Agenda packet — Lakeport City Council, June 30, 2025

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AGENDA

NOTICE AND CALL OF SPECIAL MEETING

OF THE LAKEPORT CITY COUNCIL
Monday, June 30, 2025, at 6:00 p.m.

City Council Chambers, 225 Park Street, Lakeport, California 95453 See Teleconferencing Instructions Below

1. Call to Order and
Roll Call:
6:00 pm

2. Application 2025-
037:

Approve application 2025-037, with staff recommendations, for the Cinema by the Shore event.

3. FY 2025-26
Budget:

Approve the operating and capital expenditure budget for the 2025-26 fiscal year and adopt the associated resolution.

4. FY 2025-26
Appropriations
Limit:

Approve the annual appropriations limit for the City of Lakeport and adopt the associated resolution.

Adjournment:
____________________________________
Hilary Britton, Deputy City Clerk
AGENDA

NOTICE AND CALL OF SPECIAL MEETING

OF THE LAKEPORT CITY COUNCIL
Monday, June 30, at 6:00 p.m.

City Council Chambers, 225 Park Street, Lakeport, California 95453 06/17/2025 2025-037
06/30/2025

Outlook
RE: Application 2025-037 - Cinema by the Shore
From Lori Price <[email protected]>
Date Mon 6/23/2025 9:52 AM
To Hilary Britton <[email protected]>
Good morning Hilary,
Lake County Public Works has no comments, conditions, or concerns for this application.

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, June 23, 2025 9:21 AM
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]>; 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]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Matt Hartzog <[email protected]>; Michelle Humphrey <[email protected]>; Ryan Cooley <[email protected]>; Ky Ramsey <[email protected]> Subject: [EXTERNAL] Application 2025-037 - Cinema by the Shore Good Morning,
Please find attached the application for the Cinema by the Shore event for your review and comments.

We would like to submit this for City Council approval at the 06/30/2025 meeting, so please have your comments back to me by 06/27/2025.

Thank you for your input!
Hilary Britton, CMC
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 Book time to meet with me
Outlook
RE: Application 2025-037 - Cinema by the Shore
From Dale Stoebe <[email protected]>
Date Mon 6/23/2025 2:43 PM
To Hilary Britton <[email protected]>; Amanda Frazell <[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]>; 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]>; Ryan Cooley <[email protected]>; Ky Ramsey <[email protected]>
The only issue the PD has with this is a question for Ron Ladd. Does LVT plan on moving the camera system before then or will we need them to disable the loudspeaker announcement for this event? Thank you,
Dale D Stoebe
Chief of Police
Lakeport Police Department
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: Hilary Britton <[email protected]>
Sent: Monday, June 23, 2025 9:21 AM
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]; Patrick Reitz <[email protected]>; Jim Kennedy <[email protected]>; Linda Sobieraj <[email protected]>; Matt Hartzog <[email protected]>; Michelle Humphrey <[email protected]>; Ryan Cooley <[email protected]>; Ky Ramsey <[email protected]> Subject: Application 2025-037 - Cinema by the Shore
Good Morning,
Please find attached the application for the Cinema by the Shore event for your review and comments.

We would like to submit this for City Council approval at the 06/30/2025 meeting, so please have your comments back to me by 06/27/2025.

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

STAFF REPORT
RE: 2025-26 Budget Adoption MEETING DATE: 6/30/2025
SUBMITTED BY: Kevin Ingram City Manager
Danielle Dizon, Finance 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 the operating and capital expenditure budget for the 2025-26 fiscal year and adopt the associated resolution.

BACKGROUND/DISCUSSION:

The fiscal year 2025/26 budget represents a pivotal moment for the City of Lakeport—one that balances the achievements of the past year with an honest recognition of the financial pressures that lie ahead. While Lakeport remains fiscally responsible and committed to advancing community priorities, it does so amid growing economic constraints that demand continued vigilance, creativity, and collaboration.

If one central theme defines this year’s budget, it is the rapid acceleration of fixed costs outpacing revenue growth.

In particular, insurance premiums and pension obligations have risen at an unsustainable rate. General liability and property insurance costs have doubled over the past five years, and pension obligation payments, already significantly higher than just one year ago, are expected to double again over the next five years. This escalating cost structure places increasing pressure on the City’s ability to maintain current service levels without new sources of sustainable revenue.

On the revenue side, growth remains largely flat. Although there have been modest recent gains in sales tax revenue—driven by the addition of new retailers like Marshall’s and Tractor Supply, and a strengthening restaurant sector—this core revenue source remains highly volatile. Sales tax makes up two-thirds of Lakeport’s General Fund and approximately 20% of that derives from retail fuel sales, which face long-term threats due to California’s transition away from gas-powered vehicles. Compounding this risk is a broader shift in consumer behavior away from taxable goods toward untaxed services and experiences. These factors present long-range challenges to the stability of Lakeport’s revenue base.

Despite these fiscal headwinds, the City continues to make progress on major infrastructure, public safety, and community engagement initiatives. Several of the City's key goals for FY 2025/26 focus on maintaining momentum in capital project delivery, enhancing law enforcement staffing strategies, and sustaining community engagement and communication.

Meeting Date: 06/30/2025 Page 2 Agenda Item #III
KEY GOALS FOR FISCAL YEAR 2025/26
• South Lakeport Water Resiliency & Fire Suppression Project: Finalize design, annexation adjustments, and funding strategies—together with the County—to extend a reliable water main and fire-hydrant network along the South Main Street/Soda Bay Road corridor. • Maintain a Fully Staffed, Community-Focused Police Department: Continue academy sponsorships, leadership development, and the over-hire of a single officer to absorb training-cycle vacancies and ensure consistent patrol coverage.
• Complete 2024 Water & Sewer Main Replacements: Finish the multi-year project now more than halfway done, delivering two miles of new water main and one mile of new sewer main, while coordinating roadway restorations above the upgraded utilities.
• Advance the Pavement Management Program: Execute Fiscal Year 2025/26 street projects—including rehabilitation of corridors impacted by utility work, preparation of micro surfacing bid documents, and development of a five-year neighborhood chip-seal schedule—to extend pavement life cost-effectively. • Expand Public Outreach & Transparency: Implement next-phase actions in the Communications Strategic Plan to increase attendance at Council meetings, publish regular project updates, and provide clear, accessible information across multiple media platforms. • Establish the Lakeport Community Council: Formalize bylaws, secure nonprofit status, and launch a collaborative structure that empowers local civic and nonprofit partners to program events, activate public spaces, and strengthen Lakeport’s sense of place.

These targeted objectives balance infrastructure renewal, fiscal prudence, and community well-being— positioning Lakeport to navigate economic uncertainty while continuing to make measurable progress on the priorities residents value most.
2024-25 FISCAL YEAR IN REVIEW
As we reflect on the 2024–25 Fiscal Year, the City of Lakeport continues to demonstrate that even small cities can achieve big results through teamwork, innovation, and a deep commitment to community. Guided by the Lakeport City Council’s priorities and supported by a dedicated staff, the City advanced key infrastructure projects, strengthened public safety services, supported community and economic development, and expanded recreational and public engagement efforts. These accomplishments are a testament to what can be achieved when local government works in partnership with its residents and regional partners.

Here are some of the most notable achievements:

Major Infrastructure Upgrades—Water, Sewer, and Streets:

The City completed major components of the $8 million Water and Sewer Main Replacement Project, including improvements on Lakeport Boulevard, Martin Street, and K Street, with additional work planned on Lakeshore Boulevard and Armstrong Street in 2025. These long-term investments will ensure safe and reliable utility services for decades to come. In parallel, pavement rehabilitation efforts continued with the successful repaving of Green, Sayre, and Loch Streets and chip seal treatment of the Del Lago neighborhood. Sidewalk gap closures and ADA upgrades were also completed throughout South Main Street, with future work planned to improve pedestrian crossings and bikeways citywide.

Public Safety—New Leadership and Expanded Community Services:

The Lakeport Police Department underwent a smooth leadership transition with the appointment of a new Chief of Police, supported by the implementation of an internal leadership program and a formal Sergeant training program. Key programs such as the School Resource Officer, K-9 program, and the Downtown Business Liaison Officer were not only maintained but enhanced through regional partnerships and targeted community policing Meeting Date: 06/30/2025 Page 3 Agenda Item #III
strategies. Crisis Response operations continued through the City's partnership with the Lake County Family Resource Center, and planning is underway to launch additional co-responder initiatives in the coming fiscal year.

Retail and Economic Revitalization:

Lakeport made substantial progress in revitalizing long-dormant commercial sites. Tractor Supply opened at the former KMART site in May 2024, with Marshall’s opening in November of 2024. The City also worked closely with the new ownership group at Vista Point Shopping Center, partnering on a master planning effort with Lake County Tribal Health and preparing for the demolition of blighted structures to make way for a new medical-retail campus.

Several new small businesses—such as Alley Grill, RSA+ Engineering, and Arti Café—opened this year, bringing renewed energy to the local economy.

Housing Development and Planning Progress:

The City laid significant groundwork for expanding affordable housing. Construction is expected to begin in Summer 2025 on the Parkside Apartments project, bringing 64 units of affordable housing to Lakeport. In addition, two Tribal housing rehabilitation efforts were supported and five short-term rental projects were permitted. On the planning side, the City completed a Navigation Center Feasibility Study, helped establish the Lake County Housing Trust Fund in coordination with regional partners, and advanced the Housing Services Plan and Housing Conditions Survey.

Community Engagement and Public Events:

The City took important steps to strengthen its community connections. A new Lakeport Community Council is forming with strong volunteer support, and events such as the Memorial Day Celebration and Christmas Tree Lighting were carried out in collaboration with community groups. The City’s downtown and waterfront event venues—particularly Xabatin “Big Water” Park and Silveira Community Center—served as hubs for community gatherings. These facilities hosted a variety of events including movie nights, expos, and meal service programs that supported both recreation and community care.

Strengthening Our Workforce:

Recruitment and retention remained a top priority. The City completed 11 recruitments, resulting in 8 new hires and processing over 130 applications. A strong internal branding campaign was launched, including a new mission and vision statement, social media templates, and a robust photo and video library. A citywide employee communications calendar was also implemented to promote internal engagement. In labor relations, new contracts were finalized with the Lakeport Employees Association and unrepresented management staff.

Recreation and Parks Investments:

Xabatin Park continued to emerge as a centerpiece of the community, drawing families and visitors for recreation and events. Investments in HVAC and electrical improvements at the Silveira Community Center were completed, and CDBG funds were secured for ADA and restroom upgrades to enhance accessibility. The City also supported new recreational programming initiatives through the formation of the Lake County Recreation Agency, which aims to expand youth opportunities and develop long-term regional facilities like a recreation and aquatic center.

Utility Modernization and Systems Upgrades:

Numerous utility system enhancements were made, including the conversion of gas chlorination systems to safer liquid alternatives and the replacement of activated carbon at the surface water treatment plant. Emergency backup generators were installed at key water facilities, and a citywide lead service line inventory was completed in compliance with new regulations. The City also moved forward with design and siting location for the Scotts Creek Well Replacement Project.

Technology and Transparency:

The City continued modernizing operations through implementation of OpenGov online permitting and licensing platforms. This allows residents, businesses, and contractors to conduct permitting, reporting, and payment functions online. Features like electronic plan submittal, “report a concern” portals, and automated procurement workflows have streamlined operations and improved transparency across departments.

Meeting Date: 06/30/2025 Page 4 Agenda Item #III
Studies, Compliance, and Regional Planning:

The City continued to pursue thoughtful planning to guide future investments. Major studies completed or underway include the Active Transportation Plan, Water and Sewer System Master Plan, Emergency Operations Plan Update, and Local Hazard Mitigation Plan. A new Time and Effort Accounting system was implemented to help track grant compliance and improve cost recovery.

Together, these accomplishments reflect the City of Lakeport’s continued commitment to building a sustainable, vibrant, and inclusive community. Despite the challenges of limited revenue growth, inflationary pressures, and regulatory uncertainty, the City has remained focused on delivering core services while positioning itself for longterm resilience. We thank the City Council, City staff, and community members for their unwavering dedication, and we look forward to continued progress in the year ahead.

BUDGET YEAR 2025/26 FINANCIAL HIGHLIGHTS
I am pleased to present a budget for FY 2025/26 that, despite significant financial constraints, maintains a structurally balanced position while continuing to support key Council priorities and community services.

However, the outlook is tightening.

Meeting Date: 06/30/2025 Page 5 Agenda Item #III
Sales tax, Lakeport’s largest and most volatile revenue stream, comprises approximately two-thirds of General Fund revenue and remains vulnerable to market conditions and structural shifts in consumer behavior. Although recent quarters have seen slight to moderate growth—due in part to the opening of new big-box retailers and a resurgence in the restaurant sector—long-term projections remain concerning. A growing consumer trend toward untaxed services and California’s transition away from gas-powered vehicles (fuel sales alone account for 20% of total sales tax) threaten this revenue source’s stability.

In response to these pressures, the City continues to maintain strong General Fund reserves. The current reserve level is nearly 100% of annual General Fund expenditures—a testament to years of prudent financial Meeting Date: 06/30/2025 Page 6 Agenda Item #III
management. This budget proposes the use of approximately $350,000 in reserve funds to support important one-time capital projects, particularly those tied to grant leverage. However, these expenditures are expected to be backfilled by carryover from FY 2024/25, maintaining the integrity of the reserve position.

The City's aggressive pursuit of grant funding continues to serve as the primary vehicle for delivering large-scale capital improvements. The City is currently administering over $10 million in grants—including CDBG-DR and PLHA funds—associated with the 64-unit Parkside Apartments project. This budget also supports the implementation of $1.2 million in ADA and restroom improvements at the Silveira Community Center, funded through CDBG Mitigation Resiliency grants. Additional planning documents, such as the Active Transportation Plan and Forbes Creek Drainage Study, are being leveraged to apply for competitive state and federal funding opportunities.

Law enforcement remains a core service priority. The FY 2025/26 budget supports the Police Department’s full staffing goal, with continued investment in the academy sponsorship model and the authorization of one additional officer position to mitigate the delayed timeline between cadet hiring and full street-readiness. While this results in a budgeted shortfall on paper, staff does not anticipate actual deficit spending due to expected attrition.

The City’s enterprise funds—water and sewer—are in a more stable position, supported by recent rate adjustments and a $5.9 million bond issuance to address long-term capital needs. The water utility will complete nearly two miles of line replacement along with well and treatment improvements, while the sewer fund will support main replacements and I&I control projects through cash funding.

Looking ahead, the City is committed to maintaining fiscal sustainability by reviewing fee structures, implementing gradual rate increases where needed, and exploring new revenue-generating opportunities such as hotel development and downtown retail enhancement. These proactive strategies are essential to ensure that Lakeport can continue to deliver essential services and invest in infrastructure despite the growing pressure from rising fixed costs.

Though the fiscal landscape remains complex, the FY 2025/26 budget continues to reflect the City’s core values— sound stewardship, community investment, and resilience in the face of economic uncertainty.

FISCAL YEAR 2025/26 PROJECTS AND GOALS
As highlighted in the introduction, increased costs are outpacing revenues, which have remained stagnant for the past few years and are only projected to increase at a minimal rate over the next couple of years. This has limited the City’s ability to include new projects in the current fiscal year budget. Our primary focus for this year, similar to last year, will be on completing previously budgeted capital improvement projects and the aggressive pursuit of available grant funding opportunities to address unfunded needs. Despite the constraints, our commitment to Meeting Date: 06/30/2025 Page 7 Agenda Item #III
strategic planning remains crucial in ensuring the efficient allocation of limited resources to address capital improvement needs.

The City Council has developed seven (6) key priority areas to further focus monetary and staff resources. These priority areas are outlined more comprehensively on page 14 of this document and are listed here:
• Public Safety and Crisis Response
• Disaster Resiliency
• Good Governance and Fiscal Stability
• Capital Infrastructure Improvement
• Safe, Sustainable & Attractive Neighborhoods
• Economic Development
My job as City Manager is to implement programs, activities, and directives to further progress in these established City Council priority areas. Department heads have tailored their individual goals for this budget year with these priorities in mind and structured their budgets accordingly. Many of the proposed projects scheduled for this year build upon endeavors already begun; all of them aim to address at least one (1), if not several of the City Council priority areas outlined above. A short analysis follows showing how proposed departmental goal’s aim to further each of the stated priority areas.

Public Safety and Crisis Response. The City Council’s adopted objectives for Public Safety and Crisis Response emphasize the continued attraction, retention, and training of high-quality law enforcement professionals; the need to address homelessness, mental health, and substance use concerns through compassionate and effective interventions; and the promotion of evidence-based community policing strategies. The FY 2025/26 goals identified by the City of Lakeport advance these objectives by focusing on personnel development, strategic partnerships, programmatic expansion, and critical equipment investments.

Sustaining Community Policing through Officer Retention and Development At the foundation of Lakeport’s approach to public safety is its strong commitment to community policing.

Maintaining and strengthening the relationships between police officers and the community they serve is essential for building trust, improving public safety outcomes, and ensuring responsive, localized law enforcement. To achieve this, the City will continue to prioritize officer retention and recruitment through flexible hiring practices, including the sponsorship of cadets through academy training.

In parallel, the City is enhancing internal department support systems that promote long-term retention by investing in professional development and leadership growth opportunities. These strategies are designed not only to ensure continuity of service and institutional knowledge within the department but also to foster a work environment that encourages officers to build careers—and roots—within the Lakeport community.

Succession Planning and Leadership Strengthening
In an evolving law enforcement landscape, preparing the next generation of police leadership is vital. This year, the City will explore new approaches to succession planning and leadership development that align closely with the department’s core strategies and community policing philosophy. This includes identifying and cultivating internal talent, implementing mentorship programs, and expanding access to supervisory training. By investing in these efforts, the City aims to build a resilient and forward-looking department that remains adaptive and community-focused well into the future.

Advancing Co-Responder Partnerships to Address Crisis Response Recognizing the increasing demand for mental health and crisis response services, the City will continue its development of a co-responder partnership with a behavioral health provider. This collaborative model pairs law enforcement with trained mental health professionals to respond jointly to crisis situations. The goal is to deescalate encounters, connect individuals to appropriate care, and reduce repeat calls for service related to homelessness, mental illness, and substance use.

Meeting Date: 06/30/2025 Page 8 Agenda Item #III
In addition to improving crisis response, this partnership will allow officers to better focus on their core public safety responsibilities while ensuring individuals in crisis receive more specialized care. These efforts reflect the City’s broader strategy to promote public safety through a coordinated, compassionate, and health-informed response model.

Strengthening Operational Programs and Community-Based Policing The City will maintain and expand several critical operational programs that support both internal department functions and external community engagement. These include the School Resource Officer program, investigative functions, and the continued implementation of evidence-based community policing initiatives. These efforts not only promote safety in schools and neighborhoods but also reinforce the department’s commitment to working side-by-side with residents to solve problems and build safer, stronger neighborhoods.

Through these programs, the City continues to emphasize public safety approaches that are proactive, transparent, and rooted in the principles of fairness and equity.

Investing in Equipment and Infrastructure
Reliable tools and updated infrastructure are essential for maintaining officer readiness and operational efficiency.

This fiscal year, the City will initiate a structured replacement cycle for fleet vehicles and essential equipment such as in-car cameras, patrol rifles, and other key gear. This proactive approach ensures that the department’s tools remain modern, functional, and aligned with evolving safety standards.

