Mendocino‐Lake Community College District ‐ GO Bonds 4.85% $ 3,846,145 Lakeport Unified School District ‐ GO Bonds 41.35% 6,412,883 2004 Tax Allocation Bonds, Series B 100% 165,000 Successor Agency to the Redevelopment Agency of the
City of Lakeport ‐ Series 2016 Tax Allocation Refunding Bonds 100% 3,095,000 Sewer District Improvement Bonds 2017‐1 100% 1,630,000 Total overlapping tax and assessment debt $ 15,149,028 Direct General Fund Debt:
USDA Police Station Bond 100% 950,000
City of Lakeport Municipal Financing Authority Lease Revenue Bonds 100% 1,062,924 City of Lakeport Pension Obligation Bonds 100% 6,608,007 Total direct general fund debt 8,620,931
Combined total debt $ 23,769,959 (1)
Ratios to 2024‐2025 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.21%
Total Combined Debt 3.47%
Source: City Finance Department
Note: The overlapping debt statement presents the debt for all jurisdictions with territory overlapping the City. Debt of overlapping jurisdictions is allocated based upon the assessed value of that jurisdiction within the City as compared to total assessed value for that jurisdiction.
City of Lakeport, California
Direct and Overlapping Debt
Fiscal year ended June 30, 2025
(In thousands)
(1) Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue bonds. 151
2016 2017 2018 2019
Assessed value 470,168 $ 469,707 $ 492,407 $ 510,180 $ Conversion percentage 25% 25% 25% 25%
Adjusted assessed value 117,542 117,427 123,102 127,545 Debt limit percentage 15% 15% 15% 15%
Debt limit 17,631 17,614 18,465 19,132 Total net debt applicable to limit 2,802 1,882 2,631 3,652 Legal debt margin 15,749 $ 14,812 $ 15,834 $ 15,480 $ Total net debt applicable to the limit
as a percentage of debt limit 11% 16% 14% 19%
Source: City Finance Department
City of Lakeport, California
Legal Debt Margin Information
Fiscal year ended June 30 (last ten fiscal ye
(In thousands)
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed secured tax valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981‐82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 152
2020 2021 2022 2023 2024 2025
$ 570,657 534,966 $ 593,306 $ 623,946 $ 663,102 $ 663,102 $ 25% 25% 25% 25% 25% 25%
142,664 133,742 148,327 155,987 165,776 165,776 15% 15% 15% 15% 15% 15%
21,400 20,061 22,249 23,398 24,866 24,866 3,337 3,516 9,962 9,523 9,073 8,621 $ 18,062 16,545 $ 12,287 $ 13,875 $ 13,875 $ 16,245 $ 18% 16% 45% 41% 36% 35%
153
Personal Income Per Capita Unemployment
Year Population (1) (in thousands) (2) Personal Income (2) Rate (%) (3) 2016 4,765 2,456,491 38,227 6.7% (4) 2017 4,786 2,533,898 39,652 6.4% (4) 2018 4,699 2,662,533 40,911 5.0% (4) 2019 4,699 2,741,990 42,632 4.9% (4) 2020 4,677 2,849,642 44,259 11.7% (4) 2021 4,774 3,039,822 47,144 7.4% (4) 2022 4,999 3,226,342 46,918 4.4% (4) 2023 5,008 3,111,067 45,623 5.6% (4) 2024 4,982 3,303,953 48,198 5.1% (4) 2025 5,026 3,436,111 50,126 7.0% (4) Sources:
(1) California Department of Finance
(2) U.S. Department of Commerce Bureau of Economic Analysis (3) Bureau of Labor Statistics
(4) State of California Employment Development Department Labor Market Information City of Lakeport, California
Demographic and Economic Statistics
Last ten calendar years
Note: Information presented is for the Lake County Region, except for population and unemployment data, since separate data is not available for the City of Lakeport.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Average Unemployment Rate
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Per Capita Personal Income
4,000
4,500
5,000
5,500
6,000
Population
154
Percent of Top 10 Percent of Top 10
Employer Employees Rank Employment (%) Employees Rank Employment (%) County of Lake 1,098 1 26.6% 843 1 24.2%
Adventist Health St. Helena 523 2 12.6% 370 2 10.6%
Konocti Unified School District 583 3 14.1% 349 4 10.0% Sutter Lakeside Hospital 432 4 10.4% 359 3 10.3%
Lake County Tribal Health 335 5 8.1% 0.0%
Calpine Corp. 271 6 6.6% 283 6 8.1%
Safeway 267 7 6.5%
Kelseyville Unified School Distirct 257 8 6.2% 209 10 6.0% Robinson Rancheria Resort & Casino 188 9 4.5% 325 5 9.3% Middletown Unified School District 181 10 4.4%
Wal‐Mart 252 8 7.2%
Harbin Hot Springs 235 9 6.7%
Twin Pine Casino 261 7 7.5%
Total 4,135 100.0% 3,486 100.0%
Source: Lake County Marketing Program
Note: Information presented is for the Lake County Region, Major Lake County Employers, since separate data is not available for the City of Lakeport.
