Agenda packet — Lakeport City Council, February 6, 2024

If you cannot attend in person, and would like to speak on an agenda item, you can access the Zoom meeting remotely:

Join from a PC, Mac, iPad, iPhone or Android device:

Please click this URL to join. https://zoom.us/j/97368201787?pwd=a2NvVnN6MEFjQ2Exc2pTZkpIdU1sQT09 Passcode: 477973
Or join by phone:

Dial (for higher quality, dial a number based on your current location):

US: +1 669 900 9128 or +1 346 248 7799 or +1 253 215 8782 or +1 646 558 8656 or +1 301 715 8592 or +1 312 626 6799 Webinar ID: 973 6820 1787
Passcode: 477973
International numbers available: https://zoom.us/u/abNyiaqY1I The City wants you to know that you can also submit your comments by email to [email protected].

To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 3:30 p.m. on Tuesday, February 6, 2024.

Please indicate in the email Subject Line "FOR PUBLIC COMMENT" and list the item number you wish to comment on.

Comments that you want read to the Council will be subject to the three minute time limitation (approximately 350 words).

Written comments that are only to be provided to Council and not read at the meeting will be distributed to the Council prior to the meeting.

AGENDA

REGULAR MEETING OF THE LAKEPORT CITY COUNCIL
(ALSO MEETS AS THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT, THE LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING AGENCY OF LAKEPORT and THE SUCCESSOR

AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)
Tuesday, February 6, 2024 6:00 p.m.

City Council Chambers, 225 Park Street, Lakeport, California 95453 See Teleconferencing Instructions Below
City Council Agenda of February 6, 2024 Page 2
AGENDA

REGULAR MEETING OF THE LAKEPORT CITY COUNCIL
(ALSO MEETS AS THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT, THE

LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING AGENCY OF LAKEPORT and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)*
Tuesday, February 6, 2024, 6:00 p.m.

City Council Chambers, 225 Park Street, Lakeport, California 95453 *All references to “City Council” include those other agencies which are listed above The City Council may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the agenda items are described. The council may establish and make appointments to a Council committee (made up of two Councilmembers) with respect to any item appearing on this agenda.

I. CALL TO ORDER & ROLL CALL: 6:00 p.m.

II. PLEDGE OF ALLEGIANCE:

III. ACCEPTANCE OF AGENDA/ URGENCY
ITEMS:

Move to accept agenda as posted or move to add or delete items.

To add item, Council is required to make a majority decision that an urgency exists (as defined in the Brown Act) and a 2/3rds determination that the need to take action arose subsequent to the agenda being posted.

IV. CONSENT AGENDA: The following Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without any discussion. Any Council Member may request that any item be removed from the Consent Agenda for discussion under the regular Agenda. Removed items will be considered following the Consent Calendar portion of this agenda.

A. Ordinances: Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934.

B. Minutes: Approve minutes of the City Council regular meeting of January 16, 2024 and the special meeting of January 29, 2024.

C. Application 2024-003: Approve application 2024-003, with staff recommendations, for the 2024 Shakespeare at the Lake event.

D. Application 2024-004: Approve application 2024-004, with staff recommendations, for the 2024 Children’s Festival event.

E. Application 2024-005: Approve application 2024-005, with staff recommendations, for the Home Winemakers event.

F. Application 2024-006: Approve application 2024-006, with staff recommendations, for the 2024 Cinco de Mayo event.

G. Application 2024-007: Approve application 2024-007, with staff recommendations, for the 2024 Mental Health Matters event.

H. Notice of Completion: Adopt the resolution accepting construction of the Storm Drain Slip Line Project, Bid 22-09 by Miskis Services Inc. and authorize the City Manager to execute and file the Notice of Completion with the Lake County Clerk.

I. Notice of Completion: Adopt the resolution accepting installation of the Lakefront Park Fence Project by Humboldt Fence Company and authorize the City Manager to execute and file the Notice of Completion with the Lake County Clerk.

J. Measure Z Advisory Committee
(MZAC):

Receive and file the draft minutes of the January 17, 2024, meeting of the Measure Z Advisory Committee (MZAC).

V. PUBLIC PRESENTATIONS/REQUESTS:

City Council Agenda of February 6, 2024 Page 3
A. Public Input: Any person may speak for 3 minutes about any subject within the authority of the City Council, provided that the subject is not already on tonight’s agenda. Per Government Code §54954.3(a), the City Council cannot take action or express a consensus of approval or disapproval on any public comments regarding matters which do not appear on the printed agenda.

VI. PUBLIC HEARINGS:

A. Design Immunity Ordinance: Introduce an Ordinance of the City Council of the City of Lakeport amending Section

2.10.110 of Chapter 2.10 of Title 2 of the Lakeport Municipal Code to authorize City Manager to sign written contracts and conveyances and have design approval authority.

VII. COUNCIL BUSINESS:

City Manager
A. 1. LFPD Ambulance
Donation:

Authorize the legal transfer of the surplus ambulance vehicle title to the Lakeport Fire Protection District.

B. Assistant City Manager

1. ACFR: Accept the ACFR and Single Audit for the fiscal year ended June 30, 2023.

C. Community Development Director

1. HOME Grant and
Program Income:

Approve the proposed resolution authorizing the submittal of an application to the California State Department of Housing and Community Development for funding under the HOME Investment Partnership Program and authorizing the City Manager to sign.

VIII. CITY COUNCIL COMMUNICATIONS:

A. Travel, Calendar, and
Miscellaneous Reports, if any:

IX. ADJOURNMENT:

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 225 Park Street, Lakeport, California, during normal business hours. Such documents are also available on the City of Lakeport’s website, www.cityoflakeport.com, subject to staff’s ability to post the documents before the meeting.

The City of Lakeport, in complying with the Americans with Disabilities Act (ADA), requests individuals who require special accommodations to access, attend and/or participate in the City meeting due to disability, to please contact the City Clerk’s Office, (707) 263-5615, 72 hours prior to the scheduled meeting to ensure reasonable accommodations are provided.
_______________________________________
Hilary Britton, Deputy City Clerk
City Council Minutes of January 16, 2024 Page 2

MINUTES

REGULAR MEETING OF THE LAKEPORT CITY COUNCIL
(ALSO MEETS AS THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT, THE

LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING AGENCY OF LAKEPORT and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)*
Tuesday, January 16, 2024, 6:00 p.m.

I. CALL TO ORDER & ROLL CALL: Mayor Froio called the meeting to order at 6:03 p.m. with Council Members Costa, Disney, Mattina, Parlet and Mayor Froio present.

II. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by City Manager Ingram.

III. ACCEPTANCE OF AGENDA/ URGENCY
ITEMS:

A motion was made by Council Member Mattina, seconded by Council Member Parlet, and unanimously carried by voice vote 5-0-0-0 to accept agenda as posted.

A. Ordinances: Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934.

B. Minutes: Approve minutes of the City Council regular meeting of December 19, 2023.

C. Application SCC2023-002: Approve application SCC2023-002, with staff recommendations, for the street closure at 5th and Main for the Rotary Crab Feed.

D. Application G2024-003: Approve application G2024-003, with staff recommendations, for the reserved parking spaces on Park and Third Streets for the Clearlake Environmental Research Center (CLERC) Hometown Wildfire Safety Collaboration.

E. The Successor Agency of the
Lakeport Redevelopment Agency
Recognized Obligation Payment
Schedule (ROPS) 24-25:

Adopt a resolution approving ROPS 24-25 for the period of July 1, 2024 through June 30, 2025 for presentation and adoption by the Lake County Redevelopment Oversight Board.

Vote on Consent Agenda: A motion was made by Council Member Disney, seconded by Council Member Mattina, and unanimously carried by voice vote 5-0-0-0 to approve the Consent Agenda, items A-E.

V. PUBLIC PRESENTATIONS/REQUESTS:

A. Public Input: There was no input offered by the public.

B. Proclamation: Mayor Froio presented a proclamation designating January 2024 as Human Trafficking Awareness Month in the City of Lakeport to representatives from Lake Family Resource Center.

VI. COUNCIL BUSINESS:

City Manager
A. 1. Draft Clear Lake
Integrated Preparedness
The presentation was given by Angela DePalma-Dow of the Lake County Water Resources Department, Lisa De Bruyckere Creative Resource Strategies, LLC and Leah City Council Minutes of January 16, 2024 Page 3
and Resilience Plan for
Dreissenid Mussel
Management:

Elwell, Conservation Collaborations, LLC on the Clear Lake Integrated Preparedness and Resilience Plan for Dreissenid Mussel Management: A Rapid Response and Transition to Containment Plan.

B. Police Chief

1. Contract Extension -
Automated License Plate
Reader (ALPR) Cameras:

The staff report was presented by Police Chief Rasmussen.

Don Baze spoke in favor of the ALPR cameras.

Todd Freitas, President of Lakeport Police Officer Association, stated that the readers have been a valuable tool for catching dangerous criminals.

A motion was made by Council Member Disney, seconded by Council Member Parlet, and unanimously carried by voice vote 5-0-0-0 to authorize the 5-year agreement and direct the City Manager to sign the contract.

C. Community Development Director

1. Retail Storefront
Cannabis Businesses /
Temporary Cannabis
Events Discussion:

The staff report was presented by Community Development Director Hejnowicz.

Don Baze spoke against cannabis sales.

Chris Applet spoke against cannabis sales in Lakeport and against the temporary event at the Fairgrounds.

Todd Frietas, President of the Lakeport Police Officer’s Association, did not comment on the retail sales. He did speak against the temporary event, particularly the proposed event at the Fairgrounds.

Laurie from the Green Heron, would like consideration of a limited number or spacing of any approved retail facilities.

After discussion the Council provided direction not to pursue an ordinance on temporary cannabis events. After discussion, the Council consensus was to explore retail storefront cannabis businesses.

D. Assistant City Manager

1. 1st Quarter Financial
Statements:

The staff report was presented by Assistant City Manager Walker to review and file the First Quarter Financial update.

E. Administrative Services Director

1. Contract and Budget
Adjustment:

The staff report was presented by Administrative Services Director Buendia.

Todd Freitas, President of the Lakeport Police Officer’s Association, spoke in favor of the contract and selection.

A motion was made by Council Member Costa, seconded by Council Member Disney, and unanimously carried by voice vote 5-0-0-0 to authorize the City Manager to execute an agreement with Bob Hall and Associates for the executive recruitment of a new Chief of Police and approve a budget amendment in the amount of $27,000 for the expenditure.

2. Council Liaison
Appointments:

The staff report was presented by Administrative Services Director/City Clerk Buendia.

City Council Minutes of January 16, 2024 Page 4

1. Mayor Froio appointed Council Members as liaisons to various Boards, Committees, and Commissions with the list of appointments attached to these Minutes; and

2. A motion was made by Council Member Parlet, seconded by Council Member Mattina, and unanimously carried by voice vote 5-0-0-0, to adopt a resolution appointing Mayor Froio and Mayor Pro Tem Costa as the alternate, to represent and vote on behalf of the City at the League of California Cities, Redwood Empire Division Business meetings; and Mayor Froio and Mayor Pro Tem Costa as the alternate; to represent the City and vote at Division Legislative Committee meetings.

VII. CITY COUNCIL COMMUNICATIONS:

A. Travel, Calendar, and
Miscellaneous Reports, if any:

Community Development Director Hejnowicz had no report.

City Attorney Ruderman advised that he will not be at the next meeting, but there will be a substitute.

City Manager Ingram advised the Council of a special meeting to be held on 01/29/2024 at 6:00 p.m.

Police Chief Rasmussen reported on the progress of the Community Discussion on the Opioid Crisis presentations at the local schools and advised that a community wide discussion will be held tomorrow night at the Soper-Reese Theatre.

Public Works Director Ladd was absent.

Administrative Services Director Buendia had no report.

Assistant City Manager Walker had no report.

Utilities Superintendent Harris had no report.

Council Member Parlet had no report.

Council Member Costa had no report.

Council Member Disney reported that the Fire Protection District had a public hearing on the Fire Mitigation fees, and the item will be coming before Council in the future.

Council Member Mattina had no report.

Mayor Froio has been receiving positive feedback on Xabatin Park, and he thanked Council Member Mattina for her efforts in obtaining the Christmas Tree in the Park.

VIII. ADJOURNMENT: Mayor Froio adjourned the meeting at 9:00 p.m. _______________________________________
Michael Froio, Mayor
Attest:
____________________________________
Kelly Buendia, City Clerk

LAKEPORT CITY COUNCIL
EFFECTIVE JANUARY 16, 2024

LIAISONS TO COMMISSIONS, BOARDS, COMMITTEES

LIAISONS
2023 2024
Lakeport Fire Protection District Council Member Disney Council Member Parlet
Council Member Disney
Council Member Parlet
Lake County Chamber of Commerce Council Member Parlet
Mayor Mattina, Alt.

Council Member Parlet
Council Member Mattina, Alt.

Lakeport Main Street Association Mayor Pro Tem Froio Council Member Disney

APPOINTMENTS
2023 2024
League of California Cities
Redwood Empire Division
Division Business Meeting Voting Delegate
Mayor Mattina
Mayor Pro Tem Froio
Mayor Froio
Mayor Pro Tem Costa, Alt.

League of California Cities
Redwood Empire Division
Legislative Committee Voting Delegate
Mayor Mattina
Mayor Pro Tem Froio
Mayor Froio
Mayor Pro Tem Costa, Alt.

Lake County/City Area Planning Council Mayor Mattina
Council Member Parlet
Council Member Costa, Alt.

Council Member Mattina
Council Member Parlet
Mayor Pro Tem Costa, Alt.

Right of Way Ordinance Advisory Ad-Hoc
Committee
Mayor Pro Tem Froio
Council Member Disney
Mayor Froio
Council Member Disney
PEG Board Council Member Froio Council Member Froio
Vector Control District Board George Spurr
Council Member Disney, Alt.

George Spurr
Council Member Disney, Alt.

County of Lake Solid Waste Management
Task Force
Mayor Pro Tem Froio
Council Member Parlet
Mayor Froio
Council Member Parlet
SB 621 Indian Gaming Funds Committee Councill Member Parlet Mayor Mattina
Councill Member Parlet
Council Member Mattina
Local Agency Formation Commission &
LAFCO Alternate^
^Rotates to City of Lakeport in 2026 & 2027
Mayor Mattina
Council Member Parlet^
Council Member Mattina
Council Member Parlet, Alt.

Invasive Species Task Force Committee Council Member Disney Council Member Disney Clean Water Program Committee Council Member Costa
Council Member Disney, Alt.

Council Member Disney
Mayor Pro Tem Costa, Alt.

Lakeport Unified School District Committee Mayor Mattina Council Member Costa
Council Member Mattina
Mayor Pro Tem Costa
Abandoned Vehicle Service Authority Mayor Pro Tem Froio Council Member Parlet
Mayor Froio
Council Member Parlet
Risk Reduction Authority Council Member Costa Mayor Pro Tem Costa Kevin Ingram, City Manager, Alt
Lakeport Solid Waste Committee Mayor Pro Tem Froio
Council Member Parlet
Mayor Froio
Council Member Parlet
Lake County Recreational Agency, JPA (LCRA) Mayor Mattina Council Member Disney
Mayor Froio
Council Member Disney
Tribal Consultation Committee
(New Committee)
Mayor Froio
Mayor Pro Tem Costa

1. Roll Call & Call to
Order:

Mayor Froio called the meeting to order at 6:02 p.m., with Council Members Costa, Disney, Mattina, and Mayor Froio present, with Councilmember Parlet absent.

2. HSIP Sign Repair
and Replacement
Project:

The staff report was presented by Public Works Director Ladd.

A motion was made by Council Member Mattina, seconded by Council Member Disney, and unanimously carried by voice vote 4-0-0-1, to approve supplemental agreement #1 and contract change order #3 with Square Signs LLC dba Front Signs for the HSIP Sign Repair and Replacement Project and authorize the City Manager to execute the supplemental agreement and change order for the amount of $46,514.00.

3. Contract Award:

Green/Sayre/Loch
Rehabilitation
Project:

The staff report was presented by Public Works Director Ladd. City Attorney Ruderman also responded to questions from the City Council.

Justin Bochmann of the Foundation for Fair Contracting California (FFC), spoke about the bid advisory that they submitted and were opposed to awarding the contract to Wylatti Resource Management.

Michelle Pickens of the Construction Industry Force Account Council (CIFAC) reviewed the points of a letter outlining their concerns asserting that Wylatti is not a responsible bidder.

Matt Hilliard of NorCal Construction Industry Compliance (NCIC) encouraged the city to perform an investigation to determine whether Wylatti is a responsible and responsive bidder.

Selby Ford from Wylatti responded to the opposition’s concerns, stating that all prior fines have been paid and that there is one ongoing investigation.

Brian Hurt, President of Wylatti, stated that there have been mistakes with a large loss of staff and that they have corrected and learned from mistakes.

A motion was made by Council Member Disney, seconded by Council Member Mattina, and unanimously carried by voice vote 4-0-0-1, to approve the plans, specifications and working details and award a construction contract to Wylatti Resource Management, Inc. for the GSL Pavement Rehabilitation Project and authorize the City Manager to execute the construction contract for the bid amount of $444,113.35.

Adjournment: Mayor Froio adjourned the meeting at 6:47 p.m. ___________________________________
Michael Froio, Mayor

MINUTES

NOTICE AND CALL OF SPECIAL MEETING

OF THE LAKEPORT CITY COUNCIL
Monday, January 29, 2024
6:00 p.m.

City Council Chambers, 225 Park Street, Lakeport, California 95453 Attest:
____________________________
Kelly Buendia, City Clerk
2024-003
02/06/2024

1/31/24, 7:38 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 1/2 RE: Application 2024-003 - Mendocino College - Shakespeare at the Lake Bethany Moss <[email protected]>
Mon 1/22/2024 9:32 AM
To:Hilary Britton <[email protected]>
Good morning Hilary,
Did the applicant submit a site plan other than circling Library Park on the map? I would like more information as to a specific site plan of the event. I know they’ve done this event for years, but I definitely need detail, please. Placement of vendors, generators, stage height, lighting, placement of fire extinguishers, etc. Just the usual!
Thank you! I hope you had a wonderful weekend 😊
Bethany Moss Childers, CBO
Chief Building Official, City of Lakeport
225 Park Street Lakeport, Ca 95453
P: 707-263-5615 x202 F: 707-263-8584
Online Building Permit Portal: lakeportca.portal.opengov.com From: Hilary Britton <[email protected]>
Sent: Wednesday, January 17, 2024 7:43 AM
To: Amanda Frazell <[email protected]>; Gary McFarland <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Sheriff's Dept <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]>
Subject: Application 2024-003 - Mendocino College - Shakespeare at the Lake Hi all,
Please find attached application 2024-003 for the Shakespeare at the Lake event for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/26/2024.

Thank you for your input!
Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
1/31/24, 7:38 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 2/2 225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 1/7 A picture
containing shape
Description
automatically
generated
RE: Shakespeare at the Lake dates and paperwork
carrieanneve <[email protected]>
Mon 1/29/2024 9:18 AM
To:Bethany Moss <[email protected]>;Hilary Britton <[email protected]>;John Tomlinson <[email protected]>
Hi
Thank you for the update. I will get that in very soon.

If there is anything else that you need for Shakespeare please let me know.

Carrie Eve-Laubach
Sent via the Samsung Galaxy S10e, an AT&T 5G Evolution capable smartphone -------- Original message --------
From: Bethany Moss <[email protected]>
Date: 1/25/24 4:12 PM (GMT-08:00)
To: Hilary Britton <[email protected]>, carrieanneve <[email protected]>, John Tomlinson <[email protected]>
Subject: RE: Shakespeare at the Lake dates and paperwork Thank you, Hilary. I look forward to reviewing the details.

Bethany Moss Childers, CBO
Chief Building Official, City of Lakeport
225 Park Street Lakeport, Ca 95453
P: 707-263-5615 x202 F: 707-263-8584
Online Building Permit Portal: lakeportca.portal.opengov.com 1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 2/7 From: Hilary Britton <[email protected]>
Sent: Thursday, January 25, 2024 12:22 PM
To: carrieanneve <[email protected]>; John Tomlinson <[email protected]> Cc: Bethany Moss <[email protected]>
Subject: Re: Shakespeare at the Lake dates and paperwork Hi Carrie,
While reviewing the application for the Shakespeare at the Lake event, our Chief Building Officer has requested additional details including:

Site Plan - (I have attached a map for you to indicate where the production will set up.) Placement of vendors, lighting, generators, fire extinguishers, etc. stage height
Please let me know if there is anything I can do to assist.

Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 3/7 From: Hilary Britton <[email protected]>
Sent: Wednesday, January 17, 2024 7:17 AM
To: carrieanneve <[email protected]>; John Tomlinson <[email protected]> Cc: Ron Ladd <[email protected]>; Jim Kennedy <[email protected]>; Kelly Buendia <[email protected]>
Subject: Re: Shakespeare at the Lake dates and paperwork Hi Carrie,
Thank you for sending the application. We will submit this for Council approval at the 02/06/2024 meeting.

Once approved, I will email you with the conditions of approval (insurance, alcohol sales permit application, etc.)
You can mail a check to my attention at the address below.

Please let me know if there is anything I can do to assist.

Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. 1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 4/7 *For Public Records Act requests, please visit our online public records request system From: carrieanneve <[email protected]>
Sent: Tuesday, January 16, 2024 9:32 AM
To: Hilary Britton <[email protected]>; John Tomlinson <[email protected]> Subject: Re: Shakespeare at the Lake dates and paperwork Hi Hilary
Here is the Application of Use for Shakespeare at the Lake. I do apologize for the late reply. If there is any part that needs to be redone please let me know and I can fix it.

Also about the application fee, what is the best way to pay the fee? I live and work in Middletown so I would have to plan if I need to turn it in in person.

I hope you are having a good day!
Carrie Eve-Laubach
Sent via the Samsung Galaxy S10e, an AT&T 5G Evolution capable smartphone -------- Original message --------
From: Hilary Britton <[email protected]>
1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 5/7 Date: 1/3/24 9:37 AM (GMT-08:00)
To: John Tomlinson <[email protected]>, carrieanneve <[email protected]> Subject: Re: Shakespeare at the Lake dates and paperwork Hi John/Carrie,
Will you be using Library Park, or will you be using Xabatin Community Park? Which days will you need for setup - Wed-Fri?
Please find attached the Application for Use of Public Areas. The application fee is $15.00.

Please fill out the attached, and return to me at the address below or via email.

If the applicant is serving or selling alcohol, they would need to submit an application to the Lakeport Police Department for their alcohol permit, in addition to the permit required by ABC.

Street or Park closures require Council permission, so the application should be submitted 3-4 weeks in advance.

Once the application is approved, the applicant will need to submit an insurance certificate naming the City as also insured prior to the event dates. The minimum coverage amount required is $2,000,000. * *The insurance certificate provided to the City by your organization’s insurance company must name the City of Lakeport as an additional insured for the event specified in the application and must include a copy of any endorsements, including Waiver of Subrogation. The insurance provided to the City as an additional insured shall be primary to, and non-contributory with any insurance or self-insurance program maintained by the City. The minimum coverage amount required is $2,000,000. The certificate and endorsements must also be in a form acceptable to risk management and available for review 15 working days prior to the scheduled event.

Please let me know if there is anything I can do to assist.

Hilary Britton
1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 6/7 Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system From: John Tomlinson <[email protected]>
Sent: Thursday, December 21, 2023 12:21 PM
To: Hilary Britton <[email protected]>; carrieanneve <[email protected]> Subject: Shakespeare at the Lake dates and paperwork
Hello Hillary,
I am introducing Carrie Ann Eve, our producer this summer for Shakespeare at the Lake.

We are hoping to get signed up, which will be one of her tasks as producer. Any guidance you can give is much appreciated.

We are looking at Sat July 28 and Sunday July 29.

Best,
1/31/24, 7:42 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJmCENjBgNpHvM4sCnWGNtc… 7/7 John Tomlinson
Theatre, Film and Speech
Mendocino College
1/29/24, 2:34 PM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 1/2 RE: Application 2024-003 - Mendocino College - Shakespeare at the Lake Ryan Cooley <[email protected]>
Mon 1/29/2024 8:43 AM
To:Hilary Britton <[email protected]>
Hello Hilary,
I think I may have missed this one for Dale. I do not have any concern other then they will need to apply for the ABC permit when the event gets closer.

Thanks,
Ryan Cooley
Police Sergeant
Lakeport Police Department
2025 S Main St.

Lakeport, CA 95453
(707)263-5491 ext 124
CONFIDENTIALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information. It is solely for the use of the intended recipient(s). Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication.

From: Dale Stoebe <[email protected]>
Sent: Wednesday, January 17, 2024 12:59 PM
To: Ryan Cooley <[email protected]>
Subject: Fwd: Application 2024-003 - Mendocino College - Shakespeare at the Lake Dale Stoebe
Lieutenant
Lakeport Police Department
2025 S Main St.

Lakeport, CA 95453
(707)263-9654direct/(707)367-1203mobile(707)263-3846fax CONFIDENTIALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information. It is solely for the use of the intended recipient(s).

Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication. 1/29/24, 2:34 PM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 2/2 From: Hilary Britton <[email protected]>
Sent: Wednesday, January 17, 2024 10:43:26 AM
To: Amanda Frazell <[email protected]>; Gary McFarland <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Sheriff's Dept <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected] <[email protected]>; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]> Subject: Application 2024-003 - Mendocino College - Shakespeare at the Lake Hi all,
Please find attached application 2024-003 for the Shakespeare at the Lake event for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/26/2024.

Thank you for your input!
Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/31/24, 7:39 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 1/2 RE: Application 2024-003 - Mendocino College - Shakespeare at the Lake Lori Price <[email protected]>
Wed 1/17/2024 8:25 AM
To:Hilary Britton <[email protected]>
Good morning Hilary,
Thank you for allowing Lake County DPW to comment. Upon review of the application, I do not see that it will impact County roadways in any way. We have no comments or conditions to add to this permit.

Sincerely,
Lori Price
Staff Services Analyst
Lake County Department of Public Works
255 N. Forbes Street, Rm 309
Lakeport, CA 95453
(707) 263-2341
[email protected]
From: Hilary Britton <[email protected]>
Sent: Wednesday, January 17, 2024 7:43 AM
To: Dean Eichelmann <[email protected]>; Gary McFarland <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Lake County Sheriff - Records <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]>
Subject: [EXTERNAL] Application 2024-003 - Mendocino College - Shakespeare at the Lake Hi all,
Please find attached application 2024-003 for the Shakespeare at the Lake event for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/26/2024.

Thank you for your input!
Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
1/31/24, 7:39 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 2/2 Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/31/24, 7:39 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 1/2 FW: Application 2024-003 - Mendocino College - Shakespeare at the Lake Lake County Sheriff - Records <[email protected]> Wed 1/17/2024 1:01 PM
To:Hilary Britton <[email protected]>
Please see below the Lake County Sheriffs Office response From: Richard Ward <[email protected]>
Sent: Wednesday, January 17, 2024 12:58 PM
To: Lake County Sheriff - Records <[email protected]> Subject: RE: Application 2024-003 - Mendocino College - Shakespeare at the Lake This event should not impact the Lake County Sheriff’s Office.

Lieutenant Rich Ward
Lake County Sheriff’s Office
1220 Martin St.

P.O. Box 489
Lakeport, Ca. 95453
(707) 262-4081 Desk
(707) 262-4220 Fax
(707) 262-4200 Administration
[email protected]
www.lakesheriff.com
CONFIDENTIALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information. It is solely for the use of the intended recipient(s). Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication.

From: Lake County Sheriff - Records <[email protected]> Sent: Wednesday, January 17, 2024 7:49 AM
To: Richard Ward <[email protected]>
Subject: FW: Application 2024-003 - Mendocino College - Shakespeare at the Lake Please see attached
From: Hilary Britton <[email protected]>
Sent: Wednesday, January 17, 2024 7:43 AM
To: Dean Eichelmann <[email protected]>; Gary McFarland <[email protected]>; Johnnie 1/31/24, 7:39 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 2/2 Lindsey <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Lake County Sheriff - Records <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]>
Subject: [EXTERNAL] Application 2024-003 - Mendocino College - Shakespeare at the Lake Hi all,
Please find attached application 2024-003 for the Shakespeare at the Lake event for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/26/2024.

Thank you for your input!
Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/29/24, 2:34 PM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAINty%2F6OvzBOuPydAUHJi48… 1/2 RE: Application 2024-003 - Mendocino College - Shakespeare at the Lake Ryan Cooley <[email protected]>
Mon 1/29/2024 8:43 AM
To:Hilary Britton <[email protected]>
Hello Hilary,
I think I may have missed this one for Dale. I do not have any concern other then they will need to apply for the ABC permit when the event gets closer.

Thanks,
Ryan Cooley
Police Sergeant
Lakeport Police Department
2025 S Main St.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/26/2024.

1/26/24, 10:16 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAFdX0mUsVO9LsLpMOQKZH0… 1/2 RE: Application 2024-004 - Children's Festival
Lori Price <[email protected]>
Tue 1/23/2024 9:24 AM
To:Hilary Britton <[email protected]>
Good morning Hilary,
Thank you for the opportunity to review the above subject permit application. This application does not appear to impact County maintained roadways. We have no comments or conditions to add to this permit.

Sincerely,
Lori Price
Staff Services Analyst
Lake County Department of Public Works
255 N. Forbes Street, Rm 309
Lakeport, CA 95453
(707) 263-2341
[email protected]
From: Hilary Britton <[email protected]>
Sent: Monday, January 22, 2024 4:19 PM
To: Dean Eichelmann <[email protected]>; Gary McFarland <[email protected]>; Jim Kennedy <[email protected]>; Johnnie Lindsey <[email protected]>; Linda Sobieraj <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Matt Hartzog <[email protected]>; Michelle Humphrey <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Lake County Sheriff - Records <[email protected]>; Dale Stoebe <[email protected]>; Victor Fernandez <[email protected]>; Bethany Moss <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]> Subject: [EXTERNAL] Application 2024-004 - Children's Festival Hi all,
Please find attached application 2024-004 for the Children's Festival/Walk for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/29/2024.

Thank you for your input.

Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
1/26/24, 10:16 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAFdX0mUsVO9LsLpMOQKZH0… 2/2 Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/26/24, 10:16 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAFdX0mUsVO9LsLpMOQKZH0… 1/3 FW: Application 2024-004 - Children's Festival
Lake County Sheriff - Records <[email protected]> Tue 1/23/2024 2:32 PM
To:Hilary Britton <[email protected]>
Good afternoon,
Please see below for Sheriff’s response.

Respectfully,
Alexa May
Records Technician
Phone: 707-262-4200
Fax: 707-262-4204
Dispatch: 707-263-2690
1220 Martin St.

Lakeport, CA 95453
www.lakesheriff.com
From: Richard Ward <[email protected]>
Sent: Tuesday, January 23, 2024 1:27 PM
To: Lake County Sheriff - Records <[email protected]> Subject: RE: Application 2024-004 - Children's Festival No concerns from the Sheriff’s Office.

Lieutenant Rich Ward
Lake County Sheriff’s Office
1220 Martin St.

P.O. Box 489
Lakeport, Ca. 95453
(707) 262-4081 Desk
(707) 262-4220 Fax
(707) 262-4200 Administration
[email protected]
www.lakesheriff.com
CONFIDENTIALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information. It is solely for the use of the intended recipient(s). Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the 1/26/24, 10:16 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAFdX0mUsVO9LsLpMOQKZH0… 2/3 Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication.

From: Lake County Sheriff - Records <[email protected]> Sent: Monday, January 22, 2024 4:29 PM
To: Richard Ward <[email protected]>
Subject: FW: Application 2024-004 - Children's Festival Good afternoon,
Please see attached.

Respectfully,
Alexa May
Records Technician
Phone: 707-262-4200
Fax: 707-262-4204
Dispatch: 707-263-2690
1220 Martin St.

Lakeport, CA 95453
www.lakesheriff.com
From: Hilary Britton <[email protected]>
Sent: Monday, January 22, 2024 4:19 PM
To: Dean Eichelmann <[email protected]>; Gary McFarland <[email protected]>; Jim Kennedy <[email protected]>; Johnnie Lindsey <[email protected]>; Linda Sobieraj <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Matt Hartzog <[email protected]>; Michelle Humphrey <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Lake County Sheriff - Records <[email protected]>; Dale Stoebe <[email protected]>; Victor Fernandez <[email protected]>; Bethany Moss <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]> Subject: [EXTERNAL] Application 2024-004 - Children's Festival Hi all,
Please find attached application 2024-004 for the Children's Festival/Walk for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/29/2024.

Thank you for your input.

Hilary Britton
1/26/24, 10:16 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAFdX0mUsVO9LsLpMOQKZH0… 3/3 Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/26/24, 10:15 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAFdX0mUsVO9LsLpMOQKZH0… 1/2 RE: Application 2024-004 - Children's Festival
Ryan Cooley <[email protected]>
Thu 1/25/2024 9:54 AM
To:Hilary Britton <[email protected]>
Hello Hilary,
Looking at the attached map, I just want to make sure that the vendors are not on/in the roadway on Park St and Third St. Please let me know if you have any questions.

Thanks,
Thanks,
Ryan Cooley
Police Sergeant
Lakeport Police Department
2025 S Main St.

From: Dale Stoebe <[email protected]>
Sent: Monday, January 22, 2024 5:09 PM
To: Ryan Cooley <[email protected]>
Subject: FW: Application 2024-004 - Children's Festival From: Hilary Britton <[email protected]>
Sent: Monday, January 22, 2024 4:19 PM
To: Amanda Frazell <[email protected]>; Gary McFarland <[email protected]>; Jim Kennedy <[email protected]>; Johnnie Lindsey <[email protected]>; Linda Sobieraj <[email protected]>; Lisa Davey-Bates <[email protected]>; Lori Price <[email protected]>; Matt Hartzog <[email protected]>; Michelle Humphrey <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Sheriff's Dept <[email protected]>; Dale Stoebe <[email protected]>; Victor Fernandez <[email protected]>; Bethany Moss <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]> Subject: Application 2024-004 - Children's Festival
Hi all,
Please find attached application 2024-004 for the Children's Festival/Walk for your review and comments.

Memorandum
DATE: January 26, 2024
TO: Hillary Britton, Deputy City Clerk/Records Supervisor FROM: Ashley Brown, Senior EHS
RE: Application No. 2024-004 – Lake County Office of
Education – Children’s Advocacy Walk and Festival
APN: 025-413-01 (SR0005382)
Environmental Health Division is requiring:

1. If there are more than two food vendors, then sponsor must apply and pay for a sponsor Temporary Event application two weeks before the event takes place. Please have the sponsor provide a list of all the food vendors (this includes beer and wine booths).

2. The food vendors must apply and pay for a vendor Temporary Event application one week before the event takes place.

3. If the sponsor is going to have a food booth as well, then the sponsor needs to apply and pay for a vendor Temporary Event application one week before the event takes place.

COUNTY OF LAKE
Health Services Department
Environmental Health Division
922 Bevins Court
Lakeport, California 95453-9739
Telephone 707/263-1090
FAX 707/263-4395
Craig Wetherbee
Environmental Health Director
Promoting an Optimal State of Wellness in Lake County
01/22/2024 2024-005
02/06/2024

1/26/24, 9:58 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJReoJtvsc1Iqbfqzr6Wahg%3D 1/2 RE: Application 2024-005 - Winefest
Lori Price <[email protected]>
Tue 1/23/2024 9:24 AM
To:Hilary Britton <[email protected]>
Good morning Hilary,
Thank you for the opportunity to review the above subject permit application. This application does not appear to impact County maintained roadways. We have no comments or conditions to add to this permit.

Sincerely,
Lori Price
Staff Services Analyst
Lake County Department of Public Works
255 N. Forbes Street, Rm 309
Lakeport, CA 95453
(707) 263-2341
[email protected]
From: Hilary Britton <[email protected]>
Sent: Monday, January 22, 2024 4:27 PM
To: Dean Eichelmann <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa DaveyBates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Lake County Sheriff - Records <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]>
Subject: [EXTERNAL] Application 2024-005 - Winefest
Hi all,
Please find attached application 2024-005 for the annual Winefest in Library Park for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/29/2024.

