedestrian travel or the public right-of-way.
The City may recover its actual administrative costs incurred in connection with the removal, seizure, and storage of applicable vehicles seized and stored by a peace officer in accordance with California Vehicle Code section 22651.08, as amended. The City's administrative costs relating to the removal, seizure, and storage costs shall be established by resolution of the City Council and posted on the City website.
C. If the owner or person entitled to possession fails to claim a seized vehicle and pay the applicable fees within three (3) months after seizure, the vehicle shall be deemed unclaimed and may be disposed of in accordance with applicable law or policy.
10.40.090 Administrative Hearing
Any person issued a citation, notice of violation, seizure notice, release fee, storage fee, or other penalty under this chapter shall be entitled to an administrative hearing pursuant to the procedures set forth in Chapter 1.10
Created: 2825-03-10 16:44:06 [EST]
(Supp. No. 13)
OF TONE Agenda Item #L. 4.
CITY OF IONE
IONE, C4 95640)
DATE: AUGUST 4, 2026
TO: THE HONORABLE MEMBERS OF THE CITY COUNCIL
FROM: GEORGE LEE, CITY MANAGER
SUBJECT: DISCUSSION/DIRECTION REGARDING DEVELOPMENT AND
NEGOTIATIONS FOR SOFTBALL FIELDS AT HOWARD PARK
RECOMMENDED ACTION: The conversation has existed for over 20 years to bring softball to lone. We are providing council with 2 options which are as follows:
1. Follow Parks and Recreation recommendation to solicit additional proposals under the criteria below and bring it back to the commission for further consideration and review
2. Negotiate an agreement with lone little League who has expressed an interest under the criteria below.
FISCAL IMPACT: $ 0
BACKGROUND: At the most recent parks and recreation meeting held on July , the commission passed a motion to recommend council to direct staff to solicit a proposal from various interested groups to initiate softball and build softball fields in lone that contained the following criteria:
1. No cost to the city
2. That the league is open to all girls in Amador County
3. Negotiate a yearly fee to be paid to the city for such use
4. Commitment to develop a schedule to commence construction for such fields The commission recommended that staff be directed by council to bring any and all proposals back to the commission for review and further action.
DISCUSSION: The past organization's letter of understanding recently expired on July 20, 2026. The group had 5 years to facilitate the construction of softball fields in lone. At the expiration of the time period, there was no progress in developing the softball fields. As far back as 2 years ago, they were encouraged to begin by obtaining a site plan for the fields. It wasn't until 2 months prior to the expiration that the group began to seek to engage a firm to do such work. In addition, they also requested an extension of their letter of understanding.
Agenda Item #L. 5.
CITY OF IONE
IONE, CA 95640
DATE: AUGUST 4, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GEORGE LEE, CITY MANAGER
SUBJECT: CONSIDERATION/APPROVAL OF AGREEMENT FOR RESTORATION
OF THE DONNY TILLERY MEMORIAL BIKE TRACK
RECOMMENDED ACTION: Approve agreement between the City of lone and DTMBT.
FISCAL IMPACT: 0
BACKGROUND: The Howard Park Master Plan includes restoration of the bike track that was originally built in the 1980s. The DTMBT non-profit organization was established to restore and maintain the track. The restored track will give cyclists of all ages a place to ride their bicycles.
The DTMBP will provide recreational and bicycle safety opportunities for the community. In the future, the DTMBP will host races.
DISCUSSION: At the previous Parks and Recreation commission meeting, it was recommended to council that this agreement be approved.
ATTACHMENTS: Draft Agreement with Donny Tillery Memorial Bike Track
CITY OF IONE
AGREEMENT WITH THE
DONNY TILLERY MEMORIAL BIKE PARK,
A 501(c)3 NON-PROFIT CHARITABLE ORGANIZATION
This agreement between the City of Ione, a California municipal corporation ("City") and the Donny Tillery Memorial Bike Park, 501(c)3 non-profit charitable organization ("DTMBP"), is entered into on the day of_ - 2026.