Beyond supporting day-to-day field operations, these investments also enhance officer safety, improve transparency and accountability, and reinforce the City’s long-term commitment to maintaining a well-equipped police force capable of meeting today’s and tomorrow’s challenges.

Together, the City’s FY 2025/26 goals represent a coordinated and comprehensive effort to further the Council’s public safety priorities. By focusing on people, partnerships, programs, and infrastructure, the City of Lakeport continues to strengthen its public safety foundation and ensure that all residents feel safe, heard, and supported in their community.

Disaster Resiliency. The City Council’s adopted objectives for Disaster Resiliency prioritize reducing hazard vulnerabilities, enhancing preparedness, strengthening emergency response capabilities, and supporting longterm recovery. In Fiscal Year 2025/26, the City of Lakeport will continue advancing these objectives through targeted capital improvements, expanded utility maintenance, and active participation in regional emergency planning efforts.

South Lakeport Regional Water Resiliency and Fire Suppression Project One of the City’s highest disaster mitigation priorities is the continued partnership with the County of Lake on the South Lakeport Regional Water Resiliency and Fire Suppression Program. This multi-phase project seeks to install a critical network of fire hydrants along the South Main Street/Soda Bay Road corridor, extending to the Manning Creek Bridge. These improvements will provide vital fire suppression infrastructure in a historically underserved, high-risk area. As part of this effort, the City has submitted a revised annexation application to Lake LAFCO that narrows the boundary to properties that have indicated a need and willingness to connect to municipal water— many of which currently depend on small, State Water Board-regulated systems that lack adequate fire flow capacity. The project significantly strengthens the City's mitigation and response capabilities while enhancing overall water reliability for both residents and emergency responders.

Silveira Community Center Resiliency Improvements
To support both emergency response and long-term recovery efforts, the City is advancing the revitalization of the Silveira Community Center. The facility’s adaptable layout and central location make it an ideal neighborhoodlevel disaster resource center—capable of serving as a staging site, shelter, or emergency coordination hub during large-scale incidents. In FY 2025/26, the City will complete an RFP process to secure an operator for the facility Meeting Date: 06/30/2025 Page 9 Agenda Item #III
and implement critical ADA upgrades to restrooms and building access. These enhancements will ensure the facility is safe, accessible, and operational during emergencies, while establishing a sustainable model that supports year-round community use without increasing financial strain on the City.

Regional Planning and Hazard Mitigation Implementation
Cooperation with regional partners—including the County of Lake and the City of Clearlake—remains essential to improving disaster preparedness and interjurisdictional coordination. In the coming year, Lakeport will continue participating in the development of a Countywide Evacuation Plan and will work to implement priority actions identified in the recently updated Local Hazard Mitigation Plan. These efforts will improve the City’s ability to respond to a variety of hazards, from wildfire to flood events, while securing eligibility for future state and federal funding. The City remains committed to seeking grant support for key infrastructure projects that advance longterm mitigation objectives.

Infrastructure Maintenance and Operational Resilience
A resilient community depends on reliable utilities. In FY 2025/26, the City will continue to streamline preventative maintenance of its core water and wastewater systems. This includes hydrant servicing, valve exercising, and inflow and infiltration (I&I) investigations to reduce system stress and enhance performance during emergency conditions. Ongoing maintenance of treatment and distribution facilities further safeguards critical services and supports rapid restoration during disaster recovery efforts.

Together, these initiatives reflect Lakeport’s comprehensive and proactive approach to disaster resiliency.

Through coordinated planning, facility improvements, and infrastructure investment, the City is building the capacity to withstand, respond to, and recover from future emergencies—creating a safer, more secure community for all residents.

Good Governance & Fiscal Responsibility. The City Council's approved objectives for Good Governance & Fiscal Responsibility emphasize fostering fiscal discipline, streamlining services through technology, ensuring quality and efficient service delivery, and promoting inclusive civic engagement. The FY 25/26 goals reflect a continued commitment to these priorities, focusing on internal operational improvements, strategic communication, transparent financial practices, and the advancement of community partnerships.

Strengthening Transparency and Public Engagement
The City will continue implementing its Communications Strategic Plan with a focus on timely, transparent, and accessible information sharing. Key efforts will include monthly updates on major initiatives and increased public participation in City Council meetings. Staff will also expand use of pre-developed content and automated scheduling tools to increase efficiency and consistency across the City’s digital platforms. These communication efforts support the Council’s goal of keeping residents informed and engaged while strengthening trust in local government.

The City will also continue to support the development of the Lakeport Community Council, a collaborative civic engagement initiative aimed at uniting nonprofits and community groups under a shared vision. By fostering the continued success of community events like the Memorial Day Celebration and the Xabatin Christmas Tree and Boat Parade, the City will help build community identity and increase resident participation in civic life. FY 25/26 efforts will prioritize formalizing the Community Council as a nonprofit organization and developing bylaws to support long-term sustainability.

Organizational Health, Recruitment, and Retention
Attracting and retaining a high-performing workforce remains a central goal. The City will to support the transition of a new Finance Director and finalize negotiations with the Lakeport Police Officers Association. FY 25/26 will also include the implementation of marketing strategies developed by an outside firm, aimed at highlighting the benefits of working for the City and supporting broader employee recruitment efforts. Internally, the City will expand communication regarding employee achievements and well-being initiatives to promote a culture of appreciation and transparency.

Meeting Date: 06/30/2025 Page 10 Agenda Item #III
Succession planning will continue to be a core component of long-term organizational stability. Staff will build on prior efforts by investing in leadership development, formalizing department-specific procedures manuals, and maintaining a strong focus on staff training and professional growth. These efforts enhance the City’s ability to deliver consistent and high-quality services, even amid staffing transitions.

Technology and Operational Improvements
A significant operational goal for FY 25/26 is the completion of the City’s conversion to a cloud-based shared network. This system will improve internal efficiencies, enhance staff access to data and documents across departments, and provide operational resiliency during emergency situations. These upgrades will help ensure that the City’s core services remain reliable, secure, and responsive.

Efforts to improve facility operations will also continue. The City will work to secure a third-party operator for the Silveira Community Center, a key community space. FY 25/26 objectives include refining rental and access processes, implementing automated booking systems, and supporting the Center’s role in community programming through administrative and policy development support. These actions reinforce the Council’s commitment to maintaining quality public spaces while ensuring financial and operational sustainability.

Financial Stewardship and Fee Transparency
The City will implement the findings of its comprehensive cost of service study to ensure that City fees are fair, transparent, and reflective of the actual costs associated with service delivery. This effort supports the City’s commitment to fiscal stewardship while maintaining a business-friendly environment that encourages private investment and growth. These efforts will be essential to ensuring that Lakeport remains financially stable while offering high-quality public services.

Together, these goals reflect the City’s comprehensive approach to fiscal responsibility and responsive governance. By aligning operations, technology, communication, and community engagement efforts, the City of Lakeport continues to build a transparent, inclusive, and resilient municipal organization prepared to meet both current and future challenges.

Capital Infrastructure Improvement. The City Council’s approved objectives for Capital Infrastructure Improvement emphasize the importance of prioritizing key infrastructure projects, aggressively pursuing diverse funding sources, and developing project readiness to ensure long-term community sustainability. The goals set forth for Fiscal Year 2025/26 reflect these objectives through the continuation and expansion of several highimpact capital projects across the City’s water, sewer, transportation, and public safety infrastructure.

Water and Sewer Capital Improvement Project Execution
One of the City’s most significant efforts in recent years—the 2024 Water and Sewer Main Line Replacement Project—will move into its final phases during FY 25/26. With over 50% of construction completed in the previous fiscal year, the upcoming work will see through the replacement of nearly two miles of aging water main and one mile of sewer main throughout Lakeport. These upgrades are critical to ensuring long-term system reliability and reducing the risk of service interruptions or failures. By strategically pairing infrastructure rehabilitation with surface improvements on key road segments, the City continues to maximize the value of its capital dollars. This $8 million investment reflects a proactive and fiscally disciplined approach to addressing core infrastructure needs.

Additionally, staff will complete the engineering and design work for a new municipal well along the Scotts Creek corridor. This project will replace aging infrastructure and help secure a more resilient potable water supply for the City, especially in the face of persistent drought cycles and regional water system vulnerabilities.

Pavement Management Program Expansion
The City will continue to build upon the foundation of its multi-year Pavement Management Program by executing a robust set of projects during FY 25/26. These include the rehabilitation of Lakeport Boulevard, Martin Street, Meeting Date: 06/30/2025 Page 11 Agenda Item #III
and Lakeshore Boulevard—arterial corridors that were directly impacted by the utility trenching associated with the 2024 Water and Sewer CIP.

Additionally, design work will be completed for micro surfacing projects on North High Street (Clear Lake Avenue to Lakeshore Boulevard), Charlie Jolin Way, and Parallel Drive (City Limits to Lakeport Boulevard). Micro surfacing is a cost-effective preservation treatment that extends the service life of roadways and minimizes the need for more extensive reconstruction. Finally, the City will complete the planning phase for a five-year neighborhood chip seal program, with implementation set to begin the following fiscal year. This localized focus demonstrates the City’s commitment to preserving neighborhood quality of life and managing long-term pavement condition in a strategic, affordable manner.

Capital Planning and Project Readiness
FY 25/26 will also include significant advancements in the City’s capital project planning and prioritization efforts.

Staff will update the 10-Year Capital Improvement Plan for water and sewer infrastructure, incorporating key recommendations and system needs identified through the recently adopted Master Plans. This update will ensure alignment between long-term planning and annual budgeting, strengthening the City’s ability to develop project readiness and secure state and federal grant funding.

In transportation planning, the City will complete the design phase of the long-anticipated Lakeport Boulevard Extension (Phase I), from South Main Street to Larrecou Lane. This critical project has regional transportation and economic development implications and its advancement through the design phase moves it one step closer to implementation, positioning the City for future construction funding opportunities.

Police Department Equipment and Fleet Modernization
Maintaining reliable and safe public safety infrastructure is a critical component of the City’s capital investment strategy. In FY 25/26, the Lakeport Police Department will complete the first year of a structured replacement cycle for essential fleet and equipment. This includes patrol vehicles, in-car camera systems, patrol rifles, and other mission-critical gear. A systematic approach to replacement planning reduces the long-term cost burden of reactive purchases and ensures that law enforcement personnel have the tools they need to effectively serve the community.

Together, these initiatives represent a strong continuation of the City’s commitment to responsible capital planning, funding diversification, and infrastructure resilience. By advancing shovel-ready projects, prioritizing investments in aging systems, and developing multi-year implementation strategies, the City of Lakeport is working diligently to meet the infrastructure needs of today while preparing for the challenges of tomorrow.

Community Identity Through Civic Engagement
The City will continue advancing the development of the Lakeport Community Council—an umbrella nonprofit intended to unite local civic groups, nonprofits, and service clubs around a shared mission of activating public spaces and enhancing community life. Building on the success of events such as the Memorial Day Celebration and the Xabatin Christmas Tree and Boat Parade, the City will assist in forming the legal and organizational structure of this new nonprofit and support the development of bylaws that foster long-term sustainability and shared governance. This initiative promotes increased civic participation and community-led activation of parks and downtown spaces, fostering a stronger sense of identity, belonging, and collective stewardship.

Expanding Parks and Recreation Programming
Meeting Date: 06/30/2025 Page 12 Agenda Item #III
As part of a long-term vision to increase access to parks and recreational opportunities, the City will begin development of a Recreation Program Master Plan. This plan will prioritize activating existing park facilities, expanding youth-oriented programming, and identifying sustainable staffing and funding strategies to support long-term program success. In FY 2025/26, efforts will focus on foundational planning and strengthening regional partnerships. The City will continue to work with the Lake County Recreation Agency on the development of a future regional aquatic center and expand its collaboration with the County of Lake Public Services Department to enhance the availability of youth recreational programming within Lakeport. Complementing these efforts is the ongoing refinement of operations at the Silveira Community Center, where the City will work to secure a thirdparty facility manager and streamline rental and booking systems—ensuring this important public space remains affordable, accessible, and well-utilized by the community.

Investing in Neighborhood Housing and Revitalization
Ensuring safe and affordable housing remains a cornerstone of the City’s commitment to neighborhood livability.

In FY 25/26, the City will implement a strategic plan for its Housing Services Program, with a focus on reestablishing an owner-occupied housing rehabilitation program using Community Development Block Grant (CDBG) funds. This effort will improve the quality of the existing housing stock, especially for lower-income households, and support long-term affordability and neighborhood stability. At the same time, the City will continue to support the $35 million Parkside Apartments project through active grant administration, infrastructure support, and inter-agency coordination. Once complete, this 80-unit affordable housing development will significantly increase the supply of safe and modern housing options in Lakeport, meeting a core City Council priority.

Public Health, Safety, and Active Living
The City will continue building on cross-sector partnerships that address homelessness and behavioral health in the community. This includes ongoing development of a co-responder model with a behavioral health provider to improve crisis intervention and homeless outreach. By reducing law enforcement burdens and connecting individuals to services earlier, the City aims to improve community health outcomes and reduce chronic instability in public spaces.

To further support health and sustainability, the City will pursue grant funding to begin implementing priority projects from the recently adopted Active Transportation Plan. These projects will focus on improving pedestrian and bicycle access across neighborhoods, schools, and commercial areas, promoting safe and active transportation options for all residents while reducing vehicle dependency.

Together, these efforts reflect a comprehensive approach to neighborhood sustainability—one that balances physical infrastructure, community identity, housing quality, and social well-being. By leveraging partnerships, focusing on inclusive civic engagement, and maintaining a long-term commitment to improving parks, housing, and public safety, the City of Lakeport continues to cultivate neighborhoods that are not only safe and functional but vibrant and welcoming for all.

Economic Development. The City Council’s policy priority area of Economic Development emphasizes the importance of participating in regional initiatives, supporting business retention and attraction, and enhancing the historic downtown and lakefront area. The goals for fiscal year 25/26 are aligned with these objectives and reflect a strategic, proactive approach to revitalizing Lakeport’s commercial corridors, enhancing the visitor experience, and supporting long-term economic resilience.

Retail Growth and Commercial Revitalization
Lakeport will continue its strong partnership with The Retail Coach to build on recent momentum in retail growth.

The City will prioritize filling remaining vacancies at the Marshall’s and Tractor Supply complex, support the Lake County Tribal Health Consortium’s revitalization of the Vista Point Shopping Center into a regional medical and commercial hub, and provide targeted market assistance to the Lakeport Hub development. These efforts are complemented by retail retention strategies to ensure that existing businesses remain competitive and resilient.

Meeting Date: 06/30/2025 Page 13 Agenda Item #III
Together, these initiatives demonstrate Lakeport’s commitment to expanding retail opportunities, reducing commercial vacancies, and strengthening its sales tax base.

Downtown and Waterfront Activation
Increasing pedestrian activity and economic vitality in the downtown and waterfront districts remains a top priority. The City will pursue several placemaking and marketing strategies to accomplish this goal. Key initiatives include updating and publicizing the City’s vacant commercial property listings, drafting a vacant building registration program and first-floor retail ordinance, and applying for grant funding to install improved wayfinding signage. In parallel, staff will work with community partners to develop design guidelines for the downtown historic district to promote aesthetic cohesion and enhance the district’s appeal as a visitor destination. These strategies are intended to make Lakeport’s commercial core more attractive and navigable for residents, businesses, and tourists alike.

Tourism Development and Hospitality Expansion
Lakeport will continue to strengthen its role in the Lake County Tourism Improvement District (TID) and contribute to collaborative efforts to boost regional tourism. The City will expand marketing efforts designed to increase overnight visitation and lay the groundwork for future hospitality investment. As part of this strategy, Lakeport will continue to explore the development of a waterfront hotel at the Dutch Harbor property (910 North Main Street) while engaging existing waterfront hotel and resort operators to identify reinvestment opportunities.

These actions aim to enhance the City’s hospitality offerings and maximize the economic potential of its lakefront location.

Leveraging Regional Planning and Federal Funding Opportunities The recent completion of the Lake County Comprehensive Economic Development Strategy (CEDS) creates new opportunities for Lakeport to pursue federal U.S. Economic Development Administration (EDA) grant funding. The City will work to align key infrastructure and economic development projects—such as a downtown/lakefront WiFi district, improved business tools, and enhanced wayfinding signage—with the CEDS framework to make them more competitive for grant support. These projects are designed to create a more connected, user-friendly, and business-ready environment across Lakeport’s commercial zones.

Public-Private Partnerships and Innovation
The City will also continue collaboration with the Clear Lake Environmental Research Center (CLERC) to establish a publicly accessible environmental resource center within the historic Lakeport Carnegie Library Building. This project reflects the City’s focus on adaptive reuse, sustainability, and the role of public-private partnerships in revitalizing historic assets. The center will serve as both an educational destination and a research hub, attracting visitors and reinforcing Lakeport’s commitment to environmental and economic innovation.

Entrepreneurial Support and Local Business Tools
To complement its retail attraction efforts, the City will support local entrepreneurs by developing a franchise business toolkit, helping small business owners explore scalable opportunities. Additionally, the City will assist businesses in identifying emerging retail and service trends, helping them expand operations and adapt to shifting consumer demands. These efforts reflect Lakeport’s commitment to fostering a supportive, business-friendly environment where local enterprise can thrive.

These initiatives are designed to enhance the city’s commercial vitality, attract new investment, and reinforce Lakeport’s identity as a welcoming, dynamic place to do business, shop, and visit.

CAPITAL PROJECTS AND STUDIES
Meeting Date: 06/30/2025 Page 14 Agenda Item #III
Several of the large scheduled projects for this upcoming year have been discussed in the previous section but many others are also budgeted this year. A comprehensive listing of background projects is listed here:

Capital Projects:
• Martin Street (Main to Bevins) Pavement Rehabilitation Project • Lakeshore Boulevard (Giselman to Lange) Pavement Rehabilitation Project • Silveira Community Center ADA & Restroom Upgrade Project • Forbes Creek Headwall Repair
• Hartley Storm Drain Replacement
• Green Ranch Well Rehabilitation
• Sodium Hypochlorite Upgrade Project (Water & Wastewater Treatment Facilities) • K Street Lake Intake, Martin & C Street Lift Station Permitter Fencing Upgrades • Seventeenth Street Alley Water Main Upsize
• Hydro Vac Trailer
• Leak Detection Device
• Pick Up Truck Purchase (Diesel Utilities Vehicle Replacement) • Wastewater Treatment Plant Floor Replacement
• ATV Replacement for Wastewater Treatment Plant
• Rec Desk Software Purchase
• South Main Street Pavement Rehabilitation Project (Lakeport Boulevard to First Street) [90% Complete] • Water & Sewer Main Replacement (Lakeport Blvd., Martin St. & Lakeshore Blvd.) [90% Complete] In addition to capital improvement projects, the 2025/26 fiscal year budget includes investment in several project studies and other endeavors that are critical to the achievement of the City’s goals and broader quality of life improvement objectives. Many represent the starting point for future capital projects. Some of these projects are noted here:

General Projects/Studies, Engineering and Support for City Council Objectives:
• Lakeport Boulevard (S. Main to Larrecou) Pavement Rehabilitation and Pedestrian Improvement Design • Micro Surfacing Pavement Rehabilitation Project Design and Engineering: High Street (Main Street to Geiselman Street), Charlie Jolin Way, Parallel Drive (Highway 175 to Lakeport Boulevard) • Tenth Street Storm Drain Upgrade & Sidewalk Project Desing & Environmental • Safe Routes to School Project Study Report for Lakeshore Boulevard Sidewalk Project • Water Master Plan Update
• Sewer Master Plan Update
• Water/Sewer Rate Study
• Comprehensive Fee Study
• Housing Program Services Strategic Plan
• General Plan Update
• Citywide Sidewalk Audit
• Wastewater Treatment Plant Expansion Study
• ADA Update Study
• South Lakeport Regional Water Resiliency & Fire Suppression Project Design • Regional Transportation Plan Update (in conjunction with Lake APC) • Countywide Evacuation Plan (in conjunction with County of Lake) • Local Hazard Mitigation Plan Update [90% Complete]
• Assist non-profit formation for the Lakeport Community Council • Establishment of an operations budget for the Silveira Community Center to facilitate community rental opportunities
Meeting Date: 06/30/2025 Page 15 Agenda Item #III
• Funding to augment recreational programming by Lake County Public Services and facilitate recreational program offerings in the City of Lakeport
• for recreational programming to augment in the establishment of a non-profit for the Lakeport Community Council
• Enhanced community communications support
• Ordinance Updates: establish a vacant building registry, sidewalk vending, business license modernization, streamline short-term rental process, modify nuisance abatement procedures, and ADU regulation updates.