Thank you for your input.

Hilary Britton
Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
1/26/24, 9:58 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJReoJtvsc1Iqbfqzr6Wahg%3D 2/2 Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/26/24, 9:57 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJReoJtvsc1Iqbfqzr6Wahg%3D 1/3 FW: Application 2024-005 - Winefest
Lake County Sheriff - Records <[email protected]> Tue 1/23/2024 2:32 PM
To:Hilary Britton <[email protected]>
Good afternoon,
Please see below for Sheriff’s response.

Respectfully,
Alexa May
Records Technician
Phone: 707-262-4200
Fax: 707-262-4204
Dispatch: 707-263-2690
1220 Martin St.

Lakeport, CA 95453
www.lakesheriff.com
From: Richard Ward <[email protected]>
Sent: Tuesday, January 23, 2024 1:27 PM
To: Lake County Sheriff - Records <[email protected]> Subject: RE: Application 2024-005 - Winefest
No concerns from the Sheriff’s Office.

Lieutenant Rich Ward
Lake County Sheriff’s Office
1220 Martin St.

P.O. Box 489
Lakeport, Ca. 95453
(707) 262-4081 Desk
(707) 262-4220 Fax
(707) 262-4200 Administration
[email protected]
www.lakesheriff.com
CONFIDENTIALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information. It is solely for the use of the intended recipient(s). Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the 1/26/24, 9:57 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJReoJtvsc1Iqbfqzr6Wahg%3D 2/3 Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication.

From: Lake County Sheriff - Records <[email protected]> Sent: Monday, January 22, 2024 4:30 PM
To: Richard Ward <[email protected]>
Subject: FW: Application 2024-005 - Winefest
Good afternoon,
Please see attached.

Respectfully,
Alexa May
Records Technician
Phone: 707-262-4200
Fax: 707-262-4204
Dispatch: 707-263-2690
1220 Martin St.

Lakeport, CA 95453
www.lakesheriff.com
From: Hilary Britton <[email protected]>
Sent: Monday, January 22, 2024 4:27 PM
To: Dean Eichelmann <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa DaveyBates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Lake County Sheriff - Records <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]>
Subject: [EXTERNAL] Application 2024-005 - Winefest
Hi all,
Please find attached application 2024-005 for the annual Winefest in Library Park for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/29/2024.

Thank you for your input.

Hilary Britton
1/26/24, 9:57 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJReoJtvsc1Iqbfqzr6Wahg%3D 3/3 Deputy City Clerk/Records Supervisor
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615 x102
[email protected]
E-mail correspondence and attachments with the City of Lakeport may be subject to the California Public Records Act, and as such may therefore be subject to public disclosure unless otherwise exempt under the Act. *For Public Records Act requests, please visit our online public records request system 1/26/24, 9:56 AM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQAJReoJtvsc1Iqbfqzr6Wahg%3D 1/2 RE: Application 2024-005 - Winefest
Ryan Cooley <[email protected]>
Thu 1/25/2024 10:01 AM
To:Hilary Britton <[email protected]>
Hello Hilary,
I have no concerns with this event.

Thanks,
Ryan Cooley
Police Sergeant
Lakeport Police Department
2025 S Main St.

From: Dale Stoebe <[email protected]>
Sent: Monday, January 22, 2024 5:09 PM
To: Ryan Cooley <[email protected]>
Subject: FW: Application 2024-005 - Winefest
From: Hilary Britton <[email protected]>
Sent: Monday, January 22, 2024 4:27 PM
To: Amanda Frazell <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa DaveyBates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Sheriff's Dept <[email protected]>; Bethany Moss <[email protected]>; Dale Stoebe <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected]; Patrick Reitz <[email protected]>; Victor Fernandez <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Michelle Humphrey <[email protected]>; Matt Hartzog <[email protected]>
Subject: Application 2024-005 - Winefest
Hi all,
Please find attached application 2024-005 for the annual Winefest in Library Park for your review and comments.

We would like to submit this for City Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/29/2024.

Memorandum
DATE: January 26, 2024
TO: Hillary Britton, Deputy City Clerk/Records Supervisor FROM: Ashley Brown, Senior EHS
RE: Application No. 2024-005 – Lake County Symphony
Association - Winefest
APN: 025-413-01 (SR0005392)
Environmental Health Division is requiring:

2. The food vendors must apply and pay for a vendor Temporary Event application one week before the event takes place.

3. If the sponsor is going to have a food booth as well, then the sponsor needs to apply and pay for a vendor Temporary Event application one week before the event takes place.

Memorandum
DATE: January 26, 2024
TO: Hillary Britton, Deputy City Clerk/Records Supervisor FROM: Ashley Brown, Senior EHS
RE: Application No. 2024-006 – Latinos United of Lake
County – Cinco de Mayo Fiesta
APN: 025-413-01 (SR0005393)
Environmental Health Division is requiring:

2. The food vendors must apply and pay for a vendor Temporary Event application one week before the event takes place.

3. If the sponsor is going to have a food booth as well, then the sponsor needs to apply and pay for a vendor Temporary Event application one week before the event takes place.

Area use Booth Area
LCBHS Registration
MHSA Outreach &
Prevention Booth
1/29/24, 2:32 PM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQACBoZL4MQXJKpTMAyyZvGcA… 1/2 RE: Application 2024-007 - Mental Health Matters
Ryan Cooley <[email protected]>
Mon 1/29/2024 9:08 AM
To:Hilary Britton <[email protected]>
Hello Hilary,
I do not have any questions regarding this event.

Thanks,
Ryan Cooley
Police Sergeant
Lakeport Police Department
2025 S Main St.

From: Dale Stoebe <[email protected]>
Sent: Thursday, January 25, 2024 12:42 PM
To: Ryan Cooley <[email protected]>
Subject: Fwd: Application 2024-007 - Mental Health Matters Dale Stoebe
Captain
Lakeport Police Department
2025 S Main St.

From: Hilary Britton <[email protected]>
Sent: Thursday, January 25, 2024 3:35:15 PM
1/29/24, 2:32 PM Mail - Hilary Britton - Outlook
https://outlook.office.com/mail/inbox/id/AAQkADFlMmQzNGJiLWZhYTItNDZhNi1hZTJlLWZmMmE5ZDA4NjUxOAAQACBoZL4MQXJKpTMAyyZvGcA… 2/2 To: Amanda Frazell <[email protected]>; Johnnie Lindsey <[email protected]>; Lisa DaveyBates <[email protected]>; Lori Price <[email protected]>; Pheakdey Preciado <[email protected]>; Ron Ladd <[email protected]>; Sheriff's Dept <[email protected]>; Dale Stoebe <[email protected]>; Victor Fernandez <[email protected]>; Bethany Moss <[email protected]>; Katie Carpenter <[email protected]>; Kelly Buendia <[email protected]>; [email protected] <[email protected]>; Patrick Reitz <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Matt Hartzog <[email protected]>; Michelle Humphrey <[email protected]> Subject: Application 2024-007 - Mental Health Matters
Hi all,
Please find attached application 2024-007 for the 2024 Mental Health Matters event for your review and comments.

We would like to submit this for Council approval at the 02/06/2024 Council meeting, so please have your comments back to me by 01/30/2024.

Thank you for your feedback.

CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Development Agency
Municipal Financing Agency of Lakeport

STAFF REPORT
RE: Notice of Completion for 22-09 Storm Drain Slip Line Project MEETING DATE: 02/06/2024 SUBMITTED BY: Ron Ladd, Public Works Director
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to adopt a resolution accepting the Storm Drain Slip Line Project, Bid 22-09, as complete and authorize the City Manager to file a Notice of Completion.

BACKGROUND/DISCUSSION:

On May 17, 2022, the City Council awarded a Construction Contract to Miskis Services Inc., for the Storm Drain Slip Line Project, Bid 22-09, in the amount of $89,280.00.

The City of Lakeport Public Works Department has reviewed the project and determined that it has been completed in substantial compliance with the project plans and specifications. The total cost of the construction contract came to $91,958.40.

OPTIONS:

No other options recommended
FISCAL IMPACT:

None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:

Comments:

COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☒ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
Meeting Date: 02/06/2024 Page 2 Agenda Item # IV.H.

SUGGESTED MOTIONS:

Move to adopt the resolution accepting construction of the Storm Drain Slip Line Project, Bid 22-09 by Miskis Services Inc. and authorize the City Manager to execute and file the Notice of Completion with the Lake County Clerk.

Attachments: 1. Resolution

2. Notice of Completion
341246.1
RESOLUTION NO. XXX___ ( 2024 )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT ACCEPTING CONSTRUCTION OF THE STORM DRAIN SLIP LINE PROJECT 22-09, AND AUTHORIZING THE

FILING OF THE NOTICE OF COMPLETION
WHEREAS, the final inspection of the Storm Drain Slip Line Project, Bid 22-09 was made by the City of Lakeport’s Public Works Department; and
WHEREAS, it was determined that the work for this project has been completed in substantial compliance with the project plans and specifications.

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

1. The City Council hereby accepts the work as completed on the Storm Drain Slip Line Project, Bid 22-09

2. The City Manager is authorized and directed to execute the Notice of Completion to be filed with the County of Lake.

The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Lakeport held on the on the XXth day of XXXXX, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_______________________________
Michael Froio, Mayor
City of Lakeport
ATTEST:
_________________________________
Kelly Buendia, City Clerk
City of Lakeport
4H.2 NOC Slip Line Sewer Proj 22-09 (chw review)(341256.1)

RECORDING REQUESTED BY
City of lakeport

AND WHEN RECORDED MAIL THIS DEED,
UNLESS OTHERWISE SHOWN BELOW.

MAIL TAX STATEMENTS TO:

City of Lakeport Attn: Olivia Grupp
225 Park Street
Lakeport, CA 95453
Complimentary recording request pursuant to
Government Code § 27383
SPACE ABOVE THIS LINE FOR RECORDER’S USE
Notice of Completion
NOTICE is hereby given that:

1. The Undersigned is owner of the interest stated below in the property hereinafter described:

2. The NAME (including that of the undersigned), ADDRESS and NATURE OF TITLE of every person owning any interest in such property is as follows:

City of Lakeport 225 Park St, Lakeport, CA 95453 Fee Simple (NAME OF UNDERSIGNED)

3. The names and addresses of the transferors of the undersigned owner: (to be shown if the undersigned is a successor in interest of the owner who caused the improvement to be constructed, etc.)

4. A work of improvement on the property hereinafter described was COMPLETED ON 11/22/2023

5. The name of the CONTRACTOR for such work of improvement was Miksis Services Inc.

P.O. Box 591-I, Healdsburg, CA 95448
(If no Contractor, insert “NONE”

6. The property on which said work of improvement was completed is in the City of Lakeport , county of Lake State of California, and is described as follows: Installed 20” slip line,

7. The street address of said property is: 1470 N Main Street Dated: 2/6/2024
Signature of
Owner or Owners }
Kevin Ingram, City Manager
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Manager of the aforesaid interest or estate in (“PRESIDENT, PARTNER, MANAGER, AGENT, ETC.”
the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place (Signature of person signing on behalf of owner)) Meeting Date: 02/06/2024 Page 1 Agenda Item # IV.I.

CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Development Agency
Municipal Financing Agency of Lakeport

STAFF REPORT
RE: Notice of Completion for Lakefront Park Fencing #23-08 MEETING DATE: 02/06/2024 SUBMITTED BY: Ron Ladd, Public Works Director
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to adopt a resolution accepting the Lakefront Park Fencing Project, Bid #23-08, as complete and authorize the City Manager to file a Notice of Completion.

BACKGROUND/DISCUSSION:

On November 7, 2023, the City Council awarded a Public Works Purchase Order to Humboldt Fence Company, for the Lakefront Park Fence Project, Bid #23-08, in the amount of $28,740.00.

OPTIONS:

No other options recommended
FISCAL IMPACT:

None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:

Comments:

COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
Meeting Date: 02/06/2024 Page 2 Agenda Item # IV.I.

SUGGESTED MOTIONS:

Move to adopt the resolution accepting installation of the Lakefront Park Fence Project by Humboldt Fence Company and authorize the City Manager to execute and file the Notice of Completion with the Lake County Clerk.

Attachments: 1. Resolution

2. Notice of Completion
RESOLUTION NO. ________ ( 2024 )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT ACCEPTING INSTALLATION OF THE LAKEFRONT PARK FENCE PROJECT 23-08, AND AUTHORIZINGTHE

FILING OF THE NOTICE OF COMPLETION
WHEREAS, the final inspection of the Lakefront Park Fence Project, Bid 23-08 was made by the City of Lakeport’s Public Works Department; and
WHEREAS, it was determined that the work for this project has been completed in substantial compliance with the project plans and specifications.

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

1. The City Council hereby accepts the work as completed on the Lakefront Park Fence Project, Bid #23-08.

2. The City Manager is authorized and directed to execute the Notice of Completion to be filed with the County of Lake.

The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Lakeport held on the on the 6th day of February, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_______________________________
Michael Froio, Mayor
City of Lakeport
ATTEST:
_________________________________
Kelly Buendia, City Clerk
City of Lakeport
.2 NOC Lakefront Park Fence (chw review)(341454.1)

RECORDING REQUESTED BY
City of Lakeport

AND WHEN RECORDED MAIL THIS DEED,
UNLESS OTHERWISE SHOWN BELOW.

MAIL TAX STATEMENTS TO:

1. The Undersigned is owner of the interest stated below in the property hereinafter described:

2. The NAME (including that of the undersigned), ADDRESS and NATURE OF TITLE of every person owning any interest in such property is as follows:

City of Lakeport 225 Park St, Lakeport, CA 95453 Fee Simple (NAME OF UNDERSIGNED)

3. The names and addresses of the transferors of the undersigned owner: (to be shown if the undersigned is a successor in interest of the owner who caused the improvement to be constructed, etc.)

4. A work of improvement on the property hereinafter described was COMPLETED ON 1/3/2024

5. The name of the CONTRACTOR for such work of improvement was Humboldt Fence Company 564 State Hwy 36
Fortuna, CA 95540
(If no Contractor, insert “NONE”

6. The property on which said work of improvement was completed is in the City of Lakeport , county of Lake State of California, and is described as follows:

For public safety and park security, install 4 ft high chain link fence and gates at the new Lakefront Park (Xabatin Park).

7. The street address of said property is: 800 North Main Street, Lakeport, CA 95453 Dated:

Signature of
Owner or Owners }
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Manager of the aforesaid interest or estate in (“PRESIDENT, PARTNER, MANAGER, AGENT, ETC.”)
the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place (Signature of person signing on behalf of owner)) CITIZEN MEMBERS: Meg Harper, Zach Jordan, Susan King, Dennis Rollins, and Laura Sombs.

STAFF MEMBERS: Kevin Ingram; City Manager; Nick Walker, Finance Director; Kelly Buendia, City Clerk

MINUTES

MEASURE Z ADVISORY COMMITTEE

REGULAR MEETING
City Council Chamber, City Hall, 225 Park Street, Lakeport, CA January 17, 2024

1. CALL TO ORDER Chair Rollins opened the meeting at 5:30 p.m. with Committee Members Harper, Jordan, King, Sombs and Rollins present.

The following staff were present: City Manager Kevin Ingram, Assistant City Manager Nick Walker and Administrative Services Director/City Clerk Kelly Buendia.

2. APPROVAL OF MINUTES Committee member King made a motion; seconded by Committee member Harper and carried unanimously 5-0-0, to approve the Minutes of July 19, 2023, regular meeting.

3. PUBLIC INPUT No input was offered by the public.

4. DISCUSSION/ACTION ITEMS
A. Election of Officers The Chair opened nominations for Chairperson and Vice Chairperson with the recommended term ending 12/31/2024.

Committee member Sombs nominated Zach Jordan for Chairperson with a term ending 12/31/24; the nomination was accepted and unanimously carried by voice vote 5-0-0.

Committee member King nominated Meg Harper for Vice
Chairperson with a term ending 12/31/24; the nomination was accepted and unanimously carried by voice vote 5-0-0.

B. 2024 Calendar of Meetings The Clerk presented the 2024 calendar of meetings.

Committee member Harper made a motion; seconded by
Committee member King and carried unanimously 5-0-0, to approve the 2024 calendar of meetings.

CITIZEN MEMBERS: Meg Harper, Zach Jordan, Susan King, Dennis Rollins, and Laura Sombs.

STAFF MEMBERS: Kevin Ingram; City Manager; Nick Walker, Finance Director; Kelly Buendia, City Clerk C. 2022-23 Budget to Actual Assistant City Manager reviewed the 2022-23 Budget to Actual Comparison report, acknowledging that the cost of ongoing expenses are outpacing incoming revenues, leaving a limited pool of funds for projects. The Committee discussed and received updates on expenditures and projects.

5. ADJOURN Chair Jordan adjourned the meeting at 5:55 p.m. with the next meeting scheduled for Wednesday, April 17, 2024, at 5:30 p.m. ____________________________
Kelly Buendia, City Clerk
Meeting Date: 02/06/2024 Page 1 Agenda Item #VI.A.
338684.2

CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☐
Lakeport Industrial Development Authority ☐
Municipal Financing Agency of Lakeport ☐

STAFF REPORT
RE: Ordinance Amending City Manager’s Powers and Duties to Include Contract Signing and Design Approval Authority
MEETING DATE: 02/06/2024
SUBMITTED BY: Kelly Buendia, Administrative Services Director PURPOSE OF REPORT: ☐Information only ☐ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

Staff recommends that the City Council conduct a first reading and public hearing for an Ordinance amending the City Manager’s powers and duties to include design approval authority for public improvement projects and the power to sign written contracts and conveyances made or entered into by the city when expressly authorized.

BACKGROUND/DISCUSSION:

When projects are authorized to be advertised or bids are awarded by the City Council, language is typically included in the City Council action to approve plans and specifications. There are situations where the City Council does not approve plans and specifications, such as small projects, or there are change orders during construction. These situations would benefit from the ability of the City to respond quickly, without having to bring the matter before the City Council at a noticed public hearing.

Government Code Section 830.6 provides public agencies with a design immunity defense for any public works projects designed and constructed by the public agency, provided that the design was approved in advance of the construction by the agency’s legislative body or by an employee authorized by the legislative body to give such design approval. If the City Council desires to authorize the City Manager or his or her designee to exercise design approval authority, staff recommends that to ensure the City retains the design immunity protection afforded by state law, the City Council codify the delegation to the City Manager or his or her designee in the City’s Municipal Code.

It is important to note that the proposed Ordinance does not in any way impact or change the City Council’s discretionary authority to approve projects and appropriate project funding pursuant to other applicable City policies and procedures. The Ordinance also does not circumvent other established project design review and approval processes.

Separately, Government Code Section 40602 provides that the City Council may authorize the City Manager to sign all written contracts and conveyances made or entered into by the City just as they may be signed by the Mayor. Currently, the Municipal Code limits the City Manager signing authority to professional services agreements, unless specifically delegated signing authority by City Council motion or resolution. Staff recommends that the City Council codify this City Manager authorization so that either the City Manager or Mayor may sign approved written contracts and conveyances once the contract is approved by the Council. This Meeting Date: 02/06/2024 Page 2 Agenda Item #VI.A.
338684.2
authorization will protect the validity of executed contracts and conveyances in the event that the City Council neglects to specify the City Manager can sign, in a particular case.

This proposed amendment does not in any way impact or change the City Council’s discretionary authority to approve written contracts or conveyances, or circumvent other established contract review and approval processes.

OPTIONS:

FISCAL IMPACT:
☒ None Budgeted Item? ☐Yes ☐ No
Budget Adjustment Needed? ☐Yes ☐ No If yes, amount of appropriation increase:

Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☐ Other:

Comments: None
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☒ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
SUGGESTED MOTIONS:

Move to introduce an Ordinance of the City Council of the City of Lakeport amending Section 2.10.110 of Chapter 2.10 of Title 2 of the Lakeport Municipal Code to authorize City Manager to sign written contracts and conveyances and have design approval authority.
☒ Attachments: 1. Ordinance XXX amending Section 2.10.110 (Powers and duties of the city manager.) of Chapter 2.10 (City Manager) of Title 2 (Administration and Personnel) of the City of Lakeport Municipal Code.
338680.3

ORDINANCE NUMBER XXXX

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKEPORT
AMENDING SECTION 2.10.110 OF CHAPTER 2.10 OF TITLE 2 OF

THE LAKEPORT MUNICIPAL CODE TO AUTHORIZE THE CITY

MANAGER TO SIGN WRITTEN CONTRACTS AND CONVEYANCES

AND HAVE DESIGN APPROVAL AUTHORITY
WHEREAS, Government Code Section 830.6 provides that neither a public entity nor a public employee is liable for an injury caused by the plan or design of a construction of, or an improvement to, public property where such plan or design has been approved in advance of the construction or improvement by the legislative body of a public entity or by some other body or employee exercising discretionary authority to give such approval or where such plan or design is prepared in conformity with standards previously so approved;
WHEREAS, public interest and convenience and the retention of the design immunity protection under Government Code Section 830.6 require the City Council of the City of Lakeport to delegate by ordinance to the City Manager or to his or her designee the authority to approve plans and designs for City public improvement projects;
WHEREAS, such delegation of design approval authority does not change the City Council’s discretion and authority to approve projects and appropriate project funding pursuant to other applicable City policies, procedures and codes, or circumvent other established project design review and approval processes;
WHEREAS, Government Code Section 40602 provides that the City Council may authorize the City Manager to sign all written contracts and conveyances made or entered into by the City as may be signed by the Mayor;
WHEREAS, public interest and convenience support authorization of the City Manager to sign written contracts and conveyances made or entered into by the City when authorized by appropriate resolution or motion of the City Council; and
WHEREAS, such delegation of signatory authority does not change the City Council’s discretion and authority to approve written contracts and conveyances pursuant to applicable City policies, procedures and codes, or circumvent other established contract review and approval processes.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEPORT DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. AMENDMENT OF CODE. Section 2.10.110 [Powers and duties of city manager.] of Chapter

2.10 [City Manager] of Title 2 [Administration and Personnel] of the City of Lakeport Municipal Code is hereby amended to read as follows, with additions denoted by underlined text and deletions denoted by struck through text:

2.10.110 Powers and duties of city manager.

The city manager shall be the chief administrative officer of the city and the city of Lakeport municipal sewer district, and the executive director of the Lakeport redevelopment agency, and other duties as assigned. The manager may head one or more departments and shall be responsible to the city council for the proper administration of all affairs of the city. To that end, he/she shall have the power and shall be required to, and shall be the duty and responsibility to:
338680.3
A. Authority Over Employees. Control, order, and give directions to all department heads (with the exception of the city attorney) and to subordinate officers and employees of the city under his/her jurisdiction through their department heads;
B. Appointment and Removal of Employees. Oversee, appoint, remove, promote, demote, suspend, or dismiss all officers and employees of the city under him/her through their department heads (except the city attorney), subject to all applicable laws and personnel rules and regulations; C. Departmental Cooperation. All subordinate officers, including the city attorney, shall assist the city manager in administering the affairs of the city efficiently, economically, and harmoniously.

Department heads and the city clerk responsible to the city manager shall take direction only from the city manager;
D. Administrative Reorganization. Conduct studies and recommend to the city council administrative reorganization of offices, positions, or units under his/her direction as may be indicated in the interest of efficient, effective, and economical conduct of the city’s business; E. Enforcement of Laws. Insure that all laws, ordinances, and policies of the city are duly enforced and that all franchises, permits, and privileges granted by the city are faithfully observed, as well as state and federal laws;
F. Representation of City. Represent the city in its negotiations and working relationships with the state, the county, and other governmental jurisdictions; provided that any contracts negotiated for the exchange of services from any such other governmental jurisdiction shall be subject to approval by the city council;
G. Performance of Duties of City Auditor. Perform or have performed by a properly qualified certified public accountant all the duties and powers imposed by law on a city auditor; H. Attendance at Council Meetings. Attend meetings of the city council unless excused therefrom by the council, except when his/her removal is under consideration by the council; I. Recommended Activities. Recommend to the city council adoption of such measures, including ordinances and resolutions, as he/she may deem necessary or expedient for the health, safety, or welfare of the community or for the improvement of administrative services; J. Advise as to Finances. Keep the city council at all times fully advised as to the financial conditions and needs of the city;
K. Preparation of the Budget. Prepare and submit to the city council the proposed annual budget; L. Purchase of Supplies. Enforce and supervise, subject to and in accordance with the city purchasing policy, the purchase and acquisition in any lawful manner of all property, equipment, services, material, and supplies for the city and for all departments and divisions thereof, provided the purchase or acquisition thereof has been approved by the city council or is included in a budget which has been approved and adopted by the city council. No expenditure shall be submitted or recommended to the city council except on report or approval of the city manager; M. Investigation of City Affairs and Complaints. Investigate the affairs of the city or any department or division thereof. Investigate all complaints in relation to matters concerning the administration of the government of the city, and in regard to service maintained by the public utilities in the city, and see that all franchises, permits, and privileges granted by the city are faithfully performed and observed;
338680.3
N. Supervision of Public Property. Exercise general supervision over all public buildings, public parks, and all other public property which is under the control and jurisdiction of the city council; O. Hours of Employment. Devote the entire working time of the city manager to the duties of this office, as assigned by the city council, and shall be granted administrative leave compensation for time spent as provided by the city council;
P. Performance of Delegated Duties. Perform such other duties and exercise such other powers as may be delegated to the city manager from time to time by ordinance or resolution or other action of the city council;
Q. Attendance at Commission and Board Meetings. Attend any and all meetings of any commissions or boards heretofore or hereafter created by the city council upon the city manager’s own volition or upon direction of the city council. The city manager shall be heard by such commissions and boards as to all matters upon which he/she wishes to address; R. Authorization for Written Contracts and Conveyances. Professional Services. Approve and sign contracts for any special and professional services as authorized by the city council To sign written contracts and conveyances made or entered into by the city when expressly authorized by appropriate resolution or motion of the city council in particular cases, as may be signed by the mayor, and as authorized pursuant to Government Code section 40602. Either the city manager or mayor may sign if so authorized;
S. Personnel Plan. Oversee the preparation and update of the personnel rules and regulations and procedures and classification plans and establish proper administrative policies and directives and handle all negotiations, grievances, and personnel actions; T. Preparation of Compensation Plan. Oversee the preparation and submission of, and the recommendation to the city council, a compensation plan for all appointed officers and employees of the city;
U. Leadership in Civic Activities. Provide leadership, participate, and be involved in civic activities designated to benefit the residents of the city;
V. Communications. Provide periodic reports keeping the city council informed of his/her activities and involvement with individual council members.

W. Approval of Plans and Designs. To exercise directly or through his or her designee discretionary approval of plans, designs and any design amendments or addenda for public improvement projects. The city manager or his or her designee shall sign the plans and designs.

SECTION 2. SEVERABILITY. If any section of this ordinance, or part hereof, is held by a court of competent jurisdiction in a final judicial action to be void, voidable or unenforceable, such section, or part hereof, shall be deemed severable from the remaining sections of this ordinance and shall in no way affect the validity of the remaining sections hereof.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. The City Council hereby finds that this ordinance is not subject to the provisions of the California Environmental Quality Act (“CEQA”) because the activity is not a project as defined by Section 15378 of the CEQA Guidelines. The ordinance has no potential for resulting in physical change to the environment either directly or indirectly. 338680.3
SECTION 4. EFFECTIVE DATE AND PUBLISHING. This ordinance shall take effect 30 days after adoption.

The City Clerk shall cause publication of the ordinance within 15 days after passage in a newspaper of general circulation published and circulated in the city or, if none, the posting of the ordinance in at least three public places in the City. Within 15 days after the adoption of the ordinance amendment, a summary of the amendment shall be published with the names of the Council members voting for and against the amendment.

INTRODUCED on this 6th day of February, 2024.

PASSED AND ADOPTED as an ordinance of the City of Lakeport at a regular meeting of said Council on this XXX day of XXXX, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________
Michael Froio, Mayor
ATTEST:
_________________________
Kelly Buendia, City Clerk
Meeting Date: 02/06/2024 Page 1 Agenda Item # VII.A.1.
341301.1

CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Development Agency
Municipal Financing Agency of Lakeport

STAFF REPORT
RE: Return of Surplus Ambulance to Lakeport Fire Protection District
MEETING DATE: 02/06/2024
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to authorize the return of surplus ambulance vehicle to the Lakeport Fire Protection District as a donation for retrofit and return to active ambulatory service.

BACKGROUND/DISCUSSION:

In June 2021, the Lakeport City Council accepted a surplus ambulance donated by the Lakeport Fire Protection District. The intention was to repurpose it as a police command vehicle. However, to date, the City has been unable to secure necessary grant funding to complete the vehicle’s conversion. As a result, City staff believes the City Council can properly approve the ambulance’s designation as “surplus” personal property.

The Lakeport Fire Protection District has expressed interest in reclaiming the surplus ambulance for refurbishment and utilization as a backup ambulance. Currently exploring the need to upgrade their two existing ambulances, the District requires a backup during the expected 18-month retrofitting period. They are open to the possibility of re-donating the vehicle to the City after the retrofit work is finished.

The City of Lakeport does not have any immediate plans for converting the surplus ambulance into police command vehicle. Instead, it believes that allowing the Lakeport Fire Protection District to reuse the vehicle as a backup ambulance serves a higher and more beneficial purpose for the community. Therefore, City staff favors returning the vehicle to the District.

To formalize the ownership transfer, the City Council needs to authorize the legal transfer of the surplus ambulance vehicle title to the Lakeport Fire Protection District as a donation of surplus property for a public purpose authorized by Lakeport Municipal Code section 3.04.130(B). The ambulance’s estimated value is under $10,000.00, and it has approximately 141,000 miles.

OPTIONS:

1. Approve the ambulance’s status as “surplus” personal property, find the donation of the ambulance serves a public purpose or benefit, authorize the donation to the Lakeport Fire Protection District, and authorize the City Manager to execute any agreements necessary for the donation.

2. Decline the ambulance’s status as “surplus” personal property.

3. Decline to authorize the donation of the ambulance to the Lakeport Fire Protection District.

Meeting Date: 02/06/2024 Page 2 Agenda Item # VII.A.1.
341301.1

4. Alternatively, provide additional direction to the City staff.

FISCAL IMPACT:

None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes X No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:

COUNCIL PRIORITIES:
☒ Priority #1: Public Safety & Crisis Response
☒ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
SUGGESTED MOTIONS:

Authorize the legal transfer of the surplus ambulance vehicle title to the Lakeport Fire Protection District.

Attachments: 1. Resolution XXXXX (2024)

2. Exhibit A (Surplus Property)

3. Letter of Request for Return of Surplus Ambulance M5014 Ford Type 1 from Lakeport Fire Protection District.
341300.2
RESOLUTION NO. XXXX (2024)
A Resolution of the City Council of the City of Lakeport Declaring Certain Property Surplus and Approving its Donation to the Lakeport Fire Protection District
WHEREAS, the City of Lakeport, from time to time, finds it necessary to dispose of surplus property used in the process of conducting its municipal affairs; WHEREAS, Lakeport Municipal Code section 3.04.130(b) authorizes the City Council to adopt a resolution authorizing the donation of surplus property, if the City Council finds that such donation serves a public purpose or benefit;
WHEREAS, Lakeport Municipal Code section 3.04.130(b) further provides that all donations pursuant to this section shall be "as is" without warranty, express or implied, and the transferee shall agree to defend, indemnify and hold harmless the City, its officers and employees from any claim, cause of action, damage, loss or liability arising out of the condition of the property or its use by the organization or subsequent transferee; and WHEREAS, the City of Lakeport has identified certain surplus property in Exhibit A to this Resolution, the donation of which would serve a public purpose and benefit the public by making an additional ambulance available for use by the Lakeport Fire Protection District (LFPD) during the retrofitting of two other LFPD ambulances.

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

Section 1. Approval of Surplus Status. The City Council hereby approves the “surplus” status of the property identified in Exhibit A.

Section 2. Approval of Donation. The City Council hereby approves the donation of the surplus property identified in Exhibit A to LFPD for the public purpose identified in the recitals above, which are incorporated herein by reference as true and correct.

Section 3. Authorization. The City Council of the City of Lakeport hereby authorizes the City Manager to execute any agreements required to effectuate this donation.

Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Lakeport held on the on the 6th day of February, 2024 by the following vote:

AYES:
341300.2
NOES:

ABSTAIN:

ABSENT:

APPROVED:
_______________________________
Michael Froio, Mayor
City of Lakeport
ATTEST:
_________________________________
Kelly Buendia, City Clerk
City of Lakeport
341300.2
Exhibit A

SURPLUS PROPERTY
Item Purchase Price Date of Purchase Estimated Market
Value
1998 Ford Type 1
Ambulance
N/A (donation) June 2021 Under $10,000.00

Meeting Date: 02/06/2024 Page 1 Agenda Item # VI.B.1

CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☒
Lakeport Redevelopment Successor Agency ☒
Lakeport Industrial Development Authority ☐
Municipal Financing Agency of Lakeport ☐

STAFF REPORT
RE: Annual Comprehensive Financial Report (ACFR), Fiscal Year 2022-23
MEETING DATE: 02/06/2024
SUBMITTED BY: Nicholas Walker, ACM /Finance Director
PURPOSE OF REPORT: ☒Information only ☐ Discussion ☐Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council, City of Lakeport Municipal Sewer District and the Lakeport Redevelopment Successor Agency is being asked to receive and file the City’s ACFR for the fiscal year ended June 30, 2023.

BACKGROUND/DISCUSSION:

Management is pleased to present the City’s ACFR for the fiscal year ended June 30, 2023. This document is the official, audited financial report of the City and includes the audit report from the City’s external, independent auditor, JJACPA. It was issued on January 17, 2024 and has been posted to the City’s website.

The information presented throughout the year has not been materially revised in the ACFR, and the auditor recommended no significant changes to the City’s financial report. A letter in this regard from the City’s auditor to the City Council is attached.

The ACFR communicates the City’s financial condition and activity in a transparent and organized manner and in compliance with accounting and financial reporting standards established by the Governmental Accounting Standards Board (GASB). The report presents historical and comparative information that can be useful to City staff, elected officials, and external users such as debt rating agencies, businesses, other public agencies, and the City’s residents. The most recent ACFR and 11 years of prior year reports are available on the City’s Finance website at:
https://www.cityoflakeport.com/finance_it_and_utility_accounts_and_billing/publications_finance.php#outer306 Financial statements are prepared by the City and audited by independent auditors. The City selects its independent auditor through a competitive procurement process. The City’s current independent auditor is Joe Arch CPA, Inc. (JJACPA).

The quality of the City’s financial reporting and the ACFR are measured in two ways: (1) an unmodified audit report by the independent auditors; and (2) the Certificate of Achievement for Excellence in Financial Reporting, awarded by the Government Finance Officers Association (GFOA). The attainment of the latter is the highest form of recognition in governmental accounting and financial reporting. The City recently received the Certificate of Achievement for Excellence in Financial Reporting from the GFOA for its ACFR for the year ended June 30, 2021. We are awaiting notification on the submission of the year ended June 30, 2022 ACFR.

Meeting Date: 02/06/2024 Page 2 Agenda Item # VI.B.1
Auditors follow audit industry standards established by the American Institute of Certified Public Accountants (AICPA). These standards require auditors to provide an opinion on specific areas of the City’s financial statements based on observations, inquiries, testing of transactions, and analysis.

The City’s ACFR includes the following major sections and information:

Introductory Section
• Letter of Transmittal – prepared by management and used to communicate information on areas that may have an impact on the City’s finances now and in the future. This includes economic factors as well as budget and management factors.