RECITALS
WHEREAS the City owns and operates Howard Park; and
WHEREAS Howard Park is located at 600 Church Street, lone, California; and WHEREAS the Howard Park Master Plan allocates a location for a bike track; and WHEREAS the DTMBP was established to restore, maintain, and host activities at the bike track; and
WHEREAS the City wishes to grant the DTMBP permission to restore, maintain, and offer activities at the bike track; and
NOW, THEREFORE in consideration of the above recitals, the mutual covenant herein contained and other and further consideration as is hereby acknowledged, the parties agree as follows:
AGREEMENT
PARTICIPATING AGENCIES AND DESIGNATED CONTACT PERSONS
City of lone Representative: DTMBP Representative:
George Lee, City Manager Jean Weiss, Chair
City of lone DMBP
#1 Main St 120 E Main St
Tone, CA 95640 Ione, CA 95640
Tel: (209) 274-2412 (209) 418-7503
1 1. Term.
A. This Agreement will be valid from date of approval through December 31, 2031.
B. Upon expiration, the terms and conditions will be evaluated by both parties and should both parties remain satisfied with the Agreement, an extension may be granted on a biennial basis.
C. If either party fails to perform any of its obligations under this Agreement when due and called for, that Party shall be in default. Should the defaulting Party fail to cure such default within thirty (30) days of receiving written notice from the non-defaulting Party, the Agreement may be terminated by the non-defaulting Party. Provided, however, that the nature of the default is a non-monetary default, and is the result of a force majeure occurrence, or is otherwise of a nature such that it cannot be fully cured within that thirty (30) day period, the Party in default shall have such additional time as is reasonably necessary to cure the default so long as the Party is proceeding diligently to complete the necessary cure after service of notice by the non-defaulting Party.
2. Mutual Covenants.
A. The City shall:
• Monitor the Park and City facilities to ensure all commitments are being adhered to.
B. DTMBP shall:
• Restore the Howard Park bicycle track and provide maintenance to the track throughout the year. This will include, but not be limited to mowing, edging, low limb pruning, trash pickup and reporting of significant issues to the City. • Organize recreational and educational opportunities for public schools, youth groups, and community agencies and organizations.
• Provide recreational competition, demonstration, and display opportunities for cyclists of all ages.
• As a Howard Park Stakeholder, pay the City fifty percent of any monies collected to contribute toward the overall upkeep and improvement of Howard Park, thus contributing to the greater good of all who enjoy the Howard Park amenities. • Provide and maintain the necessary equipment for their program.
3. Exclusivity & Scheduling.
This is a non-exclusive Agreement for DTMBP to use the bike track during scheduled events.
DTMBP shall annually provide the City a schedule of events and update the schedule as needed.
4. Insurance.
DTMBP shall procure and maintain for the duration of this Agreement general liability insurance in commercially reasonable amounts, or as required by California Law, insuring against claims for 2 injuries to persons or damages to property which may arise from or in connection with DTMBP use of the City Facilities or performance under this Agreement. The coverage shall in no event be less than $1,000,000 in primary coverage. In the event the City, by mutual agreement and validated by an independent insurance broker/agent, determines that a general liability policy is not available on the open market, the City will waive this insurance requirement. The City, by mutual agreement and validated by an independent insurance broker/agent, will review this requirement annually until the required general liability requirement becomes available on the open market. If it is determined that a general liability policy is available, the DTMBP shall, within 60 days notice by the City, purchase the general liability policy. a. The City, its officers, agents and employees are to be covered as additional insured. The policy shall not contain any special limitations on the scope of protection afforded to the City, its officers, agents and employees.
b. For any claim related to this Agreement, DTMBP insurance shall be the primary insurance as it relates to claims made against the City, its officers, officials and employees. Any insurance or self-insurance maintained by the City, its officers, officials or employees shall be excess of DTMBP insurance and shall not contribute to it. c. DTMBP insurance shall apply separately to each insured against whom a claim is made, or suit is brought, except with respect to the limits of insurer's liability. d. Each insurance policy required by this Section shall be endorsed to state that coverage shall not be suspended, voided or cancelled by either Party, reduced in coverage or in limits except after thirty (30) days prior (10 days for non-payment of premium) written notice by certified mail, return receipt requested, has been given to the City. DTMBP shall also provide the same notice to the City.
e. DTMBP shall furnish the City with original endorsements effecting coverage required by this Section. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City within thirty (30) days from execution of this Agreement.
f. Any failure to comply with reporting or other provisions of the parties, including breach of warranties, shall not affect coverage provided the City, its officers, agents and employees.