LOOKING AHEAD
The Fiscal Year 2025/26 budget reflects both the realities of a constrained financial environment and the City of Lakeport’s commitment to moving forward with purpose and focus. While rising fixed costs— particularly pension obligations and insurance premiums—are placing increasing strain on City resources, this budget sustains core services, supports capital investment, and aligns with City Council priorities in a structurally balanced manner.

Though revenue growth remains modest and dependent on a volatile sales tax base, Lakeport continues to leverage its strengths: a fiscally disciplined reserve, a culture of collaboration, and a persistent pursuit of external funding. The City’s progress on major infrastructure improvements, housing initiatives, community engagement programs, and public safety investments is a direct result of these strategic efforts.

Looking ahead, the City will remain laser-focused on completing previously funded capital projects, improving operational efficiency, and pursuing grant opportunities to meet unfunded needs. Strategic planning across departments will ensure that limited resources are deployed in a way that maximizes long-term impact—supporting safe neighborhoods, economic growth, reliable utilities, and responsive local government.

But our most valuable asset is not found on any balance sheet—it’s the people who make Lakeport work.

The successes of the past year, and the possibilities of the one ahead, are grounded in the dedication of our City staff, the leadership of our City Council, and the active participation of our community.

On behalf of City staff, I offer sincere thanks to our residents, business owners, and regional partners for your resilience, trust, and partnership. To the City Council, thank you for your guidance, your support of professional staff, and your shared commitment to a thriving Lakeport. Together, we will continue to build a vibrant, inclusive, and resilient community for all.

OPTIONS:

1. Approve the operating and capital expenditure budget for the 2025-26 fiscal year and adopt the associated resolution.

2. Provide alternative direction.

FISCAL IMPACT:
☐ None ☒ $37,289,272 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: All Comments:

Meeting Date: 06/30/2025 Page 16 Agenda Item #III
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 approve the operating and capital expenditure budget for the 2025-26 fiscal year and adopt the associated resolution.
☒ Attachments: 1. Adopting Budget Resolution

2. 2025-26 Recommended Budget
RESOLUTION NO. XXXX (2025)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAKEPORT, THE SUCCESSOR AGENCY TO THE LAKEPORT

REDEVELOPMENT AGENCY, AND THE BOARD OF THE CITY

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeport hereby adopts the budget for the City of Lakeport, the Successor Agency to the Lakeport Redevelopment Agency, and City of Lakeport Municipal Sewer District, including the recommended personnel schedules found therein, for the fiscal year beginning July 1, 2025, and ending June 30, 2026; and

THIS RESOLUTION was passed by the City Council of the City of Lakeport at a special meeting thereof on the 30th day of June, 2025, by the following vote:

AYES:

NOES:

ABSTAINING:

ABSENT:
_________________________________
KIM COSTA, Mayor

ATTEST:
_______________________________
KELLY BUENDIA, City Clerk
Lakeport, California

CITY OF LAKEPORT
Annual Budget (ADOPTED)
Fiscal Year 2025-26

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CITY OF LAKEPORT, CALIFORNIA

ANNUAL BUDGET
FISCAL YEAR 2025-26

Kim Costa
Mayor and Boards Chair
Brandon Disney
Mayor Pro Tem
Boards Vice Chair
Kenny Parlet
Council Member
Stacey Mattina
Council Member
Christina Price
Council Member
City Council
Redevelopment Successor Agency Board of
Directors
Sewer District Board of Directors
Municipal Financing Authority of Lakeport Board
of Directors

GOVERNING BODY ADVISORY COMMITTEES/COMMISSIONS
Lakeport Planning Commission
Lakeport Economic Development Advisory Committee
(LEDAC)
Measure Z Advisory Committee
Kevin Ingram
City Manager
Mackenzie Anderson
Assistant City Attorney
Dale Stoebe
Chief of Police
Danielle Dizon
Finance & IT Director
Ron Ladd
Public Works Director
Paul Harris
Utilities Director
Joey Hejnowicz
Community Development Director
Kelly Buendia
Administrative Services Director/City Clerk

EXECUTIVE MANAGEMENT TEAM

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1. TABLE OF CONTENTS
City Organizational Chart ....................................................................................................................................... i Mission and Vision ................................................................................................................................................ ii City Manager’s Budget Message .......................................................................................................................... 1 Lakeport City Council Priority Areas ...................................................................................................................15 Community Profile...............................................................................................................................................16 Budget in Brief.....................................................................................................................................................20 City-Wide Compared...................................................................................................................................20 General Fund Compared ............................................................................................................................21 Historical Revenue Summary......................................................................................................................22 Expenditures by Department.......................................................................................................................24 Department Expenditure Detail ...................................................................................................................25 Sources and Uses for Fiscal Year 2025-26 ................................................................................................26 Sources .......................................................................................................................................................27 Uses ............................................................................................................................................................28 Property Tax Distribution.............................................................................................................................29 Sales Tax Distribution ................................................................................................................................. 30 Measure I ....................................................................................................................................................31 Measure Z ...................................................................................................................................................32 Other Major Revenues ................................................................................................................................33 Capital Improvement Program (CIP)...................................................................................................................34 Capital Expenditures ...................................................................................................................................35 Charts and Graphs ..............................................................................................................................................38 Trends and Analysis............................................................................................................................................41 Long-Term Financial Plan ...................................................................................................................................43 Jurisdiction Comparison......................................................................................................................................46 Fund Summaries .................................................................................................................................................48 Governmental Funds.......................................................................................................................................49 General Fund ..............................................................................................................................................52 Capital Projects ...........................................................................................................................................53 2017 Storm Capital Projects .......................................................................................................................54 Debt Service................................................................................................................................................55 Parkland Dedication Fund...........................................................................................................................56 Highway User Tax (HUTA)..........................................................................................................................57 Prop 172 Public Safety................................................................................................................................58 Lakeport Housing Program .........................................................................................................................59 PLHA Navigation Center Fund....................................................................................................................60 Police K-9 Fund...........................................................................................................................................61 C-PLHA (Permanent Local Housing Alloc) Fund ........................................................................................62 APC 10th St Bike and Pedestrian ...............................................................................................................63 Department of Boating and Waterways Bathroom Grant............................................................................64 CDBG 18-MIT-RIP Grant Fund ...................................................................................................................65 ATP Sidewalk Planning Grant.....................................................................................................................66 2018 CDBG DR Grant Fund .......................................................................................................................67 2021 CDBG Grant Fund..............................................................................................................................68 2020 CDBG CV Grant Fund........................................................................................................................69 2018 CDBG Grant Fund..............................................................................................................................70 2017 CDBG Grant Fund..............................................................................................................................71 2022 CDBG Grant Fund..............................................................................................................................72 HOME Grant PI ...........................................................................................................................................73 CDBG PI......................................................................................................................................................74 Tenth Street Drainage................................................................................................................................. 75 Lakeport Blvd Improvement ........................................................................................................................76 South Main Improvement ............................................................................................................................77 Parkside Traffic Mitigation...........................................................................................................................78 Parallel/Bevins Storm Water Maintenance..................................................................................................79 ER Storm Damage Repair ..........................................................................................................................80 Safe Routes To Schools .............................................................................................................................81 Lakeside Park Fund ....................................................................................................................................82 Storm Drainage ...........................................................................................................................................83 City Wide HSIP............................................................................................................................................84 Proprietary.......................................................................................................................................................83 Water O&M..................................................................................................................................................84 Water Expansion.........................................................................................................................................85 Sewer O&M .................................................................................................................................................86 Sewer Expansion ........................................................................................................................................87 2017-1 CLMSD Sewer Assessment District ...............................................................................................88 Internal Service Fund – Risk Management and Insurance.........................................................................89 Fiduciary..........................................................................................................................................................90 OPEB Agency Fund ....................................................................................................................................91 Redevelopment Obligation Retirement Fund..............................................................................................92 Operating Budgets ..............................................................................................................................................93 Non-Departmental...........................................................................................................................................94 Legislative .......................................................................................................................................................95 Administration..................................................................................................................................................98 City Manager...............................................................................................................................................98 City Clerk...................................................................................................................................................100 Administrative Services – Human Resources...........................................................................................101 Economic Development ............................................................................................................................106 City Attorney..................................................................................................................................................109 Finance & it ...................................................................................................................................................110 Community Development..............................................................................................................................114 Planning ....................................................................................................................................................117 Building......................................................................................................................................................119 Housing .....................................................................................................................................................121 Police.............................................................................................................................................................123 Public Works .................................................................................................................................................127 Administration and Compliance ................................................................................................................130 Engineering ...............................................................................................................................................131 Roads and Infrastructure...........................................................................................................................132 Parks, Buildings and Grounds...................................................................................................................133 Utilities...........................................................................................................................................................135 Water Operations and Maintenance .........................................................................................................137 Sewer Operations & Maintenance ............................................................................................................138 Attachments ......................................................................................................................................................140 Budget Resolution.........................................................................................................................................141 Gann Limit Resolution...................................................................................................................................142 Gann Limit Calculation ..................................................................................................................................143 Appendices........................................................................................................................................................144 Transfers Schedule .......................................................................................................................................145 Debt Schedules .............................................................................................................................................146 Personnel Schedules ....................................................................................................................................148 Position Summary .....................................................................................................................................148 Salary Schedule ........................................................................................................................................149 Salary Schedule (cont’d) ...........................................................................................................................150 City Benefit Plans ......................................................................................................................................151 Glossary of Terms .........................................................................................................................................153 Accounting Structure.....................................................................................................................................158 Financial/Budget Policies ..............................................................................................................................159 Financial Management Policies ....................................................................................................................161 Budget Schedule...........................................................................................................................................165 Page | i

CITY ORGANIZATIONAL CHART
Page | ii

MISSION AND VISION

MISSION
Lakeport is a beautiful community. We work to ensure it remains a wonderful place to raise a family, enjoy retirement, recreate, and live a healthy, fulfilling life.

COMMUNITY VISION
The charm and values of the Lakeport community are what will endure for generations to come. Those attributes will be maintained, in part, through the effective delivery of municipal services.

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1 | Page
CITY MANAGER’S BUDGET MESSAGE
The fiscal year 2025/26 budget represents a pivotal moment for the City of Lakeport—one that balances the achievements of the past year with an honest recognition of the financial pressures that lie ahead. While Lakeport remains fiscally responsible and committed to advancing community priorities, it does so amid growing economic constraints that demand continued vigilance, creativity, and collaboration.

If one central theme defines this year’s budget, it is the rapid acceleration of fixed costs outpacing revenue growth. In particular, insurance premiums and pension obligations have risen at an unsustainable rate. General liability and property insurance costs have doubled over the past five years, and pension obligation payments, already significantly higher than just one year ago, are expected to double again over the next five years. This escalating cost structure places increasing pressure on the City’s ability to maintain current service levels without new sources of sustainable revenue.

KEY GOALS FOR FISCAL YEAR 2025/26
• South Lakeport Water Resiliency & Fire Suppression Project: Finalize design, annexation adjustments, and funding strategies—together with the County—to extend a reliable water main and fire-hydrant network along the South Main Street/Soda Bay Road corridor. • Maintain a Fully Staffed, Community-Focused Police Department: Continue academy sponsorships, leadership development, and the over-hire of a single officer to absorb training-cycle vacancies and ensure consistent patrol coverage.
• Complete 2024 Water & Sewer Main Replacements: Finish the multi-year project now more than halfway done, delivering two miles of new water main and one mile of new sewer main, while coordinating roadway restorations above the upgraded utilities. • Advance the Pavement Management Program: Execute Fiscal Year 2025/26 street projects— including rehabilitation of corridors impacted by utility work, preparation of micro surfacing bid documents, and development of a five-year neighborhood chip-seal schedule—to extend pavement life cost-effectively.
• Expand Public Outreach & Transparency: Implement next-phase actions in the Communications Strategic Plan to increase attendance at Council meetings, publish regular project updates, and provide clear, accessible information across multiple media platforms. • Establish the Lakeport Community Council: Formalize bylaws, secure nonprofit status, and launch a collaborative structure that empowers local civic and nonprofit partners to program events, activate public spaces, and strengthen Lakeport’s sense of place. 2 | Page
These targeted objectives balance infrastructure renewal, fiscal prudence, and community well-being— positioning Lakeport to navigate economic uncertainty while continuing to make measurable progress on the priorities residents value most.
2024-25 FISCAL YEAR IN REVIEW
As we reflect on the 2024–25 Fiscal Year, the City of Lakeport continues to demonstrate that even small cities can achieve big results through teamwork, innovation, and a deep commitment to community. Guided by the Lakeport City Council’s priorities and supported by a dedicated staff, the City advanced key infrastructure projects, strengthened public safety services, supported community and economic development, and expanded recreational and public engagement efforts. These accomplishments are a testament to what can be achieved when local government works in partnership with its residents and regional partners.

Here are some of the most notable achievements:

Major Infrastructure Upgrades—Water, Sewer, and Streets:

Public Safety—New Leadership and Expanded Community Services:

The Lakeport Police Department underwent a smooth leadership transition with the appointment of a new Chief of Police, supported by the implementation of an internal leadership program and a formal Sergeant training program. Key programs such as the School Resource Officer, K-9 program, and the Downtown Business Liaison Officer were not only maintained but enhanced through regional partnerships and targeted community policing strategies. Crisis Response operations continued through the City's partnership with the Lake County Family Resource Center, and planning is underway to launch additional co-responder initiatives in the coming fiscal year.

Retail and Economic Revitalization:

Housing Development and Planning Progress:

Community Engagement and Public Events:

The City took important steps to strengthen its community connections. A new Lakeport Community Council is forming with strong volunteer support, and events such as the Memorial Day Celebration and Christmas Tree Lighting were carried out in collaboration with community groups. The City’s downtown and waterfront event 3 | Page
venues—particularly Xabatin “Big Water” Park and Silveira Community Center—served as hubs for community gatherings. These facilities hosted a variety of events including movie nights, expos, and meal service programs that supported both recreation and community care.

Strengthening Our Workforce:

Recreation and Parks Investments:

Utility Modernization and Systems Upgrades:

Technology and Transparency:

Studies, Compliance, and Regional Planning:

However, the outlook is tightening.

The most pressing challenge facing the City of Lakeport is the steep rise in fixed operating costs—particularly in insurance, pensions, and medical benefits—which are climbing at a pace far beyond that of the City’s revenue growth. This year alone, pension obligations have doubled compared to the prior year, and insurance premiums have doubled over the past five years. Forecasts suggest that these obligations will continue to rise sharply, creating increasing fiscal strain over the mid-term horizon. 4 | Page
Sales tax, Lakeport’s largest and most volatile revenue stream, comprises approximately two-thirds of General Fund revenue and remains vulnerable to market conditions and structural shifts in consumer behavior. Although recent quarters have seen slight to moderate growth—due in part to the opening of new big-box retailers and a resurgence in the restaurant sector—long-term projections remain concerning. A growing consumer trend toward untaxed services and California’s transition away from gas-powered vehicles (fuel sales alone account for 20% of total sales tax) threaten this revenue source’s stability. 5 | Page
In response to these pressures, the City continues to maintain strong General Fund reserves. The current reserve level is nearly 100% of annual General Fund expenditures—a testament to years of prudent financial management. This budget proposes the use of approximately $350,000 in reserve funds to support important one-time capital projects, particularly those tied to grant leverage. However, these expenditures are expected to be backfilled by carryover from FY 2024/25, maintaining the integrity of the reserve position.

Law enforcement remains a core service priority. The FY 2025/26 budget supports the Police Department’s full staffing goal, with continued investment in the academy sponsorship model and the authorization of one 6 | Page
additional officer position to mitigate the delayed timeline between cadet hiring and full street-readiness. While this results in a budgeted shortfall on paper, staff does not anticipate actual deficit spending due to expected attrition.

Though the fiscal landscape remains complex, the FY 2025/26 budget continues to reflect the City’s core values—sound stewardship, community investment, and resilience in the face of economic uncertainty.

FISCAL YEAR 2025/26 PROJECTS AND GOALS
As highlighted in the introduction, increased costs are outpacing revenues, which have remained stagnant for the past few years and are only projected to increase at a minimal rate over the next couple of years. This has limited the City’s ability to include new projects in the current fiscal year budget. Our primary focus for this year, similar to last year, will be on completing previously budgeted capital improvement projects and the aggressive pursuit of available grant funding opportunities to address unfunded needs. Despite the constraints, our commitment to strategic planning remains crucial in ensuring the efficient allocation of limited resources to address capital improvement needs.

The FY 2025/26 goals identified by the City of Lakeport advance these objectives by focusing on personnel development, strategic partnerships, programmatic expansion, and critical equipment investments.

Sustaining Community Policing through Officer Retention and Development At the foundation of Lakeport’s approach to public safety is its strong commitment to community policing.

Maintaining and strengthening the relationships between police officers and the community they serve is 7 | Page
essential for building trust, improving public safety outcomes, and ensuring responsive, localized law enforcement. To achieve this, the City will continue to prioritize officer retention and recruitment through flexible hiring practices, including the sponsorship of cadets through academy training.

In addition to improving crisis response, this partnership will allow officers to better focus on their core public safety responsibilities while ensuring individuals in crisis receive more specialized care. These efforts reflect the City’s broader strategy to promote public safety through a coordinated, compassionate, and health-informed response model.

These efforts not only promote safety in schools and neighborhoods but also reinforce the department’s commitment to working side-by-side with residents to solve problems and build safer, stronger neighborhoods.

Through these programs, the City continues to emphasize public safety approaches that are proactive, transparent, and rooted in the principles of fairness and equity.

Investing in Equipment and Infrastructure
Reliable tools and updated infrastructure are essential for maintaining officer readiness and operational efficiency. This fiscal year, the City will initiate a structured replacement cycle for fleet vehicles and essential equipment such as in-car cameras, patrol rifles, and other key gear. This proactive approach ensures that the department’s tools remain modern, functional, and aligned with evolving safety standards.

Disaster Resiliency. The City Council’s adopted objectives for Disaster Resiliency prioritize reducing hazard vulnerabilities, enhancing preparedness, strengthening emergency response capabilities, and supporting long- 8 | Page
term recovery. In Fiscal Year 2025/26, the City of Lakeport will continue advancing these objectives through targeted capital improvements, expanded utility maintenance, and active participation in regional emergency planning efforts.