Financial Section (the main body of the ACFR for current year information) • Independent Auditors’ Report – the City’s report card on the content of the ACFR • Management’s Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status and results for the year
• Basic Financial Statements – reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), and cash flows
• City-Wide Statements – overview of financial information including all of the City’s operations by financial activity
• Fund Financial Statements – a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance
• Notes to the Financial Statements (Notes) – a narrative explanation that accompanies the Basic Financial Statements
Required Supplementary and Supplementary Information Sections • Budget to Actual Comparisons – for all governmental funds with a legally adopted budget • Notes to Required Supplementary Information
• Pension Information – schedule of changes in the net pension liability and related ratios; schedule of contributions by plan
• OPEB Information – schedule of changes in the net Other Post-Employment Benefits (OPEB) liability and related ratios; schedule of contributions
• A breakout of individual non-major funds – for funds that were presented in a cumulative manner in the Financial Section
Statistical Section (current and historical information – up to 10 years) • Financial Trends
• Revenue Capacity Information
• Debt Capacity Information
• Demographic and Economic Information
• Operating Information
Meeting Date: 02/06/2024 Page 3 Agenda Item # VI.B.1
The attached ACFR for fiscal year 2022-23 has received an unmodified opinion by JJACPA. An unmodified opinion communicates that the financial statements are fairly presented and that the information used in the report is reliable. In their written communications to Council (Attachment B), the auditors note that they encountered no significant difficulties with management in performing or completing the audit. Statement on Auditing Standards (SAS) 114 establishes standards for the auditors’ communication with those charged with governance.

The Single Audit, also known as the OMB Uniform Guidance, is an organization-wide audit of an entity that expends $750,000 or more in federal financial assistance annually. Local governments are required to obtain an audit pursuant to the Federal Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). These audits are performed in accordance with Generally Accepted Governmental Auditing Standards and are an assessment of internal controls over federal programs, a test of how those controls are working, and tests for compliance with federal requirements. A Single Audit completed for the fiscal year 2022-23 was not required as the City did not expend $750,000 or more in federal awards.

SAS 115 provides guidance on communicating matters related to the City’s internal controls over financial reporting that have been identified in an audit of the financial statements. These statements require the auditors to consider and report on internal controls, significant audit findings, and other matters as prescribed in the standards as they relate to the audit of the financial statements. The letters that satisfy the SAS requirements are also included in the back of the ACFR document.

In accordance with the City of Lakeport and City of Lakeport Municipal Sewer District Reserve and Pension Policy, the Finance Department shall provide a comprehensive reserve fund status report, including five-year reserve fund balance projections, annually to the City Council along with the Comprehensive Annual Financial Report. The schedule below includes the audited General Fund reserve balances and five years of projected balances:

Audited
June 30, 2023 2024 2025 2026 2027 2028
Nonspendable:

Long-term interfund advances $ 289,481 $ 289,481 $ 289,481 $ 289,481 $ 289,481 $ 289,481 Total nonspendable 289,481 289,481 289,481 289,481 289,481 289,481 Restricted:

Law enforcement 1,874 1,874 1,874 1,874 1,874 1,874
Debt service 22,588 22,588 22,588 22,588 22,588 22,588
Total restricted 24,462 24,462 24,462 24,462 24,462 24,462 Committed:

Operating reserve 1,101,595 1,101,595 1,062,496 1,081,547 1,124,809 1,169,801 Reserve for economic uncertainties 1,468,794 1,468,794 1,416,661 1,442,063 1,499,745 1,559,735 Disaster reserve 734,397 734,397 708,331 721,031 749,873 779,868 Vehicles and equipment 147,735 177,735 207,735 237,735 267,735 297,735 Road improvements 214,253 232,387 251,181 270,727 291,055 312,196 Pension and OPEB 986,866 1,026,341 1,067,395 1,110,091 1,154,495 1,200,675 Total committed 4,653,640 4,741,249 4,713,799 4,863,194 5,087,712 5,320,010 Assigned:

Capital projects 1,500,000 800,000 800,000 600,000 400,000 - Total assigned 1,500,000 800,000 800,000 600,000 400,000 - Unassigned:

General fund 264,967 69,224 158,002 140,255 44,651 138,424 Total unassigned 264,967 69,224 158,002 140,255 44,651 138,424 Total fund balance $ 6,732,550 $ 5,924,416 $ 5,985,744 $ 5,917,392 $ 5,846,306 $ 5,772,377 Projected General Fund Balances for the Years Ended June 30, Meeting Date: 02/06/2024 Page 4 Agenda Item # VI.B.1
OPTIONS:

Receive and file the communication letter and ACFR for the fiscal year 2022-23.

FISCAL IMPACT:
☒ None ☐ $ Budgeted Item? ☐Yes ☐ No
Budget Adjustment Needed? ☐Yes ☐ No If yes, amount of appropriation increase: $ Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☐ Other:

Comments: None
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
SUGGESTED MOTIONS:

Move to accept the ACFR and Single Audit for the fiscal year ended June 30, 2023. ☒ Attachments: 1. Lakeport ACFR, 2022-23

2. Auditor Communications Letter to Those Charged with Governance CITY OF LAKEPORT, CALIFORNIA
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
ABOVE PHOTO BY DAVE NOLAND
This page intentionally left blank.

ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of Lakeport, California
Fiscal Year Ended June 30, 2023
Prepared By
Finance Department
City of Lakeport
This page intentionally left blank.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents, Continued
Page
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... i List of Officials .............................................................................................................................................. ix City Organizational Chart ............................................................................................................................. x FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................... 1 Management Discussion and Analysis (MD&A) (Required Supplementary Information) ..................... 4 Financial Highlights ............................................................................................................................... 4 Overview of the Annual Comprehensive Financial Report ................................................................ 4 Governmental Activities ..................................................................................................................... 12 Business‐type Activities ...................................................................................................................... 14 Financial Analysis of the Government’s Funds ................................................................................. 16 Capital Assets ..................................................................................................................................... 17 Debt Administration ........................................................................................................................... 18 Economic Outlook............................................................................................................................... 19 Requests for Information ................................................................................................................... 19 Basic Financial Statements:

Government‐Wide Financial Statements .......................................................................................... 21 Statement of Net Position ........................................................................................................... 23 Statement of Activities ................................................................................................................. 24 Fund Financial Statements ................................................................................................................. 27 Balance Sheet .............................................................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position .......................................................................................... 29 Statement of Revenue, Expenditures, and Change in Fund Balances ...................................... 30 Reconciliation of Fund Basis Statements to Government‐wide Statement of Activities .......................................................................................................... 31 City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents, Continued
Page
Statement of Revenue, Expenditures, and Change in Fund Balances – Budget and Actual General and Major Special Revenue Funds ................................................................................ 32 Proprietary Funds ............................................................................................................................... 35 Statement of Net Position ........................................................................................................... 36 Statement of Revenue, Expenses, and Changes in Net Position .............................................. 37 Statement of Cash Flows ............................................................................................................. 38 Fiduciary Funds ................................................................................................................................... 40 Statement of Fiduciary Net Position ........................................................................................... 41 Statement of Changes in Fiduciary Net Position ........................................................................ 42 Notes to the Basic Financial Statements Index ................................................................................. 45 Note 1 ‐ Summary of Significant Accounting Policies ................................................................ 46 Note 2 ‐ Cash and Investments ................................................................................................... 60 Note 3 ‐ Accounts Receivable ...................................................................................................... 64 Note 4 – Loans, Notes Receivable, and Interfund Borrowing ................................................... 65 Note 5 – Capital Assets ................................................................................................................ 66 Note 6 – Long Term Liabilities ..................................................................................................... 68 Note 7 – Net Position/Fund Balances ......................................................................................... 73 Note 8 – Interfund Transactions ................................................................................................. 77 Note 9 – Risk Management ......................................................................................................... 78 Note 10 – Public Employee Retirement Plan ............................................................................. 80 Note 11 – Post Retirement Healthcare Benefits ........................................................................ 87 Note 12 – Successor Agency Trust for Assets of Former Redevelopment Agency ................. 91 Note 13 – New Accounting Pronouncements ............................................................................ 93 Required Supplementary Information (RSI):

Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................ 96 Net OPEB Liability Schedule of Contributions ................................................................................... 97 Schedule of Contributions, Pension .................................................................................................. 98 Schedule of City’s Proportionate Share of Net Pension Liability ..................................................... 99 Combining Non‐Major Governmental Funds:

Combining Balance Sheet ................................................................................................................. 104 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance ........................ 108 City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents, Continued
Page
Non‐Major Governmental Fund Budget Comparisons .................................................................. 112 Parkland Dedication Fund .......................................................................................................... 113 Gas Tax Fund (HUTA) ................................................................................................................. 114 Prop 172 Public Safety Fund ...................................................................................................... 115 Lakeport Housing Fund .............................................................................................................. 116 K‐9 Fund ...................................................................................................................................... 117 10th Street Bike and Pedestrian ................................................................................................. 118 Library Park Bathroom Rehabilitation ....................................................................................... 119 Lake Area Planning Commission ATF ........................................................................................ 120 CDBG Grant 2018 DR Fund ........................................................................................................ 121 CDBG Grant 2021 ....................................................................................................................... 122 CDBG Grant 2020 ....................................................................................................................... 123 CDBG Grant 2018 ....................................................................................................................... 124 CDBG Grant 2017 ....................................................................................................................... 125 CDBG Grant 2022 ....................................................................................................................... 126 Tenth Street Drainage Fund ...................................................................................................... 127 Lakeport Blvd Improvement Fund ............................................................................................ 128 South Main Street Improvement Fund ..................................................................................... 129 Parkside Traffic Mitigation Fund ............................................................................................... 130 Parallel/Bevins Storm Water Maintenance Fund .................................................................... 131 ER Storm Damage Repair Fund ................................................................................................. 132 Storm Drainage Fund ................................................................................................................. 133 City Wide Sign Improvement – HSIP ......................................................................................... 134 CDBG Grant Program Income Fund .......................................................................................... 135 ARPA Fund .................................................................................................................................. 136

STATISTICAL SECTION
Statistical Section Index .......................................................................................................................... 137 Financial Trends ................................................................................................................................ 138 Net Position by Component ...................................................................................................... 138 Changes in Net Position ............................................................................................................. 140 Fund Balances, Governmental Funds ....................................................................................... 144 Changes in Fund Balances, Governmental Funds .................................................................... 146 City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents, Continued
Page
Revenue Capacity ............................................................................................................................. 148 Assessed Value and Actual Value of Taxable Property ............................................................ 148 Direct and Overlapping Tax Rates ............................................................................................. 149 Property Tax Collections and Levies.......................................................................................... 150 Principal Property Tax Payers .................................................................................................... 151 Schedule of Top 25 Principal Sales Tax Remitters (listed alphabetically) ............................... 152 Debt Capacity .................................................................................................................................... 154 Ratios of Outstanding Debt by Type ......................................................................................... 154 Ratios of General Bonded Debt Outstanding ........................................................................... 156 Direct and Overlapping Debt ..................................................................................................... 157 Legal Debt Margin Information ................................................................................................. 158 Demographic and Economic Information ....................................................................................... 160 Demographic and Economic Statistics ...................................................................................... 160 Principal Employers .................................................................................................................... 161 Operating Indicators ......................................................................................................................... 162 Full‐time and Part‐time City Employees by Function .............................................................. 162 Capital Asset Statistics by Function ........................................................................................... 163 Capital Asset Statistics ............................................................................................................... 164 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................. 165 Introductory Section

This page intentionally left blank.

City of Lakeport, California i
Introductory Section

CITY OF LAKEPORT
Over 100 years of community
pride, progress and service

MEMORANDUM
DATE:   January 17, 2024
TO:   Citizens of the City of Lakeport
Honorable Mayor and Members of the City Council and City Manager FROM:   City Manager Kevin Ingram
RE:   Presentation of the Annual Comprehensive Financial Report California Government Code sections 25250 and 25253 require that every general‐purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. The Annual Comprehensive Financial Report (ACFR) of the City of Lakeport (City) for the fiscal year ended June 30, 2023, is hereby published to fulfill that requirement.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls that are established for this purpose.

Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The City’s basic financial statements have been audited by JJACPA, Inc., an accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The financial statements included in this report were audited in accordance with generally accepted auditing standards and government auditing standards. The independent auditors concluded that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s basic financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

The City did not expend over $750,000 of federal money during this reporting period, a federally mandated CFR 200 Uniform Guidance “Single Audit” designed to meet the special needs of federal grantor agencies is not required.

Management’s Discussion and Analysis (MD&A) immediately follows the report of the independent auditors and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A was designed to complement this letter of transmittal and should be read in conjunction with it.

This report combines the financial statements of the City, the Successor Agency to the Lakeport Redevelopment Agency (Successor Agency), and the City of Lakeport Municipal Sewer District (CLMSD) in accordance with principles defining the governmental reporting entity adopted by the Governmental Accounting Standards Board (GASB). The financial operations of the Successor Agency and CLMSD, though legally separate from the City, are City of Lakeport, California ii
Introductory Section
closely related to the City. The City Council members serve as the governing board of the Successor Agency and CLMSD, which is presented as a blended component unit in the financial statements. Component units are legally separate entities for which the primary government is financially accountable. For a more detailed overview of the City’s component units, see the Management Discussion and Analysis (MD&A) and the Notes to the Basic Financial.

Profile of the Government
The City of Lakeport is a partial service city (as opposed to full service) in that it provides most typical municipal functions, including public safety (police), public works, community development and parks and recreation. In addition, the City provides water and wastewater services. It does not provide library or fire protection, as those are activities of the County of Lake and the Lakeport Fire Protection District, respectively.

It operates in a council‐manager form of government, whereby the council serves as the legislative body and the City Manager its executive. The City Manager is responsible for directing and supervising the administration of all departments of the City, to ensure that laws, ordinances, orders, resolutions, contracts, leases, and franchises are enforced and executed, and for appointing all City employees.

The Lakeport City Council consists of five members, elected at‐large to four‐year overlapping terms. Council members must be residents of the City. The positions of Mayor and Mayor Pro Tem are chosen by the Council through its own policy. The Mayor conducts the Council meetings and represents the City on ceremonial occasions.

The City Council serves as the policy board for the municipality. It provides policy direction, establishes goals, and sets priorities for the City government. In addition to serving as the policy makers for the community, the City Council is also responsible for numerous land use decisions within its borders, including the General Plan.

The City Council appoints the City Manager, City Attorney and all members of the advisory boards and commissions.

Incorporated on April 30, 1888 as a general law city, Lakeport serves as the administrative seat for the County of Lake and has a residential population of 5,0081
in a 2.4 square‐mile area, Lakeport is graced with a strong business base and a well‐established residential community.

Lakeport is a travel and recreation‐oriented destination and fortunate to have a large area serving as a hub for recreational activities for Lake County. The Lakeport business environment is positive and well organized.

Driven by an active Lakeport Economic Development Advisory Committee (LEDAC), local businesses are community‐oriented and engaged in City‐business partnerships, annual business site visits, business loan program, events and promotions. The City’s permanent retail trade area population is approximately 35,000 people with 45,000 within a 10‐mile radius. Lakeport’s historic downtown area is the center of commercial activity within the community. There are also commercial areas along Lakeport Boulevard, Parallel Drive, Eleventh Street, North High Street, and South Main Street. 1 California Department of Finance, Demographic Research Unit, E‐1 Population Estimates for Cities, Counties and the State City of Lakeport, California iii
Introductory Section
The annual budget provides a comprehensive statement of the City’s organization, operations and resources and it expresses City Council policies and priorities in all areas of the City’s operations. The budget process is the vehicle through which the City establishes goals and objectives and prioritizes the desired programs or services that the City should provide, which can be financed by the City’s projected revenue for the budget year. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police). It is the means through which policy decisions are made, effected, controlled and monitored. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30.

In addition to the budget planning process, the City maintains budgetary controls. The City’s objective in maintaining budgetary control is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager is authorized to transfer budgeted amounts within funds as deemed necessary to meet the City’s needs subject to the policies defined in the City’s Administrative Regulations. The City Council may amend the budget by resolution during the fiscal year.

Citywide Achievements in FY 2022‐23
In the 2022‐23 Fiscal Year, our small City continued upon the successes of the past several years in strategically utilizing our limited resources to the maximum effect in the completing of capital improvement projects and setting the groundwork for future endeavors through comprehensive planning efforts. Attentiveness to trends in risk management and municipal finance along with an aggressive approach to pursuing grant opportunities to better leverage the City’s available resources has been an ongoing strategy of the City Council and Staff for the past several years. Specifically, work over the past few years in the development of greater partnerships between Lakeport, the County of Lake, City of Clearlake, and various other community organizations has led to some exciting opportunities that are clearly seen in many of the City’s successes this past fiscal year. Some of the most notable achievements are presented here:
 Lakeport Park Construction contract approved. Construction is underway and project on schedule to be completed this summer, weather delays pending. The City Council further authorized funding for the demolition of the old Natural High Building adjacent to the park project. Demolition on schedule to be completed prior to park opening.
 The South Lakeport Annexation application was approved by Lake LAFCo (Local Agency Formation Commission). Landowner protest triggered voter approval of the annexation application by registered voters in the affected area. Measure P was placed on the November 8, 2022, ballot and subsequently failed by a vote of 2 in favor and 12 opposed. Per LAFCo rules and regulations the City cannot file a subsequent application on this matter for at least one year.  FY (Fiscal Year) 22/23 Pavement Management Projects: 1) South Main pavement rehabilitation: project divided into two components, sidewalk gap construction and pavement rehab. Bid for sidewalk construction on track for distribution this February and full pavement rehabilitation bid to be conducted later this spring. 2) Forbes Street micro surfacing project: project completed, included areas of 3rd, 4th & 5th Streets between Main and Park Streets as well as the Police Department, Community Center & Westside Park parking lots. North High Street to be completed in future years to ensure better economies in scale in project funding. 3) Palm, Orchid & Fourteenth neighborhood chip seal project:
complete.
 Contract with Retail Coach extended. Entitlements issued for re‐use of old KMART property. Tenant improvement upgrades are slated for this Spring. Actively recruiting potential retailers for remaining vacancies in the center. Grading of 10‐acre Lakeport HUB development scheduled for this spring and City of Lakeport, California iv
Introductory Section
vacancies actively being filled High Street Village. Working on mitigation strategy for the Vista Point Shopping Center.
 City Council authorized the use of the City's Permanent Local Housing Allocation (PLHA) monies for the development of navigation center to include temporary housing options and access to services to connect individual experiencing homelessness with available services.  The city is working with County and City of Clearlake on forming a Recreational Joint Powers Authority and implementing a strategy for developing an aquatic center and recreational center in Lakeport.  City staff actively attending County initiated Community Visioning Forum analyzing work plan for addressing systemic issues in Lake County.

In addition to the listed accomplishments above, many more accomplishments are listed by department below:

Public Safety
 Increased collaboration with other City Departments for efficiency and effect.  Adoption of recruitment and retention policy.
 Fleet replacement and enhancement utilizing USDA (United States Department of Agriculture) Grant funding.
 Maintenance of Canine Handler/Officer program amid retention difficulties.  Maintenance of Federal and State Legislative Compliance requirements such as: RIPA, CIBRS, SB2, AB481 Military Equipment Use, etc.
 Equipment and Technical Upgrades such as: radios, sidearms, ALPR (Automated License Plate Reader) System, Evidence Inventory Tracking System
 Enhancement of Community Interaction and Outreach such as: National Night‐Out, Special Olympics Torch Run, National Prescription Drug Take Back, etc.
 Directed and collaborated with other City Departments on Abatement and Rehabilitation of 6 Homeless Encampments.
 Completed US DOJ (Department of Justice) COPS (Community Oriented Policing Services) Officer Grant Program.
 Received 2nd consecutive Excellence in Policy Management Award.  Successfully tested, promoted, and trained 3 new Police Sergeants  Fully Implemented the Community Crisis Responder Program including enhancement that positively affect efficiency and tracking.

Public Works
 Completed Palm, Orchid & 14th neighborhood chip seal project.  Completed Hartley Safe Routes to School ATP (Active Transportation Program) project, providing sidewalk along Hartley Street from Twentieth Street to the school sports fields near the intersection with Anastasia Drive.
 Completed Forbes micro surfacing project from Martin Street to Clear Lake Avenue.  Completed the contracting process for the development of an on‐call engineering protocol system to assist the City in the procuring of greater technical services not available through in‐house staffing. This will allow City staff to streamline design processing for capital improvement related projects and be better positioned to be more competitive in grant applications that often require greater technical capacity.
 Awarded grant for the completion of a citywide sidewalk inventory and development of project ready plans for priority projects.

City of Lakeport, California v
Introductory Section
 Completed boating and waterways grant replacing the First and Third Street restrooms at Library Park.  Completed Forbes Creek drainage study which includes detailed cost estimates and action plan for priority drainage projects within this critical flood prone corridor of the City.

Utilities
 Sewer Capacity Study was completed by Dudek Engineering in November. This accurately assesses the remaining capacity of the treatment plant for future development within the city.  A Drought Response Plan was developed and is currently in draft form. A stakeholders meeting was held in December and the final draft will be presented in April.  A Drought Response Plan was developed and is currently in draft form. A stakeholders meeting was held in December and the final draft will be presented in April.

Economic Development
 LEDAC (Lakeport Economic Development Advisory Committee) is actively working on updates to the strategic plan. Currently 50% complete. To be presented to the City Council for adoption before the calendar year ends.
 Criteria for listing of the Dutch Harbor property as surplus compliant with California Department of Housing and Community Development (HCD) requirements complete. Staff currently drafting RFP (REQUEST FOR PROPOSALS) to be solicited from potential hoteliers.  Bid specifications completed for Carnegie Library ceiling repair and lighting replacement project. Looking to circulate bid package in spring. Anticipated construction to begin this summer/fall. Continuing to work with the Clear Lake Environmental Resource Center (CLERC) on the development of a public education center for the upstairs portion of the building.
 Contract with Retail Coach extended. Entitlements issued for re‐use of old KMART property. Tenant improvement upgrades are slated for this Spring. Actively recruiting potential retailers for remaining vacancies in the center. Grading of 10‐acre Lakeport HUB development scheduled for this spring and vacancies actively being filled High Street Village. Working on mitigation strategy for the Vista Point Shopping Center.
 LEDAC subcommittee formed for the development an Arts and Cultural Master Plan. Community survey on its desires for art within the community recently circulated.  City staff is working closely with the Judicial Council to develop a new courthouse building near the Vista Point Overlook on Lakeport Blvd by the end of 2025. The primary focus is on the development of intersection improvements at Lakeport.
 Development of Outdoor Dining Regulation, including private property and parklet standards.

City of Lakeport, California vi
Introductory Section
Finance
 Facilitated utility expansion fee study to update these development fees.  Complete AT&T fiberoptic project to improve internet access and connectivity between City facilities.  Participated in Lake County Recreation Task Force to complete two phases of a feasibility study and establish a county‐wide Joint Powers Authority.
 Participated on Cal Cities Revenue and Taxation Committee.  Prepared ACFR with no audit findings.
 Received GFOA Certificate of Achievement of Excellence in Financial Reporting for the City 2020‐21 ACFR. Received GFOA Certificate of Achievement of Excellence in Financial Reporting for the City 2020‐ 21 ACFR.

Community Development
 CDBG grant application submitted to secure funding for the re‐establishment of a housing program including owner occupied rehabilitation and first‐time homebuyer assistance. Grant awards anticipated in spring of 2023.
 Building Division pursuing a more pro‐active code enforcement strategy through the International Property Maintenance Code. Staff exploring amendments to the City's nuisance abatement ordinance to streamline severe violations.
 Grant secured for the conducting of a citywide sidewalk inventory which was found to be a precursor to possible amendments to the City's Right‐of‐Way ordinance by the City's Ad‐Hoc committee. Through CIRA's assistance, staff are exploring a free software program to further develop the City's sidewalk inspection program.
 Hired new Administrative Specialist and actively working to hire Community Development Director.  Entitlement of the former KMART building allows the division into three tenant spaces including Tractor Supply Company, Marshalls, and a future tenant.
 Adoption of an ordinance amending various sections of the Lakeport Municipal Code to incorporate Outdoor Design Guidelines.
 Adoption of the 2022 California Codes & 2021 International Property Maintenance Code.  Developed and released Request for Proposal – Call for Artists for inclusion of art in the new Lakefront Park. The staff is selecting a proposal.
 Executed lease agreement with the Clear Lake Environmental Research Center (CLERC) for the operation of offices, laboratory, and public environmental resource center within the Carnegie Library Building.  Entitlement of the Parkside Residential project consisting of 176 affordable dwelling units.

Administrative Services and Human Resources
 Employee Recruitment—Implemented a recruitment calendar tool to reduce the timeline for non‐police recruitments. Participated in a police recruitment taskforce group, resulting in adoption of a Police Recruitment Plan to provide more tools. Implemented the policy including updates to all recruitment documents and website. Began work with a marketing firm to assist with employer branding and recruitment strategies.
 Employee Retention—Conducted successful negotiations with the Lakeport Police Officers Association.

Prepared, adopted, and implemented a telework policy. Implemented more employee appreciation gatherings.
 Process Automation—Built a Public Records Request form and an online Employment Application via the website. Created a form and workflow for the management of professional service agreements and updated the e‐signature policy and implemented Adobe sign.

City of Lakeport, California vii
Introductory Section
 Risk Management Audit—Personnel rules update completed, and labor groups consulted. Request for Proposals completed for an ADA Self‐Evaluation and Transition Plan. Implemented measures to improve meeting accessibility.
 Elections & Appointments—Processed 2022 city elections, including a ballot measure. Recruited for two City Council vacancies and for various termed commission/committee seats.

Economic Condition and Fiscal Outlook
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Understanding that property and sales taxes generate the City’s largest two sources of revenue, it is important to look at the economy in the context of people’s wherewithal for producing general fund tax revenues.

Several factors, including rising personnel costs, energy market volatility, inflation and actions by the federal and state governments, continue to cause concern about the sustainability of a healthy local economy. The City, along with governments at all levels, remains under pressure to contain operating expenditures to ensure that such costs do not grow at a rate that exceeds revenue growth. A balanced budget in the short‐ and long‐term can quickly become unbalanced if costs are not managed closely. Many of the current economic uncertainties, however, are offset by positive economic developments, leading to an overall outlook of cautious optimism.

The City’s economic development efforts and implementation of revised financial policies are intended to help to promote Lakeport’s long‐term fiscal stability. This is a cornerstone in management’s approach to debt structuring, capital improvement planning, labor negotiations, and service delivery.

As we move forward with managing the economic uncertainties associated with the current economic climate, we reaffirm our commitment to fiscally conservative policies. This philosophy has led to the development of a healthy reserve which has enabled the City of Lakeport to weather both the natural and economic storms that have besieged us these past several years. Despite this, I am optimistic about the City’s future and look forward to the challenges and opportunities to come.

Long‐Term Financial Planning
For the City, as with governmental jurisdictions throughout the nation, continuing fiscal challenges have required a redoubling of efforts to address current and future budget shortfalls while working to prioritize and maintain the level of services that the residents of Lakeport have come to expect. Traditional funding sources for parks, public safety, and community development are shrinking or have disappeared. Annually, the City updates a Long‐ Term Financial Plan which conservatively projects general fund revenues and expenditures for thirteen years.

The results of this plan are used to guide long‐term policy discussions.

City of Lakeport, California viii
Introductory Section
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. We have not heard from the GFOA regarding our June 30, 2022 submission.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

Acknowledgements
Preparation of this Annual Comprehensive Financial Report could not have been accomplished on a timely basis without the support and cooperation of many members of the City of Lakeport’s staff. Their efforts made it possible to improve the quality of the information being reported to the citizens, the City Council, and other users on a timely basis. Appreciation is also expressed to the Mayor and the City Council for their interest and support in planning and conducting the financial activities of the City in a responsible and responsive manner.

Respectively Submitted
_______________________
Kevin M. Ingram
City Manager
_______________________
Nicholas Walker, CPA
Finance Director
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
List of Officials
ix
CITY COUNCIL
LAKEPORT REDEVELOPMENT SUCCESSOR AGENCY BOARD OF
DIRECTORS CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT BOARD OF DIRECTORS

Michael Froio Mayor
Kim Costa Mayor Pro Tem
Kenneth Parlett, II Council Member
Stacey Mattina Council Member
Brandon Disney Council Member
MANAGEMENT TEAM
Kevin Ingram City Manager
David Ruderman City Attorney
Brad Rasmussen Chief of Police
Nicholas Walker Assistant City Manager/Finance Director Kelly Buendia City Clerk/Administrative Services Director Ron Ladd Public Works Director
Joey Hejnowicz Community Development Director
Paul Harris Utilities Director
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
City Organizational Chart
x

FINANCIAL SECTION

 Independent Auditor’s Report
 Management’s Discussion and Analysis
 Basic Financial Statements
 Notes to the Basic Financial Statements
 Required Supplementary Information
 Combining and Individual Fund Statements and Schedules

This page intentionally left blank.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Lakeport
Lakeport, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Lakeport, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

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

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

Emphasis of Matter
As discussed in Note 1 to the financial statements, the 2022 financial statements have been restated to correct a misstatement. Our opinion is not modified with respect to this matter Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4–19, the Schedule of Changes in the Net OPEB Liability and Related Ratios on page 96, the Net OPEB Liability Schedule of Contributions on page 97, the City’s Schedules of Contributions, Pensions on pages 98, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 99, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and City Council
The City of Lakeport
Lakeport, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 17, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

]]TVcT? \ÇvA
January 17, 2024 JJACPA, Inc.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
4 This section provides a narrative overview and analysis of the financial activities of the City of Lakeport (City) for the fiscal year ended June 30, 2023. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
 The City’s Net Position decreased from $34.5 million to $30.9 million. Components of this increase are discussed in more detail subsequently in the analysis.  At the close of the most recent fiscal year the City’s governmental funds reported combined fund balances of $16.2 million, a decrease of $17 thousand from the prior fiscal year’s balance.

Approximately 17% of combined fund balance on June 30, 2022, ($2.8 million) is available for spending at the government’s discretion (unassigned and assigned fund balances). The fund balance of the General Fund increased from $6.5 million to $6.7 million.  The Budget vs. Actual had a positive variance in the General Fund of $1.2 million.  The Water Enterprise Net Position decreased $1.2 million, and the Sewer Enterprise Net Position decreased $1.7 million.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT

This Annual Comprehensive Financial Report is in three major parts:
1) Introductory section, which includes the Transmittal Letter and general information. 2) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government‐wide and the Fund Financial Statements along with the notes to these financial statements, and Combining and Individual Fund Financial Statements and Schedules.
3) Statistical section, which includes detailed information as a context for understanding what the information in the financial statements, and footnotes says about the City's overall financial health.

The Basic Financial Statements
The Basic Financial Statements are comprised of the Government‐wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
5 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Government‐wide Financial Statements
The Government‐wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net position and the Statement of Activities. The Statement of Net position provides information about the financial position of the City as a whole, including all its capital assets and long‐term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net position for the year.

All of the City’s activities are grouped into Governmental Activities and Business‐type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business‐type Activities in order to provide a summary of these two activities of the City as a whole.
♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, public works and administration. These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.
♦ Business‐type activities – All the City’s enterprise activities are reported here, including Water and Sewer. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government‐wide Financial Statements. However, unlike the Government‐wide Financial Statements, Governmental Fund Financial Statements focus on near‐term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near‐term financing requirements.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
6 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government‐wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government‐ wide Financial Statement. By doing so, readers may better understand the long‐term impact of the government’s near‐term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2023, the City’s major funds are as follows:

Governmental Funds:
 General Fund
 Lakefront Park Grant Special Revenue
 Safe Routes to School Special Revenue
 HOME Grant Program income
For the fiscal year ended June 30, 2023, the City adopted annual appropriated budgets for all funds.

Budgetary comparison schedules have been provided for the general fund and major governmental funds to demonstrate compliance with this budget and may be found on pages 32‐34.

Proprietary funds. The City maintains Enterprise‐type proprietary funds. Enterprise funds are used to report the same functions presented as business‐type activities in the Government‐wide Financial Statements. The City uses enterprise funds to account for Water and Sewer activities.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
7 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
Proprietary funds provide the same type of information as the Government‐wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.

Proprietary Funds:
 Water Enterprise Fund
 Sewer Enterprise Fund

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government‐wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 46–94 of this report. Required Supplementary Information follows the notes on page

96. Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with nonmajor governmental funds are presented on pages 104‐136 of this report.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
8 GOVERNMENT‐WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $30,890,846 as of June 30, 2023. The following table represents a comparative analysis of the net position of governmental and business‐type activities as of June 30, 2023 and June 30, 2022.

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 18,003,489 $      15,833,226 $      33,836,715 $      17,253,492 $      15,229,330 $      32,482,822 $ Capital assets 20,892,236         22,151,773         43,044,009         17,599,633         23,186,349         40,785,982 Total assets 38,895,725         37,984,999         76,880,724         34,853,125         38,415,679         73,268,804 Deferred outflows of resources 1,632,053           536,471              2,168,524           4,854,337           2,869,850           7,724,187 Total assets and deferred outflows of
resources 40,527,778         38,521,470         79,049,248         39,707,462         41,285,529         80,992,991 Current and other liabilities 2,201,596           1,537,500           3,739,096           1,332,921           1,058,780           2,391,701 Long‐term liabilities 12,432,206         26,161,584         38,593,790         12,687,016         27,242,090         39,929,106 Total liabilities 14,633,802         27,699,084         42,332,886         14,019,937         28,300,870         42,320,807 Deferred inflows of resources 3,515,995           2,309,521           5,825,516           2,584,569           1,635,040           4,219,609 Total liabilities and deferred  inflows of
resources         30,008,605 18,149,797         48,158,402         16,604,506         29,935,910         46,540,416 Net position:

Net investment in
Capital Assets 18,770,587 1,546,214 20,316,801 15,477,984 1,546,214 17,024,198 Restricted 3,114,501 688,210 3,802,711 2,956,367 688,210 3,644,577 Unrestricted (deficit) 492,893 6,278,441 6,771,334 4,668,605 9,115,195 13,783,800 Total net position $ 8,512,865 22,377,981 $ 30,890,846 $ 23,102,956 $ 11,349,619 $ 34,452,575 $ 2023 2022
Summary of Net Position
Overall, total Net Position decreased by approximately $3.6 million. With most balances remaining relatively stable over the prior year this increase was mostly a result of significant decreases to pension related deferred outflows of resources resulting from recognizing the one‐time contributions made in the prior from the proceeds of POB’s issued to restructure the City’s pension obligations as pension expense offset by significant increases to pension related deferred inflows of resources for changes in employer’s proportion, also a result of the restructuring of the City’s pension obligations.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
9 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2023, and 2022, follows:

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services 109,838 $ 6,036,949 $ 6,146,787 $ $ 5, 111,845 $ 5, 586,658 $ 698,503 Grants and contributions:

Operating 869,958 113,006 1, 982,964 ‐ 457,958 1, 457,958 Capital 3,640,384 ‐ 3, 1, 640,384 ‐ 505,881 1, 505,881 General revenues:

Sales taxes 3,983,301 ‐ 3, 4, 983,301 ‐ 235,287 4, 235,287 Property taxes 1,187,816 344,268 1, 1, 532,084 319,415 110,582 1, 429,997 Transient and other taxes 211,346 ‐ 211,346 ‐ 238,747 238,747 Licenses and franchises 534,636 ‐ 534,636 ‐ 550,743 550,743 Use of money and property 163,310 83,265 63,996 246,575 9,409 73,405 Other revenues 202,197 ‐ 202,197 ‐ 173,586 173,586 OPEB credit 51,521 ‐ 51,521 1, ‐ 814,194 1, 814,194 Total revenues 10,954,307 6,577,488 17,531,795 11, 5,915,482 262,819 17, 178,301 Expenses:

Governmental activities:

General government 2,565,089 ‐ 2, 1, 565,089 ‐ 425,139 1, 425,139 Community development 1,052,867 ‐ 1, 052,867 ‐ 486,520 486,520 Roads and infrastructure 2,417,965 ‐ 2, 3, 417,965 ‐ 257,360 3, 257,360 Housing and support programs ‐ 142,182 142,182 ‐ 186,396 186,396 Economic development 305,128 ‐ 305,128 ‐ 318,156 318,156 Public safety 4,282,545 ‐ 4, 2, 282,545 ‐ 559,046 2, 559,046 Parks, buildings, and grounds ‐ 739,157 739,157 ‐ 375,204 375,204 Interest and fiscal charges 174,349 ‐ 174,349 ‐ 216,153 216,153 Business‐type activities:

Water ‐ 4, 4,184,567 184,567 ‐ 2, 2, 299,137 299,137 Sewer ‐ 5, 5,229,675 229,675 ‐ 3, 3, 260,938 260,938 Total expenses 11,679,282 9,414,242 21,093,524 8, 5,560,075 823,974 14, 384,049 Excess (Deficiency) of revenues over
expenditures before transfers (724,975) (2,836,754) (3,561,729) 2, 355,407 438,845 2, 794,252 Net position:

Beginning of year 23,102,956 11,349,619 34,452,575 16, 10,994,212 164,111 27, 158,323 Adjustments ‐ ‐ ‐ 4, ‐ 500,000 4, 500,000 Beginning, as adjusted 23,102,956 11,349,619 34,452,575 20, 10,994,212 664,111 31, 658,323 End of year 22,377,981 $ 8,512,865 $ 30,890,846 $ 23, $ 11,349,619 102,956 $ 34, $ 452,575 2023 2022
Changes in Net Position
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
10 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City’s total revenues for governmental and business‐type activities were $17,531,795 for the fiscal year ended June 30, 2023, which represents a 2% increase over the previous fiscal year. Significant revenues for the City for fiscal year ended June 30, 2022 were derived from charges for services (35%), sales and use tax (23%), property tax (9%) and operating and capital grants and contributions (26%).

