Agenda packet — Lakeport City Council, March 3, 2026 (part 1 of 2)

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To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 3:30 p.m. on Tuesday, March 3, 2026.

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

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AGENDA

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

DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING AGENCY OF LAKEPORT, THE LAKEPORT GROUNDWATER SUSTAINABLITY AGENCY and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT

REDEVELOPMENT AGENCY)
Tuesday, March 3, 2026 6:00 p.m.

City Council Chambers, 225 Park Street, Lakeport, California 95453 See Teleconferencing Instructions Below
City Council Agenda of March 3, 2026 Page 2
AGENDA

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

LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING

AGENCY OF LAKEPORT, LAKEPORT GROUNDWATER SUSTAINABILITY AUTHORITY and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)*
Tuesday, March 3, 2026, 6:00 p.m.

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

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

II. PLEDGE OF ALLEGIANCE:

III. ACCEPTANCE OF AGENDA/ URGENCY
ITEMS:

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

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

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

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

B. Minutes: Approve minutes of the City Council regular meeting of February 17, 2026.

C. Application 2026-011: Approve application 2026-011, with staff recommendations, for the 2026 Missing and Murdered Indigenous Peoples Day event.

D. 2nd Quarter Update, FY 2025/26: Review and file the 2nd Quarter 25/26 Financial Update E. CDBG Notice of Funding
Availability (NOFA):

Adopt the resolution of the City Council of the City of Lakeport approving application for 2025 State CDBG funding and authorize execution of related documents.

F. Master Salary Schedule Update: Approve a Resolution rescinding Resolution 3021 (2026), approving a 12% increase to the Police Officer Trainee classification, and revising the Master Salary Schedule in conformance with California Code of Regulations, Title 2, Section 570.5.

G. Contract Amendment: City
Attorney:

Approve Amendment No. 2 to the Agreement for Legal Services with Colantuono, Highsmith & Whatley, PC, designating Mackenzie D. Anderson as City Attorney and David J. Ruderman as Assistant City Attorney, and direct the City Clerk to administer the Oath of Office to Mackenzie D. Anderson.

V. PUBLIC PRESENTATIONS/REQUESTS:

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

B. Proclamation: Proclamation designating March 2026 as National Nutrition Month.

C. Presentation: Presentation on the Lakeport Fire Protection District Canine Ops.

D. Public Official Appointment: City Clerk to administer the Oath of Office to newly appointed City Attorney, Mackenzie Anderson.

City Council Agenda of March 3, 2026 Page 3
VI. PUBLIC HEARING:

VII. COUNCIL BUSINESS:

A. City Manager

1. Letters of Support for
Lakeport Fire Protection
District FY27 Senate
Appropriations Earmark
Requests – New Fire
Station Land Acquisition:

Authorize the Mayor to sign letters of support for the Lakeport Fire Protection District’s FY27 Senate Appropriations Earmark requests supporting land acquisition for a future replacement fire station at 440 North Main Street.

2. FY 2026 Community
Project Funding
Partnership for the South
Lakeport Regional Water
Resiliency & Fire
Protection Project:

Adopt a resolution supporting submission of the South Lakeport Regional Water Resiliency & Fire Protection Project for consideration under the Fiscal Year 2026 Congressional Community Project Funding request process.

3. MOU: Tobacco Retail
License
Approve the Memorandum of Understanding between the City of Lakeport and the County of Lake Public Health Department for administration and enforcement of the Tobacco Retail License Program pursuant to Section 5.40.170 of the Lakeport Municipal Code.

B. Planning Services Manager

1. Housing Element Annual
Progress Report:

Review the 2025 Housing Element Annual Progress Report.

2. General Plan Annual
Progress Report:

Review the 2025 General Plan Annual Progress Report.

C. Finance Director

1. Annual Comprehensive
Financial Review (ACFR):

Accept and file the ACFR for the fiscal year ended June 30, 2025.

2. Mid-Year Budget
Adjustments, FY 2025-26:

Approve the proposed budget amendments to the fiscal year 2025/2026 budget, as recommended by staff.

VIII. CITY COUNCIL COMMUNICATIONS:

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

IX. ADJOURNMENT:

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

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

City Council Agenda of March 3, 2026 Page 4
_______________________________________
Hilary Britton, Deputy City Clerk
City Council Minutes of February 17, 2026 Page 2

MINUTES

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

LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING

AGENCY OF LAKEPORT, LAKEPORT GROUNDWATER SUSTAINABILITY AUTHORITY and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)*
Tuesday, February 17, 2026, 6:00 p.m.

I. CALL TO ORDER & ROLL CALL: Mayor Disney called the meeting to order at 6:00 p.m. with Council Members Disney, Mattina, Parlet and Price present. Council Member Costa was absent.

II. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Lieutenant Ryan Cooley and Sergeant Shaun Johnson.

III. ACCEPTANCE OF AGENDA/ URGENCY
ITEMS:

A motion was made by Council Member Mattina, seconded by Council Member Parlet, and unanimously carried by voice vote 4-0-0-1 to accept the agenda as posted.

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

B. Minutes: Approve minutes of the City Council regular meeting of February 3, 2026.

C. Application 2026-009: Approve application 2026-009, with staff recommendations, for the 2026 Sutter Health & Wellness Expo.

D. Application 2026-010: Approve application 2026-010, with staff recommendations, for the 2026 Lakeport Camp & Shine car show.

E. Utilities Master Plan: Approve the 2025 Water & Sewer Master Plan Updates as presented for final acceptance.

F. Second Reading: Commercial
Cannabis Ordinance Amendments:

Adopt the proposed Ordinance amending Sections 5.34.020 (“Definitions”) and

5.34.090 (“Commercial Cannabis Performance Standards”) of Chapter 5.34 (“Commercial Cannabis”) of Title 5 (“Business Taxes, Licenses and Regulations”) of the Lakeport Municipal Code to allow limited temporary cannabis events at the Lake County Fairgrounds, as presented; and further find that the proposed ordinance is in the public interest, consistent with the Lakeport General Plan, will not be detrimental to the public health, safety, and welfare, and is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Sections 15301 and 15061(b)(3).

Vote on Consent Agenda: A motion was made by Council Member Parlet, seconded by Council Member Mattina, and unanimously carried by voice vote 4-0-0-1 to approve the Consent Agenda, items A-F.

V. PUBLIC PRESENTATIONS/REQUESTS:

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

B. Presentation: Police Chief Stoebe announced staff promotion of Ryan Cooley from Sergeant to Lieutenant and the promotion of Shaun Johnson from Police Officer to Sergeant. He City Council Minutes of February 17, 2026 Page 3
further shared that Shaun Johnson was selected as Lakeport Police Department Officer of the Year, as nominated by his peers.

VI. PUBLIC HEARING:

A. Annual Public Hearing Review of
Employee Vacancy Rates in
Conformance with AB2561 (GC
§3502.3):

Administrative Services Director Buendia presented the annual AB2561 Report on Employee Vacancy Rates.

Mayor Disney opened the public hearing. With no input from the public, Mayor Disney closed the hearing.

VII. COUNCIL BUSINESS:

A. Administrative Services Director

1. Lakeport Fire Protection
District Board
Appointment:

The staff report was presented by Administrative Services Director Buendia.

Fire Chief Reitz stated that Mr. Szupello was interviewed in the past by the Fire Board.

Joseph Szupello addressed the Council, expressing his desire to serve on the Fire Board.

A motion was made by Council Member Mattina, seconded by Council Member Parlet, and unanimously carried by voice vote 4-0-0-1 to appoint Joseph Szupello to the Lakeport Fire Protection District effective February 17, 2026 and expiring December 31, 2026.

B. Police Chief

1. Annual Crime & Use of
Force Statistics:

The staff report was presented by Police Chief Stoebe.

A motion was made by Council Member Parlet, seconded by Council Member Mattina, and unanimously carried by voice vote 4-0-0-1 to receive and file reports on Police Statistics, Training, and Use of Force Analysis for 2025.

VIII. CITY COUNCIL COMMUNICATIONS:

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

Community Development Director Hejnowicz had no report.

Police Chief Stoebe had no report.

Finance Director Dizon reported that she will be attending the California Society of Municipal Finance Officer’s (CSMFO) annual conference next week.

Utilities Director Harris had no report.

Administrative Services Director Buendia reminded the Council that the annual Form 700’s are due April 1, 2026.

Public Works Director Ladd reported that Public Works and Utilities staff have been preparing for the upcoming storm. He also updated the progress on some on-going projects such as the ADA upgrades at Lange and Giselman, pedestrian improvements at 10th and main, and the equipment upgrades at the Xabatin Snack Shack.

Planning Services Manager Fernandez had no report.

Assistant City Attorney Anderson had no report.

City Manager Ingram attended the City Manager’s conference last week, and a big topic of discussion there was the erosion of civility in municipal interactions.

Council Member Costa was absent.

City Council Minutes of February 17, 2026 Page 4
Council Member Parlet commented that the relative civility of the City’s Council meetings is a tribute to the culture that has been established among the Lakeport City Council Members.

Council Member Price had no report.

Mayor Pro Tem Mattina reported that she had been elected Chair of the Lake Area Planning Council (APC) at their meeting last week. The Lake County Transit Authority (LTA) also met and she reported that Transportation Concepts, which took over the transit contract, have settled in and have been doing well in hiring bus drivers.

Mayor Disney met with the Clear Lake High School Student Council to discuss municipal government. He also attended the Lake County Chamber of Commerce’s first Young Professionals Network meeting.

IX. ADJOURNMENT: Mayor Disney adjourned the meeting at 7:14 p.m. _______________________________________
Brandon Disney, Mayor
Attest:
__________________________________
Kelly Buendia, City Clerk
02/09/2026 2026-011
Council Meeting: 03/03/2026
Snack Shack to use as a changing room
225 Park Street
Lakeport, CA 95453

CITY OF LAKEPORT
Please Note:

Bounce Houses and Waterslides are prohibited
Phone: (707) 263-5615
Fax: (707) 263-8584

APPLICATION FOR USE OF LIBRARY PARK GAZEBO AND FACILITIES This section to be completed by City:

Application Received(Date): D $15.00 Application Fee Paid Application No.

This section to be completed by Applicant (please answer all questions):

Applicant Name: Darnell Aparicio I Organization Name: Lake County Tribal Health Consortium Address:
925 Bevins Court Lakeport, CA 95453
Home Phone: (707263-8382 Ext. 1623 I Work Phone: (707)533-3044 I Mobile Phone: (707)533-3044 Email Address: [email protected]
Facility Requested:

Iii Gazebo Iii Fifth Street Boat Ramp D Third Street Boat Ramp Iii Parking Iii Xabatin Community Park Amphitheatre Description of Event Proposed:

National Missing and Murdered Indigenous People Day
Date of Event: May 1st, 2026 Set Up Time: 7:00 !!I AM PM Time of Event: p',c>O r(AM PM
Tear Down Time: 6:00 AM !!I PM
Specify anticipated number of people (both participants and the public): 1 500 '
Requirements: *Coordination of these requirements must be made through the Public Works Department: (707) 263-0751 Iii Electricity (not guaranteed by the City)
!!ii No water in park prior to event
□ Other (please specify):
***It should be clearly understood that approval of your event does not convey exclusive use of the Park or the boat ramps and that there may be other events occurring in the Park or on the lake at the time of your event*** USE OF ALCOHOL: Is a permit for alcoholic beverages requested? D Yes i!I No If you have checked yes, you must obtain a signed permit from the Lakeport Police Department and attach it to this application. This will allow for consumption of alcoholic beverages in connection with the event but will NOT allow for the SALE of alcoholic beverages. If alcoholic beverages are going to be sold or included with the price of any ticket or admission to the event, then the applicant is required to obtain a one-day license from the California Department of Alcoholic Beverage Control. This one-day permit would be required in addition to a permit by the Lakeport Police Department.

INSURANCE INFORMATION (Applies only to Public Events &Fishing Tournaments) The minimum coverage amount required is $2,000,000.

The insurance certificate provided to the City by your organization's insurance company must name the City of Lakeport as an additional insured and must include a copy of any endorsements, including Waiver of Subrogation. The insurance provided to the City shall be primary to, and non-contributory with any insurance or self-insurance program maintained by the City.

HOLD HARM LESS AGREEMENT: In consideration of allowing the event(s) specified in this application, and to the fullest extent permitted by law, I/ we agree to indemnify and hold harmless the City of Lakeport and its agents and "employees" from and against any injury, damage, claims, actions or suits arising out of the herein described Event, including those caused by negligence of the parties being indemnified and/or any dangerous condition of property of the parties being indemnified, and further agrees to defend and indemnify the City of Lakeport from and against any injury, damage, claims, actions or suits arising out of or connected with the foregoing event(s).

Darnell Aparicio OiQitaly~byDamellAparido
Dale: 202&..Q1.06 16:58:57 --08'00' 2/6/2026

SIGNATURE OF APPLICANT DATE
Legend
~ Vendors + Food Trucks
~ PopUp Vendors
c:::Jxabatin Park structures
CJ Play Areas
t~~ ~] Xabatin Park Lawn Areas
Applicant requests the use of
the Snack Shack as a
changing room.

Xabatin
Community Park
Map Prepared by City of Lakeport
Public Works Department
[email protected]

5.22.2024

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Meeting Date: 3/3/2026 Page 1 Agenda Item # IV.D.

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

STAFF REPORT
RE: 2nd Quarter Update, 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 being asked to review and file the 2nd Quarter 25/26 Financial Update.

BACKGROUND/DISCUSSION:

Financial Update
Attachment A to this staff report includes summarized unaudited financial statements for the general fund, water operating and maintenance fund, and the sewer operating and maintenance fund, which include revenue and expense activity through December 31, 2025. The format in which the statements are prepared is similar to the annual budget. The schedule includes amounts available for discretionary spending for each fund anticipated to be presented in the 2025-26 audited financial statements, in accordance with Generally Accepted Accounting Principles (GAAP), as well as the amounts of anticipated ending discretionary spending expected to be available at the 2025-26 year-end. In the enterprise funds, the term “working capital” is defined as current assets minus current liabilities. For budgeting purposes, the modified accrual method is used and this is common practice among governmental agencies. Working capital is the enterprise funds equivalent of the general funds amounts available for discretionary spending.

In accordance with GAAP, financial statements in the Annual Comprehensive Financial Report (ACFR) are presented in two distinctly different ways, (1) the governmental fund financial statements and (2) government wide and enterprise fund financial statements. Governmental fund financial statements present balances using a current financial resources measurement focus which emphasizes the current available spendable resources available for appropriation. This method of accounting is known as modified accrual. Government wide and enterprise fund financial statements are presented on a flow of economic resources measurement focus which reports all assets and liabilities whether current or long term. This method is referred to as accrual accounting and is similar to the type of presentation that is used in private industry.

Meeting Date: 3/3/2026 Page 2 Agenda Item # IV.D.

Investments
According to the idle funds investment policy for the City of Lakeport, the City of Lakeport Municipal Sewer District (CLMSD) and Municipal Financing Agency of Lakeport (MFAL), quarterly updates are to be provided to the City Council for review.

This schedule provides detailed information on each individual CD as of December 31, 2025:

This schedule provides balances and concentration percentages of the City-wide cash and investment balances as of December 31, 2025:

OPTIONS:

1. Review and file the 2nd Quarter Financial Update.

2. Do not review and file but provide direction to staff.

Meeting Date: 3/3/2026 Page 3 Agenda Item # IV.D.

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:

NONE.
☒ Attachments: 1. Summarized unaudited financial statements for the general fund, water operating and maintenance fund and the sewer operating and maintenance fund.