South Lakeport Regional Water Resiliency and Fire Suppression Project One of the City’s highest disaster mitigation priorities is the continued partnership with the County of Lake on the South Lakeport Regional Water Resiliency and Fire Suppression Program. This multi-phase project seeks to install a critical network of fire hydrants along the South Main Street/Soda Bay Road corridor, extending to the Manning Creek Bridge. These improvements will provide vital fire suppression infrastructure in a historically underserved, high-risk area. As part of this effort, the City has submitted a revised annexation application to Lake LAFCO that narrows the boundary to properties that have indicated a need and willingness to connect to municipal water—many of which currently depend on small, State Water Board-regulated systems that lack adequate fire flow capacity. The project significantly strengthens the City's mitigation and response capabilities while enhancing overall water reliability for both residents and emergency responders.

Silveira Community Center Resiliency Improvements
To support both emergency response and long-term recovery efforts, the City is advancing the revitalization of the Silveira Community Center. The facility’s adaptable layout and central location make it an ideal neighborhood-level disaster resource center—capable of serving as a staging site, shelter, or emergency coordination hub during large-scale incidents. In FY 2025/26, the City will complete an RFP process to secure an operator for the facility and implement critical ADA upgrades to restrooms and building access. These enhancements will ensure the facility is safe, accessible, and operational during emergencies, while establishing a sustainable model that supports year-round community use without increasing financial strain on the City.

Together, these initiatives reflect Lakeport’s comprehensive and proactive approach to disaster resiliency.

Strengthening Transparency and Public Engagement
The City will continue implementing its Communications Strategic Plan with a focus on timely, transparent, and accessible information sharing. Key efforts will include monthly updates on major initiatives and increased public participation in City Council meetings. Staff will also expand use of pre-developed content and automated scheduling tools to increase efficiency and consistency across the City’s digital platforms. These communication 9 | Page
efforts support the Council’s goal of keeping residents informed and engaged while strengthening trust in local government.

Succession planning will continue to be a core component of long-term organizational stability. Staff will build on prior efforts by investing in leadership development, formalizing department-specific procedures manuals, and maintaining a strong focus on staff training and professional growth. These efforts enhance the City’s ability to deliver consistent and high-quality services, even amid staffing transitions.

Water and Sewer Capital Improvement Project Execution
One of the City’s most significant efforts in recent years—the 2024 Water and Sewer Main Line Replacement Project—will move into its final phases during FY 25/26. With over 50% of construction completed in the previous 10 | Page
fiscal year, the upcoming work will see through the replacement of nearly two miles of aging water main and one mile of sewer main throughout Lakeport. These upgrades are critical to ensuring long-term system reliability and reducing the risk of service interruptions or failures. By strategically pairing infrastructure rehabilitation with surface improvements on key road segments, the City continues to maximize the value of its capital dollars. This $8 million investment reflects a proactive and fiscally disciplined approach to addressing core infrastructure needs.

Pavement Management Program Expansion
The City will continue to build upon the foundation of its multi-year Pavement Management Program by executing a robust set of projects during FY 25/26. These include the rehabilitation of Lakeport Boulevard, Martin Street, and Lakeshore Boulevard—arterial corridors that were directly impacted by the utility trenching associated with the 2024 Water and Sewer CIP.

Capital Planning and Project Readiness
FY 25/26 will also include significant advancements in the City’s capital project planning and prioritization efforts.

Safe, Sustainable & Attractive Neighborhoods. The City Council’s policy priority area of Safe, Sustainable, and Attractive Neighborhoods focuses on expanding housing options, improving community health and housing quality, preserving natural spaces, and fostering a sense of place through public engagement, recreation, and environmental stewardship. The City’s FY 25/26 goals actively support these objectives through a variety of initiatives aimed at improving the overall quality of life for Lakeport residents. 11 | Page
Community Identity Through Civic Engagement
The City will continue advancing the development of the Lakeport Community Council—an umbrella nonprofit intended to unite local civic groups, nonprofits, and service clubs around a shared mission of activating public spaces and enhancing community life. Building on the success of events such as the Memorial Day Celebration and the Xabatin Christmas Tree and Boat Parade, the City will assist in forming the legal and organizational structure of this new nonprofit and support the development of bylaws that foster long-term sustainability and shared governance. This initiative promotes increased civic participation and community-led activation of parks and downtown spaces, fostering a stronger sense of identity, belonging, and collective stewardship.

Expanding Parks and Recreation Programming
As part of a long-term vision to increase access to parks and recreational opportunities, the City will begin development of a Recreation Program Master Plan. This plan will prioritize activating existing park facilities, expanding youth-oriented programming, and identifying sustainable staffing and funding strategies to support long-term program success. In FY 2025/26, efforts will focus on foundational planning and strengthening regional partnerships. The City will continue to work with the Lake County Recreation Agency on the development of a future regional aquatic center and expand its collaboration with the County of Lake Public Services Department to enhance the availability of youth recreational programming within Lakeport. Complementing these efforts is the ongoing refinement of operations at the Silveira Community Center, where the City will work to secure a third-party facility manager and streamline rental and booking systems—ensuring this important public space remains affordable, accessible, and well-utilized by the community.

Investing in Neighborhood Housing and Revitalization
Ensuring safe and affordable housing remains a cornerstone of the City’s commitment to neighborhood livability.

Together, these initiatives demonstrate Lakeport’s commitment to expanding retail opportunities, reducing commercial vacancies, and strengthening its sales tax base.

These actions aim to enhance the City’s hospitality offerings and maximize the economic potential of its lakefront location.

Leveraging Regional Planning and Federal Funding Opportunities The recent completion of the Lake County Comprehensive Economic Development Strategy (CEDS) creates new opportunities for Lakeport to pursue federal U.S. Economic Development Administration (EDA) grant funding. The City will work to align key infrastructure and economic development projects—such as a downtown/lakefront Wi-Fi district, improved business tools, and enhanced wayfinding signage—with the CEDS framework to make them more competitive for grant support. These projects are designed to create a more connected, user-friendly, and business-ready environment across Lakeport’s commercial zones.

Entrepreneurial Support and Local Business Tools
To complement its retail attraction efforts, the City will support local entrepreneurs by developing a franchise business toolkit, helping small business owners explore scalable opportunities. Additionally, the City will assist businesses in identifying emerging retail and service trends, helping them expand operations and adapt to shifting consumer demands. These efforts reflect Lakeport’s commitment to fostering a supportive, businessfriendly environment where local enterprise can thrive.

Through targeted investment in commercial revitalization, tourism development, placemaking, and small business support, the City of Lakeport’s FY 25/26 goals align strongly with the Council’s economic development priorities. These initiatives are designed to enhance the city’s commercial vitality, attract new investment, and reinforce Lakeport’s identity as a welcoming, dynamic place to do business, shop, and visit. 13 | Page

CAPITAL PROJECTS AND STUDIES
Several of the large scheduled projects for this upcoming year have been discussed in the previous section but many others are also budgeted this year. A comprehensive listing of background projects is listed here:

General Projects/Studies, Engineering and Support for City Council Objectives:
• Lakeport Boulevard (S. Main to Larrecou) Pavement Rehabilitation and Pedestrian Improvement Design
• Micro Surfacing Pavement Rehabilitation Project Design and Engineering: High Street (Main Street to Geiselman Street), Charlie Jolin Way, Parallel Drive (Highway 175 to Lakeport Boulevard) • Tenth Street Storm Drain Upgrade & Sidewalk Project Desing & Environmental • Safe Routes to School Project Study Report for Lakeshore Boulevard Sidewalk Project • Water Master Plan Update
• Sewer Master Plan Update
• Water/Sewer Rate Study
• Comprehensive Fee Study
• Housing Program Services Strategic Plan
• General Plan Update
• Citywide Sidewalk Audit
• Wastewater Treatment Plant Expansion Study
• ADA Update Study
• South Lakeport Regional Water Resiliency & Fire Suppression Project Design • Regional Transportation Plan Update (in conjunction with Lake APC) • Countywide Evacuation Plan (in conjunction with County of Lake) • Local Hazard Mitigation Plan Update [90% Complete]
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• Assist non-profit formation for the Lakeport Community Council • Establishment of an operations budget for the Silveira Community Center to facilitate community rental opportunities
• Funding to augment recreational programming by Lake County Public Services and facilitate recreational program offerings in the City of Lakeport
• for recreational programming to augment in the establishment of a non-profit for the Lakeport Community Council
• Enhanced community communications support
• Ordinance Updates: establish a vacant building registry, sidewalk vending, business license modernization, streamline short-term rental process, modify nuisance abatement procedures, and ADU regulation updates.

LOOKING AHEAD
The Fiscal Year 2025/26 budget reflects both the realities of a constrained financial environment and the City of Lakeport’s commitment to moving forward with purpose and focus. While rising fixed costs—particularly pension obligations and insurance premiums—are placing increasing strain on City resources, this budget sustains core services, supports capital investment, and aligns with City Council priorities in a structurally balanced manner.

Looking ahead, the City will remain laser-focused on completing previously funded capital projects, improving operational efficiency, and pursuing grant opportunities to meet unfunded needs. Strategic planning across departments will ensure that limited resources are deployed in a way that maximizes long-term impact— supporting safe neighborhoods, economic growth, reliable utilities, and responsive local government.

But our most valuable asset is not found on any balance sheet—it’s the people who make Lakeport work. The successes of the past year, and the possibilities of the one ahead, are grounded in the dedication of our City staff, the leadership of our City Council, and the active participation of our community.

Respectfully Submitted,
Kevin M. Ingram
City Manager
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LAKEPORT CITY COUNCIL PRIORITY AREAS

PUBLIC SAFETY & CRISIS RESPONSE
• Attraction, Retention & Training of High-Quality Law Enforcement • Continue to explore various ways to address homelessness, mental health and substance abuse in our community
• Continue to promote community policing strategies

DISASTER RESILIENCY
• Pursue preventive measures to reduce hazard vulnerabilities (Mitigation) • Build capabilities to manage the impacts of hazards. (Preparedness) • Strive to reduce adverse conditions during an emergency. (Response) • Work actively to restore areas affected by a disaster (Recovery)

GOOD GOVERNANCE & FISCAL STABILITY
• Foster fiscal discipline and fiscal stewardship
• Continue to implement processes and technology to streamline to enhance services • Ensure quality and efficient service delivery
• Provide timely information to residents about City activities, services and programs • Increase citizen engagement
• Risk Management
• Promote activities that advance diversity, equity and inclusion in the community

CAPITAL INFRASTRUCTURE IMPROVEMENT
• Properly prioritize capital improvements
• Aggressively pursue various sources of funding
• Continue to develop project readiness

SAFE, SUSTAINABLE & ATTRACTIVE NEIGHBORHOODS
• Pursue wide variety of housing options
• Improve quality of existing housing stock
• Increase access to parks and recreational amenities
• Improve overall community health metrics
• Promote community events that foster overall quality of life in the community. • Improve access to open space and preserve natural vistas • Promote environmental protective measures while highlighting their economic value

ECONOMIC DEVELOPMENT
• Promote and participate in regional economic development initiatives • Expand and support business retention and attraction efforts • Strive to enhance the historic downtown and lakefront area CITY OF LAKEPORT FISCAL YEAR 2025-26

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COMMUNITY PROFILE

LAKEPORT, CALIFORNIA
Incorporated
April 30, 1888
Government
Lakeport is a general law city operated under a
council-manager form of government.

Location
Lakeport is located on the western shore of Clear
Lake, 120 miles north of San Francisco and 125
miles northwest of Sacramento, the state capital.

County
Lake (Lakeport is the county seat)
Area

2.7 square miles
Elevation
Lakeport lies 1,335 feet above sea level.

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The City
The City of Lakeport was incorporated on April
30, 1888 as a general law city. As the
administrative seat for the County of Lake, and
with a residential population of about 5,000 in a

3.1 square-mile area, Lakeport is graced with a
strong business base and a well-established
residential community.

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, 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
services, as those are activities of the County of
Lake and the Lakeport Fire Protection District,
respectively. Lakeport operates under a
council-manager form of government, whereby
the council serves as the legislative body and
the City Manager its executive.

Governance
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 in 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 also is responsible for
numerous land use decisions within its borders, including the General Plan. The City Council appoints the City
Manager, City Attorney, City Clerk, and all members of
advisory boards and commissions.

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Local Economy
Lakeport is a travel and recreation-oriented
community fortunate to have a large area
serving as a hub for recreational activities in
Lake County.

The Lakeport business community is engaged
with the Lake County Chamber of Commerce
and the Lakeport Main Street Association, as
well as the Lake County Economic
Development Corporation and other partners,
to encourage sustainable business growth.

The City’s daily retail trade population is over
55,000 people. Commercial areas are located
in the historic downtown and along Lakeport
Boulevard, Parallel Drive, Eleventh Street,
North High Street, and South Main Street.

Small Town Charm
Lakeport is located on the west shore of Clear
Lake about two hours north of San Francisco
and west of Sacramento. The City has a
distinctive, small-town character with strong
community values. As a visitor and
recreational destination, Lakeport hosts
numerous activities and events year-round,
including world-class bass fishing tournaments,
wine festivals, parades and street fairs, car
shows, concerts in the park, bicycling, water
sports, fine dining, and the home of the Lake
County Historic Courthouse Museum and the
Lake County Fair.

Lakeport is known for its historic downtown
with Victorian architecture, inviting lakeside
park, quiet residential neighborhoods and
friendly people. Free public boat ramps, water
sports equipment rentals, and a lively mix of
restaurants, shops and lodging make the town
an ideal place to visit.

As the oldest incorporated community in Lake
County (1888) and as the county seat, the city
is the regional center of commerce and
government for the area. State Highways 29,
20 and 175 provide scenic access. Lampson
Field Airport is located three miles to the south.

Recreation and Entertainment
A year-round schedule of special events
include summer concerts at the lakeside park,
annual seaplane splash-in attracting pilots from around the country, Shakespeare at the Lake performed
outdoors, music and movies at the historic community
theatre, and fireworks displays over Clear Lake on the
Fourth of July.

Annual Taste of Lake County
Cardboard Boat Races in Library Park
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Resident Labor Force
Approximately 2,510
Largest Employment Sectors
Local government
Healthcare
Recreation
Energy
Agriculture (wine)
Employment
Within ten miles, there is a diverse labor force specializing in such occupations as sales, technical and professional
services, education and government services, and other
specialties. The largest employment sectors in the Lakeport area are: government (federal, state, and local); education; and the service and retail trades. The agricultural and construction sectors are important and the
transportation/public utilities, wholesale trade,
finance/insurance/real estate and manufacturing sectors round out the employment picture.

Approximately 45% of all jobs in the county are located in the Lakeport area.

Live, Work, Play
Lakeport offers great access to Clear Lake – the largest natural freshwater lake located entirely within California – with several free public boat launching ramps, making it popular for fishing, bird watching, sailing and kayaking. Motels, bedand-breakfast inns, campgrounds and vacation rental accommodations are available. Westside Community Park
offers soccer, baseball and softball fields along with a dog park, pump track, and the Forbes Creek walking trail and ten horseshoe pits in its 60-acre development. A Horse Park is in development nearby as an extension of the park.

Development of a new Lakefront Park is also underway in downtown Lakeport.

With a broad array of entertainment, quality housing and accommodations, unique events, and friendly people,
Lakeport offers plenty to all ages while maintaining the quintessential charm of a small town. Parents enjoy excellent schools and many extracurricular activities, including youth sports. Additionally, Mendocino College offers classes yearround at its Lake Center campus. Lakeport’s wonderful weather and exceptional environment make it quite simply a great place to live, work and play.

Quality of Life
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BUDGET IN BRIEF
This is an introductory section meant to summarize information for the reader in a succinct and more readily comprehensible way.

CITY-WIDE COMPARED
This is a comprehensive summary of the City Budget, as recommended in fiscal year 2025-26. All budgeted funds are included in this synopsis.

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GENERAL FUND COMPARED
This is a comprehensive summary of the general fund, as proposed in fiscal year 2025-26.

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HISTORICAL REVENUE SUMMARY
This table illustrates from where and by how much revenues have come into the City over the last four years compared to fiscal year 2025-26.

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Historical Expenditure Summary
This table illustrates where and by how much resources have been used by the City over the last four years compared to fiscal year 2025-26.

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EXPENDITURES BY DEPARTMENT
This table illustrates how individual departments have been funded over the last four years as compared to fiscal year 2025-26. Non-Departmental accounts for all activities unrelated to a specific department, which typically include debt service for the water and sewer enterprises as well as the former redevelopment agency.

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DEPARTMENT EXPENDITURE DETAIL
This table illustrates how departments have used resources in the performance of their appropriated functions over time, compared the proposed appropriations for fiscal year 2025-26.

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SOURCES AND USES FOR FISCAL YEAR 2025-26
The following two tables illustrate where revenues are estimated to derive for each budgeted City fund and where those financial resources are recommended be applied, allocated by broad categories, such as salaries and benefits, operations, loans and grants, debt service, and capital improvements.

Such categories are characterized further as follows:
• Salaries and benefits include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations include costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service pertains to any regular payments on bonds, loans, leases, or other long-term obligations.

Generally, all debt service is managed in non-departmental. • Housing loans/grants are issued by the City through grant funding received from the state and federal governments. They typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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SOURCES

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USES

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PROPERTY TAX DISTRIBUTION
A property tax is a levy on the assessed value of a property. The general property tax is levied by the county, equal to 1% of the assessed value, often called the 1 percent general tax levy or countywide rate. Under Proposition 13, a law approved by California voters in 1978, general property taxes (not including those collected for special purposes) are limited to 1% of a property’s market value and increases in assessed value are restricted to 2% per year. California property taxes are collected by the County Tax Collector and are then transferred to the County Auditor for distribution to the local multiple governments. The graph above shows where each property tax dollar paid by City property owners is allocated. While the property tax growth in Lake County is slow, we are anticipating this revenue source to be consistent with the previous year.

Property Tax Distribution
Where does your money go? 2021-22
Total collection $ 5,997,660
Lakeport Unified School District 31.88% 1,911,900
Lake County 30.09% 1,804,954
City of Lakeport 13.39% 802,859
Lakeport Fire Protection District 9.13% 547,645
Mendocino College 6.20% 371,919
County Office of Education 2.76% 165,333
Lake Co Vector Control 1.90% 113,678
Lakeport Muni Sewer 1.25% 75,008
County Library 1.24% 74,570
Hartley Cemetery 1.16% 69,413
Flood Zone Management 0.90% 54,095
Fish and Wildlife 0.10% 6,286
Total distribution 100.00% 5,997,660 $
Notes:

This is a gross revenue estimate based on assessed values delivered by the Assessor-Recorder at the beginning of the 2021/22 tax year.

The estimate is prior to any Redevelopment or ERAF Shift calculations.

Many of the listed agencies also serve parcels outside of the City of Lakeport. This estimate applies only to the parcels within the City of Lakeport.

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SALES TAX DISTRIBUTION
Sales tax is a tax paid on the sales of certain goods and services. Currently, the total sales tax rate in the City of Lakeport is 8.75%. The City receives 2.5% in sales tax, with 1% Bradley-Burns, 1% Measure Z and .5% Measure I. Sales tax from the Bradley-Burns levy is allocated back to the City where the sale was negotiated, or the order was taken. On the other hand, the transactions and use tax, or Measure Z and I, is allocated to the City where the goods are delivered or placed into use. The graph above shows the breakdown of the City’s sales tax. Over fiscal years 2023-24 and 2024-25 sales tax collections in Lakeport have decreased for several quarters, before increasing in the 4th quarter of 2024. We project sales tax in 2025-26 and into the future to be very flat with growth rates that do not exceed 2% annually.