Combining to make up 93% of the City’s revenue.

Following is a discussion of variances in key revenues from the prior fiscal year:

1. Charges for Services. Charges for Services increased as expected from scheduled rate increases.

2. Grants and Contributions. Operating grants decreased from the prior fiscal year by approximately $475 thousand due to a reduction in spending related to housing and economic development activities. Capital grants increased approximately $2.1 million due to the continued work on the development of the new Lakefront Park expected to be completed in which neared completion at June 30, 2023 and the completion of a active transportation improvement project focused on improving access to the local schools.

3. Sales and Use Tax. Sales and use taxes decreased nearly 6% compared to the previous fiscal year. The post pandemic period of significant inflation reduced consumer spending on taxable goods in the City. The expectation is for growth in this revenue category to remain very slow for the foreseeable future.

4. Property Tax. Property tax remained stable compared to the previous fiscal year. We believe this is a result of a strong housing market and recent development.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
11 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

Expenses
Governmental and business‐type activity expenses of the City for the year totaled $21,093,524 which represents a 47% increase over the previous fiscal year. Governmental activity expenses totaled $11,679,282 or 61% of total expenses. Of the governmental actives the most significant categories were represented by public safety (37%), general government (22%), and roads and infrastructure (21%).

Combining to make up 79% of governmental activity expenses. Business‐type activities incurred $9,414,242 of expenses during the fiscal year or 45% of the total City expenses.

Following is a discussion of significant variances in key expense categories from the prior fiscal year:

1. General Government. Expenditures in this category increased approximately $1.1 million compared to the prior fiscal year. This is primarily the result of fluctuations to pension and OPEB expenses.

2. Public Safety. Normal operating costs associated with public safety remained relatively stable compared to the prior fiscal year. However, a $1.8 million dollar increase is the result of fluctuations to pension and OPEB expenses.

3. Roads and infrastructure. Expenses increased significantly by approximately $900 thousand. This is the result of a decrease in costs associated with specific projects including an infrastructure in support of housing project and a pavement rehabilitation project on North Main Street that occurred in the prior year.

4. Water Enterprise. Costs associated with water increased approximately $1.9 million compared to the prior fiscal year. This is primarily the result of fluctuations to pension and OPEB expenses.

5. Sewer Enterprise. Costs associated with sewer increased approximately $2 million compared to the prior fiscal year. This is primarily the result of fluctuations to pension and OPEB expenses.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
12 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs.

Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2023, and 2022, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $ (2,194,024) 2,565,089 $ 1,425,139 $ (1,260,465) $ Community development (988,271) 1,052,867 486,520 (428,777) Roads and infrastructure (183,938) 2,444,228 3,257,360 (2,389,844) Housing and support programs (98,895) 142,182 186,396 463,360 Economic development (116,878) 278,865 318,156 65,847 Public safety (4,220,734) 4,282,545 2,559,046 (2,496,532) Parks, buildings, and grounds 917,987 739,157 375,204 514,274 Interest and fiscal charges (174,349) 174,349 216,153 (216,153) Total 11,679,282 $ (7,059,102) $ 8,823,974 $ (5,748,290) $ 2023 2022
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
13 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities, Continued
Revenues by source for the fiscal years ended June 30, 2023, and 2022, are as follows:

Sales and use taxes,
3,983,301 , 36%
Property taxes,
1,187,816 , 11%
Transient
occupancy tax,
211,346 , 2% Licenses, permits
and franchises,
534,636 , 5%
Use of
money and
property,
163,310 ,
2%
Other general
revenues, 202,197 ,
2%
OPEB credit, 51,521
, 0%
Charges for
services, 109,838 ,
1%
Operating grants
and contributions,
869,958 , 8%
Capital grants and
contributions,
3,640,384 , 33%
Revenues by Source ‐ Governmental Activities 2023
Sales and use taxes,
4,235,287 , 38%
Property taxes,
1,110,582 , 10%
Transient
occupancy tax,
238,747 , 2%
Licenses, permits
and franchises,
550,743 , 5%
Use of
money and
property,
63,996 , 1%
Other general
revenues,
173,586 , 1%
Pension credit,
1,560,055 , 14%
OPEB credit,
254,139 , 2%
Charges for
services, 111,845 ,
1%
Operating grants
and contributions,
1,457,958 , 13%
Capital grants and
contributions,
1,505,881 , 13%
Revenues by Source ‐ Governmental Activities 2022
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
14 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

Business‐type Activities

Business‐type activities decreased the City’s net position by $2,836,754. The City has two business‐type activities: Water and Sewer. While both activities generated positive changes in net position the changes were marginal with no specific significant items.
$‐
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Water Sewer
Operating revenues
Operating expenses
$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Water Sewer
Operating revenues
Operating expenses
Operating Revenues and Expenses
Business‐type Activities
2023
Operating Revenues and Expenses
Business‐type Activities
2022
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
15 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Business‐type Activities, Continued
The revenues by source for the business‐type activities for the fiscal years ended June 30, 2023, and 2022, are as follows:

Charges for services
6,036,949

91.78%
Operating grants
and contributions
113,006

1.72%
Property taxes
344,268

5.23%
Use of money and
property
83,265

1.27%
Revenues by Source ‐ Business‐type Activities
2023
Charges for services
5,586,658

94.44%
Property taxes
319,415

5.40%
Use of money and
property
9,409

0.16%
Revenues by Source ‐ Business‐type Activities
2022
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
16 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Financial Analysis of the Government’s Funds
The City of Lakeport uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government‐wide financial statements.

Governmental funds. The City’s governmental funds provide information on near‐term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2023, the City’s governmental funds reported combined fund balances of $16,224,239. This is a increase of $8,135 from last fiscal year.

The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2023, General Fund unassigned and assigned fund balance totaled $1,764,967.

Proprietary funds. Further detail on the change in net position may be found in the section titled Business‐type Activities on page 14.

Budgetary Highlights
General Fund
The difference between the final budget and actual revenues differs favorably by $1.2 million. While sales taxes underperformed compared to expectations due the effect of the post pandemic period of significant inflation reducing consumer spending on taxable goods in the City, property taxes and transient occupancy taxes performed as anticipated. Expenditure levels were relatively consistent with the prior, however when compared to the budget there was a $1.6 million favorable variance. For public safety the approximately $400 thousand variance was the result of salary savings from unfilled positions.

For parks buildings and grounds the approximately $600 thousand variance was the result of salary savings and capital projects that were not completed as budgeted but carried over into the coming fiscal year.

Lakefront Park Grant Fund
Established to account for the revenues and expenditures associated with a Proposition 68 California Department of Parks and Recreation grant to construct a new park in Lakeport. Significant progress was made on the project and the project will be completed in the coming fiscal year.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
17 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

Budgetary Highlights, Continued

Safe Routes to School
Established to account for the revenues and expenditures associated with a CalTrans funded project to improve the pedestrian corridor to the Lakeport Unified School sites.

Home Grant Program Income Fund
This fund is used for reinvestment into housing programs from program income generated by past HOME grants. This fund experienced very little activity in the current fiscal year.

Capital Assets

The capital asset balances net of accumulated depreciation for the fiscal years ended June 30, 2023, and 2022, are as follows:
2023 2022 2023 2022 2023 2022
Land 2,498,113 $ 2,498,113 $ 2,475,403 $ 2,475,403 $ 4,973,516 $ 4,973,516 $ Construction in progress 5,819,405 2,007,604 131,159 131,159 5,950,564 2,138,763 Buildings and improvements 4,210,453 4,390,117 7,685,486 7,924,809 11,895,939 12,314,926 Improvements 7,801,793 8,076,451 10,887,934 11,794,769 18,689,727 19,871,220 Vehicles and equipment 562,472 627,348 971,791 860,209 1,534,263 1,487,557 Total 20,892,236 $ 17,599,633 $ 22,151,773 $ 23,186,349 $ 43,044,009 $ 40,785,982 $ Governmental Activities Totals Business‐type Activities Significant increases to Capital Assets are primarily work in progress costs associated with the construction of the new Lakefront Park. More detail of the capital assets and current activity can be found in the notes to the financial statements on Page 52 for significant accounting policies and Note 5 on Page 66 for other capital asset information.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
18 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Debt Administration
Governmental Activities 2023 2022
USDA Police Station Bond 989,000 $ 1,008,000 $
2021 Pension Obligation Bonds - Governmental Share 4,494,000 4,740,000 Less: Discount (33,764) (35,640)
2018 Series B Solar Bonds - Governmental Share 1,130,000 1,145,000 Less: Discount (29,926) (31,351)
Total Governmental Activities 6,549,310 6,826,009
Business-Type Activities
USDA Water Revenue Bonds, 2016 2,831,400 2,893,400
Pinnacle Water Loan 1,908,000 2,030,000
Banner 2022 Water Bonds 5,985,000 5,985,000
Wastewater Revenue Bonds, 2017 Refunding 1,713,000 1,907,000 USDA WasteWater Revenue Bonds, 2017 3,132,000 3,192,000 2017 CLMSD Sewer District Assessment Bonds 1,986,000 2,160,000 2021 Pension Obligation Bonds - Business-type Share 2,996,000 3,160,000 Less: Discount (22,510) (23,760)
2018 Series B Solar Bonds - Business-type Share 3,225,000 3,340,000 Add: Premium 30,553 32,735
Total Business-Type Activities 23,784,443 24,676,375
Total $ 31,502,384 30,333,753 $

During the year ended June 30, 2023, the City did not issue any new debt instruments and made all debt service payments as required. Additional information on the City’s outstanding long‐term liabilities can be found in Note 6 on page 68.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
19 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Economic Outlook

Many of the current economic uncertainties, however, are offset by positive economic developments, leading to an overall outlook of cautious optimism.

As we move forward with managing the economic uncertainties associated with the current economic climate, we reaffirm our commitment to fiscally conservative policies. This philosophy has led to the development of a healthy reserve which has enabled the City of Lakeport to weather both the natural and economic storms that have besieged us these past several years. Despite this, the City maintains an overall outlook of cautious optimism.

Requests for Information
This financial report is designed to provide our citizens, taxpayers, creditors and government regulators with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Additional information may be found on our website at www.cityoflakeport.com. Below is the contact address for questions about the report or requests for additional financial information.

City of Lakeport
Finance Department
225 Park Street
Lakeport, CA 95453
20 This page intentionally left blank.

Government‐Wide Financial Statements
Both these Statements include the financial activities of the City and the City of Lakeport Municipal Sewer District, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for their activities.

The Statement of Net Position reports the difference between the City’s total assets and the City’s total liabilities, including all the City’s capital assets and all its long‐term debt. The Statement of Net Position summarizes the financial position of all City Governmental Activities in a single column, and the financial position of all the City’s Business‐Type Activities in a single column; these are followed by a total column which presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all of its Special Revenue, Capital Projects and Debt Service Funds. The City’s Business‐Type Activities include all of its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its business‐type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business‐type program. The City’s general revenues are then listed in the Governmental Activities or Business‐type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
21 This page intentionally left blank.
22 City of Lakeport, California
Statement of Net Position
June 30, 2023
Governmental Business‐type
Activities Activities Total
ASSETS
Cash and investments $ 14,197,920 6,790,993 $ 20,988,913 $ Restricted cash and investments 435,243 1,009,454 1,444,697 Receivables:

Accounts 1,076,731 3,722,010 4,798,741 Loans/Notes receivable 123,332 6,481,032 6,604,364 Total current assets 15,833,226 18,003,489 33,836,715 Capital assets:

Nondepreciable 8,317,518 2,606,562 10,924,080
Depreciable 19,545,211 12,574,718 32,119,929 Total noncurrent assets 22,151,773 20,892,236 43,044,009 Total assets 37,984,999 38,895,725 76,880,724 DEFERRED OUTFLOWS OF RESOURCES
Pension plan 536,471 1,632,053 2,168,524 Total deferred outflows of resources 536,471 1,632,053 2,168,524 Total assets and deferred outflows $ 38,521,470 40,527,778 $ 79,049,248 $

LIABILITIES
Accounts payable 180,507 1,330,148 1,510,655 Other liabilities 215,582 19,933 235,515 Deposits payable 48,970 429,169 478,139 Compensated absences ‐ current portion 103,441 134,346 237,787 Due within one year 989,000 288,000 1,277,000 Total current liabilities 1,537,500 2,201,596 3,739,096 Long‐term liabilities:

Compensated absences 234,029                          117,400                         351,429 Due after one year 6,261,310                       22,795,443                   29,056,753 Net OPEB liability                       1,336,751 3,272,736                     4,609,487 Net pension liability                       1,911,990 2,664,131                     4,576,121 Total noncurrent liabilities                     26,161,584 12,432,206                   38,593,790 Total liabilities                     27,699,084 14,633,802                   42,332,886 DEFERRED INFLOWS OF RESOURCES
Pension Plan                       2,309,521 3,515,995                     5,825,516 Total deferred inflows of resources                       2,309,521 3,515,995                     5,825,516 NET POSITION
Net investment in capital assets                     1,340,820 18,803,162                     20,143,982 Restricted for:

Law enforcement ‐ 7,268 7,268 Debt service 338,000 22,588 360,588 Housing programs ‐ 991,901 991,901 Economic development programs ‐ 1,051,864 1,051,864 Transportation infrastructure ‐ 1,040,880 1,040,880 Assessment district 350,210 ‐ 350,210 Unrestricted (deficit) 6,483,835 460,318 6,944,153 Total net position 8,512,865 22,377,981 30,890,846 Total liabilities, deferred inflows and net position $ 38,521,470 40,527,778 $ 79,049,248 $ The accompanying notes are an integral part of these basic financial statements. 23 City of Lakeport, California
Statement of Activities
For the year ended June 30, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $ ‐ 2,565,089 $ 371,065 $ ‐ $ Community development 59,881 4,715 1,052,867 ‐ Roads and infrastructure 37,527 239,523 2,444,228 1,983,240 Housing and support programs ‐ 142,182 43,287 ‐ Economic development ‐ 278,865 161,987 ‐ Public safety 12,430 4,282,545 49,381 ‐ Parks, buildings and grounds ‐ 739,157 ‐ 1,657,144 Interest and fiscal charges ‐ 174,349 ‐ ‐ Total governmental activities 11,679,282 109,838 869,958 3,640,384 Business‐type activities:

Water 2,869,470 4,184,567 113,006 ‐ Sewer 3,167,479 5,229,675 ‐ ‐ Total business‐type activities 9,414,242 6,036,949 113,006 ‐ Total primary government $ 6,146,787 21,093,524 $ 982,964 $ 3,640,384 $ General revenues:

Taxes:

Sales and use taxes
Property taxes, levied for general purposes
Transient occupancy tax, levied for general purposes
Licenses, permits and franchises
Use of money and property
Other general revenues
OPEB credit
Total general revenues
Change in net position
Net position:

Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 24 Governmental Business‐Type
Activities Activities Totals
$           ‐ (2,194,024) $                             (2,194,024) $ ‐ (988,271)                                (988,271)
‐ (183,938)                                (183,938)
‐ (98,895)                                (98,895)
‐ (116,878)                                (116,878)
‐ (4,220,734)                                (4,220,734) ‐ 917,987                                917,987
‐ (174,349)                                (174,349)
‐ (7,059,102)                                (7,059,102) (1,202,091) ‐              (1,202,091)
(2,062,196) ‐              (2,062,196)
(3,264,287) ‐              (3,264,287)
(3,264,287) (7,059,102)              (10,323,389)
3,983,301 ‐                                3,983,301
1,187,816 344,268                   1,532,084
211,346 ‐                                211,346
534,636 ‐                                534,636
163,310 83,265                     246,575
202,197 ‐                                202,197
‐ 51,521                                51,521
427,533 6,334,127                   6,761,660
(2,836,754) (724,975)              (3,561,729)
11,349,619 23,102,956             34,452,575
$          8,512,865 22,377,981 $            30,890,846 $ Net (Expense) Revenue and
Changes in Net Position
25 This page intentionally left blank.
26 Fund Description
General Fund
Safe Routes to School
HOME Grant Program Income
Established to account for the revenues and expenditures associated with a CalTrans funded project to improve the pedestrian corridor to the Lakeport Unified School sites.

FUND FINANCIAL STATEMENTS
MAJOR FUNDS
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The major revenue sources for this fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures, and interest income. Expenditures are made for community development, public safety, public works, and other services.

Lakefront Park Grant Established to account for the revenues and expenditures associated with a Proposition 68 California Department of Parks and Recreation grant to construct a new park in Lakeport.

This fund is used for reinvestment into housing programs from program income generated by past HOME grants.
27 City of Lakeport, California
Balance Sheet
Governmental Funds
June 30, 2023
Lakefront HOME Grant Nonmajor
General Park Grant Safe Routes Program Governmental
Fund Special Revenue to School Income Funds Totals
ASSETS
Cash and investments $ ‐ 3,330,307 $ $ 2,715,861 744,825 $ 6,790,993 $ Restricted cash and investments 1,009,454 ‐ ‐ ‐ 1,009,454 Receivables:

Intergovernmental ‐ 1,869,606 ‐ ‐ 304,385 2,173,991 Loans/Notes receivable ‐ ‐ ‐ 5,407,475 1,073,557 6,481,032 Other receivable 1,490,622 ‐ ‐ ‐ 57,397 1,548,019 Due from other funds 1,606,791 ‐ ‐ ‐ ‐ 1,606,791 Advances to other funds 289,481 ‐ ‐ ‐ ‐ 289,481 Total assets $ 1,869,606 7,726,655 $ ‐ $ 6,152,300 $ 4,151,200 $ 19,899,761 $

LIABILITIES
AND FUND BALANCES
Liabilities:

Accounts payable 545,003 $ 751,694 $ ‐ ‐ $ 33,451 $ 1,330,148 $ Due to other funds ‐ 1,117,912 147,640 ‐ 341,239 1,606,791 Deposits payable 429,169 ‐ ‐ ‐ 429,169 Interest payable 19,933 ‐ ‐ ‐ ‐ 19,933 Advances from other funds ‐ ‐ ‐ ‐ 289,481 289,481 Total liabilities 1,869,606 994,105 147,640 ‐ 664,171 3,675,522 Fund balances:

Nonspendable
Advances to other funds 289,481                ‐                                          ‐                                   ‐                             ‐                             289,481 Loans/Notes receivable ‐                             ‐                                          ‐                                   5,407,475             ‐                             5,407,475 Restricted
Law enforcement 1,874                    ‐                                          ‐                                   ‐                             5,394                    7,268 Debt service 22,588                  ‐                                          ‐                                   ‐                             ‐                             22,588 Housing programs ‐                             ‐                                          ‐                                   744,825                247,076                991,901 Economic development programs ‐                             1,051,864             1,051,864 Transportation infrastructure ‐                             ‐                                          ‐                                   ‐                             1,040,880             1,040,880 Committed
Operating reserve 1,101,595             ‐                                          ‐                                   ‐                             ‐                             1,101,595 Reserve for economic uncertainties 1,468,794             ‐                                          ‐                                   ‐                             ‐                             1,468,794 Disaster reserve 734,397                ‐                                          ‐                                   ‐                             ‐                             734,397 Vehicles and equipment replacement reserve 147,735                ‐                                          ‐                                   ‐                             ‐                             147,735 Road improvement reserve 214,253                ‐                                          ‐                                   ‐                             ‐                             214,253 Pension and OPEB reserve 986,866                ‐                                          ‐                                   ‐                             ‐                             986,866 Assigned
Capital projects 1,500,000             ‐                                          ‐                                   ‐                             1,395,578             2,895,578 Unassigned (deficit) 264,967 ‐                                          (147,640)                     ‐                             (253,763)               (136,436) Total fund balances             ‐ 6,732,550                                          (147,640)                     6,152,300             3,487,029             16,224,239 Total liabilities, deferred inflows and fund
balances $         1,869,606 7,726,655 $                      ‐ $                                6,152,300 $         4,151,200 $         19,899,761 $ Major Funds
The accompanying notes are an integral part of these basic financial statements. 28 City of Lakeport, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2023
Total fund balances ‐ total governmental funds $    16,224,239 20,892,236
Compensated absences (368,375) $
Long‐term debt (6,549,310)
Net OPEB liability (3,272,736)
Net pension liability (2,664,131)        (12,854,552)
Deferred outflows ‐ pensions        1,632,053
Deferred inflows ‐ pensions (3,515,995)        (1,883,942) Net Position of governmental activities $    22,377,981 The accompanying notes are an integral part of these basic financial statements.

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.

Amounts reported for governmental activities in the Statement of Net Position are different because:

Long‐term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Pension obligations result in deferred outflows and inflows of resouces associated with the actuarial value of contributions, assets, and liaiblities 29 City of Lakeport, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Lakefront HOME Grant Other
General Park Grant Safe Routes Program Governmental
Fund Spcial Revenue to School Income Funds Totals
REVENUES:

Taxes:

Sales $ ‐ 3,983,301 $ ‐ $ ‐ $ ‐ $ 3,983,301 $ Property ‐ 1,187,816 ‐ ‐ ‐ 1,187,81 6 Transient occupancy ‐ 211,346 ‐ ‐ ‐ 211,346 Licenses, permits and franchises ‐ 534,636 ‐ ‐ ‐ 534,636 Fines, forfeitures and penalties ‐ 12,430 ‐ ‐ ‐ 12,430 Intergovernmental 371,065 1,657,144 ‐ 1,313,406 1,168,72 4,510,342 7 Use of money and property ‐ 126,331 ‐ 22,553 14,426 163,31 0 Charges for services ‐ 97,408 ‐ ‐ ‐ 97,408 Other revenues ‐ 94,021 ‐ ‐ 108,176 202,197 Total revenues 1,657,14 6,618,354 1,313,40 4 22,553 6 1,291,329 10,902,78 6 EXPENDITURES:

Current:

General government:

Council ‐ 107,828 ‐ ‐ ‐ 107,828 Administration ‐ 378,593 ‐ ‐ ‐ 378,593 Attorney ‐ 67,774 ‐ ‐ ‐ 67,77 4 Finance and information technology ‐ 361,895 ‐ ‐ ‐ 361,895 Non‐departmental ‐ 270,138 ‐ ‐ ‐ 270,138 Community development:

Planning ‐ 378,931 ‐ ‐ ‐ 378,931 Building ‐ 301,903 ‐ ‐ ‐ 301,903 Roads and infrastructure:

Public works ‐ 1,060,854 ‐ 222,207 1,283,061 Engineering ‐ 152,518 ‐ ‐ ‐ 152,518 Housing and support programs ‐ ‐ ‐ 4,738 120,463 125,201 Economic development 83,21 ‐ 4 ‐ 195,651 278,865 Public safety ‐ 2,288,685 ‐ ‐ 13,570 2,302,255 Parks, buildings and grounds 483,516 45,643 ‐ ‐ ‐ 529,159 Capital outlay 2,350,755 1,461,04 47,991 ‐ 6 28,709 3,888,501 Debt service:

Principal ‐ 280,000 ‐ ‐ ‐ 280,00 0 Interest and fiscal charges ‐ 171,048 ‐ ‐ ‐ 171,048 Total expenditures 2,396,39 6,434,888 1,461,04 8 4,738 6 580,60 10,877,67 0 0 REVENUES OVER (UNDER)
EXPENDITURES (739,254) 183,466 (147,640) 17,815 710,729 25,116 OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐ ‐ ‐ ‐ (16,981) (16,981) Transfers in 49,381 ‐ ‐ ‐ 24,259 73,640 Transfers out (24,259) ‐ ‐ ‐ (49,381) (73,640) Total other financing sources (uses) ‐ 25,122 ‐ ‐ (42,103) (16,981) Net change in fund balances (739,254) 208,588 (147,640) 17,815 668,626 8,135 FUND BALANCES (DEFICITS):

Beginning of year 6,523,962            739,254                             6,134,485 ‐            2,818,403            16,216,10          4 End of year 6,732,55 $         ‐ 0 $                         (147,640) $           6,152,30 $         3,487,029 0 $         16,224,23 $       9 Major Funds
The accompanying notes are an integral part of these basic financial statements. 30 City of Lakeport, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2023
Net change in fund balances ‐ total governmental funds $                8,135 Capital asset purchases capitalized $        3,890,118
Depreciation expense (597,809)               3,292,309
Debt payments               276,699               276,699 Change in compensated absences                (35,855)
Net OPEB liability                 51,521
Net Pension liability           (4,266,263) (4,317,784) Change in Net Position of governmental activities $          (724,975) Amounts reported for governmental activities in the Statement of Activities are different because:

Some revenues and expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

The accompanying notes are an integral part of these basic financial statements.

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the Certain employee benefit obligations are recorded on a pay‐as‐you‐go basis in the governmental funds, but are accrued as liabilities in the Statement of Net Position:

The issuance of long‐term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long‐term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.
31 City of Lakeport, California
Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual ‐ General and Major Special Revenue Funds For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes:

Sales 4,505,543 4,505,543 3,983,301 (522,242) $
Property 1,203,500 1,203,500 1,187,816 (15,684)
Transient occupancy 200,000 200,000 211,346 11,346
Licenses, permits and franchises 503,700 503,700 534,636 30,936 Fines, forfeitures and penalties 11,000 11,000 12,430 1,430 Intergovernmental 314,500 414,500 371,065 (43,435)
Use of money and property 87,000 87,000 126,331 39,331
Charges for services 75,000 75,000 97,408 22,408
Other revenues 31,800 31,800 94,021 62,221
Total revenues 7,032,043 6,932,043 6,618,354 (413,689) EXPENDITURES:

Current:

General government:

Council 114,412 114,412 107,828 6,584
Administration 376,814 376,814 378,593 (1,779)
Attorney 63,800 63,800 67,774 (3,974)
Finance and information technology 353,399 353,399 361,895 (8,496) Non‐departmental 337,000 337,000 270,138 66,862
Community development:

Planning 554,233 554,233 378,931 175,302
Building 335,702 335,702 301,903 33,799
Roads and infrastructure:

Public works 1,140,109 1,140,109 1,060,854 79,255
Engineering 132,682 132,682 152,518 (19,836)
Housing and support programs ‐ ‐ ‐ ‐ Economic development 219,000 219,000 83,214 135,786
Public safety 2,350,874 2,656,874 2,288,685 368,189
Parks, buildings and grounds 718,044 1,068,044 483,516 584,528 Capital outlay 183,000 283,000 47,991 235,009
Debt service:

Principal 280,000 280,000 280,000 ‐
Interest and fiscal charges 171,841 171,841 171,048 793 Total expenditures 8,086,910 7,330,910 6,434,888 1,652,022 REVENUES OVER (UNDER)
EXPENDITURES (1,054,867) (398,867) 183,466 1,238,333 OTHER FINANCING SOURCES (USES):

Transfers in 486,841 486,841 49,381 437,460
Transfers out (451,841) (451,841) (24,259) (427,582) Total other financing sources (uses) 35,000 35,000 25,122 9,878 Net change in fund balances (1,019,867) (363,867) 208,588 1,248,211 FUND BALANCES (DEFICITS):

Beginning of year 6,523,962 6,523,962 6,523,962 ‐ End of year $ 5,504,095 6,160,095 $ 6,732,550 $ 1,248,211 $ General Fund
The accompanying notes are an integral part of these basic financial statements.

Budgeted Amounts
32 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ ‐ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,660,000 3,660,000 1,657,144 (2,002,856) 1,624,000 1,624,000 1,313,406 (310,594) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,660,000 3,660,000 1,657,144 (2,002,856) 1,624,000 1,624,000 1,313,406 (310,594) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 45,643 (45,643) ‐ ‐ ‐ ‐ 4,268,000 4,268,000 2,350,755 1,917,245 1,624,000 1,624,000 1,461,046 162,954 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,268,000 4,268,000 2,396,398 1,871,602 1,624,000 1,624,000 1,461,046 162,954 (608,000) (608,000) (739,254) (131,254) ‐ ‐ (147,640) (473,548) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (608,000) (608,000) (739,254) (131,254) ‐ ‐ (147,640) (473,548) 739,254 739,254 739,254 ‐ ‐ ‐ ‐ ‐ $ 131,25 131,254 $ ‐ 4 $ (131,254) $ ‐ $ ‐ $ (147,640) $ (473,548) $ (continued)
Lakefront Park Grant Sepcial Revenue Fund
Budgeted Amounts
Safe Routes to School
Budgeted Amounts
33 City of Lakeport, California
Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual ‐ General and Major Special Revenue Funds For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental ‐ $ ‐ $ 1,313,406 $ 1,313,406 $ Use of money and property ‐ ‐ 22,553 22,553 Total revenues ‐ ‐ 1,335,959 1,335,959 EXPENDITURES:

Current:

Housing and support programs 10,000 10,000 4,738 5,262 Total expenditures 10,000 10,000 4,738 5,262 REVENUES OVER (UNDER)
EXPENDITURES (10,000) (10,000) 1,331,221 1,330,697 OTHER FINANCING SOURCES (USES):

Transfers in ‐ ‐ ‐ ‐ Transfers out ‐ ‐ ‐ ‐ Total other financing sources (uses) ‐ ‐ ‐ ‐ Net change in fund balances (10,000) (10,000) 1,331,221 1,330,697 FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ 6,134,485 ‐ End of year $ (10,000) (10,000) $ 7,465,706 $ 1,330,697 $ (concluded)
The accompanying notes are an integral part of these basic financial statements.

HOME Grant Program Income
Budgeted Amounts
34 The City maintains two enterprise funds: water and sewer described as follows:

Fund
Major Funds:

Water Enterprise Fund
Sewer Enterprise Fund
PROPRIETARY FUNDS
Description
Chapter 13.04 of the Lakeport Municipal Code provides the authority for City to operate water system. Revenues (fees and charges) are collected to pay for service (water) received.

Chapter 13.20 of the Lakeport Municipal Code provides the authority for the City to operate sewer system. Revenues (fees and charges) are collected to pay for availability of collection, transportation, treatment, and disposal system. In addition, grazing lease payments, LACOSAN payments for flows, tax revenues, FEMA storm damage reimbursement, OES storm
damage reimbursement, and insurance rebates have been
credited to this fund.

Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
35 City of Lakeport, California
Statement of Net Position
Proprietary Funds
June 30, 2023
Water Sewer Totals
ASSETS
Current assets:

Cash and investments 7,870,575 $ 6,327,345 $ 14,197,920 Restricted cash 15,831 419,412 435,243
Receivables:

Accounts, net of uncollectibles 522,617 548,636 1,071,253 Notes receivable 38,233 85,099 123,332
Total current assets 7,385,970 8,447,256 15,833,226 Noncurrent assets:

Capital assets not being depreciated:

Land 740,170 1,735,233 2,475,403
Construction in progress ‐ 131,159 131,159 Capital assets being depreciated:

Buildings and improvements 12,929,618 29,363,126 42,292,744 Machinery, equipment and vehicles 765,831 1,759,595 2,525,426 Less: Accumulated depreciation (5,739,017) (19,533,942) (25,272,959) Total noncurrent assets 13,455,171 8,696,602 22,151,773 Total Assets 20,841,141 17,143,858 37,984,999 DEFERRED OUTFLOWS OF RESOURCES
Pension plan 388,607 147,864 536,471
Total assets and defered outflows of resources $ 20,989,005 17,532,465 $ 38,521,470 $

LIABILITIES
Current liabilities:

Accounts payable 70,525 $ 109,982 $ 180,507 $ Interest payable 144,749 70,833 215,582
Deposits payable 48,730 240 48,970
Compensated absences ‐ current portion 49,404 54,037 103,441 Pension obligation bonds ‐ current portion 83,000 83,000 166,000 Due within one year 288,000 535,000 823,000 Total current liabilities 853,092 684,408 1,537,500 Noncurrent liabilities:

Compensated absences 68,996 48,404 117,400
Pension obligation bonds 1,415,000 1,415,000 2,830,000
Due after one year 11,182,400 8,783,043 19,965,443
Net pension liability 878,262 1,033,728 1,911,990
Net OPEB liability 645,328 691,423 1,336,751
Total noncurrent liabilities 11,971,598 14,189,986 26,161,584 Total liabilities 12,824,690 14,874,394 27,699,084 DEFERRED INFLOWS OF RESOURCES
Pension Plan 1,087,340 1,222,181 2,309,521
Total deferred inflows of resources 1,222,181 1,087,340 2,309,521 NET POSITION
Net Position:

Net investment in capital assets (3,655,575) 4,996,395 1,340,820 Restricted for debt service 110,000 228,000 338,000
Restricted for assessment district ‐ 350,210 350,210 Unrestricted (deficit) 5,116,306 1,367,529 6,483,835 Total net position 6,942,134 1,570,731 8,512,865 Total liabilities, deferred inflows and net position $ 20,989,005 17,532,465 $ 38,521,470 $ The accompanying notes are an integral part of these basic financial statements. 36 City of Lakeport, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
Water Sewer Totals
OPERATING REVENUES:

Charges for service 2,734,105 $ 3,167,479 5,901,584 $ Other operating revenue 135,365 ‐ 135,365 Total operating revenues 3,167,479 2,869,470 6,036,949 OPERATING EXPENSES:

Personnel services 1,041,270 1,014,950 2,056,220
Pension expense 1,530,835 1,853,116 3,383,951
Materials, services and supplies 864,255 1,120,418 1,984,673 Depreciation 358,145 948,995 1,307,140
Total operating expenses 4,937,479 3,794,505 8,731,984 OPERATING INCOME (1,770,000) (925,035) (2,695,035) NONOPERATING REVENUES (EXPENSES):

Property taxes and special assessments ‐ 344,268 344,268 Intergovernmental 113,006 ‐ 113,006 Investment revenue 18,165 35,100 53,265 Lease revenue ‐ 30,000 30,000 Interest and fiscal charges expense (390,062) (292,196) (682,258) Total non‐operating revenues, net 117,172 (258,891) (141,719) NET INCOME BEFORE TRANSFERS (1,652,828) (1,183,926) (2,836,754) Transfers in ‐ ‐ ‐ Transfers out ‐ ‐ ‐ Total transfers ‐ ‐ ‐ CHANGE IN NET POSITION (1,652,828) (1,183,926) (2,836,754) NET POSITION:

Beginning of year 2,754,657 8,594,962 11,349,619
End of year 1,570,731 $ 6,942,134 $ 8,512,865 $ The accompanying notes are an integral part of these basic financial statements. 37 City of Lakeport, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Water Sewer Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers/users for services provided 2,768,752 $ 3,142,820 $ 5,911,572 $ Cash payments to suppliers for goods and services (825,371) (1,063,683) (1,889,054) Cash payments to employees for services (1,160,409) (1,167,786) (2,328,195) Net cash provided by operating activities 911,351 782,972 1,694,323 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Grants received 113,006 ‐ 113,006 Property taxes and assessments received ‐ 344,268 344,268 Net cash used by noncapital financing activities 344,268 113,006 457,274 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (215,878) (56,686) (272,564) Principal paid on long term debt (285,521) (606,411) (891,932) Interest paid on long term debt (302,867) (296,150) (599,017) Proceeds from lease revenue ‐ 30,000 30,000 Net cash (used) by capital and related financing activities (929,247) (804,266) (1,733,513) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received (loss) 18,165 35,100 53,265 Net cash provided by investing activities 35,100 18,165 53,265 Net increase (decrease) in cash and cash equivalents 361,472 109,877 471,349 CASH AND CASH EQUIVALENTS:

Beginning of year 7,776,529 6,385,285 14,161,814 End of year $ 6,746,757 7,886,406 $ 14,633,163 $ Presentation in Statement of Financial Position:

Cash and investments 7,870,575 $ 6,327,345 $ 14,197,920 $ Restricted cash and investments 15,831 419,412 435,243 Total Cash and investments 7,886,406 $ 6,746,757 $ 14,633,163 $ Reconciliation of income from operations to net
cash provided by operating activities:

Operating income $ (925,035) $ (1,770,000) $ (2,695,035) Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 948,995 358,145 1,307,140 Amortization ‐ ‐ ‐ Changes in net pension liability 1,712,225 1,414,447 3,126,672 Changes in net OPEB liability (10,159) (10,885) (21,044) (Increase) decrease in current assets:

Accounts receivable (110,714) (25,471) (136,185) Increase (decrease) in liabilities:

Accounts payable 38,884 56,735 95,619 Deposits payable 7,170 ‐ 7,170 Compensated absences 7,408 6,348 (1,060) Net cash provided by operating activities $ 911,351 782,972 $ 1,694,323 $ There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2023.