City of Lakeport, California
Principal Employers
Current and Ten Years Ago
2024‐25 2014‐15
155
Fiscal year ended June 30 (last ten calendar years)
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 6 8 9 9 9 9 10 9 9 10.5
Public safety 4 12 15 15 15 15 15 15 15 15
Public works (non‐utilities) 22 11 10 10 10 11 12 13 13 12 Parks and recreation 422222 2333
Utilities 13 7 8 8 8 9 9 10 10 10
Community development 8 4 5 5 5 5 6 5 5 5.5
Total 57 44 49 49 49 51 54 55 55 56
Source: City Finance Department
City of Lakeport, California
Full‐time and Part‐time City Employees by Function
General
government
16%
Public safety
27%
Public works
(non‐utilities)
24%
Parks and
recreation
6%
Utilities
18%
Community
development
9%
Full‐time and Part‐time City Employees by
Function 2024
156
City of Lakeport, California
Capital Asset Statistics by Function
Fiscal year ended June 30 (last ten fiscal years)
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police :
Stations 1111111111
Public works:
Streets (miles) 30 30 30 30 30 30 30 30 30 30
Streetlights 221 221 221 221 221 221 221 221 221 221
Parks and recreation:
Parks 4444555566
Pools 1111100000
Community centers 0001111111
Water:
Treatment facilities 2222222222
Sewer:
Pump stations 9999999999
Source: City Finance Department
Sources: City Police, Community Development, and Public Works departments 157
City of Lakeport, California
Capital Asset Statistics
Fiscal year ended June 30 (last ten fiscal years)
(In thousands)
2016 2017 2018
Governmental activities:
Land 1,653 $ 1,653 $ 1,653 $
Construction‐in‐progress 452 452 369 Buildings and structures 5,240 5,240 5,588 Improvements/CIP 4,776 4,776 7,428 Equipment and vehicles 1,621 1,621 1,998 Infrastructure/underground facilities ‐ ‐ ‐ Total 13,742 13,742 17,036
Accumulated depreciation:
Buildings and structures 1,403 1,403 1,675 Improvements/CIP 1,201 1,201 1,518 Equipment and vehicles 1,390 1,390 1,547 Infrastructure/underground facilities ‐ ‐ ‐ Total 3,994 3,994 4,740
Total governmental net capital assets $ 9,748 9,748 $ 12,296 $ Business‐type activities:
Land 2,475 $ 2,475 $ 2,475 $
Construction‐in‐progress 6,342 6,342 568 Buildings and structures 1,852 1,852 9,955 Improvements/CIP 27,101 27,101 27,950 Equipment and vehicles 1,474 1,474 1,609 Total 39,244 39,244 42,557
Accumulated depreciation:
Buildings and structures 716 716 992 Improvements/CIP 15,468 15,468 17,022 Equipment and vehicles 694 694 872 Total 16,878 16,878 18,886
Total business‐type net capital assets $ 22,366 22,366 $ 23,671 $ Source: City Finance Department
158
2019 2020 2021 2022 2023 2024 2025
$ 2,498 1,769 $ 2,498 $ 2,498 $ 2,498 $ 2,498 $ 2,498 $ 270 16 698 2,008 5,819 ‐ 111 6,500 6,500 6,766 6,766 6,766 13,134 13,556 10,048 7,612 10,600 10,600 10,600 12,520 12,520 2,313 2,243 2,604 2,726 2,804 2,991 2,510 ‐ ‐ ‐ ‐ ‐ ‐ 225 21,629 18,140 23,166 24,598 28,488 31,143 31,420 2,017 1,846 2,196 2,376 2,556 2,735 2,936 1,973 1,714 2,249 2,524 2,798 3,073 3,475 1,775 1,656 1,924 2,098 2,242 2,409 2,093 ‐ ‐ ‐ ‐ ‐ ‐ 43 5,765 5,216 6,369 6,998 7,595 8,217 8,547 $ 15,864 12,924 $ 16,797 $ 17,600 $ 20,892 $ 22,926 $ 22,873 $ $ 2,475 2,475 $ 2,475 $ 2,475 $ 2,475 $ 2,475 $ 2,475 $ 131 1,821 131 131 131 131 6,995 9,955 9,955 9,955 9,955 9,955 9,955 9,955 32,269 28,518 32,338 32,338 32,338 32,338 32,338 2,159 1,999 2,159 2,254 2,525 2,588 2,722 46,989 43,078 47,058 47,153 47,425 47,487 54,485 1,552 1,231 1,791 2,030 2,270 2,509 2,748 18,725 17,817 19,635 20,543 21,450 22,354 23,259 1,137 1,008 1,266 1,394 1,554 1,722 1,904 21,414 20,056 22,692 23,967 25,273 26,585 27,911 $ 25,575 23,022 $ 24,366 $ 23,186 $ 22,152 $ 20,902 $ 26,574 $ 159
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160
CITY OF LAKEPORT