Fund: 110
Name: General Fund
2025-26 2025-26
Adjusted Budget As of December
30, 2025 Remaining $ % Collected/Used
Taxes $ 5,714,400 $ 2,255,808 $ 3,458,592 39%
Franchises 351,000 10,285 340,715 3%
Licenses 300 70 230 23%
Permits 117,000 165,889 (48,889) 142%
Fines, forfeitures, and penalties 8,900 4,377 4,523 49% Use of money and property 140,000 28,473 111,527 20%
Income from other agencies 179,000 620 178,380 0%
Federal funding 1,500 1,120 380 75%
State funding 152,500 70,126 82,374 46%
Charges for service 118,500 775,359 (656,859) 654%
Other revenue 49,300 176,049 (126,749) 357%
Total revenue 6,832,400 3,488,176 3,344,224 51%
4,173,276 1,907,172 2,266,104 46%
2,500,089 921,613 1,578,476 37%
210,414 99,522 110,892 47%
Total expenditures 6,883,779 2,928,307 3,955,472 43%
Use of fund balance - -
45,000 -
(639,853) -
Net sources (uses) (594,853) -
Resources - Use
Surplus (deficit) $ (646,232) $ 559,869
Beginning General Fund Balance 6,791,513 6,791,513
Nonspendable (289,481) (289,481)
Restricted (24,462) (24,462)
Operating Reserve (990,465) (990,465)
Reserve for Economic Uncertainties (1,320,619) (1,320,619) VERF (177,735) (177,735)
RIMF (284,509) (284,509)
PORF (1,068,337) (1,068,337)
Compensated Absences (427,848) (427,848)
Beginning Discretionary General Fund Balance 2,208,057 2,208,057 Inflows 6,877,400 3,488,176
Outflows 7,523,632 2,928,307
(646,232) 559,869
Anticipated Ending Discretionary General Fund Balance $ 1,561,825 $ 2,767,926 Adjusted Budget As of December
30, 2025
Non-Departmental 1,001,853 66,159 935,694 7%
Legislative 132,188 43,531 88,657 33%
Administration 454,534 188,842 265,692 42%
Economic Development 121,500 22,764 98,736 19%
City Attorney 57,000 28,195 28,805 49%
Finance and Information Technology 428,032 216,336 211,696 51% Community Development:

Planning 514,012 156,104 357,908 30%
Building 428,184 196,176 232,008 46%
Engineering 189,118 82,670 106,448 44%
Police 2,956,871 1,345,760 1,611,111 46%
Public Works:

Administration and Compliance 140,112 62,897 77,215 45% Roads and Infrastructure 596,066 281,567 314,499 47%
Parks, Buildings, and Grounds 504,162 237,306 266,856 47% Total use 7,523,632 2,928,307 4,595,325 39%
Departmental Use
Expenditures
Change to fund balance
Fiscal Year 2025-26
Financing Sources (Uses)
Transfers in
Transfers (out)
Revenue Sources
Salaries and benefits
Operations
Capital outlay/CIP
Fund: 501
Name: Water Utility M & O Fund
2025-26 2025-26
Adjusted Budget As of December
30, 2025 Remaining $ % Collected/Used
Charges for service 3,005,000 1,301,697 1,703,303 43%
Interfund services provided 120,000 - 120,000 0%
Total revenue 3,125,000 1,301,697 1,823,303 42%
-
1,511,618 693,675 817,943 46%
869,649 375,481 494,168 43%
Debt service 756,454 392,871 363,583 52%
1,172,161 1,084,702 87,459 93%
Total expenditures 4,309,882 2,546,729 1,763,153 59%
-
Net sources (uses) - - -
Resources - Use -
Surplus (deficit) (1,184,882) (1,245,032)
Beginning Working Capital 6,782,156 6,782,156
Inflows 3,125,000 1,301,697
Outflows 4,309,882 2,546,729
Change to fund balance (1,184,882) (1,245,032)
Anticipated Ending Working Capital $ 5,597,274 $ 5,537,124 Adjusted Budget As of December
30, 2025
Non-Departmental 826,454 430,577 395,877 52%
Legislative 19,200 9,726 9,474 51%
Administration 149,226 71,909 77,317 48%
City Attorney 28,000 18,743 9,257 67%
Finance and Information Technology 345,455 182,746 162,709 53% Community Development: -
Planning 27,900 26,256 1,644 94%
Building 36,815 17,756 19,059 48%
Engineering 74,000 43,671 30,329 59%
Public Works: -
Administration and Compliance 216,871 99,052 117,819 46% Water O&M 2,585,961 1,646,293 939,668 64%
Total use 4,309,882 2,546,729 1,763,153 59%
Departmental Use
Financing Sources (Uses)
Fiscal Year 2025-26
Revenue Sources
Expenditures
Salaries and benefits
Operations
Capital outlay/CIP
Fund: 601
Name: Sewer Utility M & O Fund
2025-26 2025-26
Adjusted Budget As of December
30, 2025 Remaining $ % Collected/Used
Taxes $ 55,050 $ - $ 55,050 0%
Use of money and property 52,500 5,000 47,500 10%
Charges for service 3,250,000 1,350,469 1,899,531 42%
Interfund services provided 18,000 - 18,000 0%
Total revenue 3,375,550 1,355,470 2,020,080 40%
1,503,372 685,947 817,425 46%
1,426,653 511,281 915,372 36%
Debt service 695,674 464,621 231,053 67%
1,194,660 873,006 321,654 73%
Total expenditures 4,820,359 2,534,855 2,285,504 53%
Net sources (uses) - -
Resources - Use
Surplus (deficit) (1,444,809) (1,179,385)
Audited Beginning Working Capital 5,933,190 5,933,190
Inflows 3,375,550 1,355,470
Outflows 4,820,359 2,534,855
Change to fund balance (1,444,809) (1,179,385)
Anticipated Ending Working Capital $ 4,488,381 $ 4,753,805 Adjusted Budget As of December
30, 2025
Non-Departmental 765,674 502,328 263,346 66%
Legislative 19,000 9,726 9,274 51%
Administration 149,680 71,812 77,868 48%
City Attorney 28,000 18,743 9,257 67%
Finance and Information Technology 339,355 180,230 159,125 53% Community Development:

Planning 27,900 26,256 1,644 94%
Building 36,815 17,757 19,058 48%
Engineering 74,000 43,671 30,329 59%
Public Works:

Administration and Compliance 216,871 99,049 117,822 46% Sewer O&M 3,163,064 1,565,283 1,597,781 49%
Total use 4,820,359 2,534,855 2,285,504 53%
Fiscal Year 2025-26
Revenue Sources
Departmental Use
Financing Sources (Uses)
Expenditures
Salaries and benefits
Operations
Capital outlay/CIP
Meeting Date: 03/03/2026 Page 1 Agenda Item # IV.E.

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

STAFF REPORT
RE: Adoption of Resolution Approving Application for 2025 State CDBG Funding and Authorize Execution of Related Documents MEETING DATE: 03/03/2026
SUBMITTED BY: Joey Hejnowicz, Community Development Director PURPOSE OF REPORT: ☐Information only ☐ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to adopt a resolution approving the submission of one or more applications for funding under the 2025 State Community Development Block Grant (CDBG) Program, approving the use of Program Income, and authorize designated City officials to execute all required documents and agreements with the California Department of Housing and Community Development (HCD).

BACKGROUND
The California Department of Housing and Community Development (HCD) administers the State Community Development Block Grant (CDBG) Program, which provides funding to eligible local jurisdictions for activities that principally benefit low- and moderate-income persons, prevent or eliminate slums and blight, or address urgent community development needs.

In response to the 2025 CDBG Notice of Funding Availability (NOFA), the City of Lakeport is preparing to submit one or more applications for CDBG funding. As required by HCD, the City Council must adopt a resolution approving the application(s), authorizing designated officials to execute application and grant documents, and acknowledge compliance with applicable public participation requirements.

PROJECT DESCRIPTION / PROPOSED ACTIVITIES
The proposed CDBG application(s) request funding in an aggregate amount not to exceed $1,500,000, to support the following eligible activities:
• Business Loan Program: $1,400,000.00
Funds will be used to support economic development activities through a business loan program intended to create or retain jobs benefiting low- and moderate-income persons. • General Administration: $125,000.00
Funds will be used to support administrative activities necessary to comply with State and federal CDBG Meeting Date: 03/03/2026 Page 2 Agenda Item # IV.E.
requirements, including reporting, financial management, and monitoring. This amount is using a combination of Program Income and Award funds
• Program Income: $600,000.00
These funds will be used to support economic development activities through a business loan program intended to create or retain jobs benefitting low-and moderate-income persons.

These activities are consistent with the City’s community development priorities and meet CDBG eligibility and national objective requirements.

PROGRAM INCOME
The proposed Resolution also authorizes the use of Program Income generated from prior CDBG-funded activities in an amount not to exceed the level identified in the Resolution. Program Income will be used for eligible CDBG activities in accordance with State and federal regulations and HCD guidance. • The City Council includes the inclusion of $600,000.00 as part of the CDBG activities described above:
and
• The Resolution authorizes the use of Program Income in an amount not to exceed $1,000,000.00, allowing flexibility for additional anticipated program income to be added to the project, subject to compliance with all state and federal regulations.

PUBLIC PARTICIPATION
The City has complied with all applicable State and federal public participation requirements, including public notice and hearing requirements, in the development of the CDBG application(s). Documentation of public participation is maintained in the City’s grant files and will be submitted to HCD as part of the application package, as required.

AUTHORIZATION AND SIGNATORY DESIGNATIONS
The resolution designates authorized City officials to:
• Execute and submit CDBG application materials;
• Enter into and execute the CDBG Standard Agreement and related documents if funding is awarded; and • Submit fund requests, reports, and other required documentation during grant implementation.

These authorizations are required by HCD and must be adopted exactly as prescribed in the resolution template.

CONCLUSION
Adoption of the resolution is a required step in the City’s participation in the 2025 State CDBG Program.

Approval will allow the City of Lakeport to submit its application(s), leverage State funding to support local economic development and community needs and proceed with grant administration if funds are awarded.

Community Development staff recommend adoption of the resolution.

OPTIONS:

1. Adopt the resolution approving application for 2025 State CDBG funding and authorize execution of related documents.

Meeting Date: 03/03/2026 Page 3 Agenda Item # IV.E.

2. Reject the resolution approving application for 2025 State CDBG funding and authorize execution of related documents.

3. Provide alternative directions for staff.

FISCAL IMPACT:

Approval of the Resolution does not commit the City to expend General Fund resources. All activities are contingent upon the award of CDBG funds by HCD. Grant funds and any approved Program Income will be managed in accordance with CDBG financial management requirements. ☒ 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 MOTION:

Move to adopt the resolution of the City Council of the City of Lakeport approving application for 2025 State CDBG funding and authorize execution of related documents. ☒ Attachments: 1. Resolution
Resolution of the Governing Body
RESOLUTION NO. Insert Number

A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE

EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS
THERETO FROM THE 2025 FUNDING YEAR OF THE STATE CDBG

PROGRAM
BE IT RESOLVED by the City Council of the City of Lakeport as follows:

SECTION 1:

The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $1,500,000.00 for the following CDBG activities, pursuant to the and 2025 CDBG NOFA:

List activities and amounts
Activity (e.g. Public Services,
Infrastructure, etc.)
Dollar Amount Being Requested for the
Activity
Business Loan Program $ 1,402,000.00
General Admin $ 98,000.00
Program Income $ 600,000.00
$
$ 2,100,000.00
SECTION 2:

The City Council hereby approves the use of Program Income in an amount not to exceed $1,000,000.00 for the CDBG activities described in Section 1.

SECTION 3:

The City Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).

SECTION 4:

The City Council hereby authorizes and directs the City Manager or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.

SECTION 5:

If an application is approved, the City Manager or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement), any recordable or nonrecordable contract documents, and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

SECTION 6:

If an application is approved, the Community Development Director or designee*, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lakeport held on 3/3/2026 by the following vote:

AYES: Enter # of votes or names
NOES: Enter # of votes or names
ABSENT: Enter # absentees or names
ABSTAIN: Enter # of abstains or names
Stacey Mattina, Mayor Pro Tem
City Council

STATE OF CALIFORNIA
City of Lakeport
I, Kelly Buendia, City Clerk of the City of Lakeport, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this 3rd day of March, 2026 and that said resolution has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.

Kelly Buendia, City Clerk of the City of Lakeport, State of California
______________________________________
By: Kelly Buendia, City Clerk
Meeting Date: 03/03/2026 Page 1 Agenda Item # IV.F.
434913.1

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

STAFF REPORT
RE: Update to Police Officer Trainee Pay and the Master Salary Schedule
MEETING DATE: 3/3/2026
SUBMITTED BY: Kelly Buendia, Administrative Services Director PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to approve a 12% increase to the Police Officer Trainee salary; and approve updates to the Master Salary Schedule to reflect this adjustment.

BACKGROUND/DISCUSSION:

CalPERS, pursuant to its interpretation of California Code of Regulations, title 2, section 570.5, recommends all CalPERS employers maintain their compensation levels in a publicly available pay schedule approved and adopted by the governing body.

In November 2025, the City Council approved a Memorandum of Understanding with the Lakeport Police Officers’ Association (LPOA), which included a 12% salary increase for the Police Officer I classification effective retroactively to the first pay period after July 1, 2025.

At that time, the Police Officer Trainee classification — an unrepresented position — was not adjusted to reflect a corresponding increase. Historically, when compensation adjustments are approved for represented Police Officer classifications, Human Resources and the City Manager recommend aligning the Police Officer Trainee salary with the entry-level Police Officer I salary to maintain internal equity and recruitment competitiveness.

Staff is therefore recommending a 12% increase to the Police Officer Trainee salary, consistent with the increase approved for Police Officer I, and a corresponding update to the Master Salary Schedule.

In compliance with California Code of Regulations, title 2, section 570.5, the revised Master Salary Schedule will be made publicly available on the City’s website following Council approval.

OPTIONS:

1. The Council could deny this request.

2. The Council could consider making the change retroactive to a date specific.

3. The Council could provide other direction.

FISCAL IMPACT:
☒ See Comments ☐ $ Budgeted Item? ☒Yes ☐ No
Meeting Date: 03/03/2026 Page 2 Agenda Item # IV.F.
434913.1
Budget Adjustment Needed? ☐Yes ☒ No If yes, amount of appropriation increase:

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

Comments: Police Officer Trainee positions are budgeted at the Police Officer I salary rate or higher. Therefore, approval of the recommended 12% increase will not require additional appropriations. Actual salary costs vary depending on whether a trainee is hired prior to attending the academy and the length of time assigned to trainee status. Upon successful completion of the academy, the employee is appointed to the Police Officer I classification and compensated accordingly.

Move to approve a Resolution rescinding Resolution 3021 (2026), approving a 12% increase to the Police Officer Trainee classification, and revising the Master Salary Schedule in conformance with California Code of Regulations, Title 2, Section 570.5.

Attachments: 1. Resolution Rescinding Resolution 3021 (2026) and Revising the Master Pay Schedule in Conformance with California Code of Regulations Title 2, Section 570.5

2. Master Salary Schedule

Page 1 ends

RESOLUTION NO. XXXX (2026)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT APPROVING A 12% SALARY INCREASE FOR THE POLICE OFFICER TRAINEE CLASSIFICATION, RESCINDING RESOLUTION 3021 (2026), AND REVISING THE MASTER PAY

SCHEDULE IN CONFORMANCE WITH CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
WHEREAS, the City Council approved a Memorandum of Understanding with the Lakeport Police Officers’ Association (LPOA) in November 2025, which included a 12% salary increase for the Police Officer I classification retroactive to July 1, 2025; and WHEREAS, the Police Officer Trainee classification is an unrepresented position that historically aligns with the entry-level Police Officer I compensation for purposes of internal equity and recruitment; and
WHEREAS, the Police Officer Trainee classification was not adjusted at the time of the LPOA Memorandum of Understanding adoption; and
WHEREAS, the City Council desires to approve a 12% salary increase to the Police Officer Trainee classification consistent with the increase approved for Police Officer I; and WHEREAS, the California Public Employees’ Retirement System (CalPERS) requires all CalPERS employers to maintain a publicly available pay schedule approved and adopted by the governing body in accordance with Title 2 of the California Code of Regulations, Section 570.5; and
WHEREAS, the Master Pay Schedule attached hereto as Exhibit A reflects the approved salary adjustments and complies with the requirements of Title 2, Section 570.5.

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

SECTION 1.

The City Council hereby approves a 12% salary increase for the Police Officer Trainee classification, effective the first pay period after March 3, 2026.

SECTION 2.

Resolution 3021 (2026) is hereby rescinded.

SECTION 3.

The City Council adopts the revised Master Pay Schedule attached hereto as Exhibit A, which includes the approved adjustment to the Police Officer Trainee classification.

SECTION 4.

Page 2 ends

The City Council affirms that the Master Pay Schedule attached hereto meets all requirements of Title 2 of the California Code of Regulations, Section 570.5, including but not limited to directing staff to post it at the City, make it immediately available for public review during normal business hours and/or post it on the City’s internet website, and retain it for not less than five years.