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MEASURE I

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MEASURE Z

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OTHER MAJOR REVENUES
Other Taxes
Transfer tax is a transaction fee imposed on the transfer of land or real property from one person (or entity) to another. The total transfer tax for the County and City is $1.10 ($0.55 County / $0.55 City) per $1,000 of property value, minus any loans assumed in the sale. We are anticipating this revenue source to be consistent with the previous year.

Transient occupancy tax (TOT) is a levy placed on tourists to the City, which is intended to compensate local government for the increased public service costs incurred by serving tourists. This tax is common in most of the United States, including California, and is applied to travelers when they rent accommodations (a room, rooms, entire home, or other living space) in a hotel, inn, tourist home or house, motel, or other lodging. The TOT rate in the City of Lakeport is 10% and an additional 1.5% is collected by the city and remitted to the Lake County Tourism Improvement District. We expect these revenues to remain strong with ideal conditions for a strong tourist season. However, the looming recession discussion could impact tourism if tourist discretionary income continues to be stressed further.

Licenses, Permits and Franchises
A business license is a tax payment to the city for doing business in that city. Cities collect fees from the business license applicants and place the majority of the fees into its general fund for the administration of city services, such as police, road work, parks and recreation and other community services that benefit citizens and businesses. While the business growth in Lake County is slow, we are anticipating this revenue source to be consistent with the previous year.

A utility franchise is a contract between a city and a utility or garbage company that outlines certain requirements for the utility to use the city’s public rights of way and for the garbage company to have exclusive rights to provide garbage service. The establishment of franchise agreements between cities and utilities or garbage companies is a customary business practice and legal process outlined by the state constitution. We are expecting this revenue source to be consistent with the previous year.

Charges for Services
Charges for Services at the City of Lakeport are primarily received in exchange for water and wastewater services and are accounted for in enterprise funds. Water and wastewater rates are determined by the cost of maintaining, operating, distributing and treating water and wastewater. The City conducted a new rate study which evaluated the appropriateness of the current billings to customers. We have budgeted for increases in revenues according to the rate increases developed in the study.

Revenue from Other Agencies
State and federal grants fluctuate significantly from year to year depending on legislative policy and the City’s ability to secure, administer and complete projects. In 2025-26, the City will be performing work on several CDBG projects, including $1.2 million for ADA improvements at the Silviera Community Center, and $9.5 million in CDBG funding, combined with $2.7 million from PLHA for the Parkside Affordable Housing development. The City also plans to complete storm damage repair projects using $1.6 million in Federal grants.

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CAPITAL IMPROVEMENT PROGRAM (CIP)
The City of Lakeport Capital Improvement Program involves fiscal oversight of various City financial resources to be used for the acquisition, design and/or construction of major capital facilities within the City, including major projects to replace or construct portions of the City's physical infrastructure, such as its streets, buildings, parks, street lights, water treatment and distribution system, sewer collection and disposal system, and storm drains.

This section of the budget document identifies and provides an outline for major capital projects that are needed to meet City needs and City Council priorities. The program reflects long-range capital planning efforts by identifying specific projects, the timing of expenditures and the estimated impact on operating budgets for those projects needed to service infrastructure over a considerable period.

A capital project is usually considered a one-time expenditure but may be funded over several years.

Management is recommending a five-year Capital Improvement Program budget to identify funding for multi-year projects and to provide budget forecasting for capital projects according to priority and available funding. By providing the budget in this format, the City Council can provide staff with appropriations and an expectation of when projects are to be completed. It also provides staff with a planning tool to help arrange and procure resources necessary to meet City Council and the public’s expectations.

The following schedules depict the City’s Capital Improvement Plan:

CIP budget period: FYE 2026 thru 2034
Total projects: 133
Total estimated cost: $76 million
Sources of funding:

General fund: 18 million
Project Funds 21 million
Water fund : 8 million
Sewer fund : 29 million

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CAPITAL EXPENDITURES
(Continued)

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(Continued)

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CHARTS AND GRAPHS
The following graph illustrates the sources of estimated revenues and uses of recommended appropriations in the general fund for fiscal year 2025-26.

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The following graphs illustrate revenues and expenditures City-wide, encompassing the various special revenue funds maintained by the City for housing, economic development, and capital improvement activities, as well as enterprise services of water and sewer.

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TRENDS AND ANALYSIS
General revenues over the last seven years have followed a path traveled by most local governments throughout the state. It has been a slow and steady climb out the economic downturn which greatly affected the City’s budget. In 2020-21 the global pandemic significantly impacted general fund revenues which recovered in 2021-

22. The large spike in revenues and expenses in 2021-22 was the result of other financing sources and uses from the issuance of Pension Obligation Bonds. In 2022-23 revenues from sales tax adjusted back to pre-pandemic levels after economic stimulus monies dried up. This correction continued through 2024-25 and the economic growth of revenues for 2025-26 and into the future is anticipated to be limited.

The graph below illustrates revenue and expenditure trends from 2019-20. This recommended budget for 2025- 26 attempts to normalize the variance between the two and maximize available resources for specific priorities.

General Fund Balance has returned to a healthy level over the past 7 years. The 2025-26 budget maintains a reserve level which is 93% of budgeted outgo.

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Below are several additional graphs that illustrate the composition of revenues and expenditures of the general fund, as well as general revenues and expenditures by category. These graphs are intended to help the reader understand where money comes and goes in the general fund. As operating costs continue to rise and revenues struggle to keep pace the City regularly seeks to optimize operating budgets as a normal budgetary practice.

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LONG-TERM FINANCIAL PLAN
Below is a snapshot of the comprehensive tool the City uses for long-term planning. The revenue growth pattern is expected to be minimal. Salary and benefit projections include the best pension cost estimates available and know compensation and benefit changes. Other operating costs are forecasted on a trend of around three percent per year. The space between the blue and orange lines represents the City’s capacity to budget capital projects and other one-time costs. The space between the orange line and blue line in the later years where expenditures exceed revenues represents potential deficit spending. This model is continuously evaluated allowing the City to plan long-term and make decisions today that will not compromise the financial position of the future.

Salary and benefit costs have the most significant impact on the General Fund and make up approximately 57% of all costs in the fund. Below is the projected trend of salary and benefit-related costs of the funds which compensate City staff. The 2024-25 budget included a 13% increase to employee health plans. These projections include a healthcare trend rate of 3% in future years and the impact of increased pension costs discussed next.

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In October of 2021, the City issued approximately $8 million in pension obligation bonds (POB). The chart below is a snapshot of the cost associated with the City’s Unfunded Actual Liability (UAL) related to pensions. The dark blue bars account for the debt service associated with the 2021 POB’s. The purple line reflects UAL costs prior to the issuance of the POB’s. The gray and teal bars account for the increase in UAL costs as the result of CalPERS earnings being less than the discount rate in the fiscal years ended June 30, 2022 and 2023. In 2021-22 they earned -7.5% and are expected to earn 6.1% in 2022-23. Resulting in new layers of UAL that will impact on the City budget in the upcoming years. The City cost for pension UAL is significantly impacted by CalPERS’s ability to earn expected returns over time. The City has little to no control over these impacts.

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The cost of insurance for the City has doubled since 2019. For the first time in several years the 2025-26 budget anticipates these costs to be significantly increased, by roughly 16%.

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JURISDICTION COMPARISON

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FUND SUMMARIES

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GOVERNMENTAL FUNDS
Governmental funds are those that account for governmental activities funded by general revenues (i.e. taxes and fees) and special revenues (i.e. grants, subventions, special assessments, etc.). The categories of governmental funds are the general fund, capital projects special revenue, debt service, and permanent funds. The numbers in parenthesis indicate the fund number in the City’s financial management system.

GENERAL FUND (110)
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.

Capital Projects Funds
GENERAL CAPITAL PROJECT FUND (130)
Used to account for funds received for capital projects. Most notably, this fund is used to track projects funded from the former redevelopment agency, consisting of unspent bond proceeds meant for the renovation of blighted areas in the redevelopment project area. In fiscal years 2014-15 through 2017-18 the fund was used to track expenditures related to the new Police Department facility and the Downtown Project. In 2024-25 The South Main Street Road Rehabilitation Project has been budgeted in this fund. 2017 STORM CAPITAL PROJECT FUND (420)
Used to account for funds received for capital projects associated with damages caused by the 2017 winter storms. Insurance proceeds and FEMA/CalOES public assistance grant funds will be used for to complete these projects.

Debt Service Funds
DEBT SERVICE FUND (140)
Used to account for general obligations, most notably loan payments for the Police Department facility, proposed pension obligations bonds and energy efficiency lease financing.

Special Revenue Funds
Parkland Dedication Fund (202)
State law and General Plan provide for new development to fund expansion of park system 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).

Gas Tax Fund (203)
Established to account for revenues and expenditures on road-related projects in the City of Lakeport. Financing is provided by the City’s share of the statewide tax on gasoline and other fuels.

Prop 172 Public Safety Fund (207)
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.

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Lakeport Housing Fund (209)
A special revenue fund established for the provision of affordable housing. The fund has no expenditure activity but does maintain several long-term receivable housing loans for which it collects payments.

PLHA Navigation Center Fund (210)
A special revenue fund established with Permanent Local Housing Assistance funds from California Department of Housing and Community Development which will be used to study and design a low-barrier navigation center in Lakeport.

Police K-9 Fund (211)
This fund is used to track restricted contributions funding the Lakeport Police K-9 Program and related expenditures.

C-PLHA (Permanent Local Housing Alloc) (212)
A special revenue fund established to receive the competitive portion of Permanent Local Housing Assistance funds from California Department of Housing and Community Development which will be used to fund development of affordable housing at Parkside.

APC Bike and Pedestrian 10th St Fund (219)
A special revenue fund established Ste Bike and Pedestrian from through the Lake County Area Planning Commission to develop a bike and pedestrian trail to assist with the diversion of this traffic from the 11th St Corridor.

Department of Boating and Waterways Bathrooms Fund (228) A special revenue fund established with State Boating and Waterway funding to replace restrooms at Library Park, the city’s premier lake access point for boaters.

CDBG 18-MIT-RIP Grant Fund (231)
A special revenue fund established to track activities funded by a 2018 CDBG – Mitigation Resilient Infrastructure Program grant for ADA Improvements at the Silviera Community Center.

Lake Area Planning Commission Active Transportation Planning Grant (232) 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. 2018 CDBG DR Grant Fund (233)
Fund set up to track activities funded by a CDBG Disaster Relief Multi-Family Housing Grant in response to the Mendocino Complex fire of 2018.
2021 CDBG Grant Fund (234)
Fund set up to track activities funded by a 2020 housing grant from CDBG. Potential activities could include home rehabilitation, economic development business loans and planning and technical assistance for design of the new community center.
2020 CDBG CV Grant Fund (236)
Fund set up to track activities funded by a Corona Virus Relief funding. 2018 CDBG Grant Fund (237)
Fund set up to track activities funded by a 2018 housing grant from CDBG. Activities include off-site infrastructure improvements for the newly constructed low-income housing development. 2017 CDBG Grant Fund (238)
Fund set up to track activities funded by a 2017 housing grant from CDBG. Activities could include economic development business loans and planning and technical assistance for the Forbes Creek neighborhood.

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2022 CDBG Grant Fund (239)
Fund set up to track activities funded by a 2022 grant from CDBG. Activities could include economic development business loans and planning and technical assistance.

HOME Program Income Fund (240)
Fund to track all home loans made by the City using HOME grant awards. Income received is in this fund consists of principal and interest payments made by borrowers.

CDBG Program Income (241)
Fund to track all home loans made by the City using CDBG grant awards. Income received is in this fund consists of principal and interest payments made by borrowers.

Tenth Street Drainage Fund (401)
Restricted fund/set aside by developer of Willow Tree Shopping Center.

Lakeport Blvd Improvement Fund (402)
Special assessment of developer to mitigate traffic impacts of K-Mart (now Bruno’s) development in 1987.

South Main Street Improvement Fund (403)
Special assessment of developer to mitigate traffic impacts of K-Mart.

Parkside Traffic Mitigation Fund (407)
Traffic mitigation fees are required as a mitigation measure for Parkside Subdivision.

Parallel/Bevins Storm Maintenance Fund (408)
Special fee to fund storm water improvements designed to mitigate the impact of development.

ER Storm Damage Repair Fund (410)
Repairs the roadway, curb, gutter and storm water drainage system. Funds provided by the Federal government through Caltrans’ administration of the Emergency Relief (ER) program.

Safe Routes to Schools (411)
On Hartley from 20th St north to the City limits, pedestrian improvements including curb, gutter and sidewalk. This project is primarily funded by Caltrans.

Lakeside Park Fund (413)
Fund set up to track activities funded by a Proposition 68 California Department of Parks and Recreation Grant.

Activities include the acquisition, design and construction of a new park located at the Natural High site just north of downtown Lakeport.

Storm Drainage Fund (414)
Assessments are made against larger properties to pay for prior and future storm drain projects. See Chapter 3.16 Lakeport Municipal Code.

City Wide HSIP (415)
Traffic striping and pavement marking on all major arterials and collectors throughout the City. This project is primarily funded by Caltrans.

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GENERAL FUND
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CAPITAL PROJECTS
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2017 STORM CAPITAL PROJECTS
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DEBT SERVICE
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PARKLAND DEDICATION FUND
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HIGHWAY USER TAX (HUTA)
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PROP 172 PUBLIC SAFETY
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LAKEPORT HOUSING PROGRAM
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PLHA NAVIGATION CENTER FUND
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POLICE K-9 FUND
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C-PLHA (PERMANENT LOCAL HOUSING ALLOC) FUND
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APC 10TH ST BIKE AND PEDESTRIAN
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DEPARTMENT OF BOATING AND WATERWAYS BATHROOM GRANT
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CDBG 18-MIT-RIP GRANT FUND
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ATP SIDEWALK PLANNING GRANT
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2018 CDBG DR GRANT FUND
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2021 CDBG GRANT FUND
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2020 CDBG CV GRANT FUND
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2018 CDBG GRANT FUND
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2017 CDBG GRANT FUND
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2022 CDBG GRANT FUND
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HOME GRANT PI
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CDBG PI
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TENTH STREET DRAINAGE
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LAKEPORT BLVD IMPROVEMENT
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SOUTH MAIN IMPROVEMENT
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PARKSIDE TRAFFIC MITIGATION
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PARALLEL/BEVINS STORM WATER MAINTENANCE
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ER STORM DAMAGE REPAIR
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SAFE ROUTES TO SCHOOLS
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LAKESIDE PARK FUND
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STORM DRAINAGE
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CITY WIDE HSIP

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PROPRIETARY
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise.

Enterprise Funds
The City maintains several enterprise funds responsible for budgeting and tracking expenses in the delivery of water and sewer services. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

Water Operations and Maintenance (501)
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.

Water Expansion Fund (502)
Assessments on new development to pay for distribution system, plant preservation and system capacity expansion.

Sewer Operations and Maintenance (601)
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.

City of Lakeport Municipal Sewer District Expansion Fund (602) New construction is assessed connection fee to provide for major repair, improvement, and expansion of sewer collection, transmission, treatment, and disposal facilities. See Lakeport Municipal Code Section 13.20.030.

City of Lakeport Municipal Sewer District Assessment District 2017-1 Fund (606) A debt service fund used to track repayment of a bond secured by a land-based assessment to pay for sewer expansion project completed in 1991 and refinanced in 2017 Internal Service Fund
Internal service funds are designed to track expenses common to most, if not all, City departments. The City maintains a single internal service fund to track expenses related to risk management (liability and worker’s comp insurance).

Risk Management and Insurance Internal Service Fund (701) This fund tracks expenses related to medical, liability and workers’ comp insurance premiums; deductibles; and direct charges. The City is an associate member of the Redwood Empire Municipal Insurance Fund (REMIF), which manages its claims and other risk management activities.

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WATER O&M
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WATER EXPANSION
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SEWER O&M
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SEWER EXPANSION
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2017-1 CLMSD SEWER ASSESSMENT DISTRICT
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INTERNAL SERVICE FUND – RISK MANAGEMENT AND INSURANCE
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FIDUCIARY
These 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.

Agency Funds
OPEB Agency Fund (801)
This fund is used to track retiree contributions and related costs associated with the City’s retiree healthcare program.

Private Purpose Trust Fund
Redevelopment Obligation Retirement Fund (705)
This fund is responsible to track expenses and debt service related to the dissolution of the former Lakeport Redevelopment Agency.

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OPEB AGENCY FUND
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REDEVELOPMENT OBLIGATION RETIREMENT FUND
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OPERATING BUDGETS

DEPARTMENTS

NON-DEPARTMENTAL

LEGISLATIVE
ADMINISTRATION:

CITY MANAGER

CITY CLERK

ADMINISTRATIVE SERVICES

ECONOMIC DEVELOPMENT

CITY ATTORNEY

FINANCE & INFORMATION TECHNOLOGY (IT)
COMMUNITY DEVELOPMENT:

PLANNING

BUILDING

HOUSING
POLICE
PUBLIC WORKS:

ADMINISTRATION & COMPLIANCE

ENGINEERING

ROADS & INFRASTRUCTURE

PARKS, BUILDINGS & GROUNDS
UTILITIES:

WATER OPERATIONS & MAINTENANCE (O&M)

SEWER OPERATIONS & MAINTENANCE (O&M)
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NON-DEPARTMENTAL
This activity accounts for the cost of various items, which are not directly attributable to a specific department.

These items typically include bank fees and charges, costs associated with property tax administration fees by the county, fees charged by the State Board of Equalization for administration of sales tax collection, most debt service, transfers to other funds, and certain capital project budgets.

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LEGISLATIVE
The legislative body for the City of Lakeport is the City Council. The same body acts as the governing authority for the Successor Agency to the City of Lakeport Redevelopment Agency and the City of Lakeport Municipal Sewer District (CLMSD). The City Council is advised by the following standing commissions and committees:
• Lakeport Planning Commission
• Lakeport Economic Development Advisory Committee (LEDAC) • Measure Z Advisory Committee
The City Council for the City of Lakeport, comprised of five council members, provides policy direction to the City Manager. The Council adopts ordinances to control the affairs of the City. The Council oversees the fiscal affairs of the City and approves and adopts the annual City budget. The Council also provides policy direction for the enforcement of City ordinances and may pass emergency ordinances for the immediate preservation or protection of public health, property, or safety. The Council enters contracts and cooperative or joint activities with other government bodies.

The City of Lakeport Planning Commission is a permanent committee of five people appointed by the Lakeport City Council to review matters related to planning and development. The Planning Commission meets on the second Wednesday of every month at 6:00 p.m. in the City Council Chambers at Lakeport City Hall, 225 Park Street, Lakeport, California, for the purpose of considering City land use matters. Included on the agendas are such things as the General Plan, Re-zonings, Use Permits, Subdivisions, Architectural and Design Review, planning policy matters, and interpretations.

The Lakeport Economic Development Advisory Committee (LEDAC) is a standing committee formed by the City Council in 2010. The primary function of the LEDAC is to consider issues pertaining to business retention and expansion and advise the City Council and staff on developing potential programs and strategies for economic development in the City; establishing and maintaining regular communication between the City and the business community; evaluating community needs and desires for economic development; and focusing on commerce solutions that enhance the quality of life for the Lakeport community.