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND
COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2025
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
January 30, 2026
City Council
City of Lakeport
Lakeport, California
We have audited the basic financial statements of the City of Lakeport (City) as of and for the year, ended June 30, 2025, and have issued our report thereon dated January 30, 2026. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated January 27, 2025, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are no required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.
During the year ended June 30, 2025, the City adopted GASB Statement No. 101, Compensated Absences, which did not have a material effect on the financial statements. There have been no other initial selections of accounting policies and no changes in significant accounting policies or their application during the year. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions or (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”), net pension liability, and net OPEB liability.
Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g., infrastructure) as well as industry standards, when applicable (i.e., buildings). Pension plan and OPEB plan liabilities are valued based upon actuarial assumptions as developed by the City’s plan providers. These assumptions and estimates can result in material changes to liabilities and corresponding deferred inflows and outflows on a year-to-year basis. We evaluated the key factors and assumptions used to develop the useful lives, pension plan liabilities, and OPEB plan liabilities and determined that they are reasonable in relation to the basic financial statements taken as a whole according to industry standards.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated January 30, 2026.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.
Communication of Internal Control Related Matters
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
]ÉáxÑ{ ] TÜv{?VcT
JOSEPH J ARCH, CPA
President/CEO
JJACPA, INC
CITY OF LAKEPORT
Over /00 years of community
pride. progress and service.
Janua1y 30, 2026
JJACPA, Inc.
7080 Donlon Way, Suite 204
Dublin, CA 94568
This representation letter is provided in connection with your audit of the financial statements of the City of Lakeport (City), which comprise the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows for the year then ended, and the disclosures (collectively, the "financial statements"), for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items are considered to be material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors.
We confum, to the best of our knowledge and belief, as of Januaiy 30, 2026, the following representations made to you during your audit.
Financial Statements
I) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated January 27, 2025, including our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S.
GAAP and for preparation of the supplementary information in accordance with the applicable criteria. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material 111 isstatement, whether due to f r
aud or
error.
4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
5) The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in accordance with U.S. GAAP. 6) Related party relationships and transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties have been appropriately accounted for and disclosed in accordance with U.S. GAAP. 7) We identified no unrecorded misstatements in the financial statements. 8) Guarantees, whether written or oral, under which the City is contingently liable, if any, have been properly recorded or disclosed.