5. Indemnity.
To the fullest extent permitted by California law, DTMBP shall defend, indemnify, and hold harmless the City, its agents, representatives, officers, consultants, employees, elected officials, and volunteers (the "Indemnified Parties") from any and all losses, liabilities, claims, suits, and actions of any kind, nature, and description, including but not limited to, attorneys' fees and costs, directly or indirectly arising out of, connected with, or resulting from the performance of Agreement, or from any activity, work, or thing done, permitted, or suffered by DTMBP in the performance of this Agreement, unless caused wholly by the sole negligence or willful misconduct of the Indemnified Parties; and in case any action or proceeding be brought against the City, DTMBP shall defend the same at DTMBP' expense. 3 6. Dispute Resolution.
If, during the performance of this Agreement, a dispute arises between DTMBP and the City that cannot be settled by discussions, DTMBP shall submit a written statement within ten [10] days of the incident giving rise to the dispute to the City. A decision by the City Manager shall be made to the DTMBP within seven [7] days, in writing. DTMBP reserves the right to appeal the City Manager's decision to the City Council. The City Council's decision shall be binding and final.
DIMBP and the City shall continue to perform Agreement requirements without interruption during the dispute period.
7. General Terms and Conditions.
The terms and conditions contained in this Agreement shall govern and shall take precedence over any different or additional terms and conditions that DTMBP may have included in any documents attached to or accompanying this Agreement. Any handwritten changes on the face of this document shall be ignored and have no legal effect unless initialed by both parties.
7.1 Choice of Law, Forum Selection, Entire Agreement and Modifications This Agreement shall be construed under California law (without regard for choice-of law considerations) and the policies and procedures of the City, as amended from time to time. Any action arising out of this Agreement shall be heard by a state court in California. For this purpose, DTMBP specifically consents to jurisdiction in Amador County. This Agreement constitutes the entire agreement and understanding of the parties and replaces any prior or contemporaneous agreement, whether written or oral.
7.2 Use of City Name or Logo.
DTMBP agrees not to use the name, logo, or any other marks (including, but not limited to, colors and music) owned by or associated with the City or the name of any representative of the City in any sales promotion work or advertising, or any form of publicity, without the written permission of the City in each instance.
7.3 Terms of Payment.
Subject to the conditions below, payment shall be made by DTMBP within twenty (20) days of collection.
7.4 Termination.
The City may terminate this Agreement in whole or in part for Cause upon thirty (30) days written notice if DTMBP fails to comply with any material term or condition of this Agreement, becomes insolvent or files for bankruptcy protection, or fails to comply in a material way with the requirements of this Agreement. Late delivery of services, or services that are defective or do not conform to the Agreement shall, without limitation, be causes allowing the City to terminate for cause.
4 7.5 Independent DTMBP Group.
DTMBP shall perform its duties hereunder as an independent DTMBP and not as an employee of the City. Neither DTMBP nor any agent or employee of DTMBP shall be or shall be deemed to be an agent or employee of the City. DTMBP shall pay when due all required employment taxes and income tax withholding, including all federal and state income tax on any monies paid pursuant to this agreement. DTMBP acknowledges that DTMBP and its employees are not entitled to tax withholding, worker's compensation, unemployment compensation, or any employee benefits, statutory or otherwise. DTMBP shall have no authorization, express or implied, to bind the City to any agreements, liability, or understanding except as expressly set forth herein. DTMBP shall be solely responsible for the acts of DTMBP, its employees, and agents.
7.6 Non-Waiver.
No waiver by any party of any default or nonperformance shall be deemed a waiver of any subsequent default or nonperformance.
7.7 Limitation on City Liability.
In no event shall the City be liable for any indirect, consequential, incidental, lost profits or like expectancy damages arising out of the agreement. The City's maximum obligation under this agreement shall not exceed $7,500.
7.8 Affirmative Action, Equal Employment Opportunity, and Targeted Group Business.
The City is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation and is committed to transacting business only with firms who follow these practices. DTMBP must apply every good faith effort to ensure implementation of this policy in their practices of employment, upgrade, demotion or transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. DTMBP will maintain non-segregated facilities for their employees and not allow their employees to perform services at any segregated facilities under its control. By accepting this Agreement, DTMBP certifies that it complies with all applicable federal and state laws as well as City policies related to non-discrimination, equal employment opportunity, and affirmative action.