The accompanying notes are an integral part of these basic financial statements. 38 This page intentionally left blank.
39 Fund Description
FIDUCIARY ACTIVITIES
Fiduciary funds account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government‐wide financial statements, but are presented in the separate Fiduciary Fund financial statements. Private Purpose Trust Funds are used for resources held for other individuals and entities in a manner similar to private enterprise. The City has the following private purpose trust fund:

Redevelopment Non‐Housing
Successor Private Purpose Trust Fund
Accounts for funds collected and disbursed for the dissolution of the former Lakeport Redevelopment Agency related to administration and retirement of enforceable obligations.
40 City of Lakeport, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2023
Redevelopment
Non‐Housing Successor
Private Purpose
Trust Fund
ASSETS
Current assets:

Cash and investments 771,335 $
Cash and investments with trustee/fiscal agent 111
Total current assets 771,446
Total assets 771,446

LIABILITIES
Current liabilities:

Interest payable 51,267 $
Due within one year 235,000
Total current liabilities 286,267
Long‐term liabilities:

Due after one year 3,510,000
Total long‐term liabilities 3,510,000
Total liabilities 3,796,267
NET POSITION (DEFICIT)
Restricted for:

Debt service 317,230
Individuals, organzations, and other governments (3,342,051) Total net position (deficit) $ (3,024,821) The accompanying notes are an integral part of these basic financial statements. 41 City of Lakeport, California
Statement of Changes in Fiduciary Net Position
Redevelopment Agency Successor Private Purpose Trust Fund For the year ended June 30, 2023
Private Purpose
Trust Fund
ADDITIONS:

Property taxes 556,800 $
Total additions 556,800
DEDUCTIONS:

Administrative costs 97,818
Interest and trustee fees 158,643
Total deductions 256,461
CHANGE IN FIDUCIARY NET POSITION 300,339 NET POSITION (DEFICIT):

Beginning of year (3,325,160)
End of year $ (3,024,821)
The accompanying notes are an integral part of these basic financial statements. 42 43
NOTES TO BASIC FINANCIAL STATEMENTS

44 This page intentionally left blank.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Index to Notes to Basic Financial Statements
45 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the City as follows:

Page
Note 1 ‐ Summary of Significant Accounting Policies ............................................................................. 46 Note 2 ‐ Cash and Investments ................................................................................................................ 60 Note 3 ‐ Accounts Receivable ................................................................................................................... 64 Note 4 – Loans, Notes Receivable, and Interfund Borrowing ................................................................ 65 Note 5 – Capital Assets ............................................................................................................................. 66 Note 6 – Long Term Liabilities .................................................................................................................. 68 Note 7 – Net Position/Fund Balances ...................................................................................................... 73 Note 8 – Interfund Transactions .............................................................................................................. 77 Note 9 – Risk Management ...................................................................................................................... 78 Note 10 – Public Employee Retirement Plan .......................................................................................... 80 Note 11 – Post Retirement Healthcare Benefits ..................................................................................... 87 Note 12 – Successor Agency Trust for Assets of Former Redevelopment Agency .............................. 91 Note 13 – New Accounting Pronouncements ......................................................................................... 93 City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applied to government agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below:

A. Defining the reporting entity
The City of Lakeport was incorporated in 1888 under the laws of the State of California. Lakeport operates under a Council‐Manager form of government. The City Manager serves as the chief executive for day‐to‐day operations and long‐term planning, including executing the policies and directives of the City Council. Department heads report directly to the City Manager and serve at his or her pleasure.

The City provides a range of municipal services to its citizens including public safety, public works, planning and building regulation, recreation and parks, and water and sewer services.

These financial statements present the financial status of the City and its components units. The component units discussed in the following paragraph are included in the City‘s financial statements because the City is financially accountable for their operations.

The Redevelopment Agency of the City of Lakeport (the Agency) was established by the City as a separate legal entity in accordance with state law. The purpose of the Agency is to encourage new investment and reinvestment within legally designated redevelopment areas in partnership with property owners.

The Agency was dissolved on February 1, 2013 by the State Legislature and California Governor, Jerry Brown.

The Municipal Sewer District No. 1 (CLMSD) was established as a separate legal entity to obtain funding to construct a new sewage treatment plant and pumping stations in 1965. In later years an assessment district was formed for the purpose of financing needed improvements and expansion of the wastewater systems.

Although the component units are legally separate from the City, they are reported on a blended basis as part of the primary government because their boards consist of members of the City Council. The component units’ financial statements may be obtained from the City.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government‐wide and Fund Financial Statements
The government‐wide financial statements report information on all of the non‐fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business‐type activates, which rely to a significant extent on fees and charges for support.

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

The accounts of the City are organized on the basis of funds. The operations of each fund are accounted for with a separate set of self‐balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

In the fund financial statement in the report, the various funds are grouped into generic funds within four broad fund types. They are as follows:

Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trust of major capital projects) that are legally restricted to expenditures for specific purposes.

Capital Project Funds are used to account for revenue and expenditures restricted to the acquisition or major capital facilities (other than those financed by proprietary or trust funds).

Debt Service Funds are used to account for the accumulation of resources for, and the payment to, governmental long‐term debt, both principal and interest.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government‐wide and Fund Financial Statements, Continued Proprietary Funds
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprise –the intent of the governing body is that the cost (expenses, including depreciation) of providing goods or services to the general public on a continuing basis, be financed or recovered primarily through user charges. The City accounts for the operation of its water and sewer utility fund on this basis.

Internal Service funds are used to account for operations similar to enterprise funds. The difference between the two is that internal service funds provide goods and services to departments and agencies under the primary government. Currently the City does not use an internal service fund.

Fiduciary Funds
Private Purpose Trust Fund is used to account for monies held on behalf of others in a fiduciary capacity, typically pursuant to a formal trust agreement. The City reports one private purpose trust fund: Redevelopment Non‐Housing Successor Private Purpose Trust Fund which accounts for fund collect and disbursed for the dissolution of the former Lakeport Redevelopment Agency. For more information about the Successor Agency for the Former Lakeport Redevelopment Agency see Note

14. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:

1. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least 10 percent of the corresponding total for all funds of that category or type; and,

2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least 5 percent of the corresponding total for all governmental funds combined.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued The City reports the following major funds:
 General Fund ‐ The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The major revenue sources for this fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures, and interest income.

Expenditures are made for community development, public safety, public works, and other services.
 Lakefront Park Grant Special Revenue ‐ Established to account for the revenues and expenditures associated with a Proposition 68 California Department of Parks and Recreation grant to construct a new park in Lakeport.
 Safe Routes to School ‐ Established to account for the revenues and expenditures associated with a CalTrans funded project to improve the pedestrian corridor to the Lakeport Unified School sites.
 HOME Grant Program Income ‐ This fund is used for reinvestment into housing programs from program income generated by past HOME grants.
 Water ‐ Chapter 13.04 of the Lakeport Municipal Code provides the authority for City to operate water system. Revenues (fees and charges) are collected to pay for service (water) received.
 Sewer ‐ Chapter 13.20 of the Lakeport Municipal Code provides the authority for the City to operate sewer system. Revenues (fees and charges) are collected to pay for availability of collection, transportation, treatment, and disposal system. In addition, grazing lease payments, LACOSAN payments for flows, tax revenues, FEMA storm damage reimbursement, OES storm damage reimbursement, and insurance rebates have been credited to this fund.

C. Basis of Accounting and Measurement Focus
Basis of accounting refers to when revenue and expenditures (or expenses) are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurements made, regardless of the measurement focus applied.

Measurement focus is the determination of (1) which assets and which liabilities are included on a government's balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenues and expenses).

The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statement. Revenue is recorded when earned and expenses are recorded when liabilities are incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied.

Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Accounting and Measurement Focus, Continued In the fund financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when they become both measurable and available to finance the expenditures of the current period (susceptible to accrual). Major revenue sources susceptible to accrual include substantially all property taxes, taxpayer‐assessed taxes (such as sales and use, utility users, business license, transient occupancy, franchise fees and gas taxes), interest, special assessments levied, state and federal grants and charges for current services. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period.

Revenue from licenses, permits, fines and forfeits is recorded as received. Expenditures are recorded when the related fund liability is incurred.

All governmental funds are accounted for using a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets.

Their reported fund balance (net current assets) is considered a measure of “available spendable resources.” Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period.

The government‐wide financial statements, as well as the proprietary funds and fiduciary funds financial statements, are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund operating statements present increases (revenues) in net total assets.

D. Use of Estimates
Financial statement preparation in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

E. Cash and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short‐ term investments with original maturities of three months or less from the date of acquisition.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash and Investments, Continued
The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available.

F. Receivable and Payables
Balances representing lending/borrowing transactions between funds outstanding at the end of the fiscal year are reported as either “due to/due from other funds” (amounts due within one year), “advances to/from other funds” (non‐current portions of interfund lending/borrowing transactions), or “loans to/from other funds” (long‐term lending/borrowing transactions as evidenced by loan agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable governmental funds to indicate they are not available for appropriation, and are not expendable available financial resources.

Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government‐wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and available. The City considers these taxes available if they are received during the period when settlement of prior fiscal year accounts payable and payroll charges normally occur.

Grants, entitlements or shared revenue is recorded as receivables and revenue in the general, special revenue and capital project funds when they are received or susceptible to accrual. Notes receivables represent individual loans, secured by property liens in favor of the City and the Redevelopment Agency, made through various sources, including the Community Development Block Grant (CDBG) and federal HOME housing programs. When repaid, these amounts are designated for purposes allowed under the aforementioned reuse guidelines.

F. Allowance for Doubtful Accounts
Management has elected to record bad debts using the allowance method.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

G. Prepaid Expenses
The prepaid expenses consist of expendables supplies held for consumption and are recorded as expenses when consumed. Materials and supplies used by governmental funds are recorded as expenditures at the time they are purchases or obtained.

H. Capital Assets

Government‐Wide Statements
Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government‐wide or fund financial statements.

Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized, since then these assets have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight‐line method of depreciation. The City capitalizes assets with an original cost greater than $5,000 and with a useful lifespan longer than three years. No depreciation is recorded in the year of acquisition or in the year of disposition.

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

Buildings and improvements 5 – 50 years
Roadway improvements 50 years
Sidewalks, curbs and gutters 50 years
Storm drain pipes/structures 50 years
Traffic signal devices 5 – 40 years
Landscaping 30 years
Signage 25 years
Leasehold improvements 5 years
Machinery and equipment 3 – 5 years
Vehicles 3 years
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government‐wide statements.

I. Compensated Absences
Compensated absences represent the vested portion of accumulate vacation and sick leave. In governmental funds, the cost of vacation and sick leave benefits is recognized when payments are made to employees. Upon separation, 100% of accrued vacation leave (up to a maximum of 400 hours) and accrued comp time is paid and, depending on longevity, sick leave is paid out up to 50% of the accrued amount. In proprietary funds, a long‐term liability for such benefits has been recorded.

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Long‐term Liabilities
In both the governmental‐wide financial statements and proprietary fund financial statements, long‐ term debt and other long‐term liabilities are reported as liabilities in the applicable statement of net position. Bond premiums, issuance costs and discounts are deferred and amortized over the life of the bond.

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

L. Equity Classification

Government‐Wide Statements
Equity is classified as net position and is displayed in three components:

Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or by laws or regulations of other governments or law through constitutional provisions or enabling legislation.

Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

M. Equity Classification, Continued

Fund Financial Statements

Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned or unassigned. Proprietary fund equity is classified the same as in the government‐wide statements. The classifications for governmental funds are defined as follows for the City:

Nonspendable Fund Balance –
 Assets that will never convert to cash (prepaid items, inventory).  Assets that will not convert to cash soon enough to affect the current period (long‐term notes or loans receivable).
 Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Restricted Fund Balance –
 Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (Creditors, Grantors, Contributors and Other Governments).  Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (Gas Tax).

Committed Fund Balance –
 Self‐imposed limitations set in place prior to the end of the period. (Encumbrances, economic contingencies and uncertainties).
 Limitation at the highest level of decision‐making (Council) that requires formal action at the same level to remove, done typically through resolution during the budget process.

Assigned Fund Balance –
 Amounts in excess of nonspendable, restricted, and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance and are done so by the City Manager through the budget process.

Unassigned Fund Balance –
 Residual net resources
 Total fund balance in the general fund in excess of nonspendable, restricted, committed and assigned fund balance (surplus).
 Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Equity Classification, Continued
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted fund balance resources first, followed by the unrestricted resources in the Committed and Unassigned fund balances, as they are needed.

The general fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committee, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. [GASB – S54: 17 and 19] N. Property Taxes
Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:

Property Valuations are established by the Lake County Assessor for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provision of Article XIII‐A of the State Constitution (Proposition 13, adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base assessment, subsequent annual increases in valuation are limited to a maximum of two percent. However, an increase to full value is allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

Tax Levies are limited to one percent of full assessed value which results in a tax rate of one percent assessed valuation under the provisions of Proposition 13. Tax rates for voter‐approved indebtedness are excluded from this limitation.

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Property Taxes, Continued
Tax Collections are the responsibility of the Lake County Treasurer‐Tax Collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments.
 The First is due on November 1 of the fiscal year and is delinquent if not paid by December 10;  The second is due on March 1 of the fiscal year and is delinquent if not paid by April 10.

Unsecured personal property taxes do not constitute a lien against property unless the taxes become delinquent. Payments must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the county for late payments. The City has elected to receive the City’s portion of the property taxes from the county under the county Teeter Bill program. Under this program, the City receives 100% of the City’s share of the levied property taxes in periodic payments with the county assuming the responsibility for the delinquencies.

Property Tax Administration Fees – the state of California FY 90‐91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes.

Tax Levy Apportionments – due to the nature of the City‐wide maximum levy, it is not possible to identify general‐purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the county’s auditor‐controller based primarily on the ratio that each agency represented of the total City‐wide levy for the three fiscal years prior to fiscal year 1979.

O. Interfund Transfers
Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated.

P. Reclassifications
Certain amounts have been reclassified to provide for comparable results on a year to year basis.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Budgetary Information
The City follows these procedures annually in establishing the budgetary data reflected in the financial statements:

1. The City Manager submits to the City Council a proposed draft budget for the fiscal year commencing July 1 of the next fiscal year. The budget includes proposed expenditures and the means of financing them.

2. If use of fund balance is recommended by the City Manager, resources to be used will be in the following order:
a. unassigned fund balance
b. assigned
c. committed

3. The City Council reviews the proposed budget at special scheduled sessions which are open to the public. The Council also conducts a public hearing on the proposed budget to obtain comments from interested persons.

4. Prior to July 1, the budget is to be adopted by resolution of the City Council.

5. From the effective date of the budget, which is adopted and controlled at the fund level, the amounts stated therein as proposed expenditures become appropriations to the various City funds and departments. The City Council may amend the budget by minute action during the fiscal year. The City Manager may authorize transfers from one object or purpose to another within the same fund, and between departments within the General Fund. All appropriations lapse at year end unless encumbered and carried forward upon the approval of the City Manager.

Budgets are adopted for all fund types and are reported on a basis consistent with generally accepted accounting principles. Budgeted amounts presented are as originally adopted and as further amended by the City Council.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued R. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

S. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

T. Stewardship, Compliance, and Accountability
Revenue Limitations Imposed by California Propositions 218 and 26 Proposition 218, approved by the voters in November 1996, regulates the City’s ability to impose, increase, and extend taxes, assessments, and fees. It was enhanced further by the passage of Proposition 26 in 2010, which revised to the definitions of taxes and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218 require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees be subject to the voter initiative process and may be rescinded in future years by the voters.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
60 2. CASH AND INVESTMENTS
The City follows the practice of pooling cash and investments of all funds except for the restricted funds required to be held by outside custodians, fiscal agents or trustees under the provisions of bond indentures. Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Fair
<1 1 to 3 3 to 5 Deposits Market Value
Pooled cash, at fair value:

Cash in bank ‐ $ ‐ $ ‐ $ 17,288,965 $ 17,288,965 $ Petty cash ‐ ‐ ‐ 400 400 Total pooled items ‐ ‐ ‐ 17,289,365 17,289,365 Pooled investments, at fair value:

Interest obligations:

Par Rate
$ .95‐5% Certificate of Deposits 397,410 2,087,000 1,383,371 240,154 ‐ 2,020,935 Money market 161,295 ‐ ‐ ‐ 161,295 State of California Local Agency Investment Fund 2,746,595 ‐ ‐ ‐ 2,746,595 PARS Section 115 Pension Trust Fund ‐ Mutual Funds 986,866 ‐ ‐ ‐ 986,866 Total pooled investments ‐ interest obligations 4,292,166 1,383,371 240,154 ‐ 5,915,691 Total cash equivalents and investments pooled 4,292,166 $ 1,383,371 $ 240,154 $ 17,289,365 $ 23,205,056 $ Amounts reported in:

Governmental activities 6,790,993 $
Governmental activities ‐ Restricted 1,009,454
Business‐type activities 14,197,920
Business‐type activities ‐ Restricted 435,243
Fiduciary activities 771,335
Fiduciary activities ‐ Restricted 111
Total 23,205,056 $
Maturities (in years)
Cash, Cash Equivalents and Investments Pooled
Collateral and Categorization Requirements
At the fiscal year end, the City’s carrying amount of demand deposits was $17,288,965 and the bank account balance was $17,273,296. The difference of $15,669 represented outstanding checks and deposits in transit. Of the total deposit balance, $250,000 was insured by Federal Depository Insurance Corporation (FDIC), the remaining amount of $17,023,296 was collateralized in accordance with California Government Code Section 53600‐53609.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
61 2. CASH AND INVESTMENTS, Continued
Investment Policy
The table below identifies the investment types that are authorized under provisions of the City’s investment policy adopted August 16, 2005 (subsequently updated July 6, 2010), and in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address interest rate risk, credit risk, and concentration of credit risk.

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that Lakeport manages its exposure to interest rate risk is by investing in LAIF, whose underlying securities have staggered maturities and are generally due on demand, which provides cash flow and liquidity needed for operations.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by nationally recognized statistical rating organization. The City’s investment policy limits credit risk by requiring compliance with the California Government Code for investment of public funds, as described in detail above.

Maximum Maximum
Authorized Maximum Percentage Investment Minimum
Investment Type Maturity of Portfolio in One Issuer Rating U.S. Treasury Securities 5 years None None None
U.S. Government Securities 5 years None None None
Bankers' Acceptances 270 days 30% None None
Certificates of Deposit 5 years 30% None None
Negotiable Certificates of Deposit 5 years 30% None None Repurchase Agreements 30 days None None None
Commercial Paper 31‐180 days 15‐30% None A1/P1
Corporate Medium‐term Notes 5 years 30% None A1/P1
Mutual Funds None 15% None Two/Three
Passbook Savings N/A None None None
Local Agency Investment Fund (LAIF) N/A $10M None None
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
62 2. CASH AND INVESTMENTS, Continued
Concentration of Credit Risk
The concentration of credit risk is the risk of loss that may be caused by the City’s investment in a single issuer. The investment policy of the City contains no limitations on the amount that can be invested in any single issuer beyond that stipulated by the California government code. There were no concentrations in any one issuer for the year.

Custodial Credit Risk
The credit risk for deposits is the risk that, in the event of failure of a depository financial institution, a government will not be able recover its deposits or will not be able to recover collateral securities that are in the possession on an outside party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits:

The California government code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must be equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

At June 30, 2023, the City had $17,023,296 in financial institutions that were not covered by the FDIC but were covered by collateralized securities of the financial institutions where the deposits were maintained.

The credit risk for investments is the risk that, in the event of the failure of counterparty (e.g., broker‐ dealer) to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of another party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
63 2. CASH AND INVESTMENTS, Continued

Fair Value of Investments

The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize a three‐tiered fair value hierarchy as follows:
 Level 1: Quoted prices for identical investments in active markets;  Level 2: Observable inputs other than those in Level 1; and  Level 3: Unobservable inputs.

Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches:
debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices.

Investments by Fair Value Level June 30, 2023 Level 1 Level 2 Level 3 Certificate of Deposits 2,020,935 $ 2,020,935 $ ‐ $ ‐ $ Money market 161,295 ‐ 161,295 ‐ Total fair value 2,182,230 2,020,935 161,295 ‐ Investments Exempt from Fair Value Hierarchy
Local Agency Investment Fund (LAIF) 2,746,595
PARS Section 115 Pension Trust Fund ‐ Mutual Funds 986,866 $ 5,915,691
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
64 2. CASH AND INVESTMENTS, Continued
Participation in an External Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statue and is chaired by the State Treasurer who is responsible for the day‐to‐day administration of LAIF. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis, which is different from the fair value of the City’s position in the LAIF pool. The State Treasurer determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available. As of June 30, 2023, the City’s investment in LAIF was $2,746,595. The total amount invested by all public agencies at that date was $25.677 billion. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2023 has a balance of $178.4 billion. Financial Statements of LAIF and PMIA may be obtained from the California Treasurer’s web site at www.treasurer.ca.gov.

3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2023:

Receivables
Governmental activities:

Due from other governments:

Sales taxes 706,836 $
Property taxes 353,796
Grants and subventions 1,979,213
SB1 19,550
TOT 64,286
Accounts receivable:

Accounts 598,329
Total 3,722,010 $
Business‐type activities:

Accounts 963,725 $
Grants 113,006
Total 1,076,731 $
Accounts Receivable and Due from Other
Governments
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
65 3. ACCOUNTS RECEIVABLE, Continued
These amounts resulted in the following concentrations in receivables:

Other governments 53.4%
Individuals/businesses 46.6%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business or agency.

4. LOANS, NOTES RECEIVABLE, AND INTERFUND BORROWING
Through the City’s various housing rehabilitation funds, first‐time home buyer’s funds, and business/economic development loan funds, the City has loaned funds to qualifying individuals and businesses. Interest rates vary depending on the terms of the loan. Interest is accrued on the loans that bear interest.

Loans and notes receivable for the year ended June 30, 2023, consisted of the following:

Beginning Ending
July 1, 2022 Additions Deletions June 30, 2023
Nonmajor governmental funds:

Special revenue funds:

Lakeport Housing 327,062 $ ‐ $ (24, $ 098) $ 302,964 HOME PI 5,455,128 ‐ (47, 5, 653) 407,475 CDBG Economic Development PI 825,142 ‐ (54, 549) 770,593 Total governmental funds 6, ‐ 607,332 ( 6, 126,300) 481,032 Major enterprise funds:

Water 41,059 ‐ (2, 38,233 826) Sewer 91,389 ‐ (6, 85,099 290) Total enterprise funds ‐ 132,448 (9, 116) 123,332 Total loans/notes receivable 6,739,780 $ ‐ $ ( $ 6, 135,416) $ 604,364 Loans and Notes Receivable
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
66 5. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2023, was as follows:

Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Governmental activities:

Nondepreciable assets:

Land 2,498,113 $ ‐ $ ‐ $ 2 $ ,498,113 Construction in progress 2,007,604 3,811,801 ‐ 5 ,819,405 Total nondepreciable assets 3,811,801 4,505,717 ‐ 8 ,317,518 Depreciable assets:

Buildings and structures 6,766,179 ‐ ‐ 6 ,766,179 Improvements 10,599,675 ‐ ‐ 10,599,675 Vehicles and equipment 2,725,562 78,611 ‐ 2 ,804,173 Total depreciable assets 78,611 20,091,416 ‐ 20, 170,027 Total 3,890,412 24,597,133 ‐ 28, 487,545 Accumulated depreciation:

Buildings and structures (2,376,062) (179,664) ‐ (2,555,726) Improvements (2,523,224) (274,658) ‐ (2,797,882) Vehicles and equipment (2,098,214) (143,487) ‐ (2,241,701) Total accumulated depreciation (597,809) (6,997,500) ‐ (7,595,309) Net depreciable assets (519,198) 13,093,916 ‐ 12, 574,718 Total net capital assets $ 3,292,603 17,599,633 $ ‐ $ $ 20,892,236 Depreciation expense of $597,809 was allocated in the Statement of Activities as follows:

General governement 288,488 $
Roads and infrastructure 108,833
Public Safety 115,897
Parks, buildings, grounds 84,591
$ 597,809
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
67 5. CAPITAL ASSETS, Continued
Business‐type capital asset activity for the year ended June 30, 2023, was as follows:

Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Business‐type activities:

Nondepreciable assets:

Land 2,475,403 $ ‐ $ ‐ $ 2,475,403 $ Construction in progress 131,159 ‐ ‐ 131,159 Total nondepreciable assets 2,606,562 ‐ ‐ 2,606,562 Depreciable assets:

Buildings and structures 9,955,195 ‐ ‐ 9,955,195 Improvements 32,337,549 ‐ ‐ 32,337,549 Vehicles and equipment 2,254,112 271,314 ‐ 2,525,426 Total depreciable assets 44,546,856 271,314 ‐ 44,818,170 Total 47,153,418 271,314 ‐ 47,424,732 Accumulated depreciation:

Buildings and structures (2,030,386) (239,323) ‐ (2,269,709) Improvements (20,542,780) (906,835) ‐ (21,449,615) Vehicles and equipment (1,393,903) (159,732) ‐ (1,553,635) Total accumulated depreciation (23,967,069) (1,305,890) ‐ (25,272,959) Net depreciable assets 20,579,787 (1,034,576) ‐ 19,545,211 Total business‐type capital assets, net 23,186,349 $ ( $ ‐ 1,034,576) $ 22,151,773 $ Depreciation expense for capital assets for the year ended June 30, 2023, was charged to functions as follows:

Water 357,520 $
Sewer 948,370
$ 1,305,890
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
68 6. LONG TERM LIABILITIES
The following is a summary of changes in long‐term liabilities for the year ended June 30, 2023:

Governmental Activities
Beginning
Balance
7/1/2022 Additions Reductions
Ending
Balance
6/30/2023
Due within
One Year
USDA Police Station Bond 1,008,000 $ - $ (19,000) $ 989,000 $ 19,000 $ 2021 Pension Obligation Bonds - Governmental Share 4,740,000 - (246,000) 4,494,000 249,000 Less: Discount (35,640) - 1,876 (33,764) -
2018 Series B Solar Bonds - Governmental Share 1,145,000 - (15,000) 1,130,000 20,000 Less: Discount (31,351) - 1,425 (29,926) -
Compensated Absences 332,520 170,201 (134,346) 368,375 134,346 Total 7,158,529 $ 170,201 $ (411,045) $ 6,917,685 $ 422,346 $ Business-Type Activities
USDA Water Revenue Bonds, 2016 2,893,400 $ - $ (62,000) $ 2,831,400 $ 63,000 $ Pinnacle Water Loan 2,030,000 - (122,000) 1,908,000 125,000 Banner 2022 Water Bonds 5,985,000 - - 5,985,000 75,000
Wastewater Revenue Bonds, 2017 Refunding 1,907,000 - (194,000) 1,713,000 194,000 USDA WasteWater Revenue Bonds, 2017 3,192,000 - (60,000) 3,132,000 61,000 2017 CLMSD Sewer District Assessment Bonds 2,160,000 - (174,000) 1,986,000 175,000 2021 Pension Obligation Bonds - Business-type Share 3,160,000 - (164,000) 2,996,000 166,000 Less: Discount (23,760) - 1,250 (22,510) -
2018 Series A Solar Bonds - Business-type Share 3,340,000 - (115,000) 3,225,000 130,000 Add: Premium 32,735 - (2,182) 30,553 -
Compensated Absences 214,492 109,789 (103,440) 220,841 103,441 Total 24,890,867 $ 109,789 $ (995,372) $ 24,005,284 $ 1,092,441 $ Governmental Activities

USDA Police Station Bond
Total issue $1,095,000. Annual principal and interest payments of approximately $43,000, at an interest rate of 2.375%, are due June 1 and December 1 each year. The total obligation matures in the year 2056.

Balance due $ 989,000
Business‐type Activities
USDA Water Revenue Bonds, 2016
Total issue $3,182,000. Annual principal and interest payments of approximately $109,500, at an interest rate of 2.85%, are due August 1 and February 1 each year, secured by water fund revenue. The total obligation matures in the year 2056.

Balance due $ 2,831,400
Pinnacle Water Loan
Total issue $2,587,000. Annual principal and interest payments of approximately $175,250, at an interest rate of 2.65%, are due February 1 and August 1 each year. Payments are secured by water fund revenue. The obligation matures in the year 2035.

Balance due $ 1,908,000
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
69 6. LONG TERM LIABILITIES, Continued

Wastewater Revenue Bonds, 2017 Refunding
2007 Series A, total remaining balance of $2,580,000 was refinanced to 2017 Wastewater Refunding on December 1, 2018. Total issue $2,723,000. Annual principal is due on October 1 and interest payments at 2.52% are due April 1 and October 1 each year, which are secured by wastewater fund revenue. The total obligation matures in the year 2030. The reacquisition price exceeded the net carrying amount of the old debt by $143,000. The City obtained an economic gain (difference between the present value of the debt service payments on the old and new debt) of $205,069.

Balance due $ 1,713,000
USDA Wastewater Revenue Bonds, 2017
Series 2017 Wastewater enterprise revenue bonds. Total issue $3,433,000. Annual principal and interest payments of approximately $127,000, at an interest rate of 2.125%, are due April 1 and October 1 each year, secured by wastewater fund revenue. The total obligation matures in the year 2057.

Balance due $ 3,132,000
2017 CLMSD Sewer District Assessment Bonds
2017‐1 Sewer Assessment bonds. Total issue $2,854,000. Annual principal and interest payments of approximately $230,000, at an interest rate of 2.85%, are due March 2 and September 2 each year, secured by Municipal Sewer District No.1 revenue from the South Assessment District 91‐1 area. The total obligation matures in the year 2032.

Balance due $ 1,986,000
Banner 2022 Water Bonds
Banner 2022 Water Bonds. Total issue $5,985,000. Annual principal and interest payments of approximately between $140,000 and $530,000, at an interest rate of 3.85%, are due February 1 and August 1 each year, secured by water revenue. The total obligation matures in the year 2048.

Balance due $ 5,985,000

Pension Obligation Bonds
On October 20, 2021 the City issued $7,920,000 in Pension Obligation Bonds. Of the proceeds, $1,995,000 was used to refund the existing Pension Obligation Bonds to reduce its total debt service payments by $125,192 and obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $156,889. The remaining proceeds were used to pay down the majority of the outstanding UAL projected by CalPERS. Interest is payable semi‐annually on June 1 and December 1 of each year, commencing June 1, 2022. The bonds mature in 2041 and principal is payable on June 1 each year, commencing June 1, 2022. The average coupon for the refunding bonds is

2.07%.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
70 6. LONG TERM LIABILITIES, Continued

The maturity schedule for the bonds is as follows:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2024 249,000 $ 110,039 $ 166,000 $ 73,359 $ 415,000 $ 183,398 $ 2025 249,000 107,972 166,000 71,981 415,000 179,953
2026 252,000 105,034 168,000 70,022 420,000 175,056
2027 258,000 101,430 172,000 67,620 430,000 169,050
2028 261,000 96,915 174,000 64,610 435,000 161,525
2029-2033 1,395,000 397,340 930,000 264,893 2,325,000 662,233 2034-2038 1,470,000 193,118 980,000 128,746 2,450,000 321,864 2039-2043 360,000 19,500 240,000 13,000 600,000 32,500
Total 4,494,000 $ 1,131,348 $ 2,996,000 $ 754,231 $ 7,490,000 $ 1,885,579 $ Due within one year 249,000 $ 110,039 $ 166,000 $ 73,359 $ 415,000 $ 183,398 $ Due after one year 4,245,000 1,021,309 2,830,000 680,872 7,075,000 1,702,181 Total 4,494,000 $ 1,131,348 $ 2,996,000 $ 754,231 $ 7,490,000 $ 1,885,579 $ Total
Governmental Activities Business-type Activities
Pension Obligation Bonds Pension Obligation Bonds Pension Obligation Bonds Future Debt Service

Future debt service for Governmental and Business‐type activities at June 30, 2023 is as follows for all debt except compensated absences and claims liabilities:

Year Ending
June 30,
Principal Interest
2024 19,000 $ 23,263 $
2025 20,000 22,800
2026 20,000 22,325
2027 21,000 21,838
2028 21,000 21,339
2029-2033 114,000 98,800
2034-2038 127,000 84,538
2039-2043 143,000 68,507
2044-2048 161,000 50,481
2049-2053 181,000 30,174
2054-2058 162,000 7,814
Total 989,000 $ 451,879 $
Due within one year 19,000 $ 23,263 $
Due after one year 970,000 428,616
Total 989,000 $ 451,879 $
Governmental Activities
USDA Police Station
Bond
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
71 6. LONG TERM LIABILITIES, Continued
Debt Service Schedule
Business-type
Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2024 175,000 $ 54,107 $ 199,000 $ 40,660 $ 125,000 $ 48,906 $ 2025 181,000 49,034 204,000 35,582 128,000 45,554
2026 186,000 43,805 209,000 30,379 131,000 42,122
2027 191,000 38,432 214,000 25,049 135,000 38,597
2028 196,000 32,918 220,000 19,580 139,000 34,967
2029-2033 1,057,000 77,021 667,000 24,809 750,000 116,998 2034-2038 - - - - 500,000 20,114
Total 1,986,000 $ 295,317 $ 1,713,000 $ 176,059 $ 1,908,000 $ 347,258 $ Due within one year 175,000 $ 54,107 $ 199,000 $ 40,660 $ 125,000 $ 48,906 $ Due after one year 1,811,000 241,210 1,514,000 135,399 1,783,000 298,352 Total 1,986,000 $ 295,317 $ 1,713,000 $ 176,059 $ 1,908,000 $ 347,258 $ Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2024 63,000 $ 45,557 $ 61,000 $ 65,907 $ 75,000 $ 228,979 $ 2025 64,100 44,514 63,000 64,589 79,000 226,014
2026 65,100 43,453 64,000 63,240 79,000 222,973
2027 66,200 42,377 65,000 61,869 78,000 219,951
2028 67,000 41,282 67,000 60,467 82,000 216,871
2028-2032 352,900 189,353 354,000 280,288 428,000 1,035,535 2033-2037 382,600 159,189 394,000 240,550 790,000 938,630 2038-2042 414,700 126,475 438,000 196,393 1,969,000 659,524 2043-2047 449,400 91,003 485,000 147,422 2,405,000 238,604 2048-2052 487,200 52,532 541,000 92,958 - -
2053-2057 419,000 12,157 600,000 32,428 - -
2058-2062 - - - - - -
Total 2,831,200 $ 847,892 $ 3,132,000 $ 1,306,111 $ 5,985,000 $ 3,987,081 $ Due within one year 63,000 $ 45,557 $ 61,000 $ 65,907 $ 75,000 $ 228,979 $ Due after one year 2,768,200 802,335 3,071,000 1,240,204 5,910,000 3,758,102 Total 2,831,200 $ 847,892 $ 3,132,000 $ 1,306,111 $ 5,985,000 $ 3,987,081 $ USDA Water Revenue
Bonds, 2016
Pinnacle Water Loan
Bonds, 2017
USDA WasteWater Revenue
Banner 2022 Water Bonds
Business-type Activities
2017 CLMSD Assessment Wastewater Revenue
Bonds Series-2017-1 Bonds Series Refunding
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
72 6. LONG TERM LIABILITIES, Continued

2018 Series A Solar Bonds

On July 18, 2020, the City issued $4,770,000 revenue bonds to fund a solar and energy efficiency retrofit project. The interest rate on the bonds is 2.0 ‐ 3.5 and the maturity date is October 1, 2043. Interest is payable semi‐annually on April 1 and October 1. The obligation is payable from revenues received from the General, Water and Sewer Funds. The maturity schedule for the bonds is as follows:

Debt Service Schedule
Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2024 20,000 $ 36,506 $ 130,000 $ 109,888 $ 150,000 $ 146,394 $ 2025 20,000 36,056 145,000 105,038 165,000 141,094
2026 25,000 35,494 165,000 98,838 190,000 134,332
2027 30,000 34,806 180,000 91,938 210,000 126,744
2028 25,000 34,119 175,000 84,838 200,000 118,957
2029-2033 195,000 155,891 1,175,000 308,713 1,370,000 464,604 2034-2038 315,000 115,678 1,240,000 86,500 1,555,000 202,178 2029-2043 400,000 53,497 15,000 263 415,000 53,760
2044-2048 100,000 1,750 - - - -
Total 1,130,000 $ 503,797 $ 3,225,000 $ 886,016 $ 4,255,000 $ 1,388,063 $ Due within one year 20,000 $ 36,506 $ 130,000 $ 109,888 $ 150,000 $ 146,394 $ Due after one year 1,110,000 467,291 3,095,000 776,128 4,255,000 1,388,063 Total 1,130,000 $ 503,797 $ 3,225,000 $ 886,016 $ 4,405,000 $ 1,534,457 $ Total
Governmental Activities Business-type Activities
2018 Series B Solar Bonds 2018 Series A Solar Bonds 2018 Series B Solar Bonds Various bond indentures contain limitations and restrictions, with which, in the opinion of management, the City is in compliance.