225 PARK STREET•LAKEPORT, CALIFORNIA 95453•TELEPHONE (707) 263-5615•FAX (707) 263-8584
CITY OF LAKEPORT, CALIFORNIA
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2025
City of Lakeport, California
Single Audit Reports
For the year ended June 30, 2025
Table of Contents
Page(s)
Schedule of Expenditures of Federal Awards ....................................................................................... 1 Notes to Schedule of Expenditures of Federal Awards ......................................................................... 2 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With
Government Auditing Standards .................................................................................................. 3-4 Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................ 5-7 Schedule of Findings and Questioned Costs ..................................................................................... 8-9 City of Lakeport, California
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2025
1 Pass-through
Federal Entity
Federal Grantor/Pass-through CFDA Identification Federal Grantor/Program or Cluster Title Number Number Expenditures U.S. Department of Housing and Urban Development
Pass through programs from:
State of California Department of Housing and
Community Development
Community Development Block Grant 14.228 21-DRMHP-21005 47,733 $ Community Development Block Grant 14.228 21-CDBG-ED-10009 386,688 Community Development Block Grant 14.228 22-CDBG-PL-20037 12,603 Community Development Block Grant 14.228 20-CDBG-CV2-3-00359 439,3 54 Community Development Block Grant - Program Income 14.228 N/A 105, 925 Total for Community Development Block Grant 992,303
Home Investment Partnerships Program - Program Income 14.239 N/A 3 ,500 Total U.S. Department of Housing and Urban Development 995,803 U.S. Department of Homeland Security
Pass through program from:
California Governor's Office of Emergency Services
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 033-39710 23,074 Total U.S. Department of Homeland Security 23,074
U.S. Department of Transportation
Pass through porgram from:
State of California Department of Transportation
Public Transportation Emergency Relief Program 20.527 ER-40A0 (047) 45,362 Total U.S. Department of Transportation 45,362
U.S. Department of the Treasury
Direct Program:
Coronavirus State and Local Fiscal Recovery Funds 21.027 1,145,97 5 Total U.S. Department of the Treasury 1,145,975
Total Federal Expenditures $ 2,210,214
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this supplementary information.
City of Lakeport, California
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2025
2 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City of Lakeport, California (City) under programs of the federal government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit requirements for Federal Awards (Uniform Guidance).
Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for the governmental funds and the accrual basis of accounting for the proprietary funds. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
3. INDIRECT COST ELECTION
The City has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
Independent Auditor’s Report
The Honorable City Council
City of Lakeport
Lakeport, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Lakeport, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 30, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
]]TVcT? \ÇvA
January 30, 2026 JJACPA, Inc.
Dublin, CA
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT
ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED
BY THE UNIFORM GUIDANCE
Independent Auditor’s Report
The Honorable City Council
City of Lakeport
Lakeport, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Lakeport’s (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements.
We issued our report thereon, dated January 30, 2026, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
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January 30, 2026 JJACPA, Inc.
City of Lakeport, California
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
8 Section I – Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
21.027 Coronavirus State and Local Fiscal Recovery Funds
14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii
Dollar threshold used to distinguish
between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? No
City of Lakeport, California
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2025
9 Section II – Financial Statement Findings
No matters were reported.
Section III – Federal Award Findings and Questioned Costs No matters were reported.
Section IV – Status of Prior Year Audit Findings
No prior year audit findings
Section V – Corrective Action Plan
There were neither current year findings nor questioned costs (see Section III above).
Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.C.2.
CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☒
Lakeport Industrial Development Authority ☒
Municipal Financing Agency of Lakeport ☒
Successor Agency to the Lakeport Redevelopment Agency ☒
STAFF REPORT
RE: Mid-Year Budget Adjustments, FY 2025-26 MEETING DATE: 03/03/2026 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 requested to review and approve the proposed budget amendments presented in this staff report and detailed in Attachment 1.
BACKGROUND/DISCUSSION:
Pursuant to City policy, budgetary control is maintained at the fund level. Total expenditures within any given fund may not exceed the amount appropriated by the City Council for that fiscal year unless the Council formally approves an increase in the fund’s appropriation.
Consistent with this policy and established practice, the City Manager is authorized to administer and manage expenditures within an adopted fund appropriation. While total fund appropriations may not be exceeded without Council action, the City Manager may adjust appropriations between major expenditure categories— such as salaries and benefits, operations, capital improvements, and debt service—to address operational needs. As a matter of transparency, material adjustments between these major expenditure categories are reported to the City Council.
The adopted Fiscal Year 2025–26 budget organizes expenditures into “characters,” which are summarized groupings of accounts sharing a common purpose. The City budgets its departments within four primary expenditure characters: salaries and benefits, operations, capital improvements (CIP), and debt service. This structure provides clarity at a policy level by allowing the Council to evaluate how resources are allocated in support of City priorities, rather than focusing solely on line-item detail.
The annual budget process begins with the identification of policy goals and operational priorities established by the City Council and executive management. The City Manager incorporates this direction and instructs department leadership to develop expenditure requests based on projected service levels and program needs.