DULY AND REGULARLY ADOPTED on this 3rd day of March, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
BRANDON DISNEY, Mayor
ATTEST:
______________________________
KELLY BUENDIA, City Clerk
Job Classification Class Range Unit A B C D E F
Office Specialist GU108 LEA 3,012 2,869 3,163 3,321 3,487 3,661 Parks Maintenance Worker I GU124 LEA 3,261 3,106 3,424 3,595 3,775 3,964 Equipment Mechanic I GU131 LEA 3,379 3,218 3,548 3,725 3,911 4,107 Maintenance Worker I GU138 LEA 3,498 3,331 3,673 3,857 4,050 4,253 Parks Maintenance Worker II GU139 LEA 3,515 3,348 3,691 3,876 4,070 4,274 Police Records & Evidence Clerk GU139 LEA 3,515 3,348 3,691 3,876 4,070 4,274 Administrative Specialist I GU140 LEA 3,533 3,365 3,710 3,896 4,091 4,296 Financial Services Specialist I GU140 LEA 3,533 3,365 3,710 3,896 4,091 4,296 Deputy City Clerk I GU156 LEA 3,827 3,645 4,018 4,219 4,430 4,652 Utility Operator I GU162 LEA 3,943 3,755 4,140 4,347 4,564 4,792 Financial Services Specialist II GU165 LEA 4,003 3,812 4,203 4,413 4,634 4,866 Maintenance Worker II GU165 LEA 4,003 3,812 4,203 4,413 4,634 4,866 Engineering Technician I GU172 LEA 4,144 3,947 4,351 4,569 4,797 5,037 * Administrative Specialist II GU174 LEA 4,186 3,987 4,395 4,615 4,846 5,088 Equipment Mechanic II GU175 LEA 4,207 4,007 4,417 4,638 4,870 5,114 Assistant Planner GU181 LEA 4,334 4,128 4,551 4,779 5,018 5,269 Deputy City Clerk II GU181 LEA 4,334 4,128 4,551 4,779 5,018 5,269 Maintenance Worker III GU181 LEA 4,334 4,128 4,551 4,779 5,018 5,269 Parks Leadworker GU181 LEA 4,334 4,128 4,551 4,779 5,018 5,269 Permit Technician GU181 LEA 4,334 4,128 4,551 4,779 5,018 5,269 Utility Operator/MWII GU181 LEA 4,334 4,128 4,551 4,779 5,018 5,269 Utility Operator II GU196 LEA 4,671 4,449 4,905 5,150 5,408 5,678 Engineering Technician II GU197 LEA 4,695 4,471 4,930 5,177 5,436 5,708 Parks Maintenance Foreman GU197 LEA 4,695 4,471 4,930 5,177 5,436 5,708 GIS/Asset Management Technician GU199 LEA 4,741 4,515 4,978 5,227 5,488 5,762 * Administrative Analyst GU206 LEA 4,910 4,676 5,156 5,414 5,685 5,969 Housing Specialist GU206 LEA 4,910 4,676 5,156 5,414 5,685 5,969 Building Inspector GU213 LEA 5,084 4,842 5,338 5,605 5,885 6,179 Financial Services Specialist III GU213 LEA 5,084 4,842 5,338 5,605 5,885 6,179 Police Records Supervisor GU219 LEA 5,238 4,989 5,500 5,775 6,064 6,367 Utility Operator III GU221 LEA 5,291 5,039 5,556 5,834 6,126 6,432 Wastewater Systems Supervisor I GU223 LEA 5,343 5,089 5,610 5,891 6,186 6,495 Water Operations Supervisor I GU223 LEA 5,343 5,089 5,610 5,891 6,186 6,495 Associate Planner GU233 LEA 5,616 5,349 5,897 6,192 6,502 6,827 * Deputy City Clerk III - Records Supervisor GU233 LEA 5,616 5,349 5,897 6,192 6,502 6,827 Electrical Mechanical Technician (EMT) GU233 LEA 5,616 5,349 5,897 6,192 6,502 6,827 Projects Coordinator GU233 LEA 5,616 5,349 5,897 6,192 6,502 6,827 Public Works Foreman GU240 LEA 5,816 5,539 6,107 6,412 6,733 7,070 Utilities Underground Superviosr GU240 LEA 5,816 5,539 6,107 6,412 6,733 7,070 Wastewater Systems Supervisor II GU244 LEA 5,934 5,651 6,231 6,543 6,870 7,214 Water Operations Supervisor II GU244 LEA 5,934 5,651 6,231 6,543 6,870 7,214

CITY OF LAKEPORT

MASTER PAY SCHEDULE

MONTHLY RATES WITH STEPS
Effective First Pay Period after 3/3/2026
Steps
Water/Wastewater Treatment Supervisor GU279 LEA 7,064 6,728 7,417 7,788 8,177 8,586 Police Officer I PO200 POA 5,630 5,912 6,208 6,518 6,844 7,186 Police Officer II PO215 POA 6,370 6,067 6,689 7,023 7,374 7,743 Police Officer III PO234 POA 7,004 6,670 7,354 7,722 8,108 8,513 Police Detective PO245 POA 7,047 7,399 7,769 8,157 8,565 8,993 Police Sergeant PO245 POA 7,047 7,399 7,769 8,157 8,565 8,993 Compliance Coordinator I MM102 UM 6,788 6,465 7,127 7,483 7,857 n-a Government Accountant MM102 UM 6,788 6,465 7,127 7,483 7,857 n-a Planning Services Manager MM102 UM 6,788 6,465 7,127 7,483 7,857 n-a Compliance Officer II MM122 UM 7,143 7,500 7,875 8,269 8,682 n-a Public Works Superintendent I MM122 UM 7,143 7,500 7,875 8,269 8,682 n-a Utilities Superintendent I MM122 UM 6,604 6,934 7,281 7,645 8,027 n-a Building Official MM123 UM 7,179 7,538 7,915 8,311 8,727 n-a Public Works Superintendent II MM137 UM 7,697 8,082 8,486 8,910 9,356 n-a Utilities Superintendent II MM142 UM 7,892 8,287 8,701 9,136 9,593 n-a Police Lieutenant MM151 UM 8,254 8,667 9,100 9,555 10,033 n-a Public Works Director MM164 UM 8,808 9,248 9,710 10,196 10,706 n-a Utilities Director MM164 UM 8,808 9,248 9,710 10,196 10,706 n-a Police Captain MM170 UM 9,077 9,531 10,008 10,508 11,033 n-a Administrative Services Dir./City Clerk MM173 UM 9,213 9,674 10,158 10,666 11,199 n-a Finance Director MM173 UM 9,213 9,674 10,158 10,666 11,199 n-a Community Development Director MM177 UM 9,399 9,869 10,362 10,880 11,424 n-a Assistant City Manager MM190 UM 10,028 10,529 11,055 11,608 12,188 n-a Police Chief MM202 UM 10,647 11,179 11,738 12,325 12,941 n-a City Engineer/Public Works Director MM229 UM 12,181 12,790 13,430 14,102 14,807 n-a City Manager n-a contract 13,860 n-a n-a n-a n-a n-a

HOURLY AT-WILL EMPLOYEES
Police Officer Trainee n-a n-a
Police Officer Trainee n-a n-a $21.84 $22.93 $24.08 $25.28 $26.55 $27.87 LEA = Lakeport Employees' Association, salaries effective 1/5/2026 - Resolution No. 2961 (2024) UM = Unrepresented Management, salaries effective 7/5/2025 - Resolution No. 2973 (2024) POA = Lakeport Police Officers' Association, salaries effective 7/6/2025 - Resolution No. 3002 (2025) City Manager contract amended effective 3/4/2025, Resolution No. 2982 (2025) *Classifications may include Confidential employees - Resolution 2657 (2018) $19.50 - $24.89 per hour
Meeting Date: 03/03/2026 Page 1 Agenda Item #IV.G.

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

STAFF REPORT
RE: Amendment No. 2 to Agreement for Legal Services with Colantuono, Highsmith & Whatley, PC
MEETING DATE: 03/03/2026
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: ☐Information only ☒ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to approve Amendment No. 2 to the Agreement for Legal Services with Colantuono, Highsmith & Whatley, PC, designating Mackenzie D. Anderson as City Attorney and David J.

Ruderman as Assistant City Attorney.

BACKGROUND/DISCUSSION:

On July 16, 2013, the City Council approved an agreement for legal services with Colantuono & Levin, PC, which was later renamed Colantuono, Highsmith & Whatley, PC (CHW), to provide City Attorney services. In August 2020, the City Council approved an addendum to the agreement to comply with federal requirements necessary for FEMA reimbursement. On June 20, 2023, the City Council approved Amendment No. 1 updating the scope of services and compensation structure.

Amendment No. 2 reflects a transition in designated legal staffing within the firm. The amendment formally designates Mackenzie D. Anderson as City Attorney and David J. Ruderman as Assistant City Attorney. Under the amendment, Ms. Anderson will attend regularly scheduled Council meetings, supervise all legal services provided under the agreement, and ensure continuity of representation. The agreement also maintains provisions allowing the firm to assign qualified attorneys as necessary to support City operations and ensure consistent attendance at Council meetings.

Staff has found the CHW team to be responsive, professional, and highly knowledgeable regarding municipal law and operations. The proposed amendment does not modify compensation terms or scope of services beyond the designation of legal personnel. Staff believes this amendment reflects a continuation of strong legal support and recommends approval.

OATH OF OFFICE CONSIDERATION: Should the City Council approve Amendment No. 2 and the designation of Mackenzie D. Anderson as City Attorney, staff recommends that the Council provide direction to the City Clerk to administer the Oath of Office to Ms. Anderson following approval of the amendment.

OPTIONS:

1. Approve Amendment No. 2 to the Agreement for Legal Services with Colantuono, Highsmith & Whatley, PC

2. Take no action

3. Deny the amendment and provide alternative direction to staff.

Meeting Date: 03/03/2026 Page 2 Agenda Item #IV.G.

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: Amendment No. 2 does not modify existing compensation or billing rates. Fiscal impacts remain consistent with the previously approved agreement.

Move to approve Amendment No. 2 to the Agreement for Legal Services with Colantuono, Highsmith & Whatley, PC, designating Mackenzie D. Anderson as City Attorney and David J. Ruderman as Assistant City Attorney, and direct the City Clerk to administer the Oath of Office to Mackenzie D. Anderson. ☒ Attachments: 1. Draft Amendment No. 2 to Agreement for Legal Services Between the City of Lakeport and Colantuono, Highsmith & Whatley, PC.

2. Agreement for Legal Services (2013)

3. Amendment No. 1 (2023)
434714.1
AMENDMENT NO. 2 TO AGREEMENT FOR LEGAL SERVICES BETWEEN THE

CITY OF LAKEPORT AND COLANTUONO, HIGHSMITH & WHATLEY, PC This Amendment No. 2 to the Agreement for Legal Services (“Second Amendment”) is made and entered into effective ___________, 2026 (the “Effective Date”) by and between the City of Lakeport, a California municipal corporation (“City”) and Colantuono, Highsmith & Whatley, PC, a California professional corporation (“Firm”) with respect to the following Recitals:

RECITALS
A. On July 16, 2013, the City Council approved a legal services agreement with Colantuono & Levin, PC for City Attorney services (the “Agreement”); B. Colantuono & Levin, PC later changed its name to Colantuono, Highsmith & Whatley, PC and, on August 4, 2020, the City Council approved an addendum to the Agreement to comply with federal requirements necessary for fee reimbursements from the Federal Emergency Management Agency; and C. On June 20, 2023, the City council approved Amendment No. 1 to the Agreement (“First Amendment”) to update Exhibits A (Scope of Services and Appliable Billing Rates) and B (Compensation) to the Agreement.

D. City and Firm now wish to amend the Agreement by entering into this Second Amendment to designate Mackenzie D. Anderson as City Attorney and David J.

Ruderman as Assistant City Attorney.

NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained herein and contained in the Agreement, City and Firm agree as follows:

1. The Recitals above are true and correct and fully incorporated herein.

2. Section 2 (Designation of City Attorney and Assistant City Attorney) to the Agreement is hereby amended to state:

Mackenzie D. Anderson is designated as City Attorney. The parties understand and agree that the Firm may, from time to time, utilize other attorneys within the Firm to assist Ms. Anderson in the performance of this Agreement but that Ms. Anderson will attend all regularly scheduled Council meetings and make best efforts to attend all special Council meetings unless excused by Council or the City Manager or absent due to illness, an annual vacation, or to limited business commitments (such as a conference of the League of California Cities) and will supervise all services rendered under this Agreement. David J. Ruderman is designated as Assistant City 434714.1
Attorney. Should there be an occasion where the two designated attorneys are not available, it is the Firm's responsibility to ensure that a competent attorney is available for attendance at Council meetings.

3. Except as expressly provided in this Second Amendment, all other provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, City and Firm hereby execute this Second Amendment to be effective as of the Effective Date:
“City”
City of Lakeport, California
“Firm”
Colantuono, Highsmith & Whatley, PC
By: By:

Its: Its:

Date: Date:

Attest:

By:

City Clerk
Date:

Proclamation DESIGNATING THE MONTH OF MARCH 2026 AS

NUTRITION MONTH IN THE CITY OF LAKEPORT
WHEREAS, food is the substance by which life is sustained; and WHEREAS, the type, quality, and amount of food that individuals consume each day plays a vital role in their overall health and physical fitness; and
WHEREAS, better nutrition is related to improved infant, child and maternal health; stronger immune systems; safer pregnancy and childbirth; lower risk non-communicable diseases such as diabetes and cardiovascular disease; and longevity; and
WHEREAS, there is a need for continuing nutrition education and a community-wide effort to enhance healthy eating practices; and
WHEREAS, the theme for National Nutrition Month® 2026 is "Discover the Power of Nutrition". The theme focuses on the ability of nutrition to help people and communities flourish. By embracing balanced, culturally diverse, and accessible nutrition, we empower individuals and families across our state to thrive at every stage of life.

NOW, THEREFORE, BE IT PROCLAIMED, that the City Council of the City of Lakeport does hereby designate March 2026 as
National Nutrition Month
in the City of Lakeport, encourages all citizens to join the campaign in an effort to achieve optimum health benefits from the transformative power of food and nutrition.

I have hereunto set my hand and caused the Seal of the City of Lakeport to be affixed this 3rd day of March 2026.
_________________________________
Brandon Disney, Mayor
Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.A.1.

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

STAFF REPORT
RE: Consideration of Letters of Support for Lakeport Fire Protection District FY27 Senate Appropriations Earmark
Requests – New Fire Station Land Acquisition
MEETING DATE: 03/03/2026
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: ☐Information only ☒ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to consider authorizing the Mayor to sign letters of support for the Lakeport Fire Protection District’s Fiscal Year 2027 Senate Appropriations Earmark requests submitted to Senators Adam Schiff and Alex Padilla. The requests seek federal funding assistance for the acquisition of property located at 440 North Main Street in Lakeport for the future development of a replacement fire station.

BACKGROUND/DISCUSSION:

The Lakeport Fire Protection District (LFPD) is currently evaluating the purchase of approximately one acre located at 440 North Main Street, which is presently developed as an auto body shop. The site is directly across from the District’s existing fire station and is being considered as a potential location for a future replacement facility.

The District intends to pursue $1.8 million in federal Fiscal Year 2027 Senate Appropriations Community Project Funding to assist with land acquisition costs. According to the Fire District, the property owners are interested in selling in the near future, creating a time-sensitive opportunity to secure a strategically located site that supports long-term emergency response needs.

The City of Lakeport and LFPD maintain a long-standing partnership in providing emergency services within the community. Continued investment in modernized fire protection facilities supports regional emergency response readiness, enhances firefighter safety, and ensures that critical services remain centrally located within the City.

Although the City is not the project sponsor, local letters of support are commonly requested as part of the federal appropriations process to demonstrate regional collaboration and community backing.

Given the compressed timeline for submittal, staff is bringing this request forward at the earliest opportunity for Council consideration.

OPTIONS:

1. Authorize the Mayor to sign letters of support for the Lakeport Fire Protection District’s FY27 Senate Appropriations Earmark applications.

2. Provide alternative direction to staff.

3. Take no action.

Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.A.1.

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:

None. Approval of letters of support does not commit City funds or create any financial obligation for the City of Lakeport.

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 authorize the Mayor to sign letters of support for the Lakeport Fire Protection District’s FY27 Senate Appropriations Earmark requests supporting land acquisition for a future replacement fire station at 440 North Main Street.
☒ Attachments: 1. 2/19/2026 Lakeport Fire Protection District Letter of Support Request

2. City of Lakeport Letter of Support – LFPD FY27 Senate Appropriations Request (Senator Schiff)

3. City of Lakeport Letter of Support – LFPD FY27 Senate Appropriations Request (Senator Padilla)

City Hall • 225 Park Street • Lakeport, CA 95453
(707) 263-5615 • [email protected]

CITY OF LAKEPORT
Over 130 years of community
pride, progress and service
March 3, 2026
The Honorable Alex Padilla
United States Senate
331 Hart Senate Office Building
Washington DC 20510
RE: Support for Lakeport Fire Protection District FY27 Appropriations Request –Fire Station Land Acquisition
Dear Senator Padilla,
On behalf of the City of Lakeport, I am pleased to offer our strong support for the Lakeport Fire Protection District’s Fiscal Year 2027 Senate Appropriations request seeking $1.8 million in federal assistance for the acquisition of property located at 440 North Main Street in Lakeport.

The District is currently evaluating this site, approximately one acre in size, as a potential location for a future replacement fire station. The property sits directly across from the District’s existing station and represents a strategic opportunity to modernize fire protection infrastructure while maintaining a central and accessible presence within the community.

Investment in upgraded emergency response facilities is critical to maintaining reliable service delivery, improving firefighter safety, and ensuring that Lakeport remains prepared to respond to evolving public safety and wildfire challenges. The City of Lakeport strongly supports the Fire District’s efforts to upgrade aging facilities and maintain its operational footprint within the City.

While the requested funding focuses specifically on land acquisition, the long-term benefit to the region will be the development of a modern fire station capable of serving residents, businesses, and surrounding rural areas more effectively.

We respectfully encourage your consideration of this request and appreciate your continued commitment to supporting public safety infrastructure in rural Northern California communities.

Sincerely,
Brandon Disney, Mayor
City of Lakeport
City Hall • 225 Park Street • Lakeport, CA 95453
(707) 263-5615 • [email protected]

CITY OF LAKEPORT
Over 130 years of community
pride, progress and service
March 3, 2026
The Honorable Adam Schiff
United States Senate
112 Hart Senate Office Building
Washington, DC 20510
RE: Support for Lakeport Fire Protection District FY27 Appropriations Request – Fire Station Land Acquisition
Dear Senator Schiff,
On behalf of the City of Lakeport, I am pleased to offer our strong support for the Lakeport Fire Protection District’s Fiscal Year 2027 Senate Appropriations request seeking $1.8 million in federal assistance for the acquisition of property located at 440 North Main Street in Lakeport.

We respectfully encourage your consideration of this request and appreciate your continued commitment to supporting public safety infrastructure in rural Northern California communities.