Compensated Absences

The City records employee absences, such as vacation, illness, deferred overtime, and holidays, for which it is expected that employees will be paid as compensated absences. The governmental activities compensated absences balance at June 30, 2023 was $368,375 with $134,346 expected to be paid within a year and to be liquidated by the general fund; the business‐type activities compensated absences balance at June 30, 2023 was $220,841 with $103,441 expected to be paid within a year. Of which the water fund will liquidate $49,404 and the sewer fund $54,037.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
73 7. NET POSITION/FUND BALANCES
Governmental Business‐type
Activities Activities
Restricted for:

Law enforcement 7,268 $              ‐ $
Debt service 22,588               338,000
Housing programs 991,901             ‐
Economic development programs 1,051,864          ‐
Transportation infrastructure 1,040,880          ‐
Assessment district debt service ‐                           350,210 Total 3,114,501 $      688,210 $
Restricted Net Position Detail
 Restrictions of Net position for Law enforcement, Governmental Activities Debt service, Housing programs, Economic development programs and Transportation infrastructure are the same as described on the next page as restrictions of fund balances.

 Debt service reserve: the amount of funds in the water and sewer enterprise restricted per the loan and bond covenants of the outstanding debt.
 Assessment district debt service: consists of funds held for the repayment of the Series 2017‐ 1 bond. The funds are restricted by a bond covenant.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
74 7. NET POSITION/FUND BALANCES, Continued
Nonspendable:

Long‐term interfund advances 289,481 $
Loans/notes receivable 5,407,475
Total nonspendable 5,696,956
Restricted:

Law enforcement 7,268
Debt service 22,588
Housing programs 991,901
Economic development programs 1,051,864
Transportation infrastructure 1,040,880
Total restricted 3,114,501
Committed:

Operating reserve 1,101,595
Reserve for economic uncertainties 1,468,794
Disaster reserve 734,397
Vehicles and equipment replacement reserve 147,735
Road improvements reserve 214,253
Pension and OPEB reserve 986,866
Total committed 4,653,640
Assigned:

Capital projects 2,895,578
Total assigned 2,895,578
Unassigned:

General fund 264,967
Special revenue funds (401,403)
Total unassigned (136,436)
Total fund balance 16,224,239 $
Fund Balance Detail
The following describe the purpose of each nonspendable, restricted, committed, assigned, and unassigned category used by the City:

Nonspendable

 Long‐term interfund advances – cash transfers to special revenue funds to provide financing for those activities. This also includes a loan from the general fund to the water fund for a capital purchase, reported on the statement face as an internal balance.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
75 7. NET POSITION/FUND BALANCES, Continued
Nonspendable

 Loans/notes receivable – represents loans made to individuals and businesses.

Restricted

 Law enforcement – comprised of asset forfeiture money and subventions received from the state for the use in police activities.
 Debt service reserve – funds restricted for future debt service payments related to capital acquisitions.
 Housing programs – consists of cash and notes receivable expressly restricted for the use in providing housing for low and moderate income residents.
 Economic development programs – consists of funds restricted for business stabilization programs.  Transportation infrastructure – restricted in special revenue funds to finance transportation projects funded by state and federal sources.

Committed
 Operating reserve – funds committed as operating reserves by the City Council.  Reserve for economic uncertainties – funds committed by the City Council for economic uncertainties.
 Disaster reserve – funds committed by the City Council for disaster recovery.  Vehicles and equipment replacement reserve – funds committed by the City Council for the replacement of vehicles and equipment.
 Road improvements reserve – funds committed by the City Council for road improvement projects.  Pension and OPEB reserve – funds committed by the City Council for pension and OEPB costs.  Capital projects – funds committed by the City Council for the replacement and improvements of various infrastructure projects.

Assigned

 Capital projects – funds reserved by management for the replacement and improvements of various infrastructure projects.

Unassigned

 Special revenue fund deficits – deficit fund balances in four special revenue funds.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
76 7. NET POSITION/FUND BALANCES, Continued
Fund Deficits
Deficit fund balances consisted of the following:

Non‐Major Special Revenue Funds
Fund Deficit
Fund Name Number Amount Discussion/Explanation
Safe Routes to School 411 (147,640) $
Parkland 202 (175,140)
Dedication Fund
Lake Area Planning 232 (1,076)
Commission ATP
CDBG Grant 2017 238 (65,812)
Deficit resulted from a large payment to the Witt loan in fiscal year 2013.

Financing for that payment came from advance from the general fund and will be repaid from park dedication fees.

Deficit resulting from costs exceeding grant sources to be funded as match during grant closeout
Deficit resulting from costs exceeding grant sources to be funded as match during grant closeout
Deficit resulting from costs exceeding grant sources to be funded as match during grant closeout
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
77 8. INTERFUND TRANSACTIONS AND INTERFUND BORROWING
With City Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to reimburse a fund which has made expenditure on behalf of another fund. Transfers between funds during the fiscal year 2023 were as follows:

Transfers were made to close out grant fund and offset police department costs.

Transferred In Transferred Out
Governmental Funds
Major funds:

Fund: 110 ‐ General Fund $ 49,381 $ 24,259 Total major funds 49,381 24,259 Non‐major funds:

Special revenue funds:

Fund:  207 ‐ Prop 172 Public Safety                         ‐                  49,381 Fund: 228 ‐ Library Park Bathroom Rehabilitation              24,259                             ‐ Total non‐major funds              24,259                  49,381 Fund Fund
Number Fund Name Amount Number Fund Name Amount
413 Lakefront Park Grant 1,117,912 $          110 General Fund 1,117,912 $ 207 Prop 172 Public Safety 7,408                     110 General Fund 7,408 209 Lakeport Housing 4,506                     110 General Fund 4,506 219 10th Street Bike and Pedistrian Improvement 2,174                     110 General Fund 2,174 228 Library Park Bathroom Rehabilitation 135,250                110 General Fund 135,250 233 CDBG Grant 2018 DR 4,004                     110 General Fund 4,004 234 CDBG Grant 2021 17,905                   110 General Fund 17,905 236 CDBG Grant 2020 74,199                   110 General Fund 74,199 237 CDBG Grant 2018 1,694                     110 General Fund 1,694 238 CDBG Grant 2017 77,547                   110 General Fund 77,547 239 CDBG Grant 2022 4,500                     110 General Fund 4,500 410 ER Storm Damage Repair 11,240                   110 General Fund 11,240 411 Safe Routes to School 147,640                110 General Fund 147,640 415 City Wide Sign Improvement ‐ HSIP 812                        110 General Fund 812 Total due to 1,606,791 $          Total due from 1,606,791 $ Fund Fund
Number Fund Name Amount Number Fund Name Amount
202 Parkland Dedication 175,140 $             110 General Fund 175,140 $ 209 Lakeport Housing 114,341                110 General Fund 114,341 Total advances to 289,481 $             Total advances from 289,481 $ $          Total interfund borrowing 1,896,272 1,896,272 $ Interfund Borrowing and Internal Balances
Borrowing Fund (Due To) Lending Fund (Due From)
Borrowing Fund (Advances To) Lending Fund (Advances From) City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
78 9. RISK MANAGEMENT
The City is an associate member of the Public Agency Risk Sharing Authority of California (PARSAC).

PARSAC is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of PARSAC is to arrange and administer programs of insurance for the pooling of self‐insured losses and to purchase excess insurance coverage. The City pays an annual premium to PARSAC for its workers’ compensation, general liability and property coverage.

The City of Lakeport participates in the following three PARSAC programs:

General Liability Insurance
Annual premiums are paid by the member cities and are adjusted retrospectively to cover costs. The City of Lakeport self‐insures for the first $10,000 of each loss and pays 100% of all losses incurred under $10,000. The City does not share or pay for losses of other cities under $10,000, depending on the entity’s deductible amount. Participating cities then share in the next $10,000 to $500,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, professional liability, and certain other coverage. PARSAC is a member of the California Joint Powers Risk Management Authority, which provides PARSAC with an additional $9,500,000 liability insurance coverage over and above PARSAC retention level of $500,000.

Workers’ Compensation
Periodic deposits are paid by member cities and are adjusted retrospectively to cover costs. The City of Lakeport is self‐insured for the first $5,000 of each loss and pays 100% of all losses incurred under $5,000. The City does not share or pay for losses of other cities under $5,000.

Losses of $10,000 to $500,000 are prorated among all participating cities. Losses in excess of $500,000 are covered by excess insurance purchased by participating cities, as part of the pool, to State statutory limits.

Property Insurance
The City participates in PARSAC’s property insurance program. The annual deposits paid by participating member cities are based upon deductibility levels and are not subject to retroactive adjustments. The City of Lakeport has a deductible level of $10,000 and a coverage limit of $600,000,000 declared value.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
79 9. RISK MANAGEMENT, Continued
Amount Coverage Provider Payment Source
General liability claims:
$0 ‐ $10,000 Self‐insured retention City funds
10,001 ‐ 500,000 Public Agency Risk Sharing Authority Shared risk pool 500,001 ‐ 9,500,000 California Affiliated Risk Management Authorities Shared risk pool 5,000,001 ‐ 15,000,000 Commercial reinsurance
15,000,001 ‐ 25,000,000 California Affiliated Risk Management Authorities Shared risk pool Workers' compensation claims:
$0 ‐ $5,000 Self‐insured retention City funds
5,001 ‐ 300,000 Public Agency Risk Sharing Authority Shared risk pool 300,001 + Local Agency Workers' Compensation Excess Pool Shared risk pool 5,000,001 ‐ 50,000,000 Commercial reinsurance
50,000,001 ‐ 300,000,000 Insurance
Property insurance claims:
$0 ‐ $10,000 Deductible City funds
10,001 ‐ 300,000,000 PARSAC coverage of declared value Shared risk pool Risk Management Coverage
There were no settlements in excess of the insurance coverage in any of the three prior fiscal years. The City does not have any accrued liability or reserves for fiscal year 2022.

PARSAC issues a separate Annual Comprehensive Financial Report. Copies of that report may be obtained from PARSAC at 1525 Response Rd #1, Sacramento, CA 95815.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
80 10. PUBLIC EMPLOYEE RETIREMENT PLAN
Plan Description
The City contributes to the California Public Employees Retirement System (CalPERS), a cost‐sharing multiple‐employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost‐of‐living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statue and city ordinance. Copies of PERS annual financial report may be obtained from the Executive Office, 400 “P” Street, Sacramento, California, 95814.

General Information about the Pension Plans
Plan Descriptions ‐ All qualified permanent and probationary employees are eligible to participate in the Local Government'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 (CaIPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided ‐ CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full‐time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non‐duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
81 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
The Plans' provisions and benefits in effect at June 30, 2023, are summarized as follows:

Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 ‐ 55 52 ‐ 67
Monthly benefits, as a & of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8% 9%
Required employer contribution rates 12.210% 4.470%
Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 50 ‐ 57
Monthly benefits, as a & of eligible compensation 3% 2.0% to 2.7% Required employee contribution rates 9% 11.5%
Required employer contribution rates 21.840% 12.750%
Miscellaneous
Benefits Provided
Safety
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 both Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. 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 Local Government is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
82 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
For the year ended June 30, 2023, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Safety
Contributions ‐ employer 405,356 $ 207,215 $ Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous 2,893,127 $
Safety 1,682,994
Total Net Pension Liability 4,576,121 $
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, 2021, 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, 2021, rolled forward to June 30, 2022, using standard update procedures. The Local Government's proportion of the net pension liability was based on a projection of the Local Government's long‐term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
83 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
The City’s proportionate share of the net pension liability for each Plan as of June 30, 2023 and 2022, was as follows:

Miscellaneous Safety
Proportion ‐ June 30, 2022 0.16224% 0.03455%
Proportion ‐ June 30, 2023 0.06183% 0.02449%
Change ‐ Increase (Decrease) ‐0.10041% ‐0.01006%
For the year ended June 30, 2023, the City recognized an increase in pension expense of $2,302,612.

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

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows Inflow Outflows Inflow Outflows Inflow
of Resources of Resources of Resources of Resources of Resources of Resources Changes in assumptions 296,461 $        ‐ $                169,697 $        ‐ $                466,158 $        ‐ $ Differences between expected and actual
experiences             ‐ 19,187                   51,377             ‐                   70,564             ‐ Differences between projected and actual
investment earnings 529,944           ‐                   265,768           ‐                   795,712           ‐ Differences between the employer's
contributions and proportionate share of the                   458,944 ‐           ‐                   634,554           ‐                   1,093,498 Change in employer's proportion             3,569,790 56,539        166,980           1,162,228        223,519           4,732,018 Pension contributions subsequent to
measurement date           ‐ 405,356                   207,215           ‐                   612,571           ‐ Total 1,307,487 $    4,028,734 $    861,037 $        1,796,782 $    2,168,524 $    5,825,516 $ Miscellaneous Plan Safety Plan Total
The $612,571 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, 2024. 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
30‐Jun Miscellaneous Safety Total
2024 (1,268,004) $    (479,417) $        (1,747,421) $
2025 (1,280,320)        (481,503)           (1,761,823) 2026 (902,410)           (344,161)           (1,246,571) 2027 324,132            162,122            486,254
2028 ‐                     ‐                     ‐
Thereafter ‐                     ‐                     ‐ $    (1,142,959) (3,126,602) $    (4,269,561) $
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
84 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Assumptions
Actuarial cost method Entry‐age normal cost method
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Salary increases Varies by entry age and service
Mortality Rate Table Derived using CalPERS’ Membership Data for all Funds Post‐retirement benefit increase Contract COLA up to 2.30% until purchasing power protection allowance floor on purchasing power applies.

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

Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long‐term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
85 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
The long ‐term expected rate of return on pension plan investments was determined using a building‐ block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short‐term (first 10 years) and the long‐term (11‐60 years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and 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
Allocation Years 1‐10 (1, 2)
Global equity ‐ cap‐weighted 30% 4.45%
Global equity non‐cap‐weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage‐backed Securities 5% 0.50%
Investment Grade Corprates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage ‐5% ‐0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021‐22 Asset Liability Management study.

Rates of Return
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
86 10. PUBLIC EMPLOYEE RETIREMENT 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 I‐percentage point lower or I‐ percentage point higher than the current rate:

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

Current
1% Decrease Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Net Pension Liability as of
June 30, 2020
Miscellaneous 6,129,418 $ 2,893,127 $ 230,461 $ Safety 3,730,964 1,682,994 9,242
Total 9,860,382 $ 4,576,121 $ 239,703 $
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
87 11. POST RETIREMENT HEALTHCARE BENEFITS
Plan Description
The City’s single‐employer defined benefit retiree health plan provides certain health care benefits to qualified retired employees until they become eligible for Medicare benefits. Employees of the City may become eligible for these benefits when they reach normal retirement age while working for the City based upon years of service. The Plan has no assets accumulated in a trust that meets the requirements to be netted against pension liabilities (i.e., to which contributions are irrevocable, the assets are dedicated to paying benefits and the assets are protected from creditors of the City).

Funding Policy
The City recognizes the cost of providing these benefits by expensing their monthly insurance premiums.

Other postemployment benefits paid by the City for the year totaled $216,718.

The plan provisions and benefits are summarized below:

Benefit types provided   Medical only
Duration of benefits   Lifetime
Required service   12 years
Minimum age   50
Dependent coverage   Yes
City contribution % (1) 12‐14 years of service: 40%
15‐17 years of service: 60%
18‐20 years of service: 80%
21+ years of service: 100%
City cap   Active cap (currently a % of premium)
(1) Applies to City contribution for active coverage. Those hired prior to 4/6/99 are entitled to the active contribution upon retirement subject only to the minimum pension eligibility requirements.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
88 11. POST RETIREMENT HEALTHCARE BENEFITS, Continued
Inactive employees receiving benefits 35
Inactive employees entitled to but not receiving benefits 0 Participating active employees 7
Total number of participants 42
OPEB Eligibility Summary
Contributions
The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2023, the City’s cash contributions were $216,718.

Net OPEB Liability

The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:

Discount Rate 3.65%
Inflation 2.50%
Salary Increases 2.75%
Investment Rate of Return 3.65%
Mortality Rate (1) Derived using CalPERS' Membership Data for all funds.

Pre‐Retirement Turnover (2) Derived using CalPERS' Membership Data for all funds.

Healthcare Trend Rate 4%
Actuarial Assumptions:

Notes:
(1) Pre‐retirement mortality information was derived from data collected during 1997 to 2011 CalPERS Experience Study dated January 2014 and post‐retirement mortality information was derived from the 2007 to 2011 CalPERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. (2) The pre‐retirement turnover information was developed based on CalPERS’ specific data. For more details, please refer to the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
89 11. POST RETIREMENT HEALTHCARE BENEFITS, Continued

Discount Rate

The discount rate used to measure the total OPEB liability was 3.65 percent. The projection of cash flows used to determine the discount rate assumed that Authority contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long‐term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the OPEB Liability

The changes in the net OPEB liability for the Plan are as follows:

Total OPEB
Liability
Fiduciary
Net
Position
Net OPEB
Liability
Balance at 6/30/2022 4,682,052 $   ‐ $                       4,682,052 $ Changes for the year
Service Cost 39,301             ‐                          39,301 Interest 162,604           ‐                          162,604 Experience (Gains)/Losses ‐                          ‐                          ‐ Changes in Assumptions (57,            ‐ 752)                          (57,752) Contributions ‐ employer ‐                          216,718           (216,718) Benefit payments (216,718)         (216,718)         ‐
Net Changes (72,565)            ‐                          (72,565) Balance at 6/30/2023 4,609,487 $   ‐ $                       4,609,487 $ Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2023 is 3.65%. The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Discount Rate Valuation Discount Rate
Change in Discount Rate 1% Lower Discount Rate 1% Higher Net OPEB Liability 5,153,580 $ 4,609,487 $ 4,160,425 $ City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
90 11. POST RETIREMENT HEALTHCARE BENEFITS, Continued

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Trend Trend
Change in Healthcare Cost Trend Rate 1% Lower Current Trend 1% Higher Net OPEB Liability 4,089,359 $ 4,609,487 $ 5,227,011 $ Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected and
actual earnings on OPEB plan
investments
All other amounts
5 years
Expected average remaining service
lifetime (EARSL) (6.0 Years at June 30, 2023)
OPEB Expense

For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $144,153.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
91 12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Lakeport that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2441 (2012).

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
92 12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2013. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City included in the fund financial statements as Former Redevelopment Agency Special Revenue Fund and Low/Moderate Income Housing Fund.

After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private‐purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private‐purpose trust fund as an extraordinary gain (or loss).

The following is a summary of changes in long‐term liabilities for the year ended June 30, 2023:

Balance Balance Due within
Fiduciary activities: July 1, 2022 Additions Retirements June 30, 2023 one year 2004 Series B RDA Tax Exempt Bonds 390,000 $ ‐ $ (70,000) $ 320,000 $ 75,000 $ 2016 Tax Allocation Bonds 3,585,000 ‐ (160,000) 3,425,000 160,000 Total fiduciary activities 3,975,000 $ ‐ $ ( $ 3,745,000 230,000) $ 235,000 $ Redevelopment Successor Private Purpose Trust
Debt Service Activity
2004 Series B Bonds
2004 Series B bond, total issue $1,170,000. Annual principal is due on September 1 and interest payments are due semi‐annually, at an annual interest rate of 5.31%, September 1 and March 1 each year. Payments are secured by redevelopment tax increment revenue, maturing in year 2027.

Balance due $ 320,000
2016 Tax Allocation Bond
2016 Tax Allocation Bond, total issue $4,120,000. Annual principal is due on September 1 and interest payments are due semi‐annually, September 1 and March 1 each year. Payments are secured by redevelopment tax increment revenue, maturing in year 2034.

Balance due $ 3,425,000

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
93 12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued Future debt service for Fiduciary Activities at June 30, 2023, is as follows:

June 30, Principal Interest Principal Interest Principal Interest 2024 75,000 $ 15,961 $ 160,000 $ 131,250 $ 235,000 $ 147,211 $ 2025 80,000 11,583 170,000 124,650 250,000 136,233 2026 80,000 7,063 175,000 117,750 255,000 124,813 2027 85,000 2,401 205,000 110,150 290,000 112,551 2028 ‐ ‐ 310,000 99,850 310,000 99,850 2029‐2033 ‐ ‐ 1,760,000 297,850 1,760,000 297,850 2034‐2038 ‐ ‐ 645,000 19,275 645,000 19,275 $ 37,008 320,000 $ 3,425,000 $ 900,775 $ 3,745,000 $ 937,783 $ Due within one year 75,000 $ 15,961 $ 160,000 $ 131,250 $ 235,000 $ 147,211 $ Due after one year 245,000 21,047 3,265,000 769,525 3,510,000 790,572 $ 37,008 320,000 $ 3,425,000 $ 900,775 $ 3,745,000 $ 937,783 $ Totals
2004 Series B RDA 2016 Tax
Tax Exempt Bond Allocation Bond

13. NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued Statement No. 94, “Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements”. The objective of this Statement is to better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into PPPs and APAs and by enhancing the understandability, reliability, relevance, and consistency of information about PPPs and APAs. The implementation of this statement did not have an effect on the financial statements.

The GASB has issued statement No. 96, “Subscription‐Based Information Technology Arrangements”.

The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs. The implementation of this statement did not have an effect on the financial statements.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2023
Notes to the Basic Financial Statements, Continued
94 13. NEW ACCOUNTING PRONOUNCEMENTS, Continued
The GASB has issued Statement No. 99, "Omnibus 2022." The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to leases, PPPs, and SBITAs will take effect for financial statements starting with the fiscal year that ends June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

The GASB has issued Statement No. 100, "Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62." The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024.

REQUIRED SUPPLEMENTARY INFORMATION
95 City of Lakeport, California
Required Supplementary Information ‐ Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30,
Last 10 Fiscal Years*
2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service Cost $        69,944 39,301 $        67,272 $        59,557 $         53,802 $         52,362 $ Interest on the total OPEB liability                 146,506 162,604                 149,529                 185,682                  173,339                  189,647 Experience (Gains)/Losses                         (1,329,702) ‐            ‐                         378,406                  ‐                           ‐ Changes of benefit terms                         ‐ ‐                         ‐                         ‐                           ‐                           ‐ Changes of assumptions                  (816,174) (57,752)               36,502                   1,113,983               359,286                  ‐ Benefit payments               (272,508) (216,718)               (264,877)               (235,007)                 (238,287)                 (324,908) Net change in total OPEB liability (72,565) (2,201,934) (11,574) 1,502,621 348,140 (82,899) Total OPEB liability ‐ beginning             6,883,986 4,682,052             6,895,560             5,392,938               5,044,798               5,127,697 Total OPEB liability ‐ ending (a) $ 4,682,052 4,609,487 $ 6,883,986 $ 6,895,559 $   5,392,938 $   5,044,798 $ Plan fiduciary net position
Contributions ‐ employer $     272,508 216,718 $     264,877 $     235,007 $       238,287 $       324,908 $ Contributions ‐ employee ‐                         ‐                         ‐                         ‐                           ‐                           ‐ Actual investment income ‐                         ‐                         ‐                         ‐                           ‐                           ‐ Administrative expense ‐                         ‐                         ‐                         ‐                           ‐                           ‐ Benefit payments (216,718)               (272,508)               (264,877)               (235,007)                 (238,287)                 (324,908) Net change in plan fiduciary net position                         ‐ ‐                         ‐                         ‐                           ‐                           ‐ Plan fiduciary net position ‐ beginning                         ‐ ‐                         ‐                         ‐                           ‐                           ‐ Plan fiduciary net position ‐ ending (b) $              ‐ ‐ $              ‐ $              ‐ $               ‐ $               ‐ $ Net OPEB liability ‐ ending (a) ‐ (b) $ 4,682,052 4,609,487 $ 6,883,986 $ 6,895,559 $   5,392,938 $   5,044,798 $ Covered payroll 3,633,164 $          3,036,393 $          3,111,833 $          2,632,480 $           2,570,660 $           2,444,280 $ Net OPEB liability as a percentage of covered
payroll 126.87% 154.20% 221.22% 261.94% 209.79% 206.39% Notes to Schedule
* AddiƟonal years will be presented as they become available. 96 City of Lakeport, California
Required Supplementary Information ‐ Net OPEB Liability Schedule of Contributions June 30, 2023
Last 10 Fiscal Years*
Fiscal Year Ended June 30, 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution (ADC) 216,718 $            272,508 $            264,877 $            235,007 $            238,287 $            324,908 $ Contributions in relation to the ADC 216,718                272,508                264,877                235,007                238,287                324,908 Contribution deficiency ( excess) ‐ $                     ‐ $                     ‐ $                     ‐ $                     ‐ $                     ‐ $ Covered payroll 3,633,164            3,257,242            3,036,393            3,111,833            2,632,480            2,570,660 Contributions as a percentage of covered payroll 5.96% 8.37% 8.72% 7.55% 9.05% 12.64% Notes to Schedule
* AddiƟonal years will be presented as they become available. 97 City of Lakeport, California
Required Supplementary Information ‐ Schedule of Contributions Miscellaneous Plan
Last 10 Fiscal Years* 2023 2022 2021 2020 2019 2018 2017 Contractually required contribution (actuarially
determined) $         634,230 405,356 $         556,587 $         549,955 $         114,309 $         299,811 $         279,716 $ Contributions in relation to the actuarially
determined contributions           (634,230) (405,356)           (556,587)           (549,955)           (114,309)           (299,811)           (279,716) Contribution deficiency (excess) ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Covered payroll $      2,425,775 2,783,863 $      2,511,453 $      1,807,816 $      1,854,631 $      1,854,631 $      1,727,792 $ Contribution as a percentage of covered payroll 14.56% 26.15% 22.16% 30.42% 6.16% 16.17% 16.19% Notes to Schedule
Safety Plan
Last 10 Fiscal Years* 2023 2022 2021 2020 2019 2018 2017 Contractually required contribution (actuarially
determined) $         330,350 207,215 $         288,238 $         278,551 $         193,615 $         178,679 $         175,590 $ Contributions in relation to the actuarially
determined contributions           (330,350) (207,215)           (288,238)           (278,551)           (193,615)           (178,679)           (175,590) Contribution deficiency (excess) ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Covered payroll $         831,467 849,301 $         873,415 $         824,664 $         716,030 $         716,030 $         701,870 $ Contribution as a percentage of covered payroll 24.40% 39.73% 33.00% 33.78% 27.04% 24.95% 25.02% Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. * Additional years will be presented as they become available. * Additional years will be presented as they become available. 98 City of Lakeport, California
Required Supplementary Information ‐ Schedule of City's Proportionate Share of Net Pension Liability
Miscellaneous Plan
Last 10 Fiscal Years* 2023 2022 2021 2020 2019 2018 2017 Plan's Proportion of the Net Pension Liability/(Asset) 0.06183% 0.16224% 0.12715% 0.12259% 0.11803% 0.11413% 0.11527% Plan's Proportionate Share of the Net Pension $     3,080,609 2,893,126 $     5,363,393 $     4,909,06 $     4,448,04 0 $     4,498,92 0 $     4,004,31 7 $     6 Plan's Covered Payroll 2,783,863 $     2,425,775 $     2,511,453 $     2,236,40 $     2,174,275 4 $     1,854,631 $     1,727,792 $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered Payroll 103.92% 126.99% 213.56% 219.51% 204.58% 242.58% 231.76% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 87.81% 86.30% 75.24% 76.11% 77.33% 77.17% 78.69% Plan's Proportionate Share of Aggregate Employer Contribution $     763,563 1,081,383 $         728,301 $         648,195 $         578,07 $         575,409 4 $         550,66 $         0 Notes to Schedule
* Additional years will be presented as they become
available.

Safety Plan
Last 10 Fiscal Years* 2023 2022 2021 2020 2019 2018 2017 Plan's Proportion of the Net Pension Liability/(Asset) 0.02449% 0.03455% 0.04183% 0.03910% 0.03711% 0.03613% 0.03744% Plan's Proportionate Share of the Net Pension $ 1,212,62 1,682,994 $ 2,787,02 6 $ 2,440,583 7 $ 2,177,34 $ 2,158,78 0 $ 1,938,94 0 $ 7 Plan's Covered Payroll 849,301 $ 831,467 $ 873,415 $ 875,428 $ 788,343 $ 716,03 $ 701,87 0 $ 0 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered Payroll 198.16% 145.84% 319.10% 278.79% 276.19% 301.49% 276.25% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 88.65% 91.36% 78.63% 80.36% 81.91% 80.21% 79.63% Plan's Proportionate Share of Aggregate Employer Contribution $ 685,355 877,096 $ 530,86 $ 437,945 0 $ 415,848 $ 301,957 $ 261,963 $ Notes to Schedule
* Additional years will be presented as they become
available.
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 99 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 100
Fund Description
Parkland Dedication Fund
Gas Tax Fund
Prop 172 Public Safety Fund
Lakeport Housing Fund A special revenue fund established for the provision of affordable housing.

CDBG Grant 2021 Established to account for the revenues and expenditures associated with a CDBG funded economic development business loan and technical assistance grant
CDBG Grant 2020
Fund set up to track activities funded by the Lake County Area Planning Committee to fund planning activities for the development of a city wide active transportation master plan.

Lake Area Planning Commition
Active Transportation Planning
(ATP) Grant
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues received that have special restrictions placed on their use or are committed to expenditure for specified purposes either through statute or by Council policy. The City has a number of different special revenue funds which are part of the non‐operating budget. The City’s nonmajor special revenue funds include the following:

State law and General Plan provide for new development to fund expansion of park systems to compensate for added demand of growth. Fees are collected at time of recordation of parcel and subdivision maps (see Section 16.16.040 Lakeport Municipal Code).

Established to account for revenues and expenditures on road‐related projects in the City. Financing is provided by the City's share of the statewide tax on gasoline and other fuels.

A city or county that received Prop 172 funds must place the revenues in a special revenue fund to be expended only on public safety services as defined in Government Code Section 30052. Maintenance of effort provision in the statute requires the City to maintain funding levels to public safety functions.

K‐9 Fund
CDBG Grant 2018 DR Established to account for the revenues and expenditures associated with a CDBG Disaster Recovery Multi‐Family Housing project.

Established to account for the revenues and expenditures associated with CDBCV facility improvements to the Silveira Community Center.

Established to account for funding sources and costs associated with the Police K‐9 program
10th Street Bike and Pedestrian
Improvement Fund
Fund set up to track activities funded by the Lake County Area Planning Committee for bike and pedestrian improvements on 10th Steet.

Library Park Bathroom
Rehabilitation Fund
Fund set up to track activities funded by the California Department of Boating and Waterways to fund the rehabilitation of the restroom facilities at Library 101
Fund Description
CDBG Grant 2022 Fund set up to track activities funded by a 2022 grant from CDBG.

Activities include planning activities to update housing assistance policies and procedures.

Tenth Street Drainage Fund Restricted fund/set aside by developer of Willow Tree Shopping Center.

Lakeport Blvd Improvement Fund
Special assessment of developer to mitigate traffic impacts of K‐Mart.

Parkside Traffic Mitigation Fund
Storm Drainage Fund
City Wide Sign ‐ HSIP
CDBG Grant Program Income
ARPA Fund
NON‐MAJOR SPECIAL REVENUE FUNDS, Continued
Assessments are made against larger properties to pay for prior and future storm drain projects (see Chapter 3.16 Lakeport Municipal Code).

Established to account for the revenues and expenditures associated with a Caltrans funded safety project to upgrade street signage city‐wide.

South Main Street Improvement
Fund
Traffic mitigation fees are required as a mitigation measure of Parkside Subdivision.

Parallel/Bevins Storm Maintenance
Fund
ER Storm Damage Repair Fund Project funds provided by the Federal government through Caltrans' administration of the Emergency Relief (ER) Program.

Established to account for the revenues and expenditures associated with the American Rescue Plan Act granted by the federal government.

This fund is used for reinvestment into housing programs from program income generated by past CDBG grants.

Fund set up to account for revenue received and expenditures made in conjunction with development along the Parallel Drive and Bevins Drive Special assessment of developer to mitigate traffic impacts of K‐Mart (now Bruno's) development in 1987.

CDBG Grant 2017 Established to account for the revenues and expenditures associated with a CDBG funded economic development business loans and planning and technical assistance in the Forbes Creek Neighborhood.