Concurrently, the Finance Department prepares revenue estimates for all major operating funds to determine available financial capacity. The City Manager then works collaboratively with executive management to develop a balanced spending plan, which is presented to the City Council for review and adoption. Upon Council approval, the adopted budget provides the legal spending authority necessary to implement the authorized programs and activities.
Because the adopted budget is developed using revenue and expenditure estimates, adjustments are often necessary during the fiscal year to reflect changing conditions. Revenue projections may be refined, operational priorities may shift, and unforeseen circumstances may require reallocation of resources. Budget amendments Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.C.2.
serve to realign appropriations with current conditions while maintaining adherence to Council policy and fiscal controls.
All budget adjustments are tracked by the Finance Department. Significant amendments are presented to the City Council as they arise, although most adjustments are consolidated and presented during the mid-year budget review process for administrative efficiency. As of December 31, 2025, the only formal budget amendment processed by either the City Manager or the City Council during Fiscal Year 2025–26 was the transfer and appropriation of funds for the Tenth Street drainage improvements project.
OPTIONS:
1. Approve the budget amendment, as recommended by staff.
2. Do not approve and provide direction to staff.
FISCAL IMPACT:
☐ None ☒ $251,555 Budgeted Item? ☐Yes ☒ No
Budget Adjustment Needed? ☒Yes ☐ No If yes, amount of appropriation increase: $251,555 Affected fund(s): ☒ General Fund ☒ Water OM Fund ☒ Sewer OM Fund ☒ Other: Successor Agency Fund Comments: The proposed adjustments maintain the balance between financing sources and financing uses that was previously adopted with the FY 2025/2026 budget on June 30, 2025.
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 proposed budget amendments to the fiscal year 2025/2026 budget, as recommended by staff.
☒ Attachments: 1. Fund Dept Summary of proposed adjustments
2. Detail of Adjustments
Budget Schedule A - Fund Level
Unaudited Beginning Estimated
Fund Balance Ending
After Approved Fund Balance
Fund Name Adjustments Revenue Appropriations Net Effect Amended 110 General fund 1,372,715 201,555 201,555 - 1,372,715
501 Water O&M fund 2,697,961 40,000 40,000 - 2,697,961
601 Sewer O&M fund 3,265,167 10,000 10,000 - 3,265,167
Net Increase (Decrease) $ 251,555 $ 251,555 $ -
(1) Net effect represents the increase or (decrease) of fund balance/working capital.
Increase (Decrease)
Budget Schedule B - Department Level
Salaries
and Loans/ Debt Capital
Department No. Benefits Operations Grants Service Outlay Total City Council 1010 $ 500 $ 500
Administration 1020 3,470 3,470
City Attorney 1030 -
Finance and IT 1041 15,337 19,760 35,097
Community Development:
Planning 1050 -
Building 1051 -
Housing 1053 -
Economic Development 1054 -
Engineering 1052 -
Police 2010 (148,710) 48,269 93,000 (7,441)
Public Works:
Administration and Compliance 3010 -
Streets and Infrastructure 3020 32,249 12,500 44,749
Parks, Buildings & Grounds 3030 68,610 11,000 79,610
Solid Waste Management 3040 -
Utilities/Enterprise:
Water 3060 (85,000) (3,280) 43,850 (44,430)
Sewer 3070 (75,000) (75,000)
Non-Departmental 0000 215,000 215,000
Total $ (260,624) $ 351,829 $ - $ - $ 160,350 $ 251,555 Appropriations Adjustment Summary
Summary of Changes
FY 2025/2026