Sincerely,
Brandon Disney, Mayor
City of Lakeport
Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.A.2.

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

STAFF REPORT
RE: Consideration of FY 2026 Community Project Funding
Partnership for the South Lakeport Regional Water Resiliency & Fire Protection Project
MEETING DATE: 03/03/2026
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: ☐Information only ☒ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is being asked to discuss and consider the adoption of a resolution supporting the South Lakeport Regional Water Resiliency & Fire Protection Project to be considered by Congressman Thompson through the Fiscal Year 2026 Congressional Community Project Funding request.

BACKGROUND/DISCUSSION:

In February 2026, Congressman Mike Thompson invited local jurisdictions to submit priority projects for potential inclusion in the Fiscal Year 2026 Community Project Funding process. Although Congress ultimately did not advance a Fiscal Year 2025 Community Project Funding program and no projects were formally recommended during that cycle, Congressman Thompson’s office has indicated that project solicitations are moving forward while federal guidance and program structure remain uncertain.

Given this uncertainty, staff is recommending resubmittal of the same South Lakeport Regional Water Resiliency & Fire Protection Project previously endorsed by the City Council. The project scope, cost estimate, and technical narrative remain unchanged from the prior submittal, reflecting continued regional priority and readiness should federal funding opportunities materialize.

The Congressman’s office has emphasized that Members of Congress remain limited in the number of Community Project Funding requests they may advance and that projects demonstrating strong local coordination and support will be most competitive.

Staff continues to maintain regular communication with federal representatives and regional partners to ensure that Lakeport remains positioned to pursue funding opportunities as they develop.

South Lakeport Regional Water Resiliency & Fire Protection Project Overview The South Lakeport Regional Water Resiliency & Fire Protection Project is a cooperative effort between the City of Lakeport and the County of Lake designed to extend municipal water service along South Main Street to Soda Bay Road and establish a looped regional system to improve resiliency and fire protection capacity.

Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.A.2.

The project includes approximately 8,000 linear feet of water main, hydrant installation, and service connections to transition the corridor from fragmented non-transient systems to a reliable municipal water supply.

Primary objectives include:
• Establishing a robust fire suppression network in a high wildfire severity zone • Improving public health through reliable drinking water infrastructure • Supporting regional emergency response readiness
• Creating future intertie opportunities with regional water systems Existing Conditions and Benefits
The project area is currently served by several fragmented water systems that support local businesses and community needs. According to the recently proposed CalFire Local Responsibility Fire Severity Hazard Zone mapping, most of the area is designated as either Very High or High wildfire risk. This commercial and industrial corridor includes high fire risk uses and has a history of fire events, including a large fire at the Transfer Station in 2024. This upgrade is especially critical given the presence of high-risk facilities and key industrial areas in the region.

By transitioning the corridor to municipal water service, the project will:
• Improve firefighter response capabilities
• Enhance regional resiliency
• Reduce reliance on private wells
• Support future economic and infrastructure growth in South Lakeport Strategic Alignment:

The project is closely aligned with the upcoming County of Lake South Main Street Rehabilitation initiative, scheduled for completion within two to three years, which will ensure coordinated improvements and minimal disruptions in the project area. The City of Lakeport is also nearing completion of the design and engineering for a critical loop line, underscoring its commitment to this initiative. Overall, the project will enhance public safety by improving fire suppression capabilities and address public health concerns by providing a stable, safe water supply for both current and future commercial activities, fostering a resilient, healthy, and economically vibrant community.

The proposed FY 2026 Congressional Community Project request for the South Lakeport Regional Resiliency and Fire Suppression Project will run parallel to the City’s revised annexation proposal for the South Lakeport area.

An out-of-service area agreement will be required—subject to review and approval by Lake LAFCo—to extend municipal water for fire suppression beyond current city limits, while general domestic water service will be available only to properties that annex to the City. Although the City’s 2022 annexation effort in this corridor was approved by Lake LAFCo, it was ultimately defeated by local voters. The City is now developing a revised annexation plan targeting properties that seek municipal water service—primarily the six non-transient water systems serving key local businesses currently facing capacity or water quality issues, or pressured by the State Water Board to upgrade. Properties outside the proposed annexation boundary would have access only to emergency water through the project's network of fire hydrants.

Meeting Date: 03/03/2026 Page 3 Agenda Item # VII.A.2.

County of Lake Support for the Project
The South Lakeport Regional Resiliency & Fire Protection Project was presented to the County of Lake Board of Supervisors on February 25, 2025, as part of their review of FY 2025 Community Project Funding priorities. After thorough discussion, the Board unanimously voted to support the submission to Congressman Thompson.

The County of Lake continues to view this project as a high regional priority. Staff remains in coordination with County Administrative staff and Lake County Special Districts to ensure continued alignment on funding strategies and regional infrastructure planning. The Lake County Board of Supervisors will be reviewing this FY 2026 Community Project Funding Proposal at their scheduled March 3, 2026 regular meeting.

Budget Overview:

The total project cost remains estimated at $7,211,500, consistent with last year’s application materials and updated cost estimate documentation. This figure includes approximately $500 per linear foot for an 8,000-foot, 14” water main—about $3,951,000—and hydrant costs of $15,000 each for 16 hydrants, totaling $240,000.

Additional significant expenses include $600,000 for specialized boring under State Highway 175 and $290,000 for installing 58 two-inch service lines to each parcel, which is essential to avoid future excavation of new paving planned for the South Main/Soda Bay Road Corridor roadway improvement project in the next 2-3 years.

Although it is unlikely that the full project will be funded through the Congressional Community Funding process, staff believes it is important to present Congressman Thompson’s office with a comprehensive view of the project and demonstrate our flexibility in modifying the project to align with federal funding programs— potentially including USDA Rural Development or the U.S. Economic Development Administration (EDA). At the February 25, 2025 Board of Supervisors meeting, staff from Lake County Special Districts advocated for County funding support for this project. If funded through the Congressional Community Project program, the City of Lakeport may need to consider utilizing both General Fund and Municipal Water Fund reserves.

A complete cost estimate is provided as an attachment to this staff report.

In conclusion, staff recommends that the City Council adopt a resolution requesting Congressman Thompson consider $7,211,500 in funding for the South Lakeport Regional Water Resiliency & Fire Protection Project through the FY 2026 Congressional Community Funding process.

OPTIONS:

1. Adopt a resolution supporting submission of the South Lakeport Regional Water Resiliency & Fire Protection Project for FY 2026 Community Project Funding consideration.

2. Take no action.

3. Or alternatively, the Council may provide staff alternative direction.

No immediate fiscal impact at this time. However, it is likely that discussion with Congressman Thompson’s office will require revisions to the budget proposal that include only partial funding of the project that may require the City Council to identify additional funding for the completion of this project. Such financing decisions will necessitate additional review and action by the City Council prior to approval.

Meeting Date: 03/03/2026 Page 4 Agenda Item # VII.A.2.

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 adopt a resolution supporting submission of the South Lakeport Regional Water Resiliency & Fire Protection Project for consideration under the Fiscal Year 2026 Congressional Community Project Funding request process.
☒ Attachments: 1. South Lakeport Regional Resiliency & Fire Protection Project Support Resolution

2. Congressman Thompson Appropriations Solicitation Letter (2/20/2026)

3. South Lakeport Regional Resiliency & Fire Protection Project Narrative

4. South Lakeport Regional Resiliency & Fire Protection Project Budget Estimate

5. South Lakeport Regional Resiliency & Fire Protection Project Map RESOLUTION NO. **** (2026)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT TO SUBMIT THE

SOUTH LAKEPORT REGIONAL WATER RESILIENCY & FIRE PROTECTION PROJECT

FOR CONSIDERATION AS A COMMUNITY PROJECT FUNDING PROPOSAL WHEREAS, Congressman Mike Thompson has invited Community Project Funding requests for Fiscal Year 2026, and interim guidance is being provided pending final Appropriations Committee rules; and
WHEREAS, the Congressional Community Project Funding process is intended to support projects that enhance public safety, foster community resilience, and improve quality of life through critical infrastructure improvements; and WHERES, the Honorable Congressman Mike Thompson asked that local governments and eligible non-profits submit their highest priority projects that fulfill the intent of this opportunity; and
WHEREAS, in recent years, Lake County regional projects approved for funding by the Appropriations Subcommittee have demonstrated both significant public benefit and broad support; and
WHEREAS, the South Lakeport Regional Water Resiliency & Fire Protection Project is a cooperative effort between the City of Lakeport and the County of Lake designed to extend municipal water service to an unserved portion of South Lakeport along South Main Street and Soda Bay Road, terminating at the Manning Creek Bridge; and
WHEREAS, the project includes looping the existing water main along South Main Street and Parallel Drive across State Highway 175 to eliminate dead-end spur lines, thereby improving service quality and establishing a robust network of fire hydrants for effective fire suppression in a high-risk commercial and industrial corridor; and
WHEREAS, the project is estimated to cost approximately $7,211,500 and has received strong support from the County of Lake Board of Supervisors, which has endorsed its inclusion in the FY 2026 funding priorities; and WHEREAS, initial project requests are due for submission by March 6, 2026, and the City has maintained ongoing communication with Congressman Thompson’s office regarding the funding process;
2 Resolution No. #### (2026)
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeport hereby supports the submission of the South Lakeport Regional Water Resiliency & Fire Protection Project for consideration as a Community Project Funding proposal through Congressman Mike Thompson’s FY 2026 Congressional Community Funding request appropriation process, for an amount not to exceed $7,211,500; and BE IT FURTHER RESOLVED that the City Council directs City staff to prepare and submit the required application package in accordance with the applicable guidelines and to coordinate with all relevant stakeholders to ensure that the project meets both federal funding requirements and local priorities.

The foregoing Resolution was passed and adopted at a regular meeting of the City Council on the 3rd day of March, 2026, by the following vote:

AYES:

NOES:

ABSTAINING:

ABSENT:
___________________________________
BRANDON DISNEY, Mayor
ATTEST:
_______________________________
KELLY BUENDIA, City Clerk
February 20, 2026
Dear Friends:

Although the fiscal year 2026 appropriations process remains partially incomplete as Democrats seek an end to ICE’s terrorization of our communities, the Appropriations Committee has announced that they will be shortly moving to start consideration of funding requests for fiscal year 2027.

Congress has both the right and responsibility to provide input on funding decisions for worthwhile project proposals critical to the well-being of the people of our District. Constituents in the Fourth Congressional District can submit requests for Community Project Funding which direct funds to a specific state or local government or eligible non-profit organization.

While the Appropriations Committee has not yet shared the final guidance for FY27 requests, I have attached last year’s guidance, which is expected to be very similar to what will be required for FY27 requests. Should the Appropriations Committee make guidance changes, my office will make sure to communicate those changes as soon as possible.

In the last three appropriations cycles, Members of Congress have been limited to submitting 15 Community Project Funding requests with no guarantee that they will all be funded. Projects will also be competitively evaluated by the Committee on Appropriations, so projects with strong local support will be given preference.

My staff will work with you to answer questions about whether your project as envisioned is something that can be eligible for this process. Please see the resource guide which identifies which programs are eligible for Community Project Funding requests, and the required documentation for projects in various programs. In order for me to put forward the strongest set of project requests, I ask that you submit your priorities to this Appropriations Form or email your priorities to ([email protected]) by the end of the day on MARCH 6 th, 2026.

In submitting your priorities, please provide all the information required by each appropriations subcommittee.

The House has also instituted transparency measures to ensure that Members of Congress do not have a financial interest in Community Project Funding requests. This certification, and the associated documentation for each project, is designed to balance the interest in greater Congressional involvement in funding decisions with the need to ensure that all projects requested by Members of Congress are high quality projects.

This year’s environment will be especially challenging for securing funding for projects. I encourage you to only include the highest priority projects and I will do all that is possible to support investments that improve our communities. I believe that the people of our district are in the best position to identify those worthwhile projects that will enhance safety, create jobs and improve our quality of life, and I look forward to your recommendations.

Thank you for your time and consideration.

Sincerely,

MIKE THOMPSON
Member of Congress
Guidance from the Appropriations Committee for the PREVIOUS year.

Additional guidance will be provided as soon as it has been released by the Appropriations Committee.

General Community Funded Project Guidance from the
Appropriations Committee
NOTE: Please note some of the new restrictions from House Republicans which are different than the rules for requests to Senate offices.

Federal Nexus Requirement In order to ensure a federal nexus exists for each funded project, the Committee will only fund projects that are tied to a federal authorization law. Members must include a written statement describing the federal nexus for each Community Project Funding request. Subcommittee guidance will include example language Members can use to make the required statement.

No Memorials, Museums, or Commemoratives: Memorials, museums, and commemoratives (i.e., projects named for an individual or entity) are not eligible for Community Project Funding.

Community Support. Community engagement and support is crucial in determining which projects will be ultimately selected for Federal funding. Only projects with demonstrated community support will be considered by the Appropriations Committee.

The Appropriations Committee encourages project sponsors to include evidence of support for your proposal including:
• Letters of support from elected community leaders (e.g. mayors or other officials); • Press articles highlighting the need for the requested Community Project Funding; • Support from newspaper editorial boards;
• Projects listed on State intended use plans, community development plans, or other publicly available planning documents; or
• Resolutions passed by city councils or boards.

Ban on For-Profit recipients. The Committee is imposing a ban on directing Community Project Funding to for-profit entities.

Matching requirements. Several Federal programs eligible for Community Project Funding requests require a State or local match for projects either by statute or according to longstanding policy. The Committee will not waive these matching requirements for Community Project Funding requests. Note: This does not mean that matching funds must be in-hand prior to requesting a project, but that local officials must have a plan to meet such requirements in order for such a project to be viable.

One-year funding. Each project request must be for fiscal year 2027 funds only and cannot include a request for multiyear funding.

State or local governmental entities as grantees. Members are encouraged to consider public entities as primary grantees to oversee the completion of the project. For infrastructure projects, many States have established lists or intended use plans with projects that have already been vetted by governmental officials (e.g. drinking water, wastewater and highways).

Non-profits as grantees. If a Member requests that funding be directed to a non-profit organization, the Member will need to provide evidence that the recipient is a non-profit organization as described under section 501(c)(3) of the Internal Revenue Code of 1986. Further, many water projects often partner with non-profit entities to complete projects. Therefore, projects may also be directed to non-profits with an inherently governmental function.

Transparency. Certain information about project requests submitted by my office to the Appropriations Committees will be made public. This includes: the proposed recipient; the address of the recipient; the amount of the request; and an explanation of the request, including purpose, and a justification for why it is an appropriate use of taxpayer funds.

Programs by Appropriations Subcommittee Eligible for
Community Funded Projects Requests
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies • USDA - Farm Production and Conservation Programs
o Natural Resources Conservation Service (Conservation Operations) • USDA - Research, Education, and Economics
o Agricultural Research Service, Buildings and Facilities • USDA – Rural Development
o Rural Housing Service (Community Facilities)
o Rural Utilities Service (ReConnect Program)
o Rural Utilities Service (Distance Learning and Telemedicine Grants) o Rural Utilities Service (Rural Water and Waste Disposal Grants) Subcommittee Guidance
Commerce, Justice, Science, and Related Agencies
• NIST Scientific and Technical Research
• NOAA Coastal Zone Management
• DOJ Byrne Justice
• DOJ Community Orientated Policing Services (COPS) Technology & Equipment • NASA Safety, Security and Mission Services
Subcommittee Guidance
Energy and Water Development, and Related Agencies
Note: Only authorized projects will be considered for funding. • Corps of Engineers - Investigations
• Corps of Engineers - Construction
• Corps of Engineers - Mississippi River and Tributaries • Corps of Engineers - Operation and Maintenance
• Bureau of Reclamation - Water and Related Resources
Subcommittee Guidance
Homeland Security
• Pre-Disaster Mitigation Grants
• Emergency Operations Center Grants
Subcommittee Guidance
Interior, Environment, and Related Agencies
• EPA State and Tribal Assistance Grants for certain water infrastructure projects Subcommittee Guidance
Military Construction, Veterans Affairs, and Related Agencies • Military Construction accounts under the Department of Defense o Army
o Navy and Marine Corps
o Air Force and Space Force
o Defense-Wide Agencies (Special Operations Command (SOCOM), Defense Logistics Agency (DLA), etc.)
o Army National Guard
o Air National Guard
o Army Reserve
o Navy Reserve
o Air Force Reserve
Subcommittee Guidance
Transportation, and Housing and Urban Development, and Related Agencies Guidance for Transit Infrastructure Projects
Guidance for Highway Infrastructure Projects
Guidance for Airport Improvement Program (AIP) Projects Guidance for Port Infrastructure Development Program Projects Guidance for Consolidated Rail Infrastructure and Safety Improvements (CRISI) Projects Guidance for Community Development Fund - Economic Development Initiative (EDI) Projects ##
591 MARTIN STREET - LAKEPORT, CALIFORNIA 95453 - TELEPHONE (707) 263-0751 - FAX (707) 263-1514

CITY OF LAKEPORT
Over 100 years of community,
pride, progress, and service
February 24th, 2026
Description of Project:

The South Lakeport Regional Water Resiliency & Fire Protection Project (Project) is a cooperative intergovernmental effort between the City of Lakeport and County of Lake.