7.9 Compliance with Ordinances and Regulations.
DTMBP agrees to abide by all applicable laws and regulations and all rules, notices, prohibitions instructions, or directions posted on any park or trail sign by the City. This includes closures. DTMBP is not authorized to alter, construct, erect, or remove any structure within a park or on a trail without permission from the City. This includes the physical alteration of structures. DTMBP agrees to not assemble for the purpose of which, in fact, 5 results in blocking or obstructing the lawful use by any other person of any portion of a park or trail or any structure in a park or on a trail or any position of access or exit to or from any park, trail, structure therein. This includes blocking off entrance drives and parking areas. DTMBP agrees not to charge admission, collect fees or payment for any activity, event, service or use of any land or facility in a park or on a trail without permission from the City. This includes charging a fee for the use of parking spaces.
6 7.10 Severability.
If any provision of this Agreement shall be invalid or unenforceable with respect to any party, the remainder of the Agreement, or the application of such provision to persons other than those as to which it is held invalid or unenforceable, shall not be affected and each provision of the remainder of the Agreement shall be valid and be enforceable to the fullest extent permitted by law.
7.11 Survivability.
The terms, provisions, representations, and warranties contained in this Agreement that by their sense and context are intended to survive the performance thereof by any of the parties hereunder shall so survive the completion of performance and termination of this Agreement, including the making of any and all payments hereunder.
7.12 Notices.
All notices, requests, or other communications required hereunder shall be sufficient only if given in writing and shall be deemed given only when delivered personally or deposited in the United States mails by certified or registered mail, postage prepaid addressed as follows:
City of lone
Attn: City Manager
P.O. Box 398
Ione, CA 95640
DTMBP
Attn: Chair
120 E Main St
Ione, CA 95640
Such addresses may be changed by either party by written advice as to the new address delivered to the other party at the address provided above.
7.13 Multiple Counterparts
This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which shall constitute one and the same document. Facsimile or electronic signatures shall have the same effect as original signatures.
7 IN WITNESS WHEREOF, the City of Ione, a municipal corporation, has caused this Agreement to be executed in duplicate by its City Manager and attested to by its City Clerk and DTMBP has caused this Agreement to be executed by its authorized agent
CITY OF IONE DTMBP
George Lee, Cy Manager By_
Jean Weiss, Chair, DTMBP
APPROVED AS TO FORM:
By_
Josh Varinsky, City Attorney
By-
Janice Traverso, City Clerk
Agenda Item #L. 6
Fiscal Year 2026-2027 Capital Improvement Program Cost
Fire
Firehouse Carpet 9675 15,000
Radios 9675 20,000
OES Engine 9675 50,000
Total Police 85,000
Police
Police Station and Improvements 9513 250,000