The Measure Z Advisory Committee is a five-member independent citizens’ advisory committee that has been created and shall meet annually to review the expenditure of revenues generated by the tax imposed by Measure Z and to make recommendations to the city council regarding those expenditures. Members of the committee will be appointed to terms of not more than four years by the city council. The independent citizens’ advisory committee shall meet publicly on at least a quarterly basis to review all revenues and expenditures of the transactions and use tax imposed by this chapter, review annual audit reports related to the tax, and make at least one written annual report to the city council at a public meeting summarizing the independent citizens’ advisory committee’s findings and including any appropriate recommendations.

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COUNCIL PRIORITY AREAS

CAPITAL INFRASTRUCTURE IMPROVEMENT
• Properly prioritize capital improvements
• Aggressively pursue various sources of funding
• Continue to develop project readiness

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BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding of where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

Among the information included in this proposed budget are prior year actuals, current fiscal year budget and yearend estimates, and a projection of cost estimates for the next two years, which have been compiled based on known information to date.

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ADMINISTRATION
Administration is the principal link between the City Council, City staff, and the public. The role of the Department is to provide the best public service possible to all involved with the City, whether they are residents, business, staff, or the City Council.

The City’s Administration Department consists of the City Manager, Assistant City Manager, City Clerk, and the Administrative Services Director. The City Manager’s Office is also responsible for the City’s economic development program.

CITY MANAGER
The City Manager‘s role is to leverage available resources, whether fiscal, social, or political, towards uses that maximize benefits to the community. In doing so, the City Manager spurs the organization to accomplish Council goals and leads to a high level of citizen satisfaction by providing strong administrative leadership and fostering successful working relationships between the City Council, the public and the staff.

As the City‘s Chief Executive Officer, the City Manager and staff pursue excellence and professionalism in providing leadership to and management for all departments and services by maintaining transparency, flexibility, clarity, and accountability of the organization to the Council, to the public, and to other agencies. The City Manager is responsible for the enforcement of all laws and City ordinances; appointment of department heads; submission of the annual budget to the City Council and ensure projects are successfully completed to achieve City goals. In addition, the City Manager and staff recommend policies and programs to the City Council based on sound research and advocate Council policy and City interests. A significant portion of the City Manager‘s Office time is spent representing the City in local, regional, and statewide venues.

The City Manager‘s Office will:

• Translate Council policy direction, vision and decisions into reality • Develop the annual operating budget and present it to the City Council for consideration • Execute the programs, projects and activities appropriated in the annual budget • Support the Council‘s policy making role by ensuring that the Council is provided with timely, accurate, and complete information based on sound research
• Drive fiscal performance to exceed citizen expectations • Provide support and guidance to City departments
• Direct evaluation aimed at increasing the responsiveness of government • Direct the development of special programs that are aligned with the priorities established by the community and the City Council
• Hire and develop City department heads and staff and ensure work performance • Coordinate an ambitious range of activities that serve Lakeport residents • Provide leadership in solving community issues and challenges • Negotiate contracts for the City, such as: street maintenance, solid waste, and animal control • Provide legislative analysis, legislative relations, and coordination of National and California League of Cities events and information sharing
• Provide public education and communicate relevant information to the public, City Council and staff about goals, accomplishments, plans and activities
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GOALS
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GOALS (CM CONT’D)

CITY CLERK
The City Clerk is appointed by the City Manger to perform various functions required by the Government Code of the State of California, as well as other duties to provide efficient administration of City services. The Office of the City Clerk has a broad range of responsibilities, including the following:

City Council Support Services
• Prepares City Council Agendas (including internal distribution of agenda packets, which contain all related reports and documents)
• Provides agendas to subscribers via mail and e-mail and uploads agendas on the City's website • Prepares minutes of the City Council meetings
• Provides clerical support to the Mayor and the City Council including correspondence, reservations, expenses, proclamations and certificates
• Conducts recruitment for various City committees and commissions • Coordinates annual City Council Reorganization
• Maintains a database of all commission and committee memberships including: the Parks & Recreation Commission, the Westside Park Committee, the Traffic Safety Advisory Committee, and the ADA Committee. • Facilitates the commission and committee application process for all advisory boards City Administration Support Services
• Provides clerical support to the City Manager
• Processes applications for use of City parks and facilities CITY OF LAKEPORT FISCAL YEAR 2025-26

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• Answers citizen inquiries made by mail, telephone, or in person • Acts as Secretary to the Traffic Safety Advisory Committee and the Oversight Board to the former Lakeport Redevelopment Agency
• Acts as the City’s agent for service of process
• Receives and processes all claims filed against the city • Is responsible for the codification of city ordinances into the municipal code, including quality checks and distribution of the code
• Processes requests under the California Public Records Act Election Services
• Provides prospective City Council members with candidate filing packets • Coordinate with the County of Lake Elections Department to conduct City elections • Administers the filings for all appointed and elected officials identified in the Political Reform Act and the City's Conflict of Interest Code
Records Management Services (Shared with Administrative Services) • Maintain official City records, available in various media • Updates the City of Lakeport Municipal Code
• Track insurance for Council approved projects and agreements • Acts are custodian of records and of the City Seal
• Certifies the accuracy and validity of certain City documents as official records by signature and by affixing the seal of the City of Lakeport
• Develops and maintains the city's records retention schedule to ensure the proper storage, maintenance, and disposal of municipal records city-wide
ADMINISTRATIVE SERVICES – HUMAN RESOURCES
Under the management and general direction of the City Manager‘s Office, the Administrative Services Director plays a major role in creating a collaborative team of City employees and contract staff that provide high quality service to the community. With this being said, the City is committed to maintaining and attracting a talented team of qualified employees.

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Aside from providing the City with talented and motivated employees, the division is responsible for developing and maintaining a high-quality of work life, adhering to equitable and ethical personnel standards, updating and composing job descriptions for City positions, and providing employee development opportunities. Human Resources staff ensures that performance is appropriately rewarded and that employees receive salary and benefits competitive with the marketplace. The mission of Human Resources is to develop a staff and workforce philosophy that embraces the City Council‘s vision, citywide goals and core values in daily decision making.

Ongoing responsibilities include:
• Maintain a classification plan that contains accurate and up-to-date job descriptions for City positions • Work closely with departments to assess staffing needs and coordinate the recruitment and selection process to attract hard working, talented and engaged employees that fit within our culture • Orient new employees, prepare personnel action documentation and maintain employee records in accordance with established regulations
• Ensure that the established salary ranges for City job classes remain competitive with the marketplace • Evaluate and provide training on an effective performance management and employee development program to encourage excellence, provide valuable feedback and opportunities for professional growth and ensure superior performance is recognized and appropriately rewarded • Develop the City‘s workforce by assessing departmental training needs and delivering professional growth opportunities for staff including: skills enhancement training, management and supervisory training, safety training and mandated training
• Administer the City‘s benefit program including contract renewals and maintenance of the contract for the City‘s health insurance and retirement program with the California Public Employees Retirement System • Administer the annual benefits fair
• Provide proactive leadership and clear advice to support departments when employee relations issues arise and provide guidance on personnel policies and regulations • In support of the City culture, maintain a high level of communication, cooperation and understanding among all levels of City staff with regard to Human Resources policies and programs • Review and maintain policies, employee guidelines, procedures and forms necessary to the effective and legal operation of the organization
• Coordinates the worker‘s compensation program and administer a leave of absence program, adhering to federal and state guidelines
• Administer volunteer and student internship program
• Maintain confidential personnel and position control data in the payroll accounting software (Incode) CITY OF LAKEPORT FISCAL YEAR 2025-26

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OUTCOMES/ACCOMPLISHMENTS
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GOALS
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BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department, which includes the City Manager, City Clerk, and Administrative Services (HR). Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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ECONOMIC DEVELOPMENT
The Lakeport City Council and staff understand the importance of Lakeport as a regional economic center and have sought over the years to strengthen and expand the City's role in the economic well-being of the County, in spite of competitive outside forces. There are many factors that come into play and have an impact on the Lakeport economy and thus affect the whole of the County. These factors range from the provision of basic public infrastructure to the adoption and implementation of governmental economic development objectives, policies, and programs to having a sophisticated knowledge of the US/world economy and how Lakeport fits within it.

OUTCOMES/ACCOMPLISHMENTS
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GOALS
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BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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CITY ATTORNEY
The City Attorney is responsible for providing legal advice to the City Council and staff in carrying out their duties in the operations of the City government. The Attorney, or special counsel supervised by the Attorney, defends the City in all legal actions and brings about suits on behalf of the City.

BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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FINANCE & IT
The Finance Department is responsible for the fiscal health of the City as well as the collection and expenditure of funds in accordance with all applicable laws and regulations. This includes managing the processes and recording for day-to-day transactions, providing accurate reporting to the City Council, City Manager and other departments as well as performing high level, broad fiscal analysis of current activities, and evaluating economic trends affecting the local economy. As such, the Department is best viewed as providing two levels of service: internal operations and fiscal analysis and advisory services.

In 2015, the Department incorporated the function of information technology, providing services to City departments to ensure that technology resources function optimally.

From the analysis and advisory perspective, the Finance department is charged with the following roles and tasks:
• Primary advisor to the City Manager and City Council on fiscal and financial matters • Long range financial planning, including forecasting and budgeting • Ongoing investigation and identification of fiscal opportunities such as significant sources of new revenues or expense reductions
• Maintaining training and awareness of Industry Best Practices and identify opportunities for affecting change • Provide leadership in the development and implementation of citywide financial policies • Administer the City‘s Investment and Debt Portfolios
On the internal operations side, the Finance Department performs the following functions:
• General accounting services including recording and reporting transactions in accordance with Generally Accepted Accounting Principles (GAAP)
• Providing timely financial detail and summary reports to City management and the City Council to assist them in managing the activities of their respective departments • Design and implementation of an effective system of internal controls for the purpose of safeguarding the City‘s assets
• Annual budget analysis and document preparation
• Preparation for and management of annual independent fiscal audits • Preparation of the City’s Annual Comprehensive Financial Report (ACFR) in accordance with GAAP and GFOA accounting and financial reporting standards
• Grant compliance and reporting
• Internal auditing of City operations
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• Working with City Management to ensure fees are set at the appropriate levels to ensure the City is justly compensated for services provided
• Management support, which includes not only providing reports to departments but meeting with the various departments to discuss their performance to the budget on a regular basis throughout each fiscal year • Utility billing and customer service operations
• Housing and business loan servicing
• Redevelopment Successor Agency fiscal dissolution administration • Payroll processing
• Providing contract and basic procurement administration • Provide IT services to City staff and departments.

OUTCOMES/ACCOMPLISHMENTS
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GOALS
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BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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COMMUNITY DEVELOPMENT
The Community Development Department is comprised of three divisions: Planning, Building and Housing. The department is responsible for a wide variety of functions including the review and approval of new development projects; building permit applications and inspections; code enforcement and nuisance abatement; and housing support services. The department also carries out activities related to business licensing, including working with new businesses on remodeling and sign issues and the collection of business license fees.

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OUTCOMES/ACCOMPLISHMENTS
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GOALS
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PLANNING
The Planning Division is responsible for implementing policies that direct the physical development of the City. This is accomplished through administration of the City’s development codes and regulations including the Zoning Ordinance; Subdivision Ordinance; local, State and Federal environmental regulations; the Lakeport General Plan; and related ordinances and policies adopted by the City.

Planning staff has responsibility for numerous work priorities, including:
• Answering public inquiries for information related to allowable land uses (zoning), property characteristics, availability of utilities, site history/prior permits, and other related issues. • Processing land use applications such as zoning permits, use permits, lot line adjustments, parcel mergers, architectural and design review, fencing requests, new business signs and commercial painting projects. • Coordination of Planning Commission activities including meeting agendas, public notices, staff reports, meeting minutes, minute orders and other administrative support. • General Plan updates and implementation of General Plan policies and programs. • Code Enforcement & Nuisance Abatement including nuisance vehicle abatement. • Environmental Review and Mitigation Monitoring.
• Development and enforcement of storm water regulations including working with the Lake County Clean Water Program to ensure compliance with State and Federal clean water requirements (NPDES). • Support Lakeport Main Street Association activities including membership in the Association’s Design Subcommittee.
• Maintenance and enhancement of the City’s Geographical Information System (GIS). • Maintenance and enhancement of the Community Development Department’s web pages.

The above activities are produced through the following major functions:

Advance Planning – Taking the lead in advance planning projects that guide development activities in Lakeport toward the community vision desired by the City Council and our residents.

Current Planning – Managing the development application review process effectively and efficiently to process land use applications and implement the City Council‘s vision and policies for urban growth. Current planning also includes answering public inquiries related to land use issues in a timely and thorough manner.

Environmental Review – Providing a full range of services related to complying with local, State and Federal environmental laws. When warranted, additional consultant resources are obtained to augment the Division’s limited staff resources.

General Plan Implementation – Work in conjunction with other City departments to implement the policies and programs set forth in the City‘s General Plan.

Regional Coordination – Providing ongoing representation within regional forums to promote regional coordination and to support Lakeport’s regional interests. Planning staff works with the County of Lake, the Area Planning Council and other groups to further these goals.

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BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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BUILDING
The Building Division is responsible for enforcement of Title 24 of the California Code of Regulations, also referenced as the California Building Standards Code, and is established by state law as a code enforcement agency under the administrative and operational control of the Building Official, who is authorized and directed to administer and enforce all the provisions of the Codes with all the powers of a law enforcement officer.

Additionally, the current Building Official is designated as the Floodplain Administrator and is charged with enforcement of the City’s Floodplain Management Ordinance.

The Building Codes are state laws enacted for the purpose of establishing “the minimum requirements to safeguard the public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to firefighters and first responders during emergency operations”. Numerous additional state laws enforced by the Building Division are contained in various sections of the Health and Safety Code, Government Code, Education Code, Public Resources Code, Code of Civil Procedure, Business and Professions Code, Civil Code and Water Code. Federal Laws enforced include the Americans with Disabilities Act and the Clean Water Act.

The Building Division reviews all applications for permits to ensure that submittals are complete and in compliance with the Codes and local ordinances. State law requires swift processing of permit applications. When necessary to expedite reviewing of plans, or for complex or large project applications, an outside plan-review consultant is occasionally needed. The emphasis is always to keep projects and revenues “in-house” whenever possible. Where appropriate, applications are routed to other city departments and to other agencies, including Environmental Health, the Air Quality Management District, Army Corps of Engineers and Water Resources for approvals.

The Building Official determines and calculates all building permit fee amounts, communicates with Fire Department and School District offices to establish corresponding fees, and determines amounts to be collected for utility expansion fees for sewer and water connections. All City fee amounts are set by the City Council. Historically, Building Division expenditures have typically exceeded revenues as confirmed by the fee study performed by a consultant several years ago. Additional fees enacted by state agencies are collected, reported and forwarded as required.

The Building Division reviews permit applications, drawings and specifications, and, once approved, issues the permits. Inspections of the work are made for compliance with the various codes and with any Planning Division project conditions. Upon completion of a new structure a Certificate of Occupancy is issued. When buildings have not been maintained and/or kept safe for occupancy, the Building Official initiates proceedings to order appropriate action. Records of all permits, drawings, Notices and Orders, and all related activities are maintained and kept in archives. Records of all permitted activities occurring within Special Flood Hazard Areas are maintained for FEMA/DWR review.

Other activities include updating of codes and ordinances, periodic inspections of fire-life safety equipment, responding to tenant / landlord / nuisance complaints, inquiries regarding code interpretation, flood zone determinations, property history, and related information. The Building Division’s use of the City’s GIS system is critical and essential for effective time management.

The Building Official also reviews and inspects City owned properties, reviews all improvement plans for city owned buildings and properties, occasionally prepares drawings and specifications for same, and issues no-fee permits to ensure compliance with codes.

The Building Division / Community Development Department staff continues to administer the City’s Business License Program.

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The state of the Building Division appears to be improving, as shown by latest economic reports and by substantial increases in numbers of permits issued, valuations, and building activity in general. On January 1, 2022, the new edition of Title 24 standards will be effective. The latest revisions should make California’s building regulations less complicated for out-of-state designers and developers, particularly as applied to disabled access laws.

BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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HOUSING
Since its establishment in 1986, the City’s Housing Division has assisted dozens of low income, financially responsible residents with housing rehabilitation activities as well as home buying opportunities for first-time homebuyers.

In 2010 the Division applied for and received a $400,000 CDBG grant for the rehabilitation of dilapidated homes owned by low-income residents. This grant was successfully implemented and nearly all of the funds have been spent. Nine low-income households applied for assistance and were granted low interest, deferred loans for housing rehabilitation projects which included a wide variety of improvements such as weatherization; new roofs; ramps and other access improvements for handicapped residents; handicapped-accessible bathtubs and showers; electrical improvements and removal of electrical hazards; hot water heaters; heating and cooling systems and other improvements.

In 2012 the Division successfully applied for a $700,000 HOME grant which will provide funding for housing rehabilitation projects and a First Time Homebuyers program. Implementation of this grant will begin in 2013.

More recently, in 2022, the City of Lakeport was awarded a $208,650.00 CDBG-PL grant to prioritize the housing needs of our community through the development of a Housing Services Program Implementation Plan. The City plans to develop the following programs as part of this planning activity:

1. Owner Occupied Rehabilitation
o Description: This program aims to improve and rehabilitate owner-occupied homes within the community for qualified members of the community.
o Objectives: Enhance housing quality, safety, and accessibility for homeowners including a focus on elderly.

2. Homebuyer Program
o Description: The Homebuyer Program assists eligible individuals and families in purchasing their homes.
o Objectives: Increase homeownership rates and promote stable housing for income qualified residents.

3. Mobile Home Replacement Program
o Description: This program supports the replacement of aging mobile homes in flood prone areas to a new location with newer, energy-efficient models.
o Objectives: Improve living conditions for mobile home residents and remove units in flood prone areas that create impacts on lower income families.

4. Housing Condition Survey
o Description: Conduct a comprehensive survey of housing conditions within the community. o Objectives: Assess the state of existing housing stock, identify areas for improvement, and inform guideline and policy decisions for the owner-occupied rehabilitation program and homebuyer program.

In the 2025, $12.4 million in grants, through CDBG and PLHA, have been awarded to begin development of a 64- unit affordable housing development at Parkside
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POLICE
At the Lakeport Police Department, we are dedicated to working as a partner with our community and City government to provide a safe environment to live, work, visit, run a business or raise a family. Our City enjoys a very low crime rate and provides an exceptional quality of life. We are very proud to be a part of the team effort that has contributed to that success.

The Department is committed to providing high quality law enforcement services, consistent with professional standards and best police practices, and to protecting and respecting the rights of all citizens. The Department provides 24-hour police services to the Lakeport community. Services include uniformed patrol and traffic enforcement, parking enforcement, criminal investigations, school resource officer services, animal control, property & evidence control, records & support services and community relations & crime prevention.

The Lakeport Police Department focuses efforts on producing the following desired outcomes:
• Order and civility in public places
• Reduction of crime and victimization
• Offenders held accountable
• Efficient and effective use of resources (operational and financial) • Quality service and customer satisfaction
In an ongoing effort to reduce crime and increase public safety, the department uses community policing methods and programs which include Police Volunteers, Neighborhood Watch, DARE program and community outreach through social media, presentations and personal contacts.