This Project proposes to extend City of Lakeport municipal water service to a currently unserved County of Lake jurisdictional corridor along South Main Street to Soda Bay Road, terminating at Manning Creek, and includes a crucial loop line going west under Highway 29 to connect with an existing main on Parallel Drive. Spanning approximately 8,000 linear feet of water main, 58 two-inch services, 16 hydrants, and 4 fire services, this Project aims to significantly enhance regional water infrastructure and resiliency.

This project presents future opportunities for interties with the Big Valley Band of Pomo Indians Tribe and County of Lake Special Districts, setting the stage for a consolidated and robust regional water system.

Existing Conditions and Benefits:

The Project area currently maintains six (6) non-transient water systems that serve key local businesses; Mendo Mill, Howling Dog Café, Jack in the Box, Rotten Robbie, Lakeport Theatre, and Jitterbean. The Project area is situated in a high fire severity zone with existing infrastructure lacking capacity for effective fire suppression. The proposed Project will transition this area from reliance on individual wells and inadequate nontransient systems to a reliable and readily available municipal water service, improving both fire safety response and public health by ensuring clean, safe drinking water. This is critical as the Project area includes high-risk locations such as the Lake County Transfer Station & Recycling Center, propane companies, and large industrial areas, where the risk of fire is elevated.

Strategic Alignment:

The Project aligns with the upcoming County of Lake South Main Street Rehabilitation project. The County of Lake South Main / Soda Bay Road Corridor rehabilitation project is scheduled for completion within three years and coincides with the proposed Project area, ensuring integration and minimized disruptions. The City of Lakeport is nearing completion of design and engineering work for the critical loop line, which represents a substantial portion of the overall Project, highlighting the city's commitment and investment towards Project success. Altogether this Project will enhance public safety through improved fire suppression systems and address public health concerns by 591 MARTIN STREET - LAKEPORT, CALIFORNIA 95453 - TELEPHONE (707) 263-0751 - FAX (707) 263-1514 providing a stable, safe water source for existing and future commercial activities. By doing so, it will ensure a resilient, healthy, and economically vibrant South Lakeport, laying the groundwork for future enhancements and regional integration.

Item Description Unit Quantity Unit Cost Extension
1 Mobilization LS 1 $285,000 $285,000
2 Sheeting and Shoring LS 1 $300,000 $300,000
3 Potholing Existing Utilities EA 22 $1,000 $22,000
4 Survey Monument Replacement EA 1 $5,500 $5,500
5 2" Services EA 58 $5,000 $290,000
6 Traffic Control LS 1 $150,000 $150,000
7 14 Inch Water Line LF 7902 $500 $3,951,000
8 Gate Valves EA 14 $8,000 $112,000
9 Admin EA 1 $150,000 $150,000
10 Double Air Release Valve EA 3 $4,000 $12,000
11 Fire Services EA 4 $6,000 $24,000
12 Hydrants EA 16 $15,000 $240,000
13 Bore and Jack 24" Casing (Freeway) LS 1 $600,000 $600,000 14 Pressure Testing LS 1 $5,000 $5,000
15 Disinfection LS 1 $5,000 $5,000
16 WPCP EA 1 $15,000 $15,000
17 Staking EA 1 $40,000 $40,000
18 Contingency (10%) EA 1 $655,000 $655,000
19 Engineering EA 1 $350,000 $350,000
$7,211,500
South Lakeport Regional Water Resiliency & Fire Protection Project 2026 Estimate
Total Construction Cost
S
M
ain
St
Manning
Creek
S
M
ain
St
State
Highway 29
Manning Creek
29 Ackley
Rd
Vista
Point
Rd
Parallel Dr
Sylva Ln
S
M
ain
St
Soda
Bay
Rd
Soda Bay Rd
Highway
175
State Highway
175
State
Highway 29
175
Vista
Point
Rd
Dixon Dr
Highway 175
Manning Creek
281
1 2 3
4 5
6 Water Systems
1 - Mendo Mill CA 1700739
2 - Rotten Robbie CA 1700727
3 - Jitter Bean CA 1700733
4 - Thomas Water System CA 1700730
5 - Jack in the Box CA 1700715
6 - Lakeport Cinemas CA 1700712
Pipe - 7,902'
Services - 58
Hydrants - 16
Fire Services - 4
Theater
Transfer
Station
Mendo
Mill
Maxar, Microsoft, Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community
/
0 1,000 2,000 4,000 Feet
Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.A.3.

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

STAFF REPORT
RE: Consideration of Approval of a Memorandum of
Understanding with Lake County Public Health for
Administration and Enforcement of the Tobacco Retail License Program
MEETING DATE: 03/03/2026
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is requested to consider approval of a Memorandum of Understanding (MOU) between the City of Lakeport and the County of Lake Public Health Department authorizing the County to administer and enforce the City’s Tobacco Retail License (TRL) Program pursuant to Lakeport Municipal Code Section 5.40.170.

BACKGROUND/DISCUSSION:

On December 3, 2024, the City Council adopted Ordinance No. 950 (2024), establishing Chapter 5.40 of the Lakeport Municipal Code to regulate tobacco retail sales within the City. The ordinance created a licensing framework intended to reduce youth access to tobacco products, improve retailer compliance with state laws, and support public health initiatives.

Section 5.40.170 of the ordinance expressly authorizes the City Council to enter into agreements with the County or other agencies to administer and enforce the requirements of the Tobacco Retail License Program.

Consistent with Council direction during the ordinance adoption process, staff has worked with Lake County Public Health and Environmental Health to develop a Memorandum of Understanding that would allow the County to carry out licensing administration, compliance monitoring, inspections, and enforcement activities on behalf of the City.

Under the proposed MOU, the County will:
• Process and approve tobacco retailer license applications and renewals; • Conduct inspections and compliance monitoring;
• Respond to complaints and investigate alleged violations; • Pursue enforcement actions including fines, suspensions, or revocations when necessary; • Conduct public education and outreach; and
• Provide annual reporting to the City regarding program implementation.

Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.A.3.

The City’s responsibilities under the MOU primarily include referring complaints to the County, supporting enforcement efforts, and maintaining a fee structure that allows the County to recover its administrative costs through license fees rather than City General Fund resources.

This regional partnership approach was contemplated when the ordinance was adopted and provides operational efficiencies by allowing one agency to administer a consistent tobacco retail licensing program across Lake County jurisdictions.

PROGRAM STATUS AND COUNTYWIDE OUTREACH: Since adoption of local tobacco retail licensing ordinances across Lake County, Public Health staff have implemented an extensive education and outreach effort with local retailers. During the initial 2025 implementation period, educators conducted site visits to retail establishments to explain new compliance requirements and prepare businesses for formal enforcement.

County Environmental Health has indicated that inspections within incorporated cities have not yet begun pending execution of MOUs authorizing administration of each jurisdiction’s program. Approval of this MOU will allow inspections and enforcement activities to begin within the City of Lakeport, aligning local implementation with the broader countywide program.

Following City Council action, the proposed Memorandum of Understanding will be forwarded to the Lake County Board of Supervisors for their review and consideration of approval to finalize the agreement between the two agencies.

OPTIONS:

1. Approve the Memorandum of Understanding with Lake County Public Health for administration and enforcement of the Tobacco Retail License Program.

2. Provide direction to staff regarding revisions to the agreement.

3. Take no action.

4. Or alternatively, the Council may provide staff 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: Under the terms of the MOU, the County will recover the full cost of administration and enforcement through tobacco retailer licensing fees collected directly from permittees. No direct General Fund impact is anticipated.

COUNCIL PRIORITIES:
☒ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
Meeting Date: 03/03/2026 Page 3 Agenda Item # VII.A.3.

SUGGESTED MOTIONS:

Move to approve the Memorandum of Understanding between the City of Lakeport and the County of Lake Public Health Department for administration and enforcement of the Tobacco Retail License Program pursuant to Section 5.40.170 of the Lakeport Municipal Code.

Attachments: 1. Memorandum of Understanding—Tobacco Retail Licensing Program

2. Ordinance No. 950 (2024)—Tobacco Retail License (Reference)

3. Lake County Tobacco Retail License Program Annual Summary (2025)

MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF

LAKE AND CITY OF LAKEPORT FOR TOBACCO RETAIL LICENSING
THIS MEMORANDUM OF UNDERSTANDING, hereinafter referred to as “MOU,” is made and entered into on this 1st of December, 2025 (“Effective Date”) by and between the County of Lake, hereinafter referred to as “County,” and the City of Lakeport, hereinafter referred to as “City,” collectively, the “Parties.”

RECITALS
WHEREAS, on August 13, 2024, the Board of Supervisors of the County of Lake (the “Board of Supervisors”) adopted County Ordinance No. 3141 establishing a comprehensive program for the licensing of tobacco retailers within the County.

WHEREAS, on December 3, 2024, the City Council of the City of Lakeport (the “City Council”) adopted City Ordinance No. 950 (2024) establishing a comprehensive program for the licensing of tobacco retailers within the City (the “City Ordinance”).

WHEREAS, section 5.40.170 of the Ordinance authorizes the City Council to enter into an agreement with the County to carry out and enforce the Ordinance as deemed necessary and advisable.

WHEREAS, the Parties desire to enter into an agreement by which the County will carry out the administration and enforcement of the Ordinance on behalf of the City.

NOW, THEREFORE, in consideration of the mutual benefits to be derived by the Parties and of the promises contained in this MOU, the Parties agree as follows:

1. Recitals. The recitals set forth above are true and correct and hereby incorporated into this MOU.

2. Term. This MOU shall commence on the Effective Date and shall remain in effect until terminated by either Party in accordance with Section 8.

3. County Responsibilities. The County will:
a. Process and approve or deny any applications for a tobacco retailer’s license to engage in tobacco retailing within the boundaries of the City; b. Process and approve or deny applications for renewal of a tobacco retailer’s license to engage in tobacco retailing within the boundaries of the City; c. Perform compliance monitoring activities to verify compliance with the City Ordinance, as authorized by Section 5.40.120 thereof;
d. Respond to complaints or referrals from the public and/or from City staff and investigate alleged violations of the City Ordinance;

MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF

LAKE AND CITY OF LAKEPORT FOR TOBACCO RETAIL LICENSING
e. Pursue legal enforcement to correct violations of the City Ordinance, including but not limited to the imposition of fines or suspension or revocation of a tobacco retailer’s license, and process any appeals challenging such enforcement action(s) in accordance with the City Ordinance;
f. Collect any and all application fees, license fees, and fines authorized by and in accordance with the City Ordinance;
g. Perform public education and outreach regarding the City Ordinance; h. Make available, within a reasonable timeframe, any records pertaining to enforcement of Ordinance within City upon request by authorized representatives of the City.
i. Upon the reasonable request of the City, and in no event less than once per calendar year, provide a written report to the City Council thereof concerning the services provided pursuant to this MOU; and
j. Perform such other acts as necessary to carry out the purposes and provisions of the City Ordinance.

4. City Responsibilities. The City will:
a. Refer to the County for investigation any complaint alleging a violation of the Ordinance;
b. Update the City’s Fee Schedule as necessary for the County to recover the total cost of administration and enforcement of the Ordinance; and c. Support the County’s administration and enforcement of the Ordinance, including, but not limited to the County’s collection of any and all application fees, license fees, and fines from retailers, with information and cooperation as reasonably required by the County.

5. Joint Obligations.
a. Each Party will retain all records and documents in its possession pertaining to the MOU for a period of three (3) years following termination of this MOU. b. The Parties will make a good faith effort to cooperate with one another to achieve the purposes of this MOU. Each Party will promptly provide any information and documentation in their possession or otherwise available for release upon reasonable request of the other Party.

6. Fees. All costs to County for performance of services provided under this MOU shall be recouped by County from tobacco retailer’s license fees. County shall collect fees

MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF

LAKE AND CITY OF LAKEPORT FOR TOBACCO RETAIL LICENSING
recoverable under the City’s fee schedule directly from permittees and applicants. City shall collect no fees on behalf of the County.

7. Modification. This MOU and each provision contained herein may be waived, amended, supplemented or eliminated only by mutual written agreement of the Parties.

8. Termination. Either Party may terminate this MOU, with or without cause, upon sixty (60) days’ written notice to the other Party. In case of termination, any enforcement action(s) commenced before the effective date of termination shall remain with the County until fully resolved.

9. Mutual Indemnification.
a. City shall defend, indemnify, and hold harmless the County, its Board of Supervisors, officers, directors, agents, employees, volunteers, and assigns from and against all demands, claims, actions, liabilities, losses, damages, injuries to or death of persons, regulatory fines and/or penalties imposed by any local, state, or federal and/or costs, to the extent arising out of or resulting from the negligent or intentional acts or omissions of the City, its City Council, officers, directors, agents, employees, assigns, contractors, or volunteers in connection with this MOU, except where caused by the active negligence, sole negligence, or willful misconduct of County.
b. County shall defend, indemnify, and hold harmless the City, its City Council, officers, directors, agents, employees, volunteers, and assigns from and against all demands, claims, actions, liabilities, losses, damages, injuries to or death of persons, regulatory fines and/or penalties imposed by any local, state, or federal authority and/or costs, to the extent arising out of or resulting from the negligent or intentional acts or omissions of the County, its Board of Supervisors, officers, directors, agents, employees, assigns, contractors, or volunteers in connection with this MOU, except where caused by the active negligence, sole negligence, or willful misconduct of City.
c. This indemnity shall not be limited by the types and amounts of insurance or selfinsurance maintained by the Parties. d. Nothing in this indemnity section shall be construed to create any duty, any standard of care with reference, or any liability or obligation, contractual or otherwise, to any third party.
e. The provisions of this indemnity section shall survive the termination of the MOU.

10. Insurance. Each Party, at its sole cost and expense, shall carry insurance or shall selfinsure its activities in connection with this MOU and obtain, keep in force, and maintain insurance or equivalent programs or self-insurance for general liability, worker's

MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF

LAKE AND CITY OF LAKEPORT FOR TOBACCO RETAIL LICENSING
compensation, property, professional liability, environmental liability, and automobile liability adequate to cover its potential liabilities hereunder.

11. Notices. Any notices or other written communication related to this MOU shall be delivered personally or mailed, U.S. first class postage prepaid, addressed as follows:

CITY OF LAKEPORT COUNTY OF LAKE
Kevin Ingram, City Manager Brad Rasmussen, Chair
City of Lakeport Lake County Board of Supervisors
225 Park St. 255 N Forbes Street
Lakeport, California 95453 Lakeport, California 95453
Either Party may amend its address for notice by giving notice to the other Party in writing.

12. Non-assignment. County shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this MOU to any party other than County.

13. Relationship of the Parties. It is expressly understood that this is an agreement between two independent entities and that no individual agency, employee, partnership, joint venture, or other relationship is established by this MOU. The Parties are, and shall at all times remain as to each other, wholly independent entities. No Party to this MOU shall have power to incur any debt, obligation, or liability on behalf of any other Party. Neither Party, nor any of its officers, agents, or employees, volunteers, or contractors, shall for any reason be considered agents or employees of the other Party, nor authorized to act as agents or employees of the other Party, with respect to the performance of this MOU.

14. Binding Effect; No Third Party Beneficiaries. This MOU shall be binding upon and shall be to the benefit of the respective successors, heirs, and permitted assigns of each Party.

The Parties hereby disclaim intent to benefit third parties or to allow any person other than Party to enforce or benefit from this MOU.

15. Waiver. Waiver by either Party to this MOU of any term, condition, or covenant of this MOU shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this MOU shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOU.

16. No Presumption Against Drafter. Each Party had an opportunity to consult with an attorney in reviewing and drafting this MOU. Any uncertainty or ambiguity shall not be construed for or against any Party based on attribution of drafting.

17. Authority. The Parties warrant that the signatories to this MOU have the authority to bind their respective entities.

MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF

LAKE AND CITY OF LAKEPORT FOR TOBACCO RETAIL LICENSING

18. Headings. The headings and captions appearing at the commencement of the Sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this MOU. Should there be any conflict between such heading, and the Section or Subsection thereof at the head of which it appears, the language of the Section or Subsection shall control and govern in the construction of this MOU.

19. Entire Agreement. This MOU constitutes the entire agreement between the City and County concerning the subject matter herein. Adoption of this MOU supersedes any prior agreements to the extent they are inconsistent herewith.

20. Severability. If any provision of this MOU is determined by any court to be invalid, illegal, or unenforceable to any extent, then the remainder of this MOU will not be affected, and this MOU will be construed as if the invalid, illegal, or unenforceable provision had never been contained in this MOU.

21. Governing Law. This MOU shall be governed and construed in accordance with the laws of the State of California.

22. Venue. The venue for any litigation for purposes of resolving any dispute or enforcing any obligation arising under this MOU shall be in the Superior Court of California for the County of Lake.

23. Attorneys’ Fees. If legal action shall be necessary to enforce any term, covenant or condition contained in this MOU, each Party shall pay its own costs, including any accountants’ and attorneys’ fees expended in the action.

24. Remedies Non-Exclusive. Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance from the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such Party of any or all of such other rights, powers or remedies.

25. Counterparts; Electronic Signatures. This MOU may be signed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. The Parties acknowledge and agree that this MOU may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed or emailed versions of an original signature, electronically scanned and transmitted versions (e.g., via pdf) of an original signature, or a digital signature.
[Signature page to follow.]

MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF

LAKE AND CITY OF LAKEPORT FOR TOBACCO RETAIL LICENSING
IN WITNESS THEREOF, the Parties hereto have executed this MOU in duplicate effective on the Effective Date.

COUNTY OF LAKE
By:
_____________________________
, County of Lake
_____________________________
Date
Attest:
_____________________________
County Clerk
_____________________________
Date
Approved as to form:
_____________________________
County Counsel
_____________________________
Date

CITY OF LAKEPORT
By:
_____________________________
City Manager, City of Lakeport
_____________________________
Date
Attest:
_____________________________
City Clerk
_____________________________
Date
Approved as to Form
_____________________________
City Attorney
_____________________________
Date

DECEMBER 15, 2025

COUNTY OF LAKE ENVIRONMENTAL HEALTH

DIVISION TOBACCO RETAIL LICENSE
PROGRAM ANNUAL SUMMARY.

Background:

In 2024, the County of Lake, the City of Clearlake, and the City of Lakeport each adopted ordinances establishing conditions for the sale of tobacco products. These ordinances - County of Lake Ordinance No. 3141 (adopted August 6, 2024), City of Clearlake Ordinance No. 272-2024 (adopted November 21, 2024), and City of Lakeport Ordinance No. 950 (2024) (adopted December 3, 2024) - collectively form the foundation of the Lake County Tobacco Retail License Program.

Implementation of the program began with a six-month educational period from January 1 through June 30, 2025. During this time, all retail tobacco facilities in Lake County were visited at least once by educators from Lake County Public Health and Lake County Environmental Health. These visits included educational inspections, which carried no regulatory penalties and were intended to inform operators of the new ordinance requirements and compliance expectations.

On July 1, 2025, Lake County Environmental Health issued the first series of tobacco retail licenses. These initial licenses were valid for six months, expiring on December 31, 2025, in order to align the program with a calendar-year schedule. Invoices for the 2026 permit year were mailed on November 4, 2025, with permits scheduled for issuance beginning January 1, 2026.

COUNTY OF LAKE
Health Services Department
Environmental Health Division
922 Bevins Court
Lakeport, California 95453-9739
Telephone 707/263-1090
FAX 707/263-4395
Anthony Arton
Public Health Director
Dr. Robert Bernstein
Public Health Officer
Craig Wetherbee
Environmental Health Director
Promoting an Optimal State of Wellness in Lake County
During the 2025 permit year, a total of 46 inspections were conducted. All but one facility located in unincorporated Lake County were inspected. No inspections were completed in either the City of Clearlake or the City of Lakeport, as Memoranda of Understanding (MOUs) authorizing Lake County Environmental Health to administer and enforce the Tobacco Retail License Program within each city’s jurisdiction are still pending approval by the respective city managers.

Program Summary:

The inaugural inspection cycle presented several challenges and required a significant investment of time and resources. As anticipated with any new regulatory program, initial resistance and confusion were encountered. None of the inspected facilities passed without violations, and many operators expressed unfamiliarity with the regulations and concern over receiving Notices of Violation. Staff reminded operators that each facility had been visited during the educational period and provided with detailed information regarding compliance requirements. To date, only nine facilities have achieved full compliance with the ordinance.

Lake County Retail Tobacco License Inspections:

Number of
Permits
Number of
Inspections
Number
of
Violations
City of
Clearlake 13 0 0
City of
Lakeport 10 0 0
County of Lake
Unincorporated 46 46 143
Other
Violations, 24,
17%

5.a - Display
of License,
21, 15%

5.b - "We
Check ID"
Sign Posted,
33, 23%

8.b - Sale of
Presumed
Flovered
Product, 33,
23%

10.a - Display
of Price, 32,
22%
Common Violations
Figure 1: This chart identifies the most common violations found in the completed inspections to date. The majority of violations were administrative in nature and were able to be corrected durin the inspection. However, the Sale of Presumed Flavored product was a common violation and
may require more education to help operators understand the requiremetns.

The most significant enforcement challenge involved regulating “Presumed Flavored Products.” Thirty-three of the forty-three inspected facilities were cited for violations related to this provision. Retailers reported that their vendors had assured them the products were compliant with California state regulations. However, several products were identified as potentially violating the flavor-ban restriction due to suggestive labeling—such as “Emerald,” “Green Envy,” and “Sweet Fusion Red”—which implied altered flavor profiles without explicitly listing flavoring agents. Subsequent research revealed that ingredient lists on vendor websites had been modified, further complicating enforcement efforts. The State of California is expected to release an official list of approved products on December 31, 2025, which will provide muchneeded clarity and support enforcement activities moving forward.

Program 2026 Projections:

Looking ahead to 2026, Lake County Environmental Health will continue to administer, educate, inspect, and enforce the County’s Tobacco Retail License Ordinance. Some of the initial challenges will be lessened by the corrections completed in the implementation phase. We anticipate a significant reduction in violations related to posted signs and permits as this work has been completed, and is unlikely to have been reversed or altered.

It is anticipated that both the City of Clearlake and the City of Lakeport will finalize and execute MOUs authorizing Environmental Health to enforce their respective ordinances after which the program will regulate a total of 70 facilities countywide, including 47 in unincorporated Lake County, 13 in the City of Clearlake, and 10 in the City of Lakeport.

There will likely be similar challenges to enforcement as this will represent the first inspection in the two city jurisdictions for the operators. Environmental Health plans to conduct two inspections per facility during the 2026 calendar year. Additionally, in collaboration with local law enforcement, the division will implement covert buy operations to assess compliance with underage tobacco sales restrictions.

Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.B.1.

CITY OF LAKEPORT
City of Lakeport Planning Commission 
City Council 
Lakeport Redevelopment Successor Agency 
Lakeport Industrial Development Agency 
Municipal Financing Agency of Lakeport 

STAFF REPORT
RE: 2025 Housing Element Annual Progress Report MEETING DATE: 03/03/2026 SUBMITTED BY: Victor Fernandez, Planning Services Manager PURPOSE OF REPORT:  Information only  Discussion  Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL:

The City Council is requested to review the 2025 Housing Element Annual Progress Report prepared by City staff, prior to submission to the Department of California Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation. Additionally, a presentation of this report was made to the Planning Commission on February 11, 2026.

BACKGROUND/DISCUSSION: Since 1969, California has required that all local governments (Cities and Counties) adequately plan to meet the housing needs of everyone in the community. California’s local governments meet this requirement by adopting housing plans (aka housing elements) as part of their General Plan (also required by the state).

General Plans serve as the local government’s blueprint for how the city and/or county will grow and develop and include seven elements: land use, transportation, conservation, noise, open space, safety, and housing.

Additionally, every city and county in the state of California is required to submit an Annual Progress Report (APR) on individual jurisdiction progress towards implementing the housing element of its General Plan. The report must be submitted to the California Department of Housing and Community Development (HCD) and the Governor's Office of Land Use and Climate Innovation on or before April 1st of each year. The 2025 APR consists of a spreadsheet template created by HCD to capture housing activity and City of Lakeport’s progress. The APR report includes the following tables:
• Annual building activity reports for new housing units. • Regional Housing Needs Allocation (RHNA) progress.
• Sites identified or rezoned to accommodate shortfall housing need and no net loss law. • Housing Element program implementation status.
• Commercial development bonus approved.
• Units rehabilitated, preserved and acquired for alternative adequate sites. • Above moderate-income units converted to moderate income. • Locally owned lands included in the Housing Element Sites inventory that have been sold, leased, or otherwise disposed of.
• Locally owned Surplus Sites.
• Student housing developed for lower income students for which a density bonus was granted.

Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.B.1.

Table 1 below summarizes housing production data from previous reporting years and illustrates the City’s progress toward meeting its Regional Housing Needs Allocation (RHNA) across income categories. It should be noted that the Acutely Low-Income category was formally introduced through Assembly Bill 3093, which was signed into law on September 19, 2024 (Chapter 282, Statutes of 2024), and subsequently incorporated by the California Department of Housing and Community Development (HCD) into the Annual Progress Report (APR) reporting framework for informational and data-collection purposes. While housing units may now be reported under this category, Acutely LowIncome units are not credited toward RHNA compliance during the current 2019–2027 Housing Element cycle. Consistent with AB 3093 and HCD guidance, units identified as Acutely Low-Income will be formally incorporated into RHNA allocations beginning in the next RHNA cycle.

Table 1 – Current RHNA Progress
Income Level
RHNA
Allocation
by Income
Level
2020 2021 2022 2023 2024 2025
Total
Units
to Date
(all
years)
Total
Remaining
RHNA by
Income
Level
Acutely
Low
Deed
Restricted
-

-
-

Non-Deed -
Restricted

-
Extremely
Low
Deed
Restricted
-

15 15

Non-Deed -
Restricted

-
Very Low
Deed
Restricted
31 34

22 71*

Non-Deed -
Restricted

-
Low
Deed
Restricted
21 13

26 45

Non-Deed -
Restricted

3 1

2 Moderate
Deed
Restricted
21 -

-
5 Non-Deed 16
Restricted

2 -

2 1
Above
Moderate

59 1

3 1

5 -

10 49
Total RHNA

132
Total Units

48 5

4 1

7 66

131

65 *The Very Low-Income category reflects a total of 71 units, as units classified as Extremely Low-Income are also counted toward the Very Low-Income category for RHNA reporting purposes. Consistent with HCD methodology, extremely low-income units may be credited toward meeting very low-income housing needs, resulting in an overlap between these categories in the reporting totals. Accordingly, the total shown for the Very Low-Income category includes units that are deed-restricted at both the extremely low- and very low-income affordability levels.

In the 2025 reporting year, the City of Lakeport continued its efforts to meet its Regional Housing Needs Allocation (RHNA).

A total of 66 new housing units were issued building permits in 2025, contributing to the City’s overall housing production goals. This represents a significant increase compared to the 2024 reporting year, during which a total of seven housing units were permitted.

Meeting Date: 03/03/2026 Page 3 Agenda Item # VII.B.1.

HOUSING PRODUCTION OVERVIEW:

New units permitted in 2025 included:
• 15 Extremely-Low Income Units
• 22 Very-Low Income Units
• 28 Low Income Units
• 1 Moderate Income Unit
• Total Income Units: 66
It should be noted that 64 of the units counted during the 2025 reporting period are attributable to the Parkside Apartments project. While the Parkside Apartments were entitled in the 2022 reporting year, building permits for the 64 apartment units were issued in 2025. Consistent with California Department of Housing and Community Development (HCD) reporting requirements, housing units are only credited toward a jurisdiction’s RHNA upon issuance of a building permit. Accordingly, the Parkside Apartments units are appropriately counted toward the City of Lakeport’s RHNA progress in the 2025 reporting year. Table 2 below shows the summary of entitlements, building permits, and certificate of occupancy.

Table 2 – Entitlement Summary
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 2
Deed Restricted 0
Non-Deed Restricted 0
0 2
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 15
Non-Deed Restricted 0
Deed Restricted 22
Non-Deed Restricted 0
Deed Restricted 26
Non-Deed Restricted 2
Deed Restricted 0
Non-Deed Restricted 1
0 66
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 1
Deed Restricted 0
Non-Deed Restricted 0
0 1
Acutely Low
Extremely Low
Acutely Low
Extremely Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Acutely Low
Extremely Low
Meeting Date: 03/03/2026 Page 4 Agenda Item # VII.B.1.

RHNA PROGRESS AND REMAINING NEED
To date, the City of Lakeport has issued building permits for a total of 131 housing units, making progress towards its overall RHNA allocation of 132 units for the 2019–2027 Housing Element cycle. While this represents substantial progress toward the City’s total RHNA obligation, remaining unmet needs persist within specific income categories. In particular, the City still has 16 moderate-income units and 49 above-moderate-income units remaining. Although the overall number of permitted units closely matches the total RHNA requirement, housing production to date has been disproportionately concentrated in lower-income categories and has not yet satisfied the remaining moderate- and above-moderate-income RHNA allocations.
• Extremely Low-Income Units: The City has issued building permits for 15 extremely low-income units. Consistent with HCD reporting methodology, and due to the concentration of very low-income housing units, one-half of the very low-income units are assumed to qualify as extremely low-income units for RHNA accounting purposes.

Although this results in a technical shortfall of one unit, HCD’s reporting spreadsheet indicates that the City has satisfied the requirement for 16 extremely low-income units. • Very Low-Income Units: The City has exceeded its RHNA allocation for very low-income deed-restricted units, with 56 units permitted compared to an allocation of 31 units. • Low-Income Units: The City has issued building permits for 45 low-income units, thereby satisfying the RHNA allocation of 21 units for this income category.
• Moderate-Income Units: The City has issued building permits for five moderate-income units. A total of 16 units remain to be permitted to fully satisfy the RHNA allocation for this income category. • Above-Moderate-Income Units: The City has issued building permits for 10 above-moderate-income units. A total of 49 units remain to be permitted to meet the RHNA allocation for this income category.

OPTIONS:

1. Review the 2025 General Plan Annual Progress Report
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 MOTION:

None required – Informational report only
☒ Attachments: 1. 2025 Housing Element Annual Progress Report Jurisdiction Lakeport
Reporting Year 2025
Housing Element Planning Period 6th Cycle
Current Year
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 15
Non-Deed
Restricted 0
Deed
Restricted 22
Non-Deed
Restricted 0
Deed
Restricted 26
Non-Deed
Restricted 2
Deed
Restricted 0
Non-Deed
Restricted 1
0 66
Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 0 0
Single-family Detached 0 0 0
2 to 4 units per structure 0 0 0
5+ units per structure 0 64 0
Accessory Dwelling Unit 0 0 0
Mobile/Manufactured Home 2 2 1
Total 2 66 1
Infill Housing Developments and Infill Units Permitted # of Projects Units 1 64
2 2
Total Units
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level
(Jan. 1 - Dec. 31)
08/15/2019 - 08/15/2027
Very Low
Low
Moderate
Acutely Low
Extremely Low
2 2
2 0
0 0
Income Rental Ownership Total
Acutely Low 0 0 0
Extremely Low 0 0 0
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 0 0
SB 9 (2021) - Residential Lot Split 0 0
AB 2011 (2022) 0 0
SB 6 (2022) 0 0
SB 423 (2023) 0 0
Ministerial and Discretionary Applications # of Units
Ministerial 2 2
Discretionary 0 0
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 0 Number of Units in Applications Submitted Requesting a Density Bonus 0 Number of Projects Permitted with a Density Bonus 0
Number of Units in Projects Permitted with a Density Bonus 0 Housing Element Programs Implemented and Sites Rezoned Count 21 0
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Housing Applications Summary
Use of SB 423 Streamlining Provisions - Applications
Number of SB 423 Streamlining Applications
Programs Implemented
Sites Rezoned to Accommodate the RHNA
Units Constructed - SB 423 Streamlining Permits
Number of SB 423 Streamlining Applications Approved
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Planning
Period 6th Cycle 08/15/2019 - 08/15/2027
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Historic Sites
2 3 4 6 7 8 9 10
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted
(see
instructions)
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low-Income
Deed
Restricted
Extremely
Low-Income
Non Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
Low-Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome
Total

PROPOSED
Units by
Project
Total

APPROVED
Units by
project
Total

DISAPPROVE
D Units by
Project
Please select
state
streamlining
provision/s the
application was
submitted
pursuant to.