CDBG Grant 2018 Established to account for the revenues and expenditures associated with a CDBG funded off site improvements projects related to low‐ income family housing development.
102
This page intentionally left blank.
103
City of Lakeport, California
Combining Balance Sheet
Nonmajor Special Revenue and Capital Projects Funds, Continued June 30, 2023
Parkland Prop 172 Lakeport
Dedication Gas Tax Public Safety Housing K‐9 Fund
ASSETS
Cash and investments $ 705,435 ‐ $ ‐ $ ‐ $ 5,877 $ Receivables:

Intergovernmental ‐ 19,549 ‐ ‐ ‐ Loans/Notes ‐ ‐ ‐ 302,964 ‐ Other ‐ ‐ 7,408 49,177 ‐ Total assets $ 724,984 ‐ $ 7,408 $ 352,141 $ 5,877 $ LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable ‐ $ ‐ $ ‐ $ ‐ $ 483 $ Due to other funds ‐ ‐ 7,408 4,506 ‐ Advances from other funds 175,140 ‐ ‐ 114,341 ‐ Total liabilities ‐ 175,140 7,408 118,847 483 Fund Balances:

Restricted:

Law enforcement ‐ ‐ ‐ ‐ 5,394 Housing programs ‐ ‐ ‐ 233,294 ‐ Community development ‐ ‐ ‐ ‐ ‐ Transportation infrastructure 724,984 ‐ ‐ ‐ ‐ Assigned:

Capital projects                          ‐ ‐                          ‐                          ‐                          ‐ Unassigned (deficit) (175,140)           ‐                          ‐                          ‐                          ‐ Total fund balances           724,984 (175,140)             ‐                          233,294             5,394 Total liabilities and fund balances $                       724,984 ‐ $         7,408 $              352,141 $         5,877 $ 104
10th Street Bike Library Park Lake Area
and Pedestian Bathroom Planning CDBG Grant CDBG Grant CDBG Grant CDBG Grant CDBG Grant Improvement Rehabilitation Commission ATP 2018 DR 2021 2020 2018 2017 $                         ‐ ‐ $                       ‐ $                        ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ 135,250 ‐ 2,174                           9,290                 24,015               78,574 15,476 ‐ ‐ ‐                          ‐                           ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                           ‐                          ‐                          ‐                          ‐ $                135,250 2,174 $         ‐ $                        9,290 $              24,015 $            78,574 $            15,476 $            ‐ $ $                         ‐ ‐ $                       1,076 $               5,286 6,110 $              4,375 ‐ $                       ‐ $ 2,174 135,250 ‐                           4,004 17,905 74,199 1,694                 77,547 ‐ ‐                          ‐                           ‐                          ‐                          ‐                          ‐                          ‐ 135,250 2,174             1,076                  9,290                 24,015               78,574               1,694                 77,547 ‐ ‐                          ‐                           ‐                          ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                           ‐                          ‐                          ‐                          13,782               ‐ ‐ ‐                          ‐                                                   ‐ ‐ ‐                          ‐                           ‐                          ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                           ‐                          ‐                          ‐                          ‐                          ‐ ‐ ‐                          (1,076)                 ‐                          ‐                          ‐                          ‐                          (77,547) ‐ ‐                          (1,076)                 ‐                          ‐                          ‐                          13,782               (77,547) $                135,250 2,174 $         ‐ $                        9,290 $              24,015 $            78,574 $            15,476 $            ‐ $ (continued)
105
City of Lakeport, California
Combining Balance Sheet
Nonmajor Special Revenue and Capital Projects Funds, Continued June 30, 2023
Parkside Parallel/Bevins
CDBG Grant Tenth Street Lakeport Blvd South Main St Traffic Storm 2022 Drainage Improvement Improvement Mitigation Maintenance ASSETS
Cash and investments $                       87,087 ‐ $            61,628 $            32,031 $            17,635 $            20,387 $ Receivables:

Intergovernmental 4,500 ‐ ‐ ‐ ‐ ‐ Loans/Notes ‐ ‐ ‐ ‐ ‐ ‐ Other ‐ ‐ ‐ ‐ ‐ ‐ Total assets $ 87,087 4,500 $ 61,628 $ 32,031 $ 17,635 $ 20,387 $ LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable ‐ $ ‐ $ 11,804 ‐ $ ‐ $ ‐ $ Due to other funds 4,500 ‐ ‐ ‐ ‐ ‐ Advances from other funds ‐ ‐ ‐ ‐ ‐ ‐ Total liabilities ‐ 4,500 11,804 ‐ ‐ ‐ Fund Balances:

Restricted:

Law enforcement ‐ ‐ ‐ ‐ ‐ ‐ Housing programs ‐ ‐ ‐ ‐ ‐ ‐ Community development ‐ ‐ ‐ ‐ ‐ ‐ Transportation infrastructure 87,087 49,824 32,031 17,635 20,387 ‐ Assigned:

Capital projects                          ‐ ‐                          ‐                          ‐                          ‐                          ‐ Unassigned (deficit) ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Total fund balances                          87,087 ‐               49,824               32,031               17,635               20,387 Total liabilities and fund balances $              87,087 4,500 $            61,628 $            32,031 $            17,635 $            20,387 $ 106
City Wide Sign Non‐major
ER Storm Storm Improvement 2017 Storm Governmental
Damage Repair Drainage ‐ HSIP ARPA Fund Capital Projects Totals $                      ‐ $         ‐ 108,932 $                       281,271 $         $      198,036 1,197,542 $         $          2,715,861 15,557                         ‐                          ‐ ‐                          ‐                          ‐                          304,385 ‐ ‐                                                   770,593 ‐ ‐                          ‐                          1,073,557 ‐ ‐                          812 ‐                          ‐                          ‐                          57,397 $            108,932 15,557 $         $                 1,051,864 812 $      1,197,542 $      198,036 $         3,953,164 $ $              ‐ 4,317 $                       $                       ‐ ‐ $                       ‐ $                       ‐ $                       33,451 $ 11,240 ‐                          812 ‐                          ‐                          ‐                          341,239 ‐ ‐                                                   ‐ ‐                          ‐                          ‐                          289,481 ‐ 15,557                                              ‐ 812                          ‐                          ‐                          664,171 ‐ ‐                                                   ‐ ‐                          ‐                          ‐                          5,394 ‐ ‐                                                   ‐ ‐                          ‐                          ‐                          247,076 ‐ ‐                                                   1,051,864 ‐         ‐                          ‐                          1,051,864 108,932 ‐                                      ‐ ‐                          ‐                          ‐                          1,040,880 ‐
‐ ‐                                                   1,197,542 ‐         198,036             1,395,578 ‐                         ‐                          ‐ ‐                          ‐                          ‐                          (253,763) 108,932 ‐                                      1,051,864 ‐         1,197,542         198,036             3,487,029 $            108,932 15,557 $         $                 1,051,864 812 $      1,197,542 $      198,036 $         3,953,164 $ (concluded)
CDBG Grant
Program
Income
107
City of Lakeport, California
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2023
Parkland Prop 172 Lakeport
Dedication Gas Tax Public Safety Housing K‐9 Fund
REVENUES:

Intergovernmental revenue ‐ $ 237,349 $ 49,381 $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ 4,839 ‐ Other revenues ‐ ‐ ‐ 108,176 ‐ Total revenues 237,349 ‐ 49,381 113,015 ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ 35,021 ‐ ‐ ‐ Housing and support programs ‐ ‐ ‐ 115,963 ‐ Economic development ‐ ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ 13,570 Capital outlay ‐ ‐ ‐ ‐ Total expenditures 35,021 ‐ ‐ 115,963 13,570 REVENUES OVER (UNDER)
EXPENDITURES 202,328 ‐ 49,381 (2,948) (13,570) OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐                          ‐                          ‐                          (16,981) Transfers in ‐                          ‐                          ‐                          ‐                          ‐ Transfers out ‐                          ‐                          (49,381)              ‐                          ‐ Total other financing
sources and uses                          ‐ ‐                          (49,381)              (16,981)              ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                          202,328 ‐             ‐                          (19,929)              (13,570) FUND BALANCES (DEFICITS):

Beginning of year (175,140) 522,656 ‐ 253,223 18,964 End of year (175,140) $ 724,984 $ ‐ $ 233,294 $ 5,394 $ 108
10th Street Bike Library Park Lake Area
and Pedestian Bathroom Planning CDBG Grant CDBG Grant CDBG Grant CDBG Grant CDBG Grant Improvement Rehabilitation Commision ATP 2018 DR 2021 2020 2018 2017 $ 135,249 2,174 $ ‐ $ 8,785 $ 17,953 $ 26,717 $ 15,476 $ (3,406) $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 135,249 2,174 ‐ 8,785 17,953 26,717 15,476 (3,406) 2,174 ‐ ‐ ‐ ‐ 26,717 7,650 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 159,508 1,076 8,785 17,953 ‐ ‐ 8,329 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 159,508 2,174 1,076 8,785 17,953 26,717 7,650 8,329 (24,259) ‐ (1,076) ‐ ‐ ‐ 7,826 (11,735) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 24,259 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 24,259 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,076) ‐ ‐ ‐ 7,826 (11,735) ‐ ‐ ‐ ‐ ‐ 5,956 (65,812) $ ‐ ‐ $ (1,076) $ ‐ $ ‐ $ ‐ $ 13,782 $ (77,547) $ (continued)
109
City of Lakeport, California
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue and Capital Projects Funds, Continued For the year ended June 30, 2023
Parkside Parallel/Bevins
CDBG Grant Tenth Street Lakeport Blvd South Main St Traffic Storm 2022 Drainage Improvement Improvement Mitigation Maintenance REVENUES:

Intergovernmental revenue 4,500 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ ‐ ‐ Other revenues ‐ ‐ ‐ ‐ ‐ ‐ Total revenues ‐ 4,500 ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 69,582 ‐ ‐ ‐ Housing and support programs 4,500 ‐ ‐ ‐ ‐ ‐ Economic development ‐ ‐ ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ Total expenditures ‐ 4,500 69,582 ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (69,582) ‐ ‐ ‐ OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Transfers in ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Transfers out ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Total other financing
sources and uses                          ‐ ‐                          ‐                          ‐                          ‐                          ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                          ‐ ‐                          (69,582)              ‐                          ‐                          ‐ FUND BALANCES (DEFICITS):

Beginning of year ‐                          87,087               119,406             32,031               17,635               20,387 End of year ‐ $                       87,087 $            49,824 $            32,031 $            17,635 $            20,387 $ 110
City Wide Sign Non‐major
ER Storm Storm Improvement CDBG Grant 2017 Storm Governmental Damage Repair Drainage ‐ HSIP Program Income ARPA Fund Capital Projects Totals $            ‐ 69,231 $                     1,832 $              4,715 $              598,771 $         ‐ $                       1,168,727 $ 339 ‐                   ‐                          9,248                 ‐                          ‐                          14,426 ‐ ‐                        ‐                          ‐                          ‐                          ‐                          108,176 339 69,231                   1,832                 13,963               598,771             ‐                          1,291,329 ‐ 69,231                        1,832                 ‐                          ‐                          10,000               222,207 ‐ ‐                        ‐                          ‐                          ‐                          120,463 ‐ ‐                        ‐                          ‐                          ‐                          195,651 ‐ ‐                        ‐                          ‐                          ‐                          13,570 28,709 ‐             ‐                          ‐                          ‐                          28,709 28,709 69,231             1,832                 ‐                          ‐                          10,000               580,600 (28,370) ‐            ‐                          13,963               598,771             (10,000)              710,729 ‐ ‐                        ‐                          ‐                          ‐                          ‐                          (16,981) ‐ ‐                        ‐                          ‐                          ‐                          ‐                          24,259 ‐ ‐                        ‐                          ‐                          ‐                          ‐                          (49,381) ‐ ‐                        ‐                          ‐                          ‐                          ‐                          (42,103) (28,370) ‐            ‐                          13,963               598,771             (10,000)              668,626 137,302 ‐           ‐                          1,037,901         598,771             208,036             2,818,403 $                       108,932 ‐ $        ‐ $                       1,051,864 $      1,197,542 $      198,036 $         3,487,029 $ (concluded)
111
NONMAJOR GOVERNMENTAL FUNDS BUDGET COMPARISONS
112
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances  ‐ Budget to Actual Parkland Dedication Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue ‐ $ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Economic development ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ ‐ OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                ‐ FUND BALANCES (DEFICITS):

Beginning of year (175,140) (175,140) (175,140) ‐ End of year (175,140) $ (175,140) $ (175,140) $ ‐ $ Budgeted Amounts
113
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Gas Tax Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 299,314 $ 299,314 $ 237,349 $ (61,965) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 299,314 299,314 237,349 (61,965) EXPENDITURES:

Current:

Roads and infrastructure:

Public works 298,822 298,822 35,021 263,801 Total expenditures 298,822 298,822 35,021 263,801 REVENUES OVER (UNDER)
EXPENDITURES 492 492 202,328 (325,766) OTHER FINANCING SOURCES (USES):

Transfers out (500,000)                  (500,000)                  ‐                                500,000 Total other financing
sources and uses                  (500,000) (500,000)                  ‐                                500,000 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                  (499,508) (499,508)                  202,328                   174,234 FUND BALANCES (DEFICITS):

Beginning of year 522,656 522,656 522,656 ‐ End of year 23,148 $ 23,148 $ 724,984 $ 174,234 $ Budgeted Amounts
114
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Prop 172 Public Safety Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 35,000 $ 35,000 $ 49,381 $ 14,381 $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 35,000 35,000 49,381 14,381 EXPENDITURES:

Current:

Public safety ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES 35,000 35,000 49,381 14,381 OTHER FINANCING SOURCES (USES):

Transfers out (35,000)                    (35,000)                    (49,381)                    (14,381) Total other financing
sources and uses                    (35,000) (35,000)                    (49,381)                    (14,381) REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                ‐ FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ ‐ $ Budgeted Amounts
115
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Lakeport Housing Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Use of money and property ‐ $ ‐ $ 4,839 $ 4,839 $ Other revenues ‐ ‐ 108,176 108,176 Total revenues ‐ ‐ 113,015 113,015 EXPENDITURES:

Current:

Housing and support programs 10,000 10,000 115,963 (105,963) Capital outlay ‐ ‐ ‐ ‐ Total expenditures 10,000 10,000 115,963 (105,963) REVENUES OVER (UNDER)
EXPENDITURES (10,000) (10,000) (2,948) 218,978 OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐                                ‐                                (16,981)                    (16,981) Transfer in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                (16,981)                    ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                    (10,000) (10,000)                    (19,929)                    218,978 FUND BALANCES (DEFICITS):

Beginning of year 253,223 253,223 253,223 ‐ End of year 243,223 $ 243,223 $ 233,294 $ 218,978 $ Budgeted Amounts
116
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual K‐9 Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 15,000 $ 15,000 $ ‐ $ (15,000) $ Total revenues 15,000 15,000 ‐ (15,000) EXPENDITURES:

Current:

Public safety 30,000 30,000 13,570 16,430
Total expenditures 30,000 30,000 13,570 16,430 REVENUES OVER (UNDER)
EXPENDITURES (15,000) (15,000) (13,570) (31,430) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                    (15,000) (15,000)                    (13,570)                    (31,430) FUND BALANCES (DEFICITS):

Beginning of year 18,964 18,964 18,964 ‐ End of year 3,964 $ 3,964 $ 5,394 $ (31,430) $ Budgeted Amounts
117
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual 10th Street Bike and Pedestrian Improvement
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 130,000 $ 130,000 $ 2,174 $ (127,826) $ Total revenues 130,000 130,000 2,174 (127,826) EXPENDITURES:

Current:

Roads and infrastructure:

Public works 130,000 130,000 2,174 127,826 Total expenditures 130,000 130,000 2,174 127,826 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (255,652) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (255,652) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ 0 ‐ End of year ‐ $ ‐ $ ‐ $ (255,652) $ Budgeted Amounts
118
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Library Park Bathroom Rehabilitation
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 150,000 $ 150,000 $ 135,249 $ (14,751) $ Total revenues 150,000 150,000 135,249 (14,751) EXPENDITURES:

Current:

Economic development 150,000 150,000 159,508 (9,508) Total expenditures 150,000 150,000 159,508 (9,508) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (24,259) (5,243) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                24,259                     ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                24,259                     ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (5,243) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (5,243) $ Budgeted Amounts
119
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Lake Area Planning Commission ATF
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 230,000 $ 230,000 ‐ $ (230,000) $ Total revenues 230,000 230,000 ‐ (230,000) EXPENDITURES:

Current:

Economic development 230,000 230,000 1,076 228,924 Total expenditures 230,000 230,000 1,076 228,924 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (1,076) (458,924) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                (1,076)                      (458,924) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ (1,076) $ (458,924) $ Budgeted Amounts
120
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2018 DR Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 100,000 $ 100,000 $ 8,785 $ (91,215) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 100,000 100,000 8,785 (91,215) EXPENDITURES:

Current:

Economic development 100,000 100,000 8,785 91,215 Total expenditures 100,000 100,000 8,785 91,215 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (182,430) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (182,430) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (182,430) $ Budgeted Amounts
121
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2021
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 500,000 $ 500,000 $ 17,953 $ (482,047) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 500,000 500,000 17,953 (482,047) EXPENDITURES:

Current:

Economic development 415,000 415,000 17,953 397,047 Capital outlay 85,000 85,000 ‐ ‐ Total expenditures 500,000 500,000 17,953 397,047 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (879,094) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (879,094) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (879,094) $ Budgeted Amounts
122
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2020
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 250,000 $ 250,000 $ 26,717 $ (223,283) $ Total revenues 250,000 250,000 26,717 (223,283) EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 454 (454) Economic development 250,000 250,000 ‐ 250,000 Total expenditures 250,000 250,000 454 249,546 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ 26,263 (472,829) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                26,263                     (472,829) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ 26,263 $ (472,829) $ Budgeted Amounts
123
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2018
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue ‐ $ ‐ $ 15,476 $ 15,476 $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ 15,476 15,476 EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 7,650 (7,650) Total expenditures ‐ ‐ 7,650 (7,650) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ 7,826 ‐ OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                7,826                       ‐ FUND BALANCES (DEFICITS):

Beginning of year 5,956 5,956 5,956 ‐ End of year 5,956 $ 5,956 $ 13,782 $ ‐ $ Budgeted Amounts
124
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2017
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue ‐ $ ‐ $ (3,406) $ (3,406) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ (3,406) (3,406) EXPENDITURES:

Current:

Economic development ‐ ‐ 8,329 (8,329) Total expenditures ‐ ‐ 8,329 (8,329) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (11,735) 4,923 OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                (11,735)                    4,923 FUND BALANCES (DEFICITS):

Beginning of year (65,812) (65,812) (65,812) ‐ End of year (65,812) $ (65,812) $ (77,547) $ 4,923 $ Budgeted Amounts
125
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2022
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue ‐ $ ‐ $ 4,500 $ 4,500 $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ 4,500 4,500 EXPENDITURES:

Current:

Housing and support programs ‐ ‐ 4,500 (4,500) Total expenditures ‐ ‐ 4,500 (4,500) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ 9,000 OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                9,000 FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ 9,000 $ Budgeted Amounts
126
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Tenth Street Drainage Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Taxes:

Sales ‐ $ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ ‐ OTHER FINANCING SOURCES (USES):

Beginning of year 87,087 87,087 87,087 ‐ End of year 87,087 $ 87,087 $ 87,087 $ ‐ $ Budgeted Amounts
127
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Lakeport Blvd Improvement Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue ‐ $ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 69,582 (69,582) Total expenditures ‐ ‐ 69,582 (69,582) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (69,582) 69,582 OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                (69,582)                    69,582 FUND BALANCES (DEFICITS):

Beginning of year 119,406 119,406 119,406 ‐ End of year 119,406 $ 119,406 $ 49,824 $ 69,582 $ Budgeted Amounts
128
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual South Main Street Improvement Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue $ ‐ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ ‐ OTHER FINANCING SOURCES (USES):

Beginning of year 32,031 32,031 32,031 ‐
End of year 32,031 $ 32,031 $ 32,031 $ ‐ $ Budgeted Amounts
129
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Parkside Traffic Mitigation Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Taxes:

Sales ‐ $ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ ‐ OTHER FINANCING SOURCES (USES):

Beginning of year ‐ ‐ 17,635 17,635 End of year ‐ $ ‐ $ 17,635 $ 17,635 $ Budgeted Amounts
130
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Parallel/Bevins Storm Maintenance Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Taxes:

Sales ‐ $ ‐ $ ‐ $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ ‐ OTHER FINANCING SOURCES (USES):

Beginning of year 20,387 20,387 20,387 ‐ End of year 20,387 $ 20,387 $ 20,387 $ ‐ $ Budgeted Amounts
131
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual ER Storm Damage Repair Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 140,000 $ 140,000 $ 69,231 $ (70,769) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 140,000 140,000 69,231 (70,769) EXPENDITURES:

Current:

Roads and infrastructure:

Public works 140,000 140,000 69,231 70,769 Total expenditures 140,000 140,000 69,231 70,769 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (141,538) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (141,538) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (141,538) $ Budgeted Amounts
132
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Storm Drainage Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Use of money and property $ 1,000 1,000 $ 339 $ (661) $ Total revenues 1,000 1,000 339 (661) EXPENDITURES:

Current:

Roads and infrastructure:

Public works 10,000 10,000 ‐ 10,000 Capital outlay 120,000 120,000 28,709 91,291 Total expenditures 130,000 130,000 28,709 101,291 REVENUES OVER (UNDER)
EXPENDITURES (129,000) (129,000) (28,370) (101,952) OTHER FINANCING SOURCES (USES):

Transfers out ‐                               ‐                               ‐                               ‐ Total other financing
sources and uses                               ‐ ‐                               ‐                               ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                 (129,000) (129,000)                 (28,370)                   (101,952) FUND BALANCES (DEFICITS):

Beginning of year 137,302 137,302 137,302 ‐
End of year 8,302 $ 8,302 $ 108,932 $ (101,952) $ Budgeted Amounts
133
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual City Wide Sign Improvement ‐ HSIP
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue $ 260,000 260,000 $ 1,832 $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 260,000 260,000 1,832 ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works 260,000 260,000 1,832 258,168 Total expenditures 260,000 260,000 1,832 258,168 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (258,168) OTHER FINANCING SOURCES (USES):

Transfers out ‐                               ‐                               ‐                               ‐ Total other financing
sources and uses                               ‐ ‐                               ‐                               ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                               ‐ ‐                               ‐                               (258,168) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (258,168) $ Budgeted Amounts
134
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant Program Income Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Use of money and property ‐ $ ‐ $ 9,248 $ 9,248 $ Total revenues ‐ ‐ 13,963 ‐ EXPENDITURES:

Economic development 25,000 25,000 ‐ 25,000 Capital outlay ‐ ‐ ‐ ‐ Total expenditures 25,000 25,000 ‐ 25,000 REVENUES OVER (UNDER)
EXPENDITURES (25,000) (25,000) 13,963 (25,000) OTHER FINANCING SOURCES (USES):

Transfer in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                    (25,000) (25,000)                    13,963                     (25,000) FUND BALANCES (DEFICITS):

Beginning of year 1,037,901 1,037,901 1,037,901 ‐ End of year 1,012,901 $ 1,012,901 $ 1,051,864 $ (25,000) $ Budgeted Amounts
135
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual ARPA Fund
For the year ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue ‐ $ ‐ $ 598,771 $ 598,771 Total revenues ‐ ‐ 598,771 ‐ EXPENDITURES:

Capital outlay 1,700,000 1,700,000 ‐ 1,700,000 Total expenditures 1,700,000 1,700,000 ‐ 1,700,000 REVENUES OVER (UNDER)
EXPENDITURES (1,700,000) (1,700,000) 598,771 (1,700,000) OTHER FINANCING SOURCES (USES):

Transfer in 500,000 500,000 ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)              (1,700,000) (1,700,000)              598,771                   (1,700,000) FUND BALANCES (DEFICITS):

Beginning of year 598,771 598,771 598,771 ‐ End of year (1,101,229) $ (1,101,229) $ 1,197,542 $ (1,700,000) $ Budgeted Amounts
136
Schedules Content Page(s)
Financial Trends 136‐145
Revenue Capacity 146‐151
Debt Capacity 152‐157
158‐159
Operating Information These schedules contain service and infrastructure data to help the 160‐163 reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. Information was available beginning with the year ended June 30, 2004, for the financial trend schedules.

STATISTICAL SECTION
This part of the City of Lakeport's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health.

These schedules contain trend information to help the reader understand how the City's financial performance and well‐being have changed over time.

These schedules contain information to help the reader assess the City's ability to generate revenues. Property taxes, sales and use taxes, charges for services, licenses, permits and fees, and intergovernmental revenue are the City's most significant revenue sources.

These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic
Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
137
City of Lakeport, California
Net Position by Component
Fiscal year ended June 30 (last ten fiscal years)
(Accrual basis of accounting)
(In thousands)
2014 2015 2016
Governmental activities
Net investment in capital assets 6,060 $             9,444 $             9,627 $ Restricted 3,796                4,180                1,537 Unrestricted 2,769                (2,823)               (801) Total governmental activities net position $          10,801 12,625 $          10,363 $ Business‐type activities
Net investment in capital assets 6,726 $             7,485 $             8,844 $ Restricted 3,253                3,827                580 Unrestricted 692                   (3,760)               (2,483) Total business‐type activities net position $          7,552 10,671 $             6,941 $ Primary government
Net investment in capital assets 12,786 $          16,929 $          18,471 $ Restricted 7,049                8,007                2,117 Unrestricted 3,461                (6,583)               (3,284) Total primary government net position $          18,353 23,296 $          17,304 $ Source: City Finance Department
$‐
$5,000
$10,000
$15,000
$20,000
$25,000
2014 2015 2016 2017
Governmental activities Business‐type activities
138
2017 2018 2019 2020 2021 2022 2023
$          12,297 12,024 $          13,385 $          12,382 $          14,644 $          15,478 $          18,803 $ 845 1,034                   1,041                1,180                4,069                2,956                3,115 (1,877) (1,238)               (1,147)               749                   1,951                4,669                460 $          11,265 11,820 $          13,279 $          14,311 $          20,664 $          23,103 $          22,377 $ $          9,186 10,503 $             7,150 $             8,648 $             8,109 $             1,546 $             1,341 $ 785 500                   785                   813                   688                   688                   688 (64) (1,615)                    2,109                1,856                2,197                9,115                6,484 $             9,907 9,388 $             10,044 $          11,317 $          10,994 $          11,349 $          8,513 $ $          21,483 22,527 $          20,535 $          21,030 $          22,753 $          17,024 $          20,144 $ 1,630 1,534                1,826                1,993                4,757                3,644                3,803 (1,941) (2,853)               962                   5,605                4,148                13,784              6,944 $          21,172 21,208 $          23,323 $          28,628 $          31,658 $          34,452 $          30,891 $ 2018 2019 2020 2021 2022 2023
139
City of Lakeport, California
Changes in Net Position
Fiscal year ended June 30 (last ten fiscal years)
(Accrual basis of accounting)
(In thousands)
2014 2015 2016
Expenses:

Governmental activities:

General government 830 $ 775 $ 962 $ Community development 242 307 451 Roads and infrastructure 1,226 1,418 893 Sanitation 452 438 ‐ Housing and support programs 134 83 108 Redevelopment/economic development 39 82 237 Public safety 1,664 1,713 1,959 Parks and recreation 327 534 437 Interest on long term debt ‐ 4 42 Total governmental activities expenses 4,961 5,307 5,089 Business‐type activities:

Water utility 1,759 1,808 2,523 Sewer utility 2,481 2,536 3,342 Total business‐type activities expenses 4,240 4,344 5,865 Total primary government expenses 9,651 9,201 10,954 Program revenues:

Governmental activities:

Charges for services:

General government 4 22 ‐ Community development 22 22 30 Roads and infrastructure ‐ ‐ ‐ Sanitation 467 469 ‐ Public safety 7 4 46 Parks and recreation ‐ ‐ 5 Operating grants and contributions ‐ 686 463 Capital grants and contributions ‐ 2,687 1,994 Total governmental activities program revenues 3,890 500 2,538 Business‐type activities:

Charges for services:

Water utility 1,691 1,826 2,062 Sewer utility 2,480 2,787 2,812 Capital grants and contributions ‐ ‐ ‐ Total business‐type activities program revenues 4,171 4,613 4,874 Total primary government program revenues 8,503 4,671 7,412 Net (Expense)/Revenue:

Governmental activities (1,417) (4,461) (2,551) Business‐type activities (69) 269 (991) Total primary government net expense (1,148) (4,530) (3,542) 140
2017 2018 2019 2020 2021 2022 2023
$ 873 969 $ 1,217 $ 2,507 $ 2,064 $ 1,425 $ 2,565 $ 314 410 319 510 469 487 1,053 1,375 906 1,222 1,337 749 3,257 2,444 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 501 21 2,751 1,533 14 186 142 113 137 97 165 356 318 279 1,917 1,986 2,043 2,180 2,253 2,559 4,283 404 433 704 332 347 375 739 93 78 143 120 117 216 174 5,590 4,940 8,496 8,684 6,369 8,824 11,679 1,793 1,247 2,261 2,432 2,372 2,299 4,185 2,240 2,737 3,142 3,348 3,794 3,261 5,230 4,033 3,984 5,403 5,780 6,166 5,560 9,414 9,623 8,924 13,899 14,464 12,535 14,384 21,094 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 49 ‐ 50 52 53 58 60 76 87 28 54 91 48 38 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 2 2 7 12 6 12 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 285 321 3,452 3,293 1,115 1,458 870 784 599 531 685 610 1,506 3,640 1,195 1,009 4,063 4,091 1,881 3,076 4,620 2,379 2,190 2,302 2,690 2,494 2,457 2,869 3,009 2,696 2,823 3,885 2,988 3,129 3,167 ‐ 1,097 ‐ ‐ ‐ ‐ ‐ 5,388 5,983 5,125 6,575 5,482 5,587 6,037 6,583 6,992 9,188 10,666 7,363 8,662 10,657 (4,395) (3,931) (4,433) (4,591) (4,487) (5,748) (7,059) 1,355 1,999 (278) 794 (684) 27 (3,377) (3,040) (1,932) (4,711) (3,797) (5,171) (5,722) (10,436) (continued)
141
City of Lakeport, California
Changes in Net Position, Continued
Fiscal year ended June 30 (last ten fiscal years)
(Accrual basis of accounting)
(In thousands)
2014 2015 2016
General Revenues and Other Changes
in Net Position:

Governmental activities:

Sales tax 2,371 2,039 2,091 Property taxes 860 852 873 Transient occupancy taxes 95 58 200 Other taxes 70 92 412 Franchise fees 277 200 ‐ Fines, forfeitures, and penalties 39 41 ‐ Use of money and property 205 299 148 Other revenues 97 397 260 Sale of land held for resale ‐ ‐ ‐ Transfers in (out) (2,418) ‐ (33) Extraordinary gain ‐ ‐ ‐ Special items ‐ ‐ (1,974) Total governmental activities 3,841 1,596 2,114 Business‐type activities:

Property taxes ‐ ‐ 310 Use of money and property 38 41 37 Other revenues ‐ ‐ ‐ Transfers in (out) ‐ ‐ 33 Total business‐type activities 38 41 380 Total primary government 3,882 1,634 2,494 Changes in Net Position:

Governmental activities               2,424 (2,865)                (437) Business‐type activities                    310 (31)                   (611) Total primary government $           2,734 (2,896) $             (1,048) $ Source: City Finance Department
Note: The City implemented Governmental Accounting Standards Board Statement No. 68 and No. 71 (GASB 54 and GASB 71) for fiscal year ended June 30, 2015. The implementation resulted in a prior period adjustment of $6,305,808 for Governmental activities and $690,158 for Business‐type activities.
142
2017 2018 2019 2020 2021 2022 2023
3,384 2,520                3,751                3,567                4,225                4,235                3,983 932 918                   870                   1,106                1,155                1,111                1,188 62 228                      198                   162                   215                   239                   211 653 400                   520                   586                   562                   551                   535 ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 23 19                      27                      ‐                         ‐                         ‐                         ‐ 54 146                      147                   162                   107                   64                      163 1,807 146                935                   41                      75                      1,988                254 ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ 193                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ 820                         ‐                         ‐                         ‐                         ‐                         ‐ 6,915 5,390                6,448                5,624                6,339                8,187                6,334 317 415                   290                   342                   310                   319                   344 49 50                      125                   137                   50                      9                        83 ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ (15)                         ‐                         ‐                         ‐                         ‐                         ‐ 366 450                   415                   479                   360                   329                   428 7,281 5,840                6,863                6,103                6,699                8,516                6,762 2,519 1,458                2,015                1,033                1,853                2,439                (725) 1,721 2,448                137                   1,273                (323)                  355                   (2,950) $             4,240 3,906 $             2,152 $             2,306 $             1,529 $             2,794 $             (3,675) $ (concluded)
143
2014 2015 2016
General Fund
Nonspendable 1,087 $             374 $                329 $ Restricted 23                      14                      21 Committed 182                   362                   421 Assigned 2,021                2,165                2,062 Unassigned ‐                         ‐                         ‐ Total general fund $             2,915 3,313 $             2,833 $ All Other Governmental Funds
Nonspendable 516 $                ‐ $                     3,012 $ Restricted 3,773                4,165                1,516 Committed ‐                         ‐                         ‐ Assigned ‐                         427                   777 Unassigned (387)                  (1,212)               (271) Total all other governmental funds                3,380 3,902                5,034 Total all governmental funds $             6,295 7,215 $             7,867 $ Source: City Finance Department
City of Lakeport, California
Fund Balances of Governmental Funds
Fiscal year ended June 30 (last ten fiscal years)
(Modified accrual basis of accounting)
(In thousands)
$‐
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2014 2015 2016 2017
General Fund All Other Governmental Funds
144
2017 2018 2019 2020 2021 2022 2023
$                289 294 $                289 $                289 $                289 $                289 $                289 $ 10 21                      10                      10                      57                      24                      24 ‐ 421                         ‐                         ‐                         2,706                3,957                4,654 3,310 2,172                3,310                3,310                2,000                2,000                1,500 341 337                   843                   2,055                914                   253                   265 $             3,951 3,245 $             4,453 $             5,665 $             5,967 $             6,524 $             6,733 $ $             2,623 2,992 $             2,480 $             2,662 $             ‐ $                     5,455 $             5,407 $ 834 1,013                   1,030                1,170                4,012                2,932                3,090 ‐ ‐                         ‐                         ‐                         805                   739                   ‐ 2,038 351                3,479                1,399                1,234                807                   1,396 (273) (281)                  (259)                  (224)                  (175)                  (241)                  (401) 5,223 4,075                6,730                5,007                5,876                9,692                9,492 $             9,175 7,320 $             9,175 $             10,671 $          11,842 $          16,216 $          16,224 $ 2018 2019 2020 2021 2022 2023
145
City of Lakeport, California
Changes in Fund Balances of Governmental Funds
Fiscal year ended June 30 (last ten fiscal years)
(Modified accrual basis of accounting)
(In thousands)
Revenues 2014 2015 2016
Taxes $                 3,045 3,397 $                 3,244 $ Licenses, permits, and franchises                        283 277                        315 Fines and forfeitures                          41 39                          18 Use of money and property                        299 205                        463 Intergovernmental revenue                        686 579                        148 Charges for services                        517 500                        80 Other revenues                          174 97                        2,391 Total revenues                     5,045 5,094                     6,659 Expenditures
Current
General government                        856 710                        796 Community development                        311 244                        401 Roads and infrastructure                        1,096 948                     737 Sanitation                        438 452                        ‐ Housing and support programs                        83 136                          96 Redevelopment/economic development                          39 84                          211 Public safety                     1,721 1,666                     1,784 Parks, buildings, and ground 329                        536                        365 Capital outlay 8                            931                        531 Debt service
Cost of issuance ‐                             ‐                             ‐ Principal retirement 67                          ‐                             92 Interest                            ‐ 4                             42 Total expenditures                     6,011 4,648                     5,055 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity
Revenues over (under) expenditures 446                        (966)                       1,604 Other financing sources (uses):

Proceeds from sale of capital assets ‐ ‐ ‐ Proceeds from issuance of debt ‐ ‐ 1,974 Payments to CalPERS ‐ ‐ (1,974) Payments to refunded Bond escrow agent ‐ ‐ ‐ Loss on note receivable ‐ ‐ ‐ Housing loans ‐ ‐ ‐ Extraordinary gain (loss) ‐ ‐ ‐ Transfers in 39 49 65 Transfers out (39) (16) (98) Total other financing sources (uses) 33 ‐ (33) Net change in fund balances $ (933) 446 $ 1,571 $ Debt service as a percentage of noncapital expenditures 1.7% 0.0% 3.3% Source: City Finance Department
$(1,000)
$(500)
$‐
$500
$1,000
$1,500
$2,000
$2,500
2014 2015 2016
Net change in fund balances $446 $(933) $1,571
146
2017 2018 2019 2020 2021 2022 2023
$ 4,463 3,739 $ 4,900 $ 4,912 $ 5,596 $ 5,585 $ 5,382 $ 567 327 439 509 562 551 535 23 19 27 7 12 6 12 1,069 921 3,983 3,979 1,725 2,964 4,510 54 146 147 162 107 64 163 126 88 79 107 145 106 97 1,807 146 935 41 75 174 202 8,109 5,386 10,510 9,716 8,221 9,449 10,903 901 671 903 1,160 1,379 1,121 1,186 314 410 319 510 469 487 681 1,641 1,066 1,678 1,256 615 3,118 1,436 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 156 21 2,751 1,533 14 56 125 113 137 97 165 356 318 279 1,844 1,920 1,946 2,071 2,138 2,438 2,302 323 355 621 250 263 293 529 354 2,388 1,027 3,030 1,555 1,432 3,889 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 171 175 148 135 146 45 280 93 78 143 119 116 215 171 5,910 7,221 9,633 10,229 7,050 9,524 10,878 2,199 (1,835) 876 (513) 1,171 (75) 25 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1,095 1,134 ‐ ‐ 4,716 ‐ ‐ ‐ ‐ ‐ ‐ (3,453) ‐ ‐ ‐ ‐ ‐ ‐ (1,184) ‐ ‐ ‐ ‐ ‐ ‐ (130) (17) (345) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,765 760 129 561 1,032 102 74 (2,765) (567) (129) (561) (1,032) (102) (74) (345) 1,291 1,134 ‐ ‐ (51) (17) $ 1,854 (544) $ 2,010 $ (513) $ 1,171 $ (126) $ 8 $

6.0% 5.1% 3.3% 2.7% 4.8% 3.3% 4.8%
2017 2018 2019 2020 2021 2022 2023
$(544) $1,854 $2,010 $(513) $1,171 $(126) $8
147
Assessed Value and Actual Value of Taxable Property
(In thousands)
Taxable Taxable Taxable Total
Year Secured Unsecured Assessed Secured Unsecured Assessed Secured Unsecured Assessed Direct Tax Ended Property Property Value Property Property Value Property Property Value Rate 2014 447,317 $ 21,936 $ 469,253 $ 188,055 $ 11,643 $ 199,698 $ 436,127 $ 21,865 $ 457,992 $ 1.000 2015 445,221 22,547 467,768 188,819 12,405 201,224 433,872 22,459 456,331 1.000 2016 449,070 21,098 470,168 190,570 12,008 202,578 437,842 21,020 458,862 1.000 2017 448,318 21,389 469,707 192,454 12,276 204,730 437,231 21,317 458,548 1.000 2018 469,113 23,294 492,407 200,752 12,578 213,330 457,774 23,222 480,996 1.000 2019 486,304 23,876 510,180 208,062 13,157 221,219 474,826 23,807 498,633 1.000 2020 510,692 24,274 534,966 220,476 13,728 234,204 498,296 24,207 522,503 1.000 2021 542,946 27,711 570,657 233,891 14,021 247,912 529,862 27,648 557,510 1.000 2022 565,488 27,818 593,306 243,184 15,038 258,222 551,716 27,764 579,480 1.000 2023 594,216 29,730 623,946 254,601 15,526 270,127 579,755 29,649 604,404 1.000 Source: Lake County Auditor‐Controller
Note: As of February 1, 2011, the Lakeport Redevelopment Agency was dissolved by the State of California. Property taxes formerly allocated to the Agency are now done so to satisfy existing debt obligations administered by its successor, the City of Lakeport.