Total Police 250,000
Public Works / Parks and Recreation
Park n Rec - TBD 9514 10,000
Park Improvements 9514 15,000
Baseball Lighting 9514 15,000
Mower 9514 25,000
Aerator 9514 40,000
Guardrails 9514 25,000
Train Depot 9514 200,000
Total Public Works / Park and Recreation 330,000
Street Improvements/Transportatior
Sacramento/Mill Street Repair (City Portion 2111 50,000 2111 665,000
2121 250,000
965,000
Wastewater Treatment/Collection
WWTP Flow Meters 3121 33,000
Vacuum Truck 3121 67,000
TP Improvements - Headworks, including grinde 3121 400,000 tal Wastewater Treatment/Collectic 500,000
Tertiary Plant - COWRF
Sand Filters 3131 100,000
Total Wastewater Treatment/Collection 100,000
Total Capital Improvement Program Cost $ 2,230,000
Effective Date: 7/1/2026
City of lone
2026-27 Salary Schedule
Step 3 Step 4 Step 5
Step 1 Step 2
Position Title
45,864.00 $ 48,157.20 50,565.06
Annual 41,600.00 43,680.00 $
$
Account Clerk 3,822.00 $ 4,013.10 4,213:76
Monthly 3,466.67 3,640.00
1,764.00 1,852.20 1,944.81
Bi-Weekly 1,600.00 1,680.00
$ 23.15 $ 24.31
21.00 22.05
Hourly $ 20.00
58,545.40 61,472.67 64,546.30
53,102.40 55,757.52 $
Accounting Clerk Annual $
4,646.46 $ 4,878.78 5,122.72 5,378.86
Monthly 4,425.20
2,251.75 2,364.33 $ 2,482.55
Bi-Weekly 2,042.40 2,144.52
28.15 $ 29.55 31.03
25.53 $ 26.81
Hourly
58,545.40 $ 61,472.67 64,546.30
53,102.40 $ 55,757.52 S
Annual $ 5,378.86
Administrative Analyst 4,646.46 $ 4,878.78 5,122.72
Monthly $ 4,425.20 2,482.55
$ 2,251.75 2,364.33 $
Bi-Weekly 2,042.40 2,144.52
28.15 29.55 31.03
25.53 26.81 $
Hourly
74,735.39 78,472.16 $ 82,395.77
$ 67,787.20 71,176.56 $
Administrative Analyst I Annual 6,866.31
$ 5,931.38 $ 6,227.95 6,539.35 $
Monthly 5,648.93 3,169.07
2,874.44 3,018.16 $
Bi-Weekly $ 2,607.20 $ 2,737.56
35.93 37.73 39.61
32.59 34.22
Hourly
82,578.13 86,707.04 91,042.39
Annual 74,900.80 78,645.84
Building Official/Code Enforcement 6,881.51 7,225.59 7,586.87 Monthly $ 6,241.73 6,553.82
Officer 3,176.08 3,334.89 $ 3,501.63
Bi-Weekly $ 2,880.80 3,024.84
39.70 41.69 $ 43.77
36.01 $ 37.81
Hourly
$ 2,400.00
Annual 200.00
City Council (elected) $
Monthly
171,439.63 $ 180,011.61 189,012.19
155,500.80 $ 163,275.84 $
City Manager (contract) Annual 15,751.02
13,606.32 $ 14,286.64 $ 15,000.97
Monthly 12,958.40
6,593.83 6,923.52 7,269.70
Bi-Weekly 5,980.80 6,279.84
82.42 $ 86.54 90.87
$ 74.76 78.50
Hourly
2,400.00
Annual 200.00
City Treasurer (elected)
Monthly
30,000.00
Clerk of the City Council (elected) Annual 2,500.00
Monthly
97,461.92 $ 102,335.01 107,451.76
Annual 88,400.83 92,820.87
Finance Manager 8,121.83 8,527.92 8,954.31
Monthly $ 7,366.74 7,735.07
3,748.54 3,935.96 $ 4,132.76
Bi-Weekly $ 3,400.03 $ 3,570.03 $
46.86 $ 49.20 $ 51.66
42.50 $ 44.63 $
Hourly $
56,733.77 59,570.46 $ 62,548.98
Annual 51,459.20 54,032.16
Fire Account Clerk 4,727.81 4,964.20 $ 5,212.41
Monthly 4,288.27 4,502.68
(Part Time) 2,182.07 2,291.17 $ 2,405.73
Bi-Weekly 1,979.20 2.078.16
$ 30.07
25.98 27.28 28.64
Hourly 24.74 $
$ 4,800.00
Fire Assistant Chief (stipend) Annual 400.00
Monthly
$ 4,800.00
Fire Battalion Chief (Stipend) Annual 400.00
Monthly
1,863.54
Annual 300.00
Fire Captain (stipend)
(Monthly