Is this project
located on a
site with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Did the
housing
development
application
seek
incentives or
concessions
pursuant to
Government
Code section
65915?
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 2 0 0 0 2 2 0 026-122-49 1665 Alden
Avenue Lison Residence #1 BP-24-73 MH O
5/13/2024
1 1 1 NONE No
026-122-50 1657 Alden
Avenue Lison Residence #2 BP-24-74 MH O
5/13/2024
1 1 1 NONE No
025-731-17 1271 Fenway
Street
Fenway Residence
#1 BP-24-100 SFD O
6/17/2024
1 1 1 NONE No
025-731-16 1267 Fenway
Street
Fenway Residence
#2 BP-24-99 SFD O
6/17/2024
1 1 1 NONE No
025-731-15 1263 Fenway
Street
Fenway Residence
#3 BP-24-98 SFD O
6/17/2024
1 1 1 NONE No
025-221-01 875 N. High
Street Duplex Conversion BP-23-3062 2 to 4 R
8/20/2023
2 2 2 NONE No
025-701-24 1900 South
Main Street Stallings Residence BP-25-116 MH O
6/17/2025
1 1 1 NONE No No
025-564-19 42 Helena
Avenue Castanon Residence BP-25-120 MH O
6/18/2025
1 1 1 NONE No No
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Density Bo
Applica
11 Housing Development Applications Submitted
Proposed Units - Affordability by Household Incomes
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting
Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 08/15/2019 08/15/2027
Table A2
Streamlining Historic Sites Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
2 3 5 6 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Prior APN+ Current APN Street
Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(SFA,SFD,2
to
4,5+,ADU,MH
)
Tenure
R=Renter
O=Owner
Acutely LowIncome
Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low- Income
Deed
Restricted
Extremely
Low- Income
Non Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date
Approved
# of Units
issued
Entitlements
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome
Non Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome
Non Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building
Permits Date
Issued
# of Units Issued
Building Permits
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or
other forms of
readiness
(see instructions)
Date Issued
# of Units
issued
Certificates
of
Occupancy
or other
forms of
readiness
Please select
the state
streamlining
provision the
project was

APPROVED
pursuant to.
(may select
multiple)
Is this project
located on a site
with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Infill Units?
Y/N+
Assistance
Programs for Each
Development
(may select
multiple - see
instructions)
Deed Restriction
Type
(may select
multiple - see
instructions)
For units affordable
without financial
assistance or deed
restrictions, explain how
the locality determined the
units were affordable
(see instructions)
Term of Affordability
or Deed Restriction
(years) (if affordable
in perpetuity enter
1000)+
Number of
Demolished/Destro
yed Units
Demolished
or Destroyed
Units
Demolished/
Destroyed
Units
Owner or
Renter
Total Density Bonus
Applied to the Project
(Percentage Increase in
Total Allowable Units or
Total Maximum Allowable
Residential Gross Floor
Area)
Number of Other
Incentives,
Concessions,
Waivers, or Other
Modifications Given
to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the
incentives,
concessions,
waivers, and
modifications
(Excluding
Parking Waivers
or Parking
Modifications)
Did the project
receive a reduction
or waiver of parking
standards? (Y/N)
Notes+
Summary Row : Start Data Entry Below 0 0 0 0 0 0 0 2 0 0 0 2 0 0 15 0 22 0 26 2 0 1 0 66 0 0 0 0 0 0 0 1 0 0 0 1 0 026-193-03 340 Thirteenth
Street
Aspen Grove
Duplex BP2223-2788 2 to 4 R 2 11/7/2022 2 2 11/17/2022 2 2 1/17/2024 2 NONE N Sales Price/Valuation 026-193-03 340 Thirteenth
Street
Aspen Grove
Duplex BP2223-2788 ADU R 1 11/7/2022 1 1 11/17/2022 1 1 1/17/2024 1 NONE N Sales Price/Valuation 005-051-02 2365 Parallel
Drive
Kacharos
Residence BP2223-2870 SFD O 1 3/30/2021 1 0 0 NONE N Sales Price/Valuation 025-062-24 1366 Berry Street Perez ADU BP2122-2572 ADU O 1 12/14/2021 1 1 12/14/2021 0 1 6/28/2022 1 NONE N Sales Price/Valuation 025-035-02 1240 Central
Park Avenue
Caravella
Residence BP2122-2573 MH O 1 5/10/2022
1 1 5/17/2022 1 1 10/12/2023 1 NONE N
Sales
Price/Valuation/Manufactured
Home
025-431-41 519 S Smith
Street
Martin Street
Apartments (Phase
III)
Application 2021-
25 5+ R 40 4/4/2023
40 0 0 NONE Y Proposed Income Level
5/3/1951 1310 Craig
Avenue
Parkside
Residential Proect
Application 2021-
31 5+ R 128 12/6/2022 128 15 22 26 1 8/19/2025 64 0 NONE No Y CDBG Other Proposed Income Level 5/3/1951 1310 Craig
Avenue
Parkside
Residential Proect
Application 2021-
31 5+ O 48 12/6/2022 48 0 0 NONE N Proposed Income Level 025-431-37 447 Bevins Bevins 40 Application 2021- 5+ R 40 2/16/2022 40 0 0 NONE N Proposed Income Level 026-241-02 250 Clearlake
Avenue Dias Residence BP2223-2887 ADU O 1 4/3/2023 1 1 4/3/2023 1 1 12/21/2023 1 NONE N 026-122-49 1665 Alden
Avenue Lison Residence #1 BP-24-73 MH O 1 5/13/2024
1 1 11/19/2024 1 0 NONE N
Utilized Affordability Calculator
provided by HCD. In absence of
Sales price information,
utililized previous sales price of
vacant lot plus the job
026-122-50 1657 Alden
Avenue Lison Residence #2 BP-24-74 MH O 1 5/13/2024
1 1 10/22/2024 1 0 NONE N
Utilized Affordability Calculator
provided by HCD. In absence of
Sales price information,
utililized previous sales price of
vacant lot plus the job
025-731-17 1271 Fenway
Street
Fenway Residence
#1 BP-24-100 SFD O 1 6/17/2024
1 1 9/11/2024 1 0 NONE N
Utilized Affordability Calculator
provided by HCD. In absence of
Sales price information,
utililized previous sales price of
vacant lot plus the job
025-731-16 1267 Fenway
Street
Fenway Residence
#2 BP-24-99 SFD O 1 6/17/2024
1 1 9/11/2024 1 0 NONE N
Utilized Affordability Calculator
provided by HCD. In absence of
Sales price information,
utililized previous sales price of
vacant lot plus the job
025-731-15 1263 Fenway
Street
Fenway Residence
#3 BP-24-98 SFD O 1 6/17/2024
1 1 9/11/2024 1 0 NONE N
Utilized Affordability Calculator
provided by HCD. In absence of
Sales price information,
utililized previous sales price of
vacant lot plus the job
025-221-01 875 N. High
Street Duplex Conversion BP-23-3062 2 to 4 R 2 8/20/2023 2 2 2/14/2024 2 2 11/13/2024 2 NONE N
No information on income
level. According to HCD
Instructions, In the absence of
justification that the unit is
affordable to a very- low, low,
and moderate-income
household, the unit must be
counted as above-moderate
025-701-24 1900 South Main
Street Stalligs Residence BP-25-116 MH O 1 6/17/2025
1 1 7/30/2025 1 1 10/15/2025 1 NONE No N
Sales
Price/Valuation/Manufactured
Home
025-564-19 42 Helena
Avenue
Castanon
Residence BP-25-120 MH O 1 6/18/2025
1 1 9/30/2025 1 0 NONE No N
Sales
Price/Valuation/Manufactured
Home
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
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0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
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Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting
Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 08/15/2019 08/15/2027
Note: "+" indicates an optional field
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Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting
Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 08/15/2019 08/15/2027
Note: "+" indicates an optional field
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Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting
Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 08/15/2019 08/15/2027
Note: "+" indicates an optional field
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00 Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 08/15/2019 - 08/15/2027
1 Projection
Period 3 4
RHNA Allocation
by Income Level
Projection
Period -
01/01/2019-
08/14/2019
2019 2020 2021 2022 2023 2024 2025 2026 2027
Total Units to
Date (all
years)
Total Remaining
RHNA by
Income Level
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - 15 - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - 34 - - - - 22 - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - 13 - - - - 26 - -
Non-Deed Restricted - - - 3 1 - - 2 - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - 2 - - 2 1 - -
Above Moderate 59 - - 1 - 3 1 5 - - - 10 49
132
- - 48 5 4 1 7 66 - - 131 65
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Acutely Low - -
*For years prior to 2025, data on deed-restricted vs. non-deed restricted Extremely Low-Income units is approximated from whether the projects reported any deed-restricted Very Low-Income Units. If you wish to edit this historical data for accuracy or have any questions about the data, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Total Units
*For jurisdictions that received RHNA determinations for the current cycle prior to the passage of AB 3093 (September 19, 2024):
- You were not allocated Acutely Low-Income and Extremely Low-Income RHNA targets, therefore the allocations in Field 1 are listed as "0" - If you wish to set your own targets in these income categories for informational purposes, contact HCD staff at [email protected]. - All Acutely Low-Income and Extremely Low-Income units reported during the cycle are counted towards Very-Low Income RHNA progress 16 Total RHNA
-
- Low
*For years prior to 2025, Acutely Low-Income units are reported within the Extremely Low-Income category Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.

Extremely Low -
5 Moderate
31 21
21 45
71 Income Level
Very Low
15 -
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.

Please contact HCD if your data is different than the material supplied here 2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
-
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 08/15/2019 - 08/15/2027
Date of
Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of
Rezone
Very LowIncome Low-Income ModerateIncome
Above
ModerateIncome
Rezone Type Parcel Size
(Acres)
General Plan
Designation Zoning
Minimum
Density
Allowed
Maximum
Density
Allowed
Realistic
Capacity Vacant/Nonvacant Description of Existing Uses
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Summary Row: Start Data Entry Below
3 8
Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C
Jurisdiction Lakeport
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation Program Implementation Details Quantified Outcomes:

Category
Quantified Outcomes:

Count Supporting Documents
Program 1-1 Maintain Existing Residential Zoning 8/15/2027 6th Cycle Continuous Residential densities and uses maintained. Other None Program 1-2 Housing Rehabilitation Program 8/15/2027 6th Cycle In Progress The City was awarded a CDBG Competitive Planning Grant (22-CDBG-PL-20037) to develop policies and procedures and enhance staff capacity for the City of Lakeport Housing Program. The Housing Program will focus on Owner-Occupied Rehabilitation and First-Time Homebuyer assistance.The City is currently working with its CDBG consultant, Adams Ashby, to prepare the program policies and procedures manuals, which are anticipated to be completed by the end of Summer 2026. In the interim, the City continues to conduct code enforcement as needed and connects homeowners in need of assistance with City staff to support rehabilitation and emergency home improvements.

Units None
Program 1-3 Capital Improvement Program 8/15/2027 6th Cycle Continuous The City together with the County and regional transportation organization, Lake Area Planning Council (Lake APC), completed a countywide pedestrian needs study which documents existing pedestrian infrastructure and prioritizes where needed improvements is necessary. The City has already began to utilize this study as part of its Capital Improvement Project planning with a focus of integrating ADA and general sidewalk improvements with all ongoing roadway improvement projects. This included improvements to ADA parking on Third Street, and sidewalk improvements along Second and Sixteenth streets associated with scheduled road maintenance activities. Additionally, the City in partnership with Lake APC also completed a Multimodal Access Study for the entire Eleventh Street Corridor, a principal gateway corridor in the City. At the heart of this study has been the improvement of pedestrian, bicycle and transit operations. In addition, the City of Lakeport adopted an Active Transportation Plan in May, 2025 utlines a comprehensive strategy to improve walking, biking, and public transit infrastructure, creating a safer, more accessible, and sustainable transportation network for residents of all ages and abilities. The plan identifies existing gaps in sidewalks, bike lanes, and transit access, highlights safety concerns, and proposes priority projects such as neighborhood greenways, trails, and intersection upgrades. The City plans to continue seeking available funding to continue implementing the Active Transportation study's recommendations.

Other 3
https://cms7files.revize.com/lakeportca/2022-
23%20Adopted%20Budget.pdf?t=20220818
1418080&t=202208181418080
Program 1-4 Conversion of Affordable Units 8/15/2027 6th Cycle Continuous No housing units at risk during this reporting period. Units None Program 1-5 Energy Conservation Retrofit 8/15/2027 6th Cycle In Progress The City of Lakeport was awarded a 2022 Community Development Block Grant Planning Grant (22-CDBG-PL-20037) to develop a housing program focused on owner-occupied housing rehabilitation and first time homebuyer. This planning effort will allow the City to evaluate local housing needs, establish program guidelines, and identify eligible activities to support the preservation of existing housing stock and improve housing conditions for income-qualified households. Upon completion of the planning phase, the City will need to apply for a subsequent round of CDBG funding to implement the program and carry out the identified housing program activities.

Units None
Program 2-1 Streamline Housing Approvals 4/5/2022 6th Cycle Completed The City has contracted with Mintier Harnish to update the Zoning Ordinance to provide by-right approvals for residential development with at least 20% of the units being affordable to lower income households and to establish objective design standards. On April 5th, 2022, the Lakeport City Council adopted Resolution #2859 adopting the Lakeport Citywide Residential Objective Design Standards streamlining all housing projects. Other 2 None Program 2-2 Affordable Housing Resources 8/15/2027 6th Cycle Continuous This program has been successful in supporting development of two affordable housing projects. Martin Street apartments was completed in 2019 which provided 24 units affordable to the very low, and low income groups. The Martin Street Apartments Phase II was entitled and received building permits in 2021 for 48 units affordable to the very low, and low income groups. The City streamlined the review and approval of these projects. Additionally, the Parkside Apartments project was entitled for 64 affordabe housing units that received multiple funding sources including: CDBG-DR, PLHA, and Tax Credits. The CIty has received an application for Rural Communities Housing Development Corporation (RCHDC) and County of Lake Probation to develop a transitional supportive housing project which will include 40 housing units. The City has streamlined approval of this project under AB 2162 and is currently reviewing objective design standards for the project. In addition, the City continues to make information available regarding its affordable housing resources and incentives, both through a brochure and information on the City's website.

Other 2 https://www.cityoflakeport.com/housing.php
Program 2-3 Energy Conservation 8/15/2027 6th Cycle Continuous The City adopted the 2025 California Building Code and was awarded funding through the 2022 CDBG NOFA to re-establish a program for housing rehabilitation and homebuyer programs with an emphasis on addressing critically deferred maintenance related projects for low income households which includes energy conservation upgrades. Additionally, energy efficient units consistent with building code requirements (CALGreen/Title 24) and the subdivision ordinance are required in all new developments. The City will continue to prepare fact sheets and provide information on recommended water and energy conservation measures and available resources, such as PG&E rebates and loans, for property owners to make energy-efficient improvements.

Other
https://www.cityoflakeport.com/community_d
evelopment/handouts_forms_applications.ph
p
Program 2-4 Accessory Dwelling Units 4/5/2022 6th Cycle Completed The City has contracted with Mintier Harnish and updated the Zoning Ordinance for Accessory Dwelling units and to assess utility and impact fees. Other https://ecode360.com/47780403#47780404 Program 2-5 Market Rate Housing 8/15/2027 6th Cycle In Progress The City continues to support market rate housing and is forming partnerships with developers to attract single family home development. The City of Lakeport partnered with a local developer and issued building permits for three (3) market rate homes in 2024. Units 14 Using the 2024 Housing Element Annual
Progress Report 14 units have been
constructed in the Moderate and AboveModerate income categories.

Program 3-1 Removal of Constraints to Housing Special
Needs Groups 8/15/2027 6th Cycle Continuous The City has adopted updates to the Zoning Ordinance to proactively address identified housing needs. These updates expand opportunities for residential care facilities, permit emergency shelters, increase incentives for affordable housing serving special-needs populations, and establish reasonable accommodation provisions for persons with disabilities. Other No quantified objectives Program 3-2 Special Needs Housing Coordination 8/15/2027 6th Cycle Continuous The City has provided updates to the Zoning Ordinance to address housing needs (residential care, emergency shelters, increased incentives for affordable special needs housing, and reasonable accommodation for persons with disabilities). The Parkside Apartments development includes 64 units of low income housing, of which 15 units are extremely low-income. Other No quantified objectives Program 3-3
Incentives for Extremely Low Income,
Senior, Disabled, Large Families, and
Special Needs Housing
8/15/2027 6th Cycle Continuous Chapter 17.39 of the City's Zoning Ordinance provides for density bonuses and development standard reductions (parking, setbacks, lot coverage, etc.) to qualifying development proposals including low income, senior and other special needs housing proposals. This Ordinance has been utilized for several development projects including the Bella Vista Senior Housing Project, Bevins Street Senior Apartments, Martin Street Apartments Phase I & II and most recently Parkside Apartments. Other No quantified objectives Program 3-4 Seek Site and Funding for Affordable
Housing 8/15/2027 6th Cycle Continuous The Sixth Cycle Housing Element (adopted 07/07/20) includes Appendix A which identifies all available sites for residential development within the City of Lakeport. The City makes this appendix readily available for developers to review on the City's website under the General Plan. Other https://www.cityoflakeport.com/community_d
evelopment/lakeport_general_plan_2025.ph
p
Program 3-5 Seek Available Funding 8/15/2027 6th Cycle In Progress The City has had success over the past couple of years in obtaining HOME, CDBG-DR and TCAC funding to support the construction of 64 affordable housing units and other supportive infrastructure for future phases of the project. The City was also awareded funding through a 2022 CDBG-PL grant to develop program policies and procedures for a hopeful future Owner Occupied Rehabilitation program and First Time Homebuyer program to address critical deferred maintenance issues and assist first time homebuyers achieve the american dream of owning a home. Other None Program 3-6 Farmworker Housing 8/15/2027 6th Cycle Continuous The City is currently partnered with Community Development Services through the Lake County Economic Development Corporation to actively solicit potential housing developers in Lake County, including providers of farmworker housing. Community Development Services has sponsored several housing fair’s over the past several years. Other None

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 Program 3-7 Accommodate Special Needs Housing 8/15/2027 6th Cycle Continuous The Sixth Cycle Housing Element identified the need for the City to revise the Zoning Ordinance to address low barrier navigation centers; allow eligible supportive housing in a variety of zones; and allow eligible employee housing. The City of Lakeport has made updates to the zoning code in regard to navigation centers, supportive housing, and employee housing. In reference to Section 17.11.030.K of the Lakeport Municipal Code, Emergency Shelters/supportive housing is identified as a use by-right within the C-3 Zoning District. Additionally, in 2010 the Lakeport City Council adopted Ordinance No. 880, which aimed to facilitate the development of housing opportunities for the elderly, the handicapped, households with very-low to moderate incomes and for persons with special housing needs as well as emergency shelters and transitional/supportive housing. The City utilized PLHA funding to prepare a comprehensive Navigation Center Feasibility Study in late 2024. City staff are currently evaluating the study’s recommendations and proposed implementation strategies. While the Feasibility Study provides a clear framework for advancing a Navigation Center in the community, identifying sustainable funding sources remains the primary challenge to implementation.