City of Lakeport, California
Fiscal year ended June 30 (last ten fiscal years)
City Redevelopment Agency Lakeport Municipal Sewer
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
$‐
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
City Redevelopment Agency Lakeport Municipal Sewer
148
(Rate per $1,000 of assessed value)
Lakeport Unified Mendocino
Basic Total High School Community Total
Year Ended Rate Direct Bond College Tax Rate
2014 1.00000 1.00000 0.04628 0.02400 1.07028
2015 1.00000 1.00000 0.04464 0.02300 1.06764
2016 1.00000 1.00000 0.11494 0.02500 1.13994
2017 1.00000 1.00000 0.10699 0.02200 1.12899
2018 1.00000 1.00000 0.10867 0.02100 1.12967
2019 1.00000 1.00000 0.09191 0.02100 1.11291
2020 1.00000 1.00000 0.10364 0.02200 1.12564
2021 1.00000 1.00000 0.08591 0.02300 1.10891
2022 1.00000 1.00000 0.11498 0.02100 1.13598
2023 1.00000 1.00000 0.09844 0.02300 1.12144
Source: Lake County Auditor‐Controller
Note: Jurisdictions within Lake County have the authority to tax properties within their jurisdictions. Properties lying within multiple jurisdictions therefore can be assessed by multiple jurisdictions. The overlapping debt statement presents the debt for all jurisdictions with territory overlapping the City. Debt of overlapping jurisdictions is allocated based upon the assessed value of that jurisdiction within City as compared to total assessed value for that jurisdiction. In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies whose boundaries include the subject property.

In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of Kelseyville Unified School Bonds, Lucerne Elementary School Bond, Lake Sanitation Bonds, County Service Area #6, Callayomi Water, Clearlake Oaks Water, Konocti Unified School Bond, Middletown Unified School Bond, Upper Lake High School Bond, Lakeport Unified High School Bonds, Yuba Community College Bonds, and Mendocino Community College.

City of Lakeport, California
Direct and Overlapping Tax Rates
Fiscal year ended June 30 (last ten fiscal years)
Direct Rates Overlapping Rates
149
Taxes Levied Collections
Year for the Percentage in Subsequent Percentage
Ended Fiscal Year Amount of Levy Years Amount of Levy
2014 514 $ 514 $ 100% 514 ‐ $ 100% 2015 515 515 100% 515 ‐ 100% 2016 512 512 100% 512 ‐ 100% 2017 526 526 100% 526 ‐ 100% 2018 545 545 100% 545 ‐ 100% 2019 566 566 100% 532 ‐ 100% 2020 595 595 100% 595 ‐ 100% 2021 634 634 100% ‐ 634 100% 2022 660 660 100% ‐ 660 100% 2023 662 662 100% ‐ 662 100% Source: Lake County Auditor‐Controller
Total Collections to Date
Note: Amounts reported and collected under the Teeter Plan, in which all taxes are distributed to the City in the year of the levy with the County retaining any interest or penalties on uncollected balances.

City of Lakeport, California
Property Tax Collections and Levies
Fiscal year ended June 30 (last ten fiscal years)
(In thousands)
Collected within the Fiscal Year of
the Levy
$‐
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Collected within the Fiscal Year of the Levy Total Collections to Date 150
(In thousands)
Assessed Percent Assessed Percent
Property Owner Valuation Rank of Total Valuation Rank of Total Safeway, Inc. 19,843 $ 1 27.43% 16,842 $ 1 39.37% Arton, Inc. 6,751 2 9.33% 5,730 2 13.39% Lany Lakeport Limited Partnership 8,490 3 11.74% 6,008 4 14.04% California Aviv, LLC 7,263 4 10.04% 6,488 3 15.17% Jeanrenaud Henri & Jeanrenaud Barbara O 6,449 5 8.92% 0.00% Bruno's Property Management, LLC 6,350 6 8.78% 5,497 6 12.85% Lakeport Investment LLC 7 7.48% 0.00% 5,414
Pontus Vault Portfolia LLC 4,394 8 6.07% 0.00% Dias Samydra Priya Trustee 3,659 9 5.06% 2,213 8 5.17% Shoreline Mini Storage LLC 3,723 10 5.15% 0.00% Total $ 100.00% 42,778 72,336 $ 100.00%
Source: Lake County Auditor‐Controller's Office
Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency (RDA). Information prior to the years above was not maintained by the City.

City of Lakeport, California
Principal Property Tax Payers
Last fiscal year and ten years ago
2022‐23 2013‐14
151
Top 25 Principal Sales Tax Remitters (listed alphabetically) 2023 2022 2021 2020
Amazon Amazon Amazon Big Daddy Garden Supply
Baywa R.E. Solar Systems Autozone Autozone Bruno's Foods Big Daddy Garden Supply Big Daddy Garden Supply Big Daddy Garden Supply Burger King Restaurants Bruno's Shop Smart Bruno's Shop Smart Bruno's Foods Chevron Service Stations Burger King Restaurants Burger King Restaurants Burger King Restaurants CVS Pharmacy Chevron Service Stations Chevron Service Stations Chevron Service Stations Dollar General Stores CVS Pharmacy CVS Pharmacy CVS Pharmacy Dollar Tree Stores Department of Motor Vehicles Allocation Daniels Jewlers Department of Motor Vehicles Allocation Eureka Oxygen Company Dollar General Stores Department of Motor Vehicles Allocation Dollar General Stores Express Service Stations Dollar Tree Stores Dollar General Stores Dollar Tree Stores Grocery Outlet Guy Strohmeier's Auto Center Dollar Tree Stores Guy Strohmeier's Auto Center Kentucky Fried Chicken Grocery Outlet Guy Strohmeier's Auto Center Grocery Outlet Lake Parts Kentucky Fried Chicken Grocery Outlet Kentucky Fried Chicken Matt Mazzei Chevrolet Lakeport Express Kentucky Fried Chicken Lake Parts McDonald's Restaurants Matt Mazzei Chevrolet Lakeport Express Lakeport Express O'Reilly Auto Parts McDonald's Restaurants Matt Mazzei Chevrolet Matt Mazzei Chevrolet Plaza Paint O'Reilly Auto Parts McDonald's Restaurants McDonald's Restaurants Renee's Café Plaza Paint O'Reilly Auto Parts O'Reilly Auto Parts Round Table Pizza Pacific Gas & Electric Co. Plaza Paint Plaza Paint Safeway Stores Round Table Pizza Round Table Pizza Round Table Pizza Sears Roebuck & Co.

Safeway Stores Safeway Stores Safeway Stores Shell Service Stations Shell Service Stations Shell Service Stations Shell Service Stations Taco Bell Taco Bell Taco Bell Taco Bell US Cellular
Verizon Wireless Verizon Wireless Verizon Wireless Verizon Wireless West Lake Auto Center West Lake Auto Center West Lake Auto Center West Lake Auto Center City of Lakeport, California
Last fiscal year and previous five years
Source: City Finance Department
Note: The lists above include both public and private entities and, therefore, the dollar values have been omitted because the information. Rankings are determined by the sales dollar volume. 152
2019 2018
Bruno's Foods Bruno's Foods
Burger King Restaurants Burger King Restaurants
Chevron Service Stations Chevron Service Stations
CVS Pharmacy CVS Pharmacy
Dollar Tree Stores Dollar Tree Stores
Enterprise Rent‐A‐Car Eureka Oxygen Company
Eureka Oxygen Company Express Service Stations
Express Service Stations Grocery Outlet
Grocery Outlet K Mart Stores
K Mart Stores Kentucky Fried Chicken
Kentucky Fried Chicken Matt Mazzei Chevrolet
Lake Parts McDonald's Restaurants
Matt Mazzei Chevrolet NAPA Auto Parts
McDonald's Restaurants New Trend Wireless
O'Meara Bros. Brewing Company O'Meara Bros. Brewing Company O'Reilly Auto Parts O'Reilly Auto Parts
Park Place Restaurant Park Place Restaurant
Renee's Café Plaza Paint & Supplies of Lakport
Round Table Pizza Redwood Oil Company
Safeway Stores Renee's Café
Shell Service Stations Round Table Pizza
Taco Bell Safeway Stores
US Cellular Taco Bell
Verizon Wireless Tesoro Service Stations
West Lake Auto Center West Lake Auto Center
e information is not public
153
General Special Total
Fiscal Year Ended Obligation Capital Revenue Assessment Outstanding June 30, Bonds Leases Bonds Bonds Debt
2014 ‐ $ ‐ $ 7,233,000 $ 3,680,000 $ 10,913,000 $ 2015 ‐ ‐ 10,250,000 3,560,000 13,810,000 2016 1,882,000 ‐ 8,675,587 3,435,000 13,992,587 2017 2,802,000 ‐ 9,395,000 2,854,000 15,051,000 2018 2,631,000 ‐ 12,638,000 2,800,000 18,069,000 2019 3,652,000 ‐ 15,747,000 2,648,000 22,047,000 2020 3,515,916 ‐ 15,200,500 2,489,000 21,205,416 2021 3,337,348 ‐ 14,655,191 2,328,000 20,320,539 2022 9,962,249 ‐ 19,594,628 2,160,000 31,716,877 2023 9,522,800 ‐ 19,599,953 1,986,000 31,108,753 City of Lakeport, California
Ratios of Outstanding Debt by Type
Last ten fiscal years
Governmental Activities: Business‐type Activiites:
154
Percentage of
Personal Debt
Income Population Per Capita

0.50% 4,807 3,361 $

0.60% 4,762 3,989

0.57% 4,765 4,011

0.59% 4,786 4,150

0.68% 4,699 4,836

0.80% 4,784 5,434

0.74% 4,677 5,474

0.67% 4,774 4,257

0.98% 4,999 6,345

1.00% 5,008              6,212
155
General Less: Amounts Percentage of Estimated
Fiscal Year Ended Obligation Available in Debt Actual Taxable Value June 30, Bonds(1) Service Fund(2) Total of Property (3) Per Capita(4) 2014 ‐ $                 ‐ $                                 ‐ $                 0.0% ‐ $ 2015 ‐                     ‐                                    ‐                    0.0% ‐ 2016 1,882,000 ‐                                    1,882,000    0.4% 395 2017 2,802,000 ‐                                    2,802,000    0.6% 585 2018 2,631,000 ‐                                    2,631,000    0.5% 560 2019 3,652,000 ‐                                    3,652,000    0.7% 763 2020 3,515,916 ‐                                    3,515,916    0.7% 735 2021 3,337,348 ‐                                    3,337,348    0.6% 735 2022 9,962,249 ‐                                    9,962,249    1.7% 1,993 2023 9,522,800 ‐                                    9,522,800    1.5% 1,902 (1) This is the general bonded debt of the general fund, net of original issuance discounts and premiums (2) This is the amount restricted for debt service principal payment (3) See the Schedule of Assessed Value and the Estimated Actual Value of Taxable Property (4) Population data can be found in the Schedule of Demographic and Economic Statistics City of Lakeport, California
Ratios of General Bonded Debt Outstanding
Last ten fiscal years
156
2021 Assessed Valuation (in thousands) $         623,946 % Applicable Debt 6/30/22
Overlapping Tax and Assessment Debt:

Mendocino‐Lake Community College District ‐ GO Bonds 4.83% $ 3,978,129 Lakeport Unified School District ‐ GO Bonds 41.30% 6,685,468 2004 Tax Allocation Bonds, Series B 100% 320,000 Successor Agency to the Redevelopment Agency of the
City of Lakeport ‐ Series 2016 Tax Allocation Refunding Bonds 100% 3,425,000 Sewer District Improvement Bonds 2017‐1 100% 1,986,000 Total overlapping tax and assessment debt $ 16,394,597 Direct General Fund Debt:

USDA Police Station Bond 100%            989,000
City of Lakeport Municipal Financing Authority Lease Revenue Bonds 100%         1,100,074 City of Lakeport Pension Obligation Bonds 100%         7,433,726 Total direct general fund debt         9,522,800
Combined total debt $   25,917,397 (1)
Ratios to 2020‐2021 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.63%
Total Combined Debt 4.15%
Source: City Finance Department
Note: The overlapping debt statement presents the debt for all jurisdictions with territory overlapping the City. Debt of overlapping jurisdictions is allocated based upon the assessed value of that jurisdiction within the City as compared to total assessed value for that jurisdiction.

City of Lakeport, California
Direct and Overlapping Debt
Fiscal year ended June 30, 2023
(In thousands)
(1) Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue bonds. 157
2014 2015 2016 2017
Assessed value 469,253 $       467,768 $       470,168 $       469,707 $ Conversion percentage 25% 25% 25% 25%
Adjusted assessed value 117,313          116,942          117,542          117,427 Debt limit percentage 15% 15% 15% 15%
Debt limit 17,597            17,541            17,631            17,614 Total net debt applicable to limit                       ‐ ‐                       1,882              2,802 Legal debt margin 17,597 $         17,541 $         15,749 $         14,812 $ Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 11% 16%
Source: City Finance Department
City of Lakeport, California
Legal Debt Margin Information
Fiscal year ended June 30 (last ten fiscal years)
(In thousands)
Note:  The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed secured tax valuation.  However, this provision was enacted when assessed valuation was based upon 25% of market value.  Effective with the 1981‐82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).  The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 158
2018 2019 2020 2021 2022 2023
$       510,180 492,407 $       534,966 $       570,657 $       593,306 $       623,946 $ 25% 25% 25% 25% 25% 25%
127,545 123,102          133,742          142,664          148,327          155,987 15% 15% 15% 15% 15% 15%
19,132 18,465            20,061            21,400            22,249            23,398 3,652 2,631              3,516              3,337              9,962              9,523 $         15,480 15,834 $         16,545 $         18,062 $         12,287 $         13,875 $ 14% 19% 18% 16% 45% 41%
159
Personal Income Per Capita Unemployment
Year Population (1) (in thousands) (2) Personal Income (2) Rate (%) (3) 2014 4,807 2,175,903                           34,107                                 5.7% (4) 2015 4,762 2,310,318                           36,074                                 6.7% (4) 2016 4,765 2,456,491                           38,227                                 6.7% (4) 2017 4,786 2,533,898                           39,652                                 6.4% (4) 2018 4,699 2,662,533                           40,911                                 5.0% (4) 2019 4,699 2,741,990                           42,632                                 4.9% (4) 2020 4,677 2,849,642                           44,259                                 11.7% (4) 2021 4,774 3,039,822                           47,144                                 7.4% (4) 2022 4,999 3,226,342                           46,918                                 4.4% (4) 2023 5,008 3,111,067                           45,623                                 5.6% (4) Sources:
(1) California Department of Finance
(2) U.S. Department of Commerce Bureau of Economic Analysis (3) Bureau of Labor Statistics
(4) State of California Employment Development Department Labor Market Information City of Lakeport, California
Demographic and Economic Statistics
Last ten calendar years
Note: Information presented is for the Lake County Region, except for population and unemployment data, since separate data is not available for the City of Lakeport.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Average Unemployment Rate
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Per Capita Personal Income
4000
4500
5000
5500
6000
Population
160
Percent of Top 10 Percent of Top 10
Employer Employees Rank Employment (%) Employees Rank Employment (%) County of Lake 1020 1 27.7% 832 1 21.7%
St Helena Hospital 634 2 17.2% 370 3 9.6%
Konocti Unified School District 401 3 10.9% 313 5 8.1%
Sutter Lakeside Hospital 364 4 9.9% 370 2 9.6%
Calpine Corp. 300 5 8.1% 280 6 7.3%
Twin Pine Casino 210 6 5.7% 263 7 6.8%
Kelseyville Unified School District 203 7 5.5% 375 9.8% Wal‐Mart 198 8 5.4% 260 8 6.8%
Robinson Rancheria Resort & Casino 195 9 5.3% 325 4 8.5% Middletown Unified School District 160 10 4.3%
Shannon Ranches Inc. 235 9 6.1%
Harbon Hot Springs 218 10 5.7%
Total 3,685 100.0% 3,841 100.0%
Source: Lake County Marketing Program
Note: Information presented is for the Lake County Region, Major Lake County Employers, since separate data is not available for the City of Lakeport.

City of Lakeport, California
Principal Employers
Current and Ten Years Ago
2022‐23 2013‐14
161
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022
General government 9 8 6 8 9 9 9 9 10
Public safety 15 14 4 12 15 15 15 15 15
Public works (non‐utilities) 12 7 22 11 10 10 10 11 12
Parks and recreation 1 15 4 2 2 2 2 2 2
Utilities 6 9 13 7 8 8 8 9 9
Community development 45845555 6
Total 47 58 57 44 49 49 49 51 54
Source: City Finance Department
City of Lakeport, California
Full‐time and Part‐time City Employees by Function
Fiscal year ended June 30 (last ten calendar years)
General
government
16%
Public safety
27%
Public works
(non‐utilities)
24%
Parks and
recreation
6%
Utilities
18%
Community
development
9%
Full‐time and Part‐time City
Employees by Function 2023
162
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police :

Stations 111111111
Public works:

Streets (miles) 30 30 30 30 30 30 30 30 30
Streetlights 221 221 221 221 221 221 221 221 221
Parks and recreation:

Parks 444444555
Pools 111111100
Community centers 000001111
Water:

Treatment facilities 222222222
Sewer:

Pump stations 999999999
Source: City Finance Department
Sources: City Police, Community Development, and Public Works departments City of Lakeport, California
Capital Asset Statistics by Function
Fiscal year ended June 30 (last ten fiscal years)
163
City of Lakeport, California
Capital Asset Statistics
Fiscal year ended June 30 (last ten fiscal years)
(In thousands)
2014 2015 2016
Governmental activities:

Land 653 $ 1,653 $ 1,653 $
Construction‐in‐progress ‐ ‐ 452 Buildings and structures 2,695 5,173 5,240 Improvements/CIP 4,475 4,697 4,776 Equipment and vehicles 1,566 1,585 1,621 Total 9,389 13,108 13,742
Accumulated depreciation:

Buildings and structures 1,165 1,284 1,403 Improvements/CIP 961 1,075 1,201 Equipment and vehicles 1,203 1,305 1,390 Total 3,329 3,664 3,994
Total governmental net capital assets $ 9,444 6,060 $ 9,748 $ Business‐type activities:

Land 2,475 $ 2,475 $ 2,475 $
Construction‐in‐progress 1,840 3,129 6,342 Buildings and structures 1,840 1,840 1,852 Improvements/CIP 27,593 27,022 27,101 Equipment and vehicles 785 1,444 1,474 Total 34,533 35,910 39,244
Accumulated depreciation:

Buildings and structures 643                   679                   716 Improvements/CIP 13,939              14,704              15,468 Equipment and vehicles 529                   611                   694 Total 15,111              15,994              16,878
Total business‐type net capital assets $          19,916 19,422 $          22,366 $ Source: City Finance Department
164
2017 2018 2019 2020 2021 2022 2023
$             1,653 1,653 $             1,769 $             2,498 $             2,498 $           2,498 $           2,498 $ 369 452                   16                      270                   698                 2,008              5,819 5,588 5,240                6,500                6,500                6,766              6,766              6,766 7,428 4,776                7,612                10,048              10,600            10,600            10,600 1,998 1,621                2,243                2,313                2,604              2,726              2,804 17,036 13,742              18,140              21,629              23,166            24,598            28,488 1,675 1,403                1,846                2,017                2,196              2,376              2,556 1,518 1,201                1,714                1,973                2,249              2,524              2,798 1,547 1,390                1,656                1,775                1,924              2,098              2,242 4,740 3,994                5,216                5,765                6,369              6,998              7,595 $             12,296 9,748 $          12,924 $          15,864 $          16,797 $         17,600 $         20,892 $ $             2,475 2,475 $             2,475 $             2,475 $             2,475 $           2,475 $           2,475 $ 568 6,342                   1,821                131                   131                 131                 131 9,955 1,852                9,955                9,955                9,955              9,955              9,955 27,950 27,101              28,518              32,269              32,338            32,338            32,338 1,609 1,474                1,999                2,159                2,159              2,254              2,525 42,557 39,244              43,078              46,989              47,058            47,153            47,425 992 716                   1,231                1,552                1,791              2,030              2,270 17,022 15,468              17,817              18,725              19,635            20,543            21,450 872 694                   1,008                1,137                1,266              1,394              1,554 18,886 16,878              20,056              21,414              22,692            23,967            25,273 $          23,671 22,366 $          23,022 $          25,575 $          24,366 $         23,186 $         22,152 $ 165
This page intentionally left blank.
166
City of Lakeport, California
Reconciliation of Fund Basis Balance Sheet to Government‐wide Statement of Net Position Governmental Activities
June 30, 2023
Governmental
Funds Changes Statement of
Balance Sheet Reclassifications in GAAP Net Position
ASSETS
Current assets:

Cash and investments $ ‐ 6,790,993 $ ‐ $ 6,790,993 $ Restricted cash and investments ‐ 1,009,454 ‐ 1,009,454 Receivables:

Intergovernmental ‐ 2,173,991 ‐ 2,173,991 Other receivable ‐ 1,548,019 ‐ 1,548,019 Loans/Notes receivable ‐ 6,481,032 ‐ 6,481,032 Due from other funds (1,606,791) 1,606,791 ‐ ‐ Advances to other funds (289,481) 289,481 ‐ ‐ Total current assets (1,896,272) 19,899,761 ‐ 18,003,489 Noncurrent assets:

Capital assets, net ‐ ‐ 20,892,236 20,892,236 Total noncurrent assets ‐ ‐ 20,892,236 20,892,236 DEFERRED OUTFLOWS OF RESOURCES
Pension plan ‐ ‐ 1,632,053 1,632,053 OPEB ‐ ‐ ‐ ‐ Total assets and deferred outflows of resources $ (1,896,272) 19,899,761 $ 22,524,289 $ 40,527,778 $

LIABILITIES
Current liabilities:

Accounts payable $ ‐ 1,330,148 $ ‐ $ 1,330,148 $ Due to other funds (1,606,791) 1,606,791 ‐ ‐ Deposits payable ‐ 429,169 ‐ 429,169 Other liabilities ‐ 19,933 ‐ 19,933 Advances from other funds (289,481) 289,481 ‐ ‐ Compensated absences ‐ current portion ‐ ‐ 134,346 134,346 Due within one year ‐ ‐ 288,000 288,000 Total current liabilities (1,896,272) 3,675,522 422,346 2,201,596 Noncurrent liabilities:

Long‐term liabilities:

Compensated absences ‐ ‐ 234,029 234,029 Due after one year ‐ ‐ 6,261,310 6,261,310 Net OPEB liability ‐ ‐ 3,272,736 3,272,736 Net pension liability ‐ ‐ 2,664,131 2,664,131 Total noncurrent liabilities ‐ ‐ 12,432,206 12,432,206 Total liabilities (1,896,272) 3,675,522 12,854,552 14,633,802 DEFERRED INFLOWS OF RESOURCES
Pension Plan ‐ ‐ 3,515,995 3,515,995 Total liabities and deferred inflows: (1,896,272) 3,675,522 16,370,547 18,149,797 FUND BALANCES/NET POSITION
Fund balances:

Nonspendable (5,696,956) 5,696,956 ‐ ‐ Restricted (3,114,501) 3,114,501 ‐ ‐ Committed (4,653,640) 4,653,640 ‐ ‐ Assigned (2,895,578) 2,895,578 ‐ ‐ Unassigned (deficit) 136,436 (136,436) ‐ ‐ Net position: ‐
Net investment in capital assets ‐ ‐ 18,803,162 18,803,162 Restricted ‐ ‐ 3,114,501 3,114,501 Unrestricted 16,224,239 ‐ (15,763,921) 460,318 Total fund balances/net position ‐ 16,224,239 6,153,742 22,377,981 Total liabilities, deferred inflows and net position $ (1,896,272) 19,899,761 $ 22,524,289 $ 40,527,778 $ The accompanying notes are an integral part of these basic financial statements. 167
City of Lakeport, California
Reconciliation of Fund Basis Statements to Government‐wide Statement of Activities For the year ended June 30, 2023
Compensated Capital
Absences/ Asset Loss on Government‐
Fund Based Debt (Additions)/ Notes wide
Functions/Programs Totals Service Depreciation Retirements Receivable Pension Plan Totals Governmental activities:

General government $ 35,855 1,186,228 $ 288,488 $ ‐ $ ‐ $ 1,054,518 $ 2,565,089 $ Community development ‐ 680,834 ‐ ‐ ‐ 372,033 1,052,867 Roads and infrastructure ‐ 1,435,579 108,833 (1,617) ‐ 901,433 2,444,228 Housing and support programs ‐ 125,201 ‐ ‐ 16,981 ‐ 142,182 Economic development ‐ 278,865 ‐ ‐ ‐ ‐ 278,865 Public safety ‐ 2,302,255 115,897 ‐ ‐ 1,864,393 4,282,545 Parks, buildings and grounds ‐ 529,159 84,591 ‐ ‐ 125,407 739,157 Capital outlay 3,888,501 ‐ ‐ (3,888,501) ‐ ‐ ‐ Debt service/Interest 451,048 (276,699) ‐ ‐ ‐ ‐ 174,349 Total governmental activities $ (240,844) 10,877,670 $ 597,809 $ (3,890,118) $ 16,981 $ 4,317,784 $ 11,679,282 $ The accompanying notes are an integral part of these basic financial statements. 168
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING

STANDARDS
Independent Auditor’s Report
The Honorable City Council
City of Lakeport
Lakeport, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, the aggregate remaining fund information and the budgetary comparison information of the City of Lakeport, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 17, 2024.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
]]TVcT? \ÇvA
January 17, 2024 JJACPA, Inc.

Dublin, CA

CITY OF LAKEPORT

COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND

COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2023
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
January 17, 2024
City Council
City of Lakeport
Lakeport, California
We have audited the basic financial statements of the City of Lakeport (City) as of and for the year, ended June 30, 2023, and have issued our report thereon dated January 17, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated September 6, 2023, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are no required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.

There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the year ended June 30, 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on 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 markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”) and pension plan liabilities.

Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g. infrastructure) as well as industry standards, when applicable (i.e. buildings). Pension plan liabilities are valued based upon actuarial assumptions as developed by the City’s Plan provider.

These assumptions and estimates can result in material changes to liabilities and corresponding deferred inflows and outflows on a year to year basis. We evaluated the key factors and assumptions used to develop the useful lives and pension plan liabilities and determined that they are reasonable in relation to the basic financial statements taken as a whole according to industry standards.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated January 17, 2024.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Findings or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.

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

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

Very truly yours,
]ÉáxÑ{ ] TÜv{?VcT

JOSEPH J ARCH, CPA
President/CEO

JJACPA, INC

Meeting Date: 02/06/2024 Page 1 Agenda Item #VII.C.1.
341147.1

CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☐
Lakeport Industrial Development Authority ☐
Municipal Financing Agency of Lakeport ☐

STAFF REPORT
RE: Approval of a Resolution authorizing submittal of a HOME Program Income Grant application for the Bevins Street
Senior Apartments (447 Bevins Street)
MEETING DATE: 02/06/2024
SUBMITTED BY: Joey Hejnowicz, Community Development Director PURPOSE OF REPORT: ☐Information only ☐ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to approve a Resolution authorizing submittal of a Home Program Income Grant application in the amount of up to $750,000 ($700,000 loan and $50,000 Activity Delivery) for the Bevins Street Senior Apartments project located at 447 Bevins Street. As of December 31, 2023 the City’s balance of HOME Program Income was $791,160.

BACKGROUND/DISCUSSION:

The proposed project aims to address the critical need for affordable senior housing by constructing a threestory building on an undeveloped 3.37-acre site located at 447 Bevins Street in the City of Lakeport, Lake County, California (APN 025-431-37). The project envisions the creation of 40 units, consisting of 32 onebedroom apartments (608 sq ft each) and 8 two-bedroom apartments (799 sq ft each), including a unit reserved for the resident manager.

Affordability and Unit Distribution:

The units, excluding the on-site manager’s unit, will be offered at affordable rates for seniors with incomes ranging from 30 to 60 percent of the annual median income (AMI). The development will also include a 1,250 sq ft community center and 745 sq ft of laundry facilities, strategically distributed across the three floors.

Outdoor Amenities:

The project places a strong emphasis on community and well-being, offering a range of outdoor amenities such as covered picnic tables with barbeques, a bocce ball court, a community garden with raised planter beds, and a fenced dog park.

Meeting Date: 02/06/2024 Page 2 Agenda Item #VII.C.1.
341147.1
Infrastructure and Access:

The development incorporates 51 parking stalls, as well as bicycle racks and lockers situated in the northwest corner of the project site, providing four long-term and six short-term bicycle parking stalls. Offsite infrastructure improvements include the construction of a new sidewalk along Bevins Street, with primary site access facilitated by a driveway off Bevins Street.

Construction Timeline and Costs:

The estimated construction timeline is approximately 18 months, with a total project cost of $15,188,277.

Funding sources include $2,396,301 of Community Development Block Grant Disaster Recovery (CDBG-DR) funds, $250,000 in CDBG-DR funds for Activity Delivery, and $750,000 of HOME Program Income (being proposed this evening). A request for additional funding from the recently released HOME Notice of Funding Availability (NOFA) is pending Council approval/support at a future meeting.

Challenges and Funding Strategy:

Navigating the competitive landscape for affordable housing funding in California has presented challenges. The project team plans to submit applications to the Low-Income Housing Tax Credit program in early February 2024 and subsequently to HOME to bridge any funding gaps. In the event of non-approval in the current funding cycle, a re-submission is planned for July 2024.

Commitment to Success:

Despite the challenges, the Development Team is unwavering in their commitment to securing full funding and successfully realizing this vital senior housing project.

OPTIONS:

1. Approve resolution authorizing the City Manager, Assistant City Manager or Community Development Director to apply for HOME Program Income Loan and Activity Delivery of $750,000 and to execute necessary agreements.

2. Do not approve the resolution.

3. Offer alternative direction to staff.

FISCAL IMPACT:
☐ None ☒ $750,000 Budgeted Item? ☐Yes ☒ No
Budget Adjustment Needed? ☒Yes ☐ No If yes, amount of appropriation increase: $750,000 Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☒ Other: HOME Program Income Comments:

All funds are paid and covered by the HOME Program Income funds already on hand at the City.

COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☐ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
Meeting Date: 02/06/2024 Page 3 Agenda Item #VII.C.1.
341147.1
SUGGESTED MOTIONS:

Move to approve the proposed resolution authorizing the submittal of an application to the California State Department of Housing and Community Development for funding under the HOME Investment Partnership Program and authorizing the City Manager to sign.
☒ Attachments: 1. Proposed Resolution

2. Developer request letter – The Pacific Companies
09959.00000\7819580.1
249577.1
RESOLUTION NO. XXXXX

A RESOLUTION OF THE LAKEPORT CITY COUNCIL, AUTHORIZING

THE SUBMISSION OF A HOME INVESTMENT PARTNERSHIPS

PROGRAM INCOME APPLICATION TO THE CALIFORNIA STATE

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR
FUNDING IN THE AMOUNT OF $750,000, AND IF AWARDED, THE

EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS

THERETO, AND OTHER RELATED DOCUMENTS NECESSARY TO

PARTICIPATE AND COMPLY WITH THE HOME INVESTMENT

PARTNERSHIP PROGRAM
WHEREAS, The California Department of Housing and Community Development (the “Department”) is authorized to allocate HOME Investment Partnerships Program (“HOME”) funds made available from the U.S. Department of Housing and Urban Development (“HUD”).

HOME funds are to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200.; and
WHEREAS The City of Lakeport, a municipal corporation, (the “Applicant”), wishes to apply to the Department for the use of City HOME Program Income funds.

NOW, THEREFORE, THE LAKEPORT CITY COUNCIL DOES HEREBY
RESOLVE AS FOLLOWS:

Section 1. Application. The Applicant shall submit an application to the Department to participate in the HOME program and for the use of Program Income funds not to exceed Seven Hundred Fifty Thousand Dollars ($750,000) for the following activities and/or programs:

The creation of 40 affordable senior housing units located at 447 Bevins Street in the City of Lakeport.

Section 2. Compliance. If the application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant may also execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by the Department or HUD for participation in the HOME program (collectively, the required documents).

Section 3. Approval of ROPS. The applicant authorizes Kevin Ingram, City Manager, Nicholas Walker, Assistant City Manager, or Joey Hejnowicz, Community Development Director, to execute, in the name of the applicant, the required documents.

Section 4. Effectiveness. This Resolution shall take effect immediately upon its adoption.
09959.00000\7819580.1
249577.1
PASSED, APPROVED AND ADOPTED at a regular meeting of the Lakeport City Council on the 6th day of February, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Michael Froio, Mayor
The undersigned Clerk of the applicant does hereby attest and certify that the foregoing is a true and full copy of a resolution of the governing board of the applicant passed and adopted at a duly convened meeting on the date set forth above, and said resolution has not been altered, amended, or repealed.

ATTEST:
________________________________
Clerk

Lakeport City CouncilFebruary 6, 2024

Lakeport City Council
February 6, 2024