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OUTCOMES/ACCOMPLISHMENTS
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GOALS
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PUBLIC WORKS
The Public Works Department is dedicated to maintaining and improving the infrastructure of Lakeport. Our responsibilities include the maintenance and repair of city streets, storm drains, parks, engineering and buildings and grounds. We strive to provide efficient and effective services to enhance the quality of life for our residents, ensuring public safety, managing resources responsibly, and working collaboratively with other city departments and external agencies.

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OUTCOMES/ACCOMPLISHMENTS
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GOALS
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ADMINISTRATION AND COMPLIANCE

BUDGET DETAIL
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ENGINEERING
The City of Lakeport Engineering provides pre-development engineering information to builders and developers (the City maintains an extensive GIS system to map our utilities and infrastructure); develops and maintains standards for public facility installation by developers; reviews and recommends action on proposed subdivisions of land; provides engineering review of developer plans and specifications for public and semi-public improvements including grading, drainage, and streets, as well as inspecting such improvements when installed; and provides engineering design of projects as directed by the City Manager and the City Council. The Department supervises the maintenance of engineering drawings and files for and within the City limits, which are located at City Hall.

The primary functions of the Engineering Department are to:
• Provide various engineering services, surveying services, and technical assistance to the various City departments
• Provide timely engineering review for proposed development projects • Provide engineering review and inspection oversight for projects constructed on public property • Provide floodplain administration, solid waste disposal administration and associated public information services
• Provide consultation regarding city engineering for the City Manager and the City Council

BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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Among the information included in this proposed budget are prior year actuals, current fiscal year budget and yearend estimates, and a projection of cost estimates for the next two years, which have been compiled based on known information to date.

ROADS AND INFRASTRUCTURE
The Roads and Infrastructure Division of Public Works provides for the maintenance and minor construction of all City streets, curbs and gutters, drainage systems and structures, and right-of-way improvements. This includes asphalt overlays and repairs, street signs, pavement markings, culvert maintenance and replacement, and other street related projects. This division also manages construction activities and maintenance of the City’s storm sewer collection system. Additionally, it provides other public service functions, including traffic control devices for parades and other special events, installing decorative or informational signage along City streets, and assisting other City departments with manpower for use in heavy lifting.

BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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PARKS, BUILDINGS AND GROUNDS
The Parks, Buildings, and Grounds Division provides for the operation and maintenance of Library, Xabatin and Westside Community Parks, special use areas, City Hall, and the Police Station. This Division provides administration and supervision of contract providers and park and building maintenance staff for landscaping, grounds, and building maintenance, including electrical and plumbing repairs, vandalism repairs, painting, custodial services, and litter abatement.

BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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Among the information included in this proposed budget are prior year actuals, current fiscal year budget and yearend estimates, and a projection of cost estimates for the next two years, which have been compiled based on known information to date.

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UTILITIES

OUTCOMES/ACCOMPLISHMENTS
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GOALS
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WATER OPERATIONS AND MAINTENANCE
The Water Operations and Maintenance (O&M) Division is responsible for the treatment and delivery of safe, reliable drinking water to the citizens of Lakeport. It provides 24-hour service and support to the public by responding to customer concerns, emergency water breaks/repairs, and ensuring the City has high quality drinking water in adequate supply for firefighting, domestic, and commercial use. The division operates and maintains 4 ground water wells, a surface water treatment facility, and a distribution system to private meters. The division also works with developers and customers on water service issues during project design to ensure water delivery is never in short supply.

The division continuously monitors the quality of the water that it provides to its residents and proudly maintains the distinction of providing the safest, clearest, and best tasting drinking water in Lake County.

Construction is an important activity of the Water O&M Division. The construction crew installs and maintains new and existing water and sewer systems to private property and within dedicated easements throughout the City. The crew works on emergency water breaks when they happen, and schedules the repair or replacement of water distribution deficiencies.

BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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Among the information included in this proposed budget are prior year actuals, current fiscal year budget and yearend estimates, and a projection of cost estimates for the next two years, which have been compiled based on known information to date.

SEWER OPERATIONS & MAINTENANCE
The Sewer Operations and Maintenance (O&M) Division provides collection, treatment, and disposal of sewage in a manner compliant with the health and safety needs of the community and the environment. Delivering this service in the safest, most reliable method possible is the highest concern of the Utilities Department.

The Sewer division provides 24-hour service and support to the public by responding to customer concerns, emergency sewer stoppages, and ensures sewer system functionality. The division operates and maintains eight sewer lift stations, a secondary treatment and disposal facility, and a collection system to the customer’s property line.

The division works with developers and customers on sewer service issues during project design, service installation, and future needs. The division also inspects the collection system for Inflow and Infiltration (I&I) problems that require remediation to restore system capacity.

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BUDGET DETAIL
The operating budget presented here identifies expenditures and revenue sources by the department. Expenditures are detailed by character or function within the department to give the reader a fundamental understanding where resources are planned to be used. Such functions are classified as follows:
• Salaries and benefits, which include salaries and wages of full and part-time employees, healthcare premiums, City retirement contributions, overtime and standby costs, etc. • Operations, including costs associated with day-to-day activities, professional services, insurance costs, and travel and training.
• Debt service, if the department is responsible for any regular payments on bonds, loans, leases, or other long-term obligations. Generally, all debt service is managed in non-departmental. • Housing loans/grants, which typically are found only in the economic and housing divisions of the City Manager’s Office and Community Development Department, respectively. • Capital outlay, which typically identifies any expenditures related to semi-regular purchases, such as computer and technology, office equipment, building improvements, and other items that are capitalized and depreciated.

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ATTACHMENTS

BUDGET RESOLUTION

GANN LIMIT RESOLUTION

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BUDGET RESOLUTION
RESOLUTION NO. XXXX (2025)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAKEPORT, THE SUCCESSOR AGENCY TO THE LAKEPORT

REDEVELOPMENT AGENCY, AND THE BOARD OF THE CITY

OF LAKEPORT MUNICIPAL SEWER DISTRICT
ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2025-26
WHEREAS, the City Council of the City of Lakeport, the Successor Agency to the Lakeport Redevelopment Agency, and Board of the City of Lakeport Municipal Sewer District has reviewed the Annual Budget for the Fiscal Year 2025-26; and
WHEREAS, included in said budget are the necessary estimates of anticipated revenues and assessed evaluations for the properties subject to taxation by the City; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeport hereby adopts the budget for the City of Lakeport, the Successor Agency to the Lakeport Redevelopment Agency, and City of Lakeport Municipal Sewer District, including the recommended personnel schedules found therein, for the fiscal year beginning July 1, 2025, and ending June 30, 2026; and

THIS RESOLUTION was passed by the City Council of the City of Lakeport at a special meeting thereof on the 30th day of June, 2025, by the following vote:

AYES:

NOES:

ABSTAINING:

ABSENT:

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GANN LIMIT RESOLUTION
RESOLUTION NO. XXXX (2025)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT APPROVING THE FISCAL YEAR 2025-26 APPROPRIATIONS LIMIT

FOR THE CITY OF LAKEPORT
WHEREAS, pursuant to California Government Code Section 7910, the City Council must, by resolution, establish its appropriations limit for each fiscal year.

NOW, THEREFORE, BE IT RESOLVED THAT the appropriations limit for the City of Lakeport for the 2025-26 Fiscal Year shall be Seventeen Million, Five Hundred Twenty Thousand, Three Hundred Forty-Six ($17,520,346).

This resolution was adopted by the City Council of the City of Lakeport at a special meeting thereof on the 30th day of June 2025, by the following vote:

AYES:

NOES:

ABSTAINING:

ABSENT:

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GANN LIMIT CALCULATION
Proposition 4, approved by the voters in November 1979, added California Constitution, Article XIIIB. This article limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost‐of‐living and population plus other various adjustments as required. The first year in which appropriations limits applied to state and local governments in California was fiscal year (FY) 1980‐81. The schedule below calculates the 2025-26 Appropriations Limit and compares it to the annual budget:

The City's limitation is calculated every year and is established by resolution of the City Council as part of the Annual Operating Budget. The City's appropriations subject to the Gann Limit totals $6,380,469, which is well below the authorized spending limit of $17,520,346. Additional appropriations to the budget funded by non‐tax sources such as beginning fund balances, grants or service charges are unaffected by the appropriations limit. Historically, the City's Annual Appropriations Limit has exceeded annual appropriations and the City projects the trend to continue.

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APPENDICES

TRANSFERS SCHEDULE

DEBT SCHEDULE

PERSONNEL SCHEDULE

GLOSSARY OF TERMS

ACCOUNTING STRUCTURE

BUDGET POLICIES

FINANCIAL MANAGEMENT POLICIES

BUDGET SCHEDULE

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TRANSFERS SCHEDULE

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DEBT SCHEDULES
For the year ended June 30, 2024 the following are the debt obligations for which the City is responsible for or is acting as a fiduciary to service.

Governmental fund activities:

USDA Police Station Bond
Police Station Bond with USDA Rural Development was issued in June 2017 to assist in the purchase and renovation of a new police station. Total issue $1,095,000. Annual principal and interest payments starting at approximately $45,000, at an interest rate of 2.38%, are due December 1 each year, semiannual interest payments are due June 1 and December 1 each year. Payments are secured by the real property. The obligation matures in the year 2056.

Balance due $ 970,000
Pension Obligation Bonds
On October 20, 2021 the City issued $7,920,000 in taxable Pension Obligation Bonds. Of the proceeds, $1,995,000 was used to refund the existing Pension Obligation Bonds while the remaining proceeds we 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%.

Balance due $ 7,021,687
2018 Series B 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.

Balance due $ 1,110,000
Proprietary (enterprise) fund activities:
2016 USDA Water Revenue Bonds
Water Revenue Bonds were issued with USDA Rural Development was issued in September 2016 to assist completing water infrastructure upgrade projects. Total issue $3,182,000. Annual principal and interest payments at approximately $110,000, at an interest rate of 1.63%, are due August 1, with semiannual interest payments due February 1 and August 1 each year. Payments are secured by water enterprise revenues. The obligation matures in the year 2056.

Balance due $ 2,768,400
Pinnacle Water Loan
Series 2000 COPs bond with USDA Rural Development was refunded in June 2016 and replaced with the 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 $ 1,783,000
2017 CLMSD Sewer District Assessment Bonds
2017-1 Sewer Assessment bonds. Total issue $2,854,000. Annual principal payments of approximately $230,000, at 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 $ 1,9811,000
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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 $ 1,514,000
2017 USDA Wastewater Revenue Bonds
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 $ 3,071,000
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.

Balance due $ 3,095,000
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 $ 5,910,000
Fiduciary activities:
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. Payment are secured by redevelopment tax increment revenue, maturing in year 2034.

Balance due $ 3,265,000
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 2035.

Balance due $ 245,000
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PERSONNEL SCHEDULES

POSITION SUMMARY
Position changes included in the 2025-26 Budget resulted in a net decrease to budgeted positions as follows:

Reclassification changes for Assistant City Manager/Finance Director to Finance Director, Assistant/Associate Planner to Planning Services Manager, and Parks Leadworker to Parks Maintenance Foreman. A reduction in the Financial Services Specialist is the result of effective onboarding efforts to replace a retiring staff member.

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SALARY SCHEDULE
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SALARY SCHEDULE (CONT’D)
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CITY BENEFIT PLANS
The City of Lakeport provides its employees with an excellent and comprehensive benefit program. Listed below is a summary of the City’s benefits for full-time employees.

Employee Benefits:
• Medical – employees pay a small percentage of the medical premium • Dental
• Vision
• Life
• Disability
• Section 125 pre-tax premiums
• Paid Vacation – Vacation leave starts at 80 hours annually, increasing to 200 hours based on time in service
• Paid Sick Leave – Sick leave accrual of 12 days per year • Paid Holiday (Typically 13)
• Paid Bereavement Leave
• Retirement plan through CalPERS
• Employee Assistance Plan (EAP)
• Job Training
• Certification Incentive Program for eligible positions • Uniform allowance for sworn personnel
• P.O.S.T. Certification Pay – 2.5% certificate pay for Intermediate Certificate and 2/5% for Advance Certificate
Employee Funded Supplemental Employee Benefits:
• Aflac
• ID Shield
• Legal Shield
• Valic 457 Deferred Compensation / Retirement Plan
• Nationwide 457 Deferred Compensation / Retirement Plan • Reach Air Lift
• Redwood Credit Union
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California Public Employees Retirement System (CalPERS) Summary The City of Lakeport eligible employees are members of CalPERS Retirement System, which provides generous retirement benefits. The California Public Employees Retirement System (CalPERS) is a defined benefit plan where retirement benefits are based on a formula, rather than contributions and earnings to a savings plan. Retirement benefits are calculated based on a member’s yeas of service credit, age at retirement, and final compensation (average salary for a defined period of employment).

CalPERS Eligibility and Funding
Your eligibility is based on part time or intermittent employment of 1,000 hours of service within a fiscal year.

Membership is mandatory for all those employees who are eligible. CalPERS vesting is 5 years.

CalPERS retirement benefits are funded from three difference sources:

1. Employer contributions

2. Employee contributions

3. Earnings from investment of these funds
Retirement Benefit Classifications and Formulas
While there are many variable in figuring your service retirement benefits, the basic formula is: Credit (years worked) X Benefit factor (percent of year) X Final Compensation (monthly dollars) = pension amount.

Classifications
Classic Miscellaneous Member: 2.5% at 55; which means you can retire at 55 and receive 2.5% X (years of service) X (average of highest 3 years’ salary).

PEPRA Miscellaneous Member: 2% at 62; which means you can retire at 62 and receive 2% X (years of service) X (average of highest t3 years’ service)
Safety Classic Member: 3% at 55; which means you can retire at 55 and receive 3% X (years of service) X (average of highest 3 years’ salary)
Safety PEPRA Member: 2.7% at 57; which means you can retire at 57 and receive 2.7% X (years of service) X (average of highest 3 years’ salary)
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GLOSSARY OF TERMS
Adopted budget
The city council approved annual budget establishing the legal authority for the expenditure of funds as set forth in the appropriation resolution.

Accrual/accrual basis of accounting
A method of accounting that recognizes the financial effect of transactions, events and inter-fund activities when they occur, regardless of the timing of related cash flows.

Annual financial report
A financial report applicable to a single fiscal year.

Appropriation
An authorization made by the city council, which permits officials to incur obligations against and to make expenditures of resources. Appropriations are usually made to fixed amounts and are typically granted for a oneyear period.

Assessed valuation
A valuation set upon real estate or other property by a government as a basis for a tax levy.

Audit
A view of the city accounts by an independent auditing firm to substantiate year-end fund, salaries, reserves and cash on hand.

Beginning/ending fund balance
Appropriated resources available in a fund from the prior/current year after payment of the prior/current year’s Expenses. This is not necessarily cash on hand.

Bond
A city may raise capital by issuing a written promise to pay a specific sum of money, called the face value or principal amount, at a specified date or dates in the future, together with periodic interest at a specified rate.

Budget
A plan of financial operation embodying an estimate of proposed appropriations for a given period of time and the Proposed means of financing them.

Budgetary basis
The method of accounting applied to the budgetary accounts and process.

Budgetary control
The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of appropriations and available resources.

Budget message or budget transmittal letter
A general discussion of the proposed budget as presented in writing by the city manager to the city council. The message contains an explanation of principal budget items and summaries found in the prepared budget relative to the current year adopted budget.

Budgetary basis the form of accounting utilized throughout the budget process.

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C.O.P.

Community oriented policing
Debt service
Payment of interest and repayment of principal to holders of the city’s debt instruments (bonds).

Debt service fund
Governmental fund type used to account for the accumulation of resources for, and the payment of, general longterm debt principal and interest.

Deficit an excess of expenditures or expenses over resources.

Department
An operational and budgetary unit designated by the city council to define and organize city operations.

Depreciation
The portion of the cost of a fixed-asset charged as an expense prorated over the estimated life of the asset.

Encumbrance
An amount of money committed for the payment of goods and services not yet received or paid for. A purchase order is a common encumbrance.

Estimated revenues
The budgeted, projected revenues expected to be realized during the budget (fiscal) year to finance all or part of the Planned expenditures.

Expenditure the actual payment for goods and services.

Expenses
The incurrence of liabilities or the consumption of assets arising from the delivery or production of goods, rendering Services or carrying out other activities that constitute the entity’s ongoing major or central operation. The term applies to the city’s enterprise and internal service funds.

Fiscal year (FY)
A 12-month period of time to which the budget applies. For the city of Lakeport, it is July 1 through June 30.

Fixed asset
A long-lived tangible asset obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include land, buildings, equipment, improvements to other assets and infrastructure (i.e., streets, highways, bridges, etc.).

Full time equivalent (FTE) position
The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year (2,080 hours).

Fund
An accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances and changes therein are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations.

Fund balance
The difference between the assets (revenues and other resources) and liabilities (expenditures incurred or committed to) for a fund. It also represents the accumulated net resources of a fund available for reservation, designation or for appropriation.

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Gann
Refers to the last name of the individual who championed proposition 13 and secured the passage of the constitutional amendment that led to the property tax rollback in the 1970’s.

GASB
Governmental Accounting Standards Board.

Generally accepted accounting principles (GAAP)
Uniform minimum standards and guidelines for accounting and reporting. These standards govern the form and content of the annual financial statements of an entity. The primary authoritative body on the application of GAAP to state and local governments is the governmental accounting standards board (GASB).

General fund
The primary governmental fund used to account for all financial resources, except those required to be accounted for in another fund.

General plan
A comprehensive, long-range policy guide intended to promote efficient and desirable growth in the community.

Governmental funds
Distinguished by their measurement focus on determining financial position and changes in financial position.

Grants
Contributions of gifts or cash or other assets from another government to be used or expended for a specific purpose, activity or facility.

Infrastructure
Facilities that support the continuance and growth of a community. Examples include roads, water lines, sewers, Public buildings, parks and airports.

Interfund transfers
Monies moved from one fund to another. The money is transferred to finance the operations of another fund or to Reimburse the fund for expenses.

Line item
The description of an object of expenditure, i.e. Salaries, supplies, professional services and other operational costs.

Maintenance & operation (M&O) costs
The day-to-day operating and maintenance costs of a municipality. These costs include personnel, gas, electric utility bills, telephone expense, reproduction costs, and postage and vehicle maintenance Modified accrual
An adaptation of the accrual basis of accounting for governmental funds types. Revenues and other financing Resources are recognized when they become available to finance expenditures of the current period. Expenditures are recognized when the fund liability is incurred.

Notes
A paper that acknowledges a debt and promises payment to a specified party of a specific sum, describing a time of maturity that is either definite or will become definite.

Object an individual expenditure account.

Objective
A measurable output that an organization strives to achieve within a designated time frame. The achievement of the Objective advances an organization toward a corresponding goal.

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Operating budget
Plans of current expenditures and the proposed means of financing them. The annual operating budget, as distinguished from the capital program budget, is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled.

Operating deficit the deficiency of operating revenues under expenditures.

Operating expenses
Expenditures for materials, supplies and services which are ordinarily consumed within a fiscal year and which are not included in the program inventories.

Operating surplus
The excess of operating revenues over operating expenditures.

Ordinance
A formal legislative enactment by the city council. It is the full force and effect of law within the city boundaries unless preempted by a higher form of law.

Performance measures
Measurement of service performance indicators that reflect the amount of money spent on services and the resulting outcomes at a specific level of services provided.