30,000.00
Annuai
Fire Chief (stipend) 2,500.00
Monthly
73,760.96 77,459.20 81,303.04
Annual $ 66,888.64 $ 70,237.44
Fire Engineer 6,146.75 $ 6,454.93 $ 6,775.25
Monthly $ 5,574.05 5,853.12 $
$ 2,836.96 2,979.20 3,127.04
Bi-Weekly $ 2,572.64 $ 2,701.44
$ 25.33 26.60 $ 27.93
22.97 $ 24.12
Hourly
100.00
Fire Fighter (Paid Call/Stipend) Daily Rate
Fire Marshall (stipend) Annual $ 24,000.00
Monthly $ 2,000.00
Police Chief Annual 126,880.00 133,224.00 $ 139,885.20 $ 146,879.46 $ 154,223.43 Monthly $ 10,573.33 $ 11,102.00 $ 11,657.10 $ 12,239.96 $ 12,851.95 Bi-Weekly 4,880.00 $ 5,124.00 $ 5,380.20 5,649.21 $ 5,931.67 Hourly 61.00 64.05 $ 67.25 70.62 $ 74.15
Police Administratvie Analyst Hourly $ 27.50 $ 28.88 $ 30.32 $ 31.84 $ 33.43 Part-time as needed
Police Community Service Officer (CSO) Hourly, $ 20.00
Pass thru to event producer
Police Officer (per MOU), in negotiations Annual 73,008.00 76,658.40 $ 80,491.32 $ 84,515.89 88,741.68 Monthly 6,084.00 6,388.20 6,707.61 7,042.99 $ 7,395.14
Bi-Weekly 2,808.00 2,948.40 3,095.82 3,250.61 3,413.14
Hourly 35.10 36.86 38.70 40.63 42.66
Police Sergeant (per MOU), in negotiations Annual 87,027.20 91,378.56 $ 95,947.49 100,744.86 $ 105,782.11 Monthly 7,252.27 7,614.88 $ 7,995.62 8,395.41 8,815.18
Bi-Weekly 3,347.20 3,514.56 $ 3,690.29 3,874.80 4,068.54 Hourly 41.84 $ 43.93 $ 46.13 $ 48.44 $ 50.86
Police Trainee (per MOU), in negotiations Annual $ 49,920.00 $ 52,416.00 $ 55,036.80 $ 57,788.64 $ 60,678.07 Monthly $ 4,160.00 4,368.00 4,586.40 $ 4,815.72 5,056.51 Bi-Weekly 1,920.00 2,016.00 2,116.80 2,222.64 2,333.77
Hourly 24.00 25.20 26.46 $ 27.78 $ 29.17
Police Records Clerk Annual 51,459.20 54,032.16 56,733.77 $ 59,570.46 $ 62,548.98 Monthly $ 4,288.27 4,502.68 4,727.81 4,964.20 5,212.41
Bi-Weekly $ 1,979.20 2,078.16 2,182.07 2,291.17 2,405.73 Hourly 24.74 25.98 27.28 $ 28.64 30.07
Public Works Maintenance Worker I Annual $ 41,600.00 $ 43,680.00 45,864.00 48,157.20 $ 50,565.06 Monthly 3,466.67 3,640.00 3,822.00 4,013.10 $ 4,213.76
Bi-Weekly 1,600.00 1,680.00 1,764.00 $ 1,852.20 1,944.81 Hourly 20.00 21.00 $ 22.05 23.15 24.31
Public Works Maintenance Worker II Annual 53,093.31 55,747.98 58,535.38 $ 61,462.15 $ 64,535.25 Monthly 4,424.44 $ 4,645.66 4,877.95 5,121.85 5,377.94
Bi-Weekly $ 2,042.05 2,144.15 $ 2,251.36 2,363.93 2,482.13 Hourly $ 25.53 26.80 $ 28.14 $ 29.55 $ 31.03
Public Works Superintendent Annual $ 74,900.80 $ 78,645.84 $ 82,578.13 $ 86,707.04 $ 91,042.39 Monthly $ 6,241.73 6,553.82 6,881.51 7,225.59 7,586.87
Bi-Weekly $ 2,880.80 3,024.84 3,176.08 3,334.89 3,501.63 Hourly 36.01 37.81 $ 39.70 41.69 $ 43.77
Recreation Coordinator Annual $ 47,840.00 $ 50,232.00 $ 52,743.60 $ 55,380.78 1$ 58,149.82 Monthly $ 3,986,67 4,186.00 $ 4,395.30 $ 4,615.07 1$ 4,845.82 Bi-Weekly $ 1,840.00 $ 1,932.00 $ 2,028.60 $ 2,130.03 $ 2,236.53 (Hourly 23.00 $ 24.15 $ 25.36 $ 26.63 $ 27.96
Recreation Lead Annual $ 37,440.00 39,312.00 $ 41,277.60 $ 43,341.48 45,508.55 Monthly $ 3,120.00 3,276.00 $ 3,439.80 $ 3,611.79 1 $ 3,792.38 BI-Weekly $ 1,440.00 $ 1,512.00 $ 1,587.60 $ 1,666.98 $ 1,750.33 Hourly $ 18.00 18.90 $ 19.85 $ 20.84 $ 21.88
[Temporary/Seasonal Hourly $ 17.00 17.85 $ 18.74 $ 19.68 $ 20.66