Other 1 https://ecode360.com/47779481
Program 3-8 Maintain Ongoing Estimates of the
Demand for Emergency Housing 8/15/2027 6th Cycle Continuous The City of Lakeport utilizes the work of the Lake County Continuum of Care point in time annual survey of homelessness in Lake County. The City of Lakeport has also worked with local non-profit homeless advocates in the provision of a community warming center. Other None Program 3-9 Reasonable Accomodation for Persons
with Disabilities 8/15/2027 6th Cycle Continuous The City of Lakeport adopted Ordinance 893 (2014) in conjunction with the approval of the Housing Element adding Chapter 17.40, Reasonable Accommodation for Persons with Disabilities to the Zoning Ordinance and continues to provide handouts to interested parties. Other No quantified objectives Program 4-1 Equal Housing Opportunity 8/15/2027 6th Cycle Continuous The City provides information regarding fair housing laws at City Hall. The City also partners with the Lake Economic Development Corporation to support housing services and fair housing and has participated in several housing fairs, which have assisted in educating the community about fair housing laws and rights. Other No quantified objectives Program 4-2 Community Participation and Annual
Reporting 8/15/2027 6th Cycle Continuous Regular updates to the City Council and Planning Commission on housing related issues and construction of housing units within the community. Annual Progress Reports provided to HCD are also provided to City Council and Planning Commission for their review and discussion. Other No quantified objectives

Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT Reporting Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Planning 6th Cycle 08/15/2019 - 08/15/2027 Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of
Commercial
Development Bonus
Commercial Development Bonus Date
Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 08/15/2019 - 08/15/2027
The description should adequately document
how each unit complies with subsection (c) of
Government Code Section 65583.1+.

For detailed reporting requirements, see the
chcklist here:

Extremely LowIncome+Very LowIncome+ Low-Income+ TOTAL UNITS+Extremely LowIncome+Very LowIncome+ Low-Income+TOTAL UNITS+
https://www.hcd.ca.gov/communitydevelopment/docs/adequate-sites-checklist.pdf Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Units
Mobilehome Park Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates an
optional field
Reporting
Period 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 08/15/2019 - 08/15/2027
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome Deed
Restricted
Very LowIncome
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA
Jurisdiction Lakeport
Reporting
Period 2025
(Jan. 1 - Dec.
31)
Period 6th Cycle 08/15/2019 - 08/15/2027 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in the
Housing
Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting
Jurisdiction Lakeport Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
026-274-07 916 N. Forbes Street Commercial Exempt Surplus Land 0.23 listed 10-15-21
026-291-08 910 N. Main St. Vacant Exempt Surplus
Land 2.87 listed 10-15-21
025-601-02 860 N. Main St. Vacant Exempt Surplus
Land 0.51 listed 10-15-21
025-601-07 800 N. Main St. Public Facilities Exempt Surplus Land 5.34 listed 10-15-21
025-472-03 910 Bevins St. Commercial Exempt Surplus
Land 1.64 listed 10-07-25
025-472-09 912 Bevins St. Commercial Exempt Surplus
Land 0.36 listed 10-07-25
025-472-10 916 Bevins St. Vacant Exempt Surplus
Land 0.05 listed 10-07-25
NOTE: This table must contain an inventory
of ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites

Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 08/15/2019 - 08/15/2027
Project Type Date
2 3
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing) Date
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Summary Row: Start Data Entry Below
Note:

Cells in gre
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Se Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS
ONLY. This table only needs to be completed if there
were student housing projects WITH a density bonus
approved pursuant to Government Code65915(b)(1)(F)
Annual Progress Report January 2020
Jurisdiction Lakeport ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2025 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 08/15/2019 - 08/15/2027
No Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage containing authorizing local ordinance and supporting materials.

Notes
Table K
Tenant Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese). Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational.

Jurisdiction Lakeport Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Size Notes
3 4
APN Street Address/Intersection Date of
Designation
Designation
Level
Historic Site
Period
Areas of
Significance
Parcel Size (in
acres) Notes
Summary Row:

Historical Resources
Parcel Identifier
1 Designation
2 NOTE: This table needs to be completed with any sites within your jurisdiction that were newly added to a National, State, or Local register of historic places within the reporting year. If none, leave blank.

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table L

Jurisdiction Lakeport
Reporting Year 2025 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.

Task $ Amount Awarded $ Cumulative Reimbursement Requested Other Funding Notes
OpenGov permit management
software system update to activate
an e-permitting system to reduce
processing time
$65,000.00 $0.00 None
Services to provide Objective
Design Standards and other Zoning
Ordinance updates
$29,862.00 $0.00 REAP
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 2
Deed Restricted 0
Non-Deed Restricted 0
0 2
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 15
Non-Deed Restricted 0
Deed Restricted 22
Non-Deed Restricted 0
Deed Restricted 26
Non-Deed Restricted 2
Deed Restricted 0
Non-Deed Restricted 1
0 66
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 1
Deed Restricted 0
Non-Deed Restricted 0
0 1
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Acutely Low
Extremely Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Acutely Low
Extremely Low
Acutely Low
Extremely Low

ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable. $ 94,862.00
Task Status
Completed
Completed
Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.B.2.

STAFF REPORT
RE: 2025 General Plan Annual Progress Report MEETING DATE: 3/03/2026 SUBMITTED BY: Victor Fernandez, Planning Services Manager PURPOSE OF REPORT:  Information only  Discussion  Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL:

Pursuant to State Law, the City of Lakeport prepared an Annual Progress Report (APR) on the General Plan for the 2025 reporting year. This is an information-only item for the City Council’s review. Additionally, a presentation of this report was made to the Planning Commission on February 11, 2026.

BACKGROUND/DISCUSSION: The General Plan serves as the foundational policy document that guides long-term development, conservation, and infrastructure decisions in the City of Lakeport. Governed by California Government Code Section 65400, every city and county in the state is required to prepare and submit an Annual Progress Report (APR) on the status of its General Plan to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (now the Office of Land Use and Climate Innovation, or LCI).

The intent of the General Plan APR is to provide a transparent, consistent mechanism for local jurisdictions to report on their progress in implementing the goals, policies, and programs of the General Plan. It is also a tool for ensuring local consistency with statewide planning priorities, such as infill development, climate resilience, housing supply, and infrastructure coordination. The APR enables state agencies to monitor trends, identify regional challenges, and inform future policy development at the state level.

The report must be submitted to HCD and LCI by April 1st each year and is required to be reviewed and accepted by the City Council prior to submittal. The 2025 General Plan APR summarizes key actions and milestones achieved in the past calendar year related to the implementation of the General Plan’s elements, such as Land Use, Circulation, Conservation, Open Space, Safety, Noise, and Housing. It highlights progress on adopted plans and ordinances, major development applications, capital improvement projects, and any significant policy changes that align with the City’s long-term planning vision.

GENERAL PLAN ANNUAL PROGRESS REPORT: Unlike the Housing Element APR, the State does not have a standardized form or format for the General Plan APR. Rather, the State has created guidelines that identify important topics to cover.

In January 2025, LCI published a “guidance memo” to assist with the preparation of the report. Per LCI, the objective of requiring local jurisdictions to prepare a General Plan APR is to ensure that the General Plan goals and policies remain locally relevant. It also serves to provide LCI with information on how local governments implement their General Plans, so they can better understand how important policy issues are being addressed throughout the State.

Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.B.2.

The attached General Plan APR was prepared pursuant to the State’s published guidelines. It is divided into the following sections:
• Introduction
• 2025 Housing Element Annual Progress Report
• 2025 Report on the General Plan Progress
Below is a summary of the sections:

Housing Element Implementation and RHNA Progress
As required by State law, the APR includes the Housing Element Annual Progress Report, which documents progress toward meeting the City’s Regional Housing Needs Allocation (RHNA) for the 2019–2027 planning period. During the 2025 reporting year, the City issued building permits for 66 new housing units, representing a substantial increase compared to prior years. Cumulatively, the City has permitted nearly all of its RHNA allocation, with remaining unmet obligations primarily within the moderate- and above-moderate-income categories. Housing production during this reporting period was largely driven by previously entitled projects that advanced to the building permit stage.

General Plan Amendments and Zoning Actions
Over the past several years, the City of Lakeport has processed project-specific General Plan Amendments and zone changes to support housing production, enhance public safety, and facilitate appropriate commercial development.

However, in the 2025 reporting year there were no new General Plan Amendments or Zone Changes processed.

Major Development Applications
The City continued to process and implement major development applications that advance the General Plan’s goals related to housing, economic development, and community revitalization. Notable projects include large-scale residential developments, adaptive reuse and renovation of existing commercial buildings, and proposed mixed-use projects. These applications demonstrate ongoing investment within the City and contribute to both housing supply and economic activity. Several projects are in various stages of entitlement, construction, or infrastructure improvement, with additional phases anticipated in future years.

Please refer to the attached 2025 General Plan Annual Progress Report for a comprehensive discussion of General Plan implementation activities, housing production data, development projects, and supporting analysis for the 2025 reporting year.

CONCLUSION: The 2025 General Plan Annual Progress Report demonstrates the City of Lakeport’s continued commitment to implementing the goals and policies of the General Plan while aligning with statewide priorities such as housing development, economic development, and public safety. Through strategic land use adjustments, significant development activity, and targeted infrastructure investments, the City has made progress in its short and long-term planning vision.

City staff will continue to monitor the implementation of the General Plan throughout the upcoming year and track any significant amendments, development trends, or emerging policy needs. As planning initiatives evolve, the City will remain proactive in updating and reporting on the effectiveness of General Plan implementation, and will incorporate any relevant legislative changes, community needs, or regional factors into future reports.

OPTIONS:

1. Review the 2025 General Plan Annual Progress Report
Meeting Date: 03/03/2026 Page 3 Agenda Item # VII.B.2.

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 MOTION:

None required – Informational report only
☒ Attachments: 1. 2025 General Plan Annual Progress Report 1 CITY OF LAKEPORT GENERAL PLAN
2025 ANNUAL PROGRESS REPORT
Joey Hejnowicz, Community Development Director
City of Lakeport
225 Park Street, Lakeport, California 95453
(707) 263-5615
February 2026
2 TABLE OF CONTENTS
INTRODUCTION............................................................................................................. 3 General Plan Annual Progress Report ...............................................................................................................3 Acceptance by the City of Lakeport City Council ............................................................................................3 City of Lakeport Background.................................................................................................................................3 2025 HOUSING ELEMENT ANNUAL PROGRESS REPORT ....................................... 5 Regional Housing Needs Allocation...................................................................................................................5 Housing Program.....................................................................................................................................................8 Tribal Cultural Resource Consultation................................................................................................................9 2025 REPORT ON THE GENERAL PLAN PROGRESS ............................................... 9 General Plan Amendments Completed in Previous Years ........................................................................ 17 Major Development Applications Processed in Previous Years .............................................................. 19 Annual Progress Report Authorization..................................................................... 20 3 INTRODUCTION
General Plan Annual Progress Report
The Lakeport General Plan is the official document used by decision makers and citizens to guide and interpret the City’s long-range plans for development of land and conservation of resources.

All California cities and counties are required by State law to have a general plan that addresses seven specific topics, called elements, which include: Land Use; Transportation; Housing; Open Space; Conservation; Safety and Noise. General Plans may also include optional elements dealing, for example, with design and community identity. The Lakeport General Plan includes the seven mandatory Elements as well as three optional Elements including an Urban Boundary Element, Community Design Element and Economic Development Element.

The General Plan represents an agreement among the residents of Lakeport on basic community values, ideals, and aspirations to govern a shared environment. The Plan has a long-term horizon, addressing a 20-year time frame. At the same time, it brings a deliberate, overall direction to the day-to-day decisions of the City Council, Planning Commission, and city staff.

Government Code Sections 65400 and 65700 (2019), require all counties to submit an annual report on the status of the general plan and progress in implementing its goals, objectives, and policies. Both the General Plan Annual Progress Report (APR) and Housing Element APR are submitted at the same time to Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI) - formerly the Governor’s Office of Planning and Research (OPR) by April 1st of each year. The City of Lakeport is in the process of reviewing records to determine the date of its most recent submission to LCI.

Acceptance by the City of Lakeport City Council
The 2025 APR for the Lake County General Plan (2009) is scheduled for consideration by the City Council on March 3, 2026, in accordance with Government Code Section 65400.

City of Lakeport Background
The City of Lakeport is the county seat of Lake County, California, situated along the western shore of Clear Lake, the largest natural freshwater lake in California. As one of only two incorporated cities in the county, alongside Clearlake, Lakeport serves as a key economic and governmental hub for the region. The City spans 3.2 square miles and has a population of approximately 5,026 residents (California Department of Finance, 2023). Lakeport’s historic downtown, lakefront access, and small-town charm define its character, while its role as the county seat provides a foundation for economic stability through public-sector employment. 4 The City of Lakeport has a well-defined structure for land use planning, development review, and policy implementation. Several commissions, committees, and stakeholders play a key role in ensuring that planning decisions align with the City’s General Plan, zoning code, and community vision. These entities contribute to the review, approval, and implementation of planning policies, development projects, and infrastructure improvements.

City of Lakeport Planning Commission
The Lakeport Planning Commission is responsible for providing recommendations to the Lakeport City Council on land use policies, General Plan amendments, and zoning code changes. The Planning Commission also has direct decision-making authority over various discretionary entitlements including but not limited to Use Permits, Subdivision Maps and Parcel Splits, Variances, and Design Reviews
Zoning Administrator
The Zoning Administrator is responsible for reviewing and making determinations on minor discretionary approvals, including but not limited to: Zoning Permits and Minor Design Reviews. The Community Development Director acts as the Zoning Administrator for the City of Lakeport.

Additional Commissions, Committees, and Advisory Bodies Several commissions and committees contribute to land use decision-making and policy recommendations in Lakeport, including:
• The Lakeport Economic Development Advisory Committee (LEDAC) – Advises the City Council on strategies for economic growth, business retention, and tourism development. • The Traffic Safety Advisory Committee – Provides input on transportation infrastructure, roadway improvements, and traffic management within the City. • The City Council – Serves as the final decision-making body for General Plan updates, zoning amendments, major development projects, and policy initiatives.

City of Lakeport Community Development Department
The Community Development Department is the primary point of contact for land use applicants and the public. The department provides:
• Information on zoning, land use, and development standards. • Guidance on permit applications, environmental review requirements, and General Plan policies.
• Coordination of project review with other agencies, including Lake County, Caltrans, and state regulatory bodies.
• Compliance monitoring to ensure projects align with approved plans and conditions of approval.

Public Engagement and Community Input
The general public plays a crucial role in shaping the City’s land use policies. Community members provide input through:
• Public hearings and workshops on planning projects and policy updates. • Participation in advisory committees and stakeholder groups. • Review and comment on draft environmental documents, zoning amendments, and proposed developments.
5 2025 HOUSING ELEMENT ANNUAL PROGRESS REPORT
Regional Housing Needs Allocation
Since 1969, California has required that all local governments (Cities and Counties) adequately plan to meet the housing needs of everyone in the community. California’s local governments meet this requirement by adopting housing plans (aka housing elements) as part of their General Plan (also required by the state). General Plans serve as the local government’s blueprint for how the city and/or county will grow and develop and include seven elements: land use, transportation, conservation, noise, open space, safety, and housing.

In the 2025 Housing Element Reporting Year, Table 1 on the following page provides the current Regional Housing Needs Allocation (RHNA) and progress
6 TABLE 1
Income Level
RHNA
Allocation
by
Income
Level
2020 2021 2022 2023 2024 2025
Total
Units
to
Date
(all
years)
Total
Remaining
RHNA by
Income
Level
Acutely
Low
Deed
Restricted
-

-
-

- NonDeed
Restricted

-
Extremely
Low
Deed
Restricted
-

15 15

- NonDeed
Restricted

-
Very Low
Deed
Restricted
31 34

22 71*

- NonDeed
Restricted

-
Low
Deed
Restricted
21 13

26 45

- NonDeed
Restricted

3 1

2 Moderate
Deed
Restricted
21 -

-
5 16 NonDeed
Restricted

2 -

2 1
Above
Moderate

59 1

3 1

5 -

10 49
Total RHNA

132
Total Units

48 5

4 1

7 66

131

65 *The Very Low-Income category reflects a total of 71 units, as units classified as Extremely LowIncome are also counted toward the Very Low-Income category for RHNA reporting purposes.

Consistent with HCD methodology, extremely low-income units may be credited toward meeting very low-income housing needs, resulting in an overlap between these categories in the reporting totals. Accordingly, the total shown for the Very Low-Income category includes units that are deedrestricted at both the extremely low- and very low-income affordability levels. 7 In the 2025 reporting year, the City of Lakeport continued its efforts to meet its Regional Housing Needs Allocation (RHNA). A total of 66 new housing units were issued building permits in 2025, contributing to the City’s overall housing production goals. This represents a significant increase compared to the 2024 reporting year, during which a total of seven housing units were permitted.

Housing Production Overview:

Accordingly, the Parkside Apartments units are appropriately counted toward the City of Lakeport’s RHNA progress in the 2025 reporting year.

RHNA Progress And Remaining Need
To date, the City of Lakeport has issued building permits for a total of 131 housing units, making progress towards its overall RHNA allocation of 132 units for the 2019–2027 Housing Element cycle. While this represents substantial