Fund Fund Balance Reserve Canc Revenue Total Sources Expenses Reserve Inc Total Uses Variance 110 $ - $ - $ 201,555.00 $ 201,555.00 $ 201,555.00 $ - $ 201,555.00 $ - 501 $ - $ - $ 40,000.00 $ 40,000.00 $ 40,000.00 $ - $ 40,000.00 $ - 601 $ - $ - $ 10,000.00 $ 10,000.00 $ 10,000.00 $ - $ 10,000.00 $ - $ 251,555.00 $ 251,555.00
Financing Sources Financing Uses
Detail of Changes to Financing Sources
FY 2025/2026
Fund Account Original Budget Requested Budget Change - Inc/(Dec) Summary of Change 110 700008 - Trans Use Tax Measure Z $ 1,675,000.00 $ 1,695,000.00 $ 20,000.00 Increasing sales tax trend 110 700013 - Trans Use Tax Measure I $ 835,000.00 $ 846,000.00 $ 11,000.00 Increasing sales tax trend 110 730301 - Building Permits $ 95,000.00 $ 120,000.00 $ 25,000.00 Increased Building permits in 25/26 110 730305 - Strong Motion (Bldg Permit) $ 1,500.00 $ 3,500.00 $ 2,000.00 Increased Building permits in 25/26 110 750501 - Interest Earnings $ 80,000.00 $ 164,000.00 $ 84,000.00 Increasing trend of interest earnings on investments 110 760001 - Interagency Grants $ 100,000.00 $ - $ (100,000.00) Remove USDA Police Vehicle Grant - not awarded in 25/26 110 760001 - Interagency Grants $ - $ 15,000.00 $ 15,000.00 Inc for Dist 4 discretionary funds from D4 Supervisor 110 760001 - Interagency Grants $ 15,000.00 $ 27,500.00 $ 12,500.00 Inc for Blue Zones grant - ADA sidewalk ramp at Lakeport Elementary 110 780835 - Fireworks Surcharge $ 5,000.00 $ 8,391.00 $ 3,391.00 Increasing revenue trend 110 780841 - Other Law Enf Grant $ 10,000.00 $ 65,000.00 $ 55,000.00 Opioid Settlement funds 110 780844 - Insurance Claim Proceeds $ - $ 73,664.00 $ 73,664.00 Insurance Claim to replace PD Vehicle 110 GENERAL FUND $ 2,816,500.00 $ 3,018,055.00 $ 201,555.00 Net Change from Recommended Budget 501 750501 - Interest Earnings $ - $ 40,000.00 $ 40,000.00 Interest earnings are trending upwards with newly reinvested CDs 501 WATER FUND $ - $ 40,000.00 $ 40,000.00 Net Change from Recommended Budget 601 750501 - Interest Earnings $ 30,000.00 $ 40,000.00 $ 10,000.00 Interest earnings are trending upwards with newly reinvested CDs 601 SEWER FUND $ 30,000.00 $ 40,000.00 $ 10,000.00 Net Change from Recommended Budget Detail of Changes to Financing Uses
FY 2025/2026
Fund Account Original Budget Requested Budget Change - Inc/(Dec) Summary of Change 110 0000-922001 - Bank Merchant Fees $ 60,000.00 $ 120,000.00 $ 60,000.00 Increased cost of banking fees related to credit card acceptance 110 0000-930000 - Professional/Cont Svcs $ - $ 3,000.00 $ 3,000.00 Haz Mit plan (MOU w/County and Clearlake) 110 1041-911000 - Fringe Benefits $ 44,663.00 $ 60,000.00 $ 15,337.00 Inc cost of benefit plan 110 1041-921002 - IT Services/Web Security $ 14,000.00 $ 20,000.00 $ 6,000.00 Technology projects/cloud conversion 110 1041-924000 - Office Supplies $ 700.00 $ 1,000.00 $ 300.00 Inc cost of supplies 110 2010-910000 - Regular Emp Salaries $ 1,399,000.00 $ 1,199,000.00 $ (200,000.00) Salary per finalized MOU, and savings due to turnover 110 2010-911000 - Fringe Benefits $ 654,552.00 $ 604,552.00 $ (50,000.00) Savings from vacant positions 110 2010-912000 - Part Time Employee $ - $ 40,500.00 $ 40,500.00 PT employee to aid during vacancies and transitions 110 2010-914000 - Uniform Allowance $ 9,810.00 $ 15,600.00 $ 5,790.00 Increased uniform allowance per MOU 110 2010-915000 - Overtime Pay $ 45,000.00 $ 100,000.00 $ 55,000.00 Increased OT needed to cover vacancies 110 2010-920000 - Electricity and Propane $ 15,600.00 $ 11,000.00 $ (4,600.00) Electricity savings from solar project 110 2010-921001 - Internet Services $ 6,223.00 $ 8,723.00 $ 2,500.00 Prior year unbilled amount 110 2010-926000 - Vehicle Maintenance $ 12,675.00 $ 28,675.00 $ 16,000.00 Unforeseen recall notices and other large repairs 110 2010-930000 - Professional/Cont Svcs $ 315,631.00 $ 350,000.00 $ 34,369.00 Unanticipated invoices for prior year body cam costs and Flock cameras 110 2010-983000 - Automobiles and Trucks $ - $ 93,000.00 $ 93,000.00 Replace PD pursuit vehicle after total loss collision (ins + salvage) 110 3020-910000 - Regular Salaries $ 204,172.00 $ 234,000.00 $ 29,828.00 Error in original budget estimate 110 3020-911000 - Fringe Benefits $ 65,579.00 $ 68,000.00 $ 2,421.00 Error in original budget estimate 110 3020-990320 - ADA $ 1.00 $ 12,501.00 $ 12,500.00 Blue Zones grant - ADA sidewalk ramp at Lakeport Elementary 110 3030-920000 - Electricity and Propane $ 45,000.00 $ 70,000.00 $ 25,000.00 Increased PG&E costs 110 3030-925000 - Gasoline and Oil $ 5,000.00 $ 7,000.00 $ 2,000.00 Increased fuel costs 110 3030-928000 - Special Dept Supplies $ 50,000.00 $ 80,000.00 $ 30,000.00 Xabatin snack shack (D4 Discretionary funds) & Top soil/seeding 110 3030-930000 - Professional/Cont Svcs $ 58,390.00 $ 70,000.00 $ 11,610.00 Increased need for various professional services 110 3030-970000 - Other Equipment $ 15,000.00 $ 26,000.00 $ 11,000.00 Replace EV Charging Station (+5 year support) 110 GENERAL FUND $ 3,020,996.00 $ 3,222,551.00 $ 201,555.00 Net Change from Recommended Budget Detail of Changes to Financing Uses
FY 2025/2026
501 922001 - Bank Merchant Fees $ 14,000.00 $ 90,000.00 $ 76,000.00 Increased cost of banking fees related to credit card acceptance 501 1020-980004 Computer & Tech $ - $ 1,700.00 $ 1,700.00 Replacement PC 501 1041-921002 - IT Services/Web Security $ 10,500.00 $ 15,000.00 $ 4,500.00 Technology projects/cloud conversion 501 1041-923000 - Postage $ 9,860.00 $ 11,000.00 $ 1,140.00 Increased cost of postage 501 1041-933000 - Training & Development $ 2,010.00 $ 3,100.00 $ 1,090.00 Unanticipated rate study training in Orlando, FL 501 3060-910000 - Regular Emp Salaries $ 560,000.00 $ 475,000.00 $ (85,000.00) Overestimated original budget 501 3060-924000 - Office Supplies $ 1,600.00 $ 2,500.00 $ 900.00 Increase in cost 501 3060-928000 - Special Dept Supplies $ 30,000.00 $ 52,000.00 $ 22,000.00 Increase in cost 501 3060-928002 - Underground Materials $ 35,000.00 $ 13,000.00 $ (22,000.00) Move to Special dept supplies 501 3060-980000 - Office Equip & Furnishing $ 11,500.00 $ 9,810.00 $ (1,690.00) Savings from equip purchase 501 3060-983000 - Automobiles & Trucks $ 40,001.00 $ 37,511.00 $ (2,490.00) Savings from truck purchase 501 3060-990000 - Land, Structure & Imp $ 985,000.00 $ 1,028,850.00 $ 43,850.00 Include retention amount for water main project, inadvertently excluded in original budget 501 WATER $ 1,699,471.00 $ 1,739,471.00 $ 40,000.00 Net Change from Recommended Budget 601 922001 - Bank Merchant Fees $ 14,000.00 $ 90,000.00 $ 76,000.00 Increased cost of banking fees related to credit card acceptance 601 1010-911000 Fringe Benefits $ 14,800.00 $ 15,300.00 $ 500.00 Underestimated beneifts with original budget 601 1020-980004 Computer & Tech $ - $ 1,770.00 $ 1,770.00 Replacement PC 601 1041-921002 - IT Services/Web Security $ 10,500.00 $ 15,000.00 $ 4,500.00 Technology projects/cloud conversion 601 1041-923000 - Postage $ 9,860.00 $ 11,000.00 $ 1,140.00 Increased cost of postage 601 1041-933000 - Training & Development $ 2,010.00 $ 3,100.00 $ 1,090.00 Unanticipated rate study training for Fin Director in Orlando, FL 601 3070-910000 - Regular Emp Salaries $ 550,000.00 $ 475,000.00 $ (75,000.00) Overestimated original budget 601 SEWER $ 601,170.00 $ 611,170.00 $ 10,000.00 Net Change from Recommended Budget