Program
A group of related activities performed by one or more organizational units for the purpose of accomplishing a city Responsibility.

Proposed budget
This refers to the status of an annual budget, which has been submitted to the city council by the city manager and is pending public review and city council adoption. Also referred to as the “preliminary budget”.

Reserve
An account used to indicate that a portion of a fund’s balance is legally restricted for a specific purpose and is, therefore, not available for general appropriations.

Resolution
A special order of the city council, which has a lower legal standing than an ordinance.

Resources
Total amounts available for appropriation including estimated revenues, fund transfers and beginning fund balances.

Retained earnings
An equity account reflecting the accumulated earnings of an enterprise or internal service fund.

Revenue
Income received through such sources as taxes, fines, fees, grants or service charges that can be used to finance Operations or capital assets.

Risk management
An organized attempt to protect an organization’s assets against accidental loss in the most cost-effective manner.

Self-insurance
A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or the activity of the agency. It is distinguished from the transfer of risk to a third party (insurance company).

Service effort a measure of expected output by a budgetary program.

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Special revenue funds
A governmental fund type used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditure for specified purposes.

Subventions
Revenues collected by the state (or other level of government), which are allocated to the city on a formula Basis. The major subventions received by the city come from the state of California and include motor vehicle in-lieu and gas tax.

Tax allocation bonds
A bond issued that has a specific tax revenue source that backs the payment of the debt. In the city, these are not Issued for general fund purposes.

Transfer in/out
Movement of resources between two funds. Example: an interfund transfer would include the transfer of operating Resources from the general fund to an enterprise fund.

Transient occupancy tax (TOT)
This revenue source originates in a tax placed on lodging facilities for the occupancy of a room. Lakeport has a 10% tax for such occupancies.

Trust funds
Funds held by the city that are subject to the terms of the trust that created the source of funding.

User charges
The payment of a fee in direct receipt of a public service by the party who benefits from the service.

Workload indicators
Statistical information that indicates the demands for services within a given department or division. Workload indicators are a type of performance measure utilized by departments or divisions to assess its level of service.

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ACCOUNTING STRUCTURE
City Government Services
The City provides the following municipal services directly:
• Building Permit/Plan Approval
• Planning, Zoning and Land Use
• Engineering
• Public Safety (Fire provided by Lakeport Fire Protection District) • Street Maintenance
• Economic Development
• Housing Services
• Water and Sewer Utilities
• Solid Waste Management (Waste collection handled by franchise trash hauler, Lakeport Disposal) Accounting System and Budgetary Control
In developing and evaluating the City’s accounting system, consideration is given to the adequacy of internal accounting controls, managerial reporting, purchasing, and budgetary control. Controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability.

The concept of reasonable assurance recognizes that the cost of a specific control feature should not exceed the benefits likely to be derived and the evaluation of costs and benefits require estimates and judgments by management. The City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Basis of Accounting
The budgets of all governmental fund types are prepared on a modified accrual basis. Under the modified accrual basis, revenue is recognized when it becomes measurable and available. “Measurable” means the amount can be determined and “available” means collectible within the current period or soon enough thereafter to pay current liabilities. This is generally within sixty (60) days after the end of the fiscal year. Expenditures are recognized when the related fund liability is incurred. The budgets of proprietary funds (water and sewer enterprise funds), as well as fiduciary funds (OPEB trust fund), are prepared on an accrual basis. Under this method, revenue is recognized when earned and expenses are recognized at the time the liability is incurred.

GASB 34
Beginning with the fiscal year ending on June 30, 2011, the City implemented the provisions of GASB 34 with the publication of our Annual Financial Report. The Annual Comprehensive Financial Report (ACFR) presents the status of the City’s finances on the basis of Generally Accepted Accounting Principles (GAAP). In most cases, this conforms to the way the City prepares its budget with the following exceptions:
• Compensated absences liabilities that are expected to be liquidated with expendable available financial resources are accrued as earned by employees (GAAP) as opposed to being expended when paid (budget). • Principal payments on long-term debt within the enterprise funds are applied to the outstanding liability on a GAAP basis as opposed to being expended on a budget basis. • Capital outlays within the enterprise funds are recorded as assets on a GAAP basis and expended on a budget basis.

Inventory for governmental activities is recorded as an expenditure at the time it is purchased. For business-type activities, inventory us expensed when used.

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FINANCIAL/BUDGET POLICIES
Policy
The City Manager shall submit a proposed budget to the City Council each year for sufficient time to review and debate the budget before adoption. The proposed budget is balanced either through the matching of ongoing revenues with proposed expenditures or the use of existing reserves.

Budget Basis
The budgets of general government type funds (for example, the general fund or gas tax funds) are prepared on a modified accrual basis. Briefly, this means that obligations of the City are budgeted as expenditures, but revenues are recognized only when measurable and available.

The Annual Comprehensive Financial Report (ACFR) shows the status of the City’s finances on the basis of Generally Accepted Accounting Principles (GAAP). In most cases, this conforms to the way the City prepares the budget.

Responsibility
The departments are responsible for preparing their budgets in accordance with the guidelines provided by the City Manager and Finance Director. The Finance Department provides cost data related to staffing and other committed obligations. Departments provide cost information related to program and capital projects. The Finance Director prepares all revenue, debt service and reserve estimates.

Operating Budget
Ongoing operating costs should be supported by ongoing, stable revenue sources. This protects the City from fluctuating services levels and avoids crises when one-time revenues are reduced or removed. Listed below are some corollaries to this policy:
• Fund balances or contingency accounts should be used only for one-time expenditures, such as capital equipment and capital improvements.
• Ongoing maintenance costs, such as street resurfacing and other infrastructure improvements, should be financed through recurring operating revenues rather than through bond issuance. • Fluctuating federal grants should not be used to fund ongoing programs.

Budget Review
During the budget review phase, the City Manager’s Office, in conjunction with the Finance Department and Human Resources, analyzes new positions, operating and capital budget requests. This information is compiled, and the City Manager and Finance Director hold meetings with each department to review their estimated expenditures for the current fiscal year and the proposed baseline requests and enhancements for the proposed budget year.

At the completion of these meetings, the Finance Director again compiles all the financial data and presents the proposed budget to the City Manager for review.

Budget Adoption
The City Manager presents - via publicly noticed workshops - the budget to the City Council. Public hearings are held, and after modifications and revisions, the budget is adopted by resolution.

Budget Implementation
A budgetary control system is maintained to ensure compliance with the budget. The Finance Department is responsible for setting up the budget for tracking purposes and is charged with ensuring fund availability during the year to cover expenditures and appropriations. Reports comparing the budget with expenditures are generated and sent to departments on a monthly basis.

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Budget Revision
Actual expenditures may not exceed budgeted appropriations at the fund level. The City Manager or his/her designee is authorized to transfer budgeted amounts at the department and object (account) level. The City has the following programs accounted for through its governmental funds: City Council, Administration, City Attorney, Finance, Community Development, Police, Public Works and Non-Departmental. Use of unappropriated reserves must be specifically approved by the City Council.

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FINANCIAL MANAGEMENT POLICIES
General Policies
• All current operating expenditures will be paid for with current revenues, unless the use of reserves is approved by the City Council.
• Budgetary emphasis will focus on providing high quality municipal services, recognizing the fundamental importance to the citizens of public safety and properly maintained infrastructure. • The budget will strive to provide sufficient funding for adequate maintenance and orderly replacement of capital facilities and equipment.
• Future maintenance needs for all new capital facilities will be identified with the inclusion of the capital project. • Encouraging cost savings and promoting efficiencies is an ongoing commitment. • Strong customer service and productivity improvements with a focus on cost savings remain important budgetary goals.

Revenue Policies
• A diversified and stable revenue system will be maintained to shelter the City from temporary or one-time fluctuations in any single revenue source.
• Revenues will be conservatively estimated.
• Intergovernmental assistance in the form of grants and loans will be used to finance only:
o Those capital improvements which can be maintained and operated over time; or o Operating programs that can either be sustained over time or have a limited horizon. • In general, one-time revenues will be used only to support capital or other non-recurring expenditures. Onetime revenues may be used for operating programs only after an examination determines if they are subsidizing an imbalance between operating revenues and expenditures; and then only if a long-term forecast shows that the operating deficit will not continue.
• Development process costs and related administrative expenses will be offset by development fees. • The City will identify basic tax-provided services and will establish user fees and charges for services provided in excess of basic services and/or to non-taxpaying users.

Reserve Policies
• The City is committed to maintaining a prudent level of financial resources to protect against the need to reduce service levels because of temporary revenue shortfalls or unpredicted expenditures. The City’s General Reserve is made up several components as follows:

Operating Reserve – 15% (approximately two months of operating cash) Reserve for Economic Uncertainties and Disaster – 20% (amount is approximately $1,000,000) Total General Reserve – 35%
• Balances are reflected as a percentage of annual operating expenditures. Budgeted use of General Reserve components must be approved by the Council. If balances should fall below the amounts above, any amount of revenue above expenditures or surplus will be used first to replenish general fund reserves to required levels in the priority listed above. If reserve levels are met surplus amount will be considered for additional reserve funding or other discretionary purposes. Under no circumstances should the general reserve balance drop below the operating reserve amount of 15%The City Council has discretion on budgeting the use of fund balances which exceed the calculated general fund reserve.

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• The General Fund is primarily responsible for improving and maintaining the City’s local streets and roads.

Cost estimates to bring the city-wide Pavement Management Index score to 100 are $50 million. From timeto-time road improvement and maintenance projects get postponed as a result of unforeseen circumstances or rising costs. Road improvement and maintenance projects are expensive and oftentimes exceed the City’s ability to budget will current resources in a single year. The RIMF would allow for resources previously budgeted for road improvement and maintenance projects to be accumulated and expended specifically to benefit the City’s road improvement and maintenance fund. Contributions to the RIMF will be equal to the difference between budgeted one-time road department expenditures and actual one-time road department expenditures for a given fiscal year. RIMF funds may be used towards improving and maintaining City local streets and roads.
• Upon the issuance of a Pension Obligation Bond (POB) a Pension and OPEB Reserve Fund (PORF) will be established in the amount of $600,000 initially. This amount represents approximately the annual contribution amounts for unfunded OPEB and Pension Liabilities.
• In the event that multiple fund balance types are available for an expenditure, the expenditure will be made from the most restricted resource available at the time. Implementation of this policy requires Restricted funds to be expended before Committed Funds and Committed Funds to be expended before Assigned Funds.

Unassigned funds should, therefore, only be used when all other available resources have been exhausted. • For purposes of this policy the City maintains two Operating and Maintenance Funds for Water and Wastewater. Unique to these funds is the responsibility to quickly repair the water and wastewater infrastructure in the event of a failure.
• The City is committed to maintaining a prudent level of financial resources to protect against the need to reduce service levels because of temporary revenue shortfalls or unpredicted expenditures. The City’s Water and Wastewater Enterprise Reserves are made up several components as follows:

Operating Reserve – 33% (approximately 120 days of operating cash) Reserve for unexpected infrastructure failure – 25%
Reserve for Economic Uncertainties and Distaster – 20% (amount is approximately $400,000)
Unfunded Liability Reserve – 12% (approximately the annual contribution amounts for unfunded OPEB and Pension Liabilities)
Total Enterprise Reserve – 90%
• Balances are reflected as a percentage of annual operating expenditures. Budgeted use of Enterprise Reserves must be approved by the Council. If balances should fall below the amounts above any amount of revenue above expenditures or surplus will be used first to replenish reserves to required levels in the priority listed above. If reserve levels are met surplus amount will be considered for one-time expenditures. Under no circumstances should the enterprise reserve balance drop below the operating reserve amount of 33%. • For more information regarding reserve policy see “Reserve and Pension Policy”.

Cash Management
• Investments and cash management will be the responsibility of the Finance Director. • In accordance with Section 53646 of the Government Code, the City Council will review and update annually an investment policy. The primary purpose of this policy is to set forth the City’s investment philosophy and objectives. The City’s investment objectives are, in order of priority: safety; compliance with federal, state and local laws; liquidity; and yield. The policy also specifically outlines authorized investments, the maximum maturities allowed for each investment instrument, and the criteria used to determine qualified depositories and/or dealers.
• The City invests all idle cash as determined by analysis of anticipated cash flow needs. Specific emphasis will be placed on future cash requirements when selecting maturity dates to avoid forced liquidations and the potential corresponding loss of investment earnings.
• In order to maximize yields from the overall portfolio, the City will consolidate cash balances from all funds for investment purposes, and will allocate investment earnings to each fund that has a positive cash balance.

CITY OF LAKEPORT FISCAL YEAR 2025-26

ANNUAL BUDGET
ADOPTED Page | 163

• The City will maintain the investment portfolio under the “Prudent Person Standard.” The “Prudent Person Standard” is as follows: Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The investment officer, acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for the credit risk of an individual security or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments. • To protect against potential losses by collapse of individual securities and/or dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third party bank trust department, acting as the City’s agent. • The Finance Director will generate a quarterly report to the City Council in accordance with all state laws and City investment policy requirements.

Debt Policy
• It is the intent of the City of Lakeport to issue debt in a manner that adheres to state and federal laws, existing bond covenants and prudent financial management.
• The General Fund currently does not have any general obligation bonds and does not anticipate issuing such debt.
• When the City finances capital projects by issuing bonds, it will pay back the bonds within a period that is consistent with the useful life of the project.
• The City will not use long-term debt financing for any recurring purpose such as current operating and maintenance expenditures. Short-term debt instruments such as revenue tax or bond anticipation notes shall be excluded from this limitation.
• The City will generally conduct debt financing on a competitive basis. However, negotiated issues may be used due to market volatility or the use of an unusual or complex financing or security structure. • The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations.
• The City will operate under the provisions of Proposition 13, the California Constitutional Amendment that limits the incurrence of “general obligation” debt. To incur this debt, the City must receive a two-thirds (2/3) vote of the voters at a general election.
• For more information regarding debt policy see “Debt Management Policy”.

CITY OF LAKEPORT FISCAL YEAR 2025-26

ANNUAL BUDGET
ADOPTED Page | 164

Cost Allocation
• The City may establish internal service funds. These funds would be utilized to accumulate resources for specified needs and to fund those needs as they arise via transfers in and out to/from the General Fund. • Allocable costs which benefit multiple departments or funds are direct budgeted and charged to the applicable department or fund. Percentage of payroll is a commonly used method of allocation.

Risk Management
• The City maintains a comprehensive risk assessment program and annual hazard survey to identify areas that may pose liability issues.
• The City has a policy of vigorously defending claims filed against the City of Lakeport and continues to maintain an excellent loss history.

Annual Audit
• Sound accounting practices dictate that the performance of an annual audit is a prudent business decision.

It promotes accountability, transparency, and compliance with the adopted budget and the will of the citizens of Lakeport.
• The City requires an annual audit of the books of account, financial records, inventories and reports of all City officers and employees involved in the handling of financial matters by a qualified independent auditor. • The independent auditing firm will be selected by the City based on a competitive proposal process. It is the policy of the City that the most qualified firm is selected and therefore the “lowest cost” approach is not the defining method of selecting an auditing firm.
• The City shall issue a Request for Proposal for audit services at least every five years.

CITY OF LAKEPORT FISCAL YEAR 2025-26

ANNUAL BUDGET
ADOPTED Page | 165

BUDGET SCHEDULE
Meeting Date: 06/30/2025 Page 1 Agenda Item # IV.

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

STAFF REPORT
RE: Gann (Appropriations) Limit Review and Resolution Establishing the Fiscal Year 2025-26 Appropriations Limit
MEETING DATE: 6/30/2025
SUBMITTED BY: Danielle Dizon, Finance 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 review and approve the annual appropriations limit for the City of Lakeport and adopt the associated resolution.

BACKGROUND/DISCUSSION:

The Gann Spending Limitation Initiative (Article XIII B of the California Constitution) adopted as Proposition 4 in June 1979 (and subsequently modified by Proposition 111 in June 1990) requires the City to annually adopt a resolution setting an “appropriation limit” for the upcoming fiscal year. The Gann Spending Limitation was intended to provide citizen control of government spending and taxation. The City’s Fiscal Year 2025-26 Budget was approved by the City Council on June 30, 2025.

California Government Code, Section 7910 (a) "each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit and make other necessary determinations for the following fiscal year pursuant to Article XIII B of the California Constitution at a regularly scheduled meeting or noticed special meeting ...."
California Constitution, Article XIIIB. Sec. 1 "The total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.

Meeting Date: 06/30/2025 Page 2 Agenda Item # IV.

The Gann Spending Limitation calculation is attached. This calculation used population and per capita personal income statistics provided by the California Department of Finance. The establishment of the Fiscal Year 2025- 26 Appropriations Limit ("Gann Limit") is necessary to comply with Article XIIIB of the State Constitution. The Gann Limit limits the amount of revenue classified as proceeds of taxes that can be appropriated in any fiscal year by a government entity. Certain exclusions are allowed including transfers, capital outlay and payments for debt service. The maximum allowable appropriation of revenues subject to limitations for Fiscal Year 2025-26 is $17,520,346 and the FY 2025-26 Budget with the exclusions, referenced above, is within this limit. This maximum amount increases or decreases each year depending on the percentage change in the per capita personal income (6.44%) and the percentage change in population (-0.85%). The California Department of Finance provides these estimates. For Fiscal Year 2025-26 the budgeted revenues subject to limitation total $6,380,469, which is 36.42% of the maximum allowed.

OPTIONS:

1. Review and approve the annual appropriations limit for the City of Lakeport and adopt the associated resolution.

2. Provide alternative direction.

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
SUGGESTED MOTIONS:

Move to approve the annual appropriations limit for the City of Lakeport and adopt the associated resolution. ☒ Attachments: 1. Resolution Gann Appropriations Limit

2. Gann Limit Calculation
Resolution No. (2025) Page 1
RESOLUTION NO. XXXX (2025)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT APPROVING THE FISCAL YEAR 2025-26 APPROPRIATIONS LIMIT

FOR THE CITY OF LAKEPORT
WHEREAS, pursuant to California Government Code Section 7910, the City Council must, by resolution, establish its appropriations limit for each fiscal year.

This resolution was adopted by the City Council of the City of Lakeport at a special meeting thereof on the 30th day of June 2025, by the following vote:

AYES:

NOES:

ABSTAINING:

ABSENT:
______________________________
KIM COSTA, Mayor
ATTEST:
_____________________________
KELLY BUENDIA, City Clerk
Gann Limit Calculation
FY 2025-26
Per Capita Cost of Living Change = 6.44 percent
Population Change (City) = -0.85 percent
Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100
Population converted to a ratio: -0.85 + 100 = 0.9915
100
Calculation of factor for FY 2025-26: 1.0644 x 0.9915 = 1.0554 Appropriations Limit, Fiscal Year 2024-25 $ 16,601,415
Appropriations Limit, Fiscal Year 2025-26 $ 17,520,346
FY 2025-26 appropriations subject to Gann Limit
Budget Estimates
$ 1,364,100
4,040,000
375,369
165,000
351,000
85,000
$ 6,380,469

36.42%
Business License Taxes
Percentage Use of Appropriations Limit
FISCAL YEAR 2025-26
Property Taxes
Sales Taxes
Special Taxes
State Subventions
Franchise Taxes
City of Lakeport
Finance Department S:\Finance\!Budget\2025-26\Recommended 2025-26\Budget Book 2025-26

Lakeport City CouncilJune 30, 2025

Lakeport City Council
June 30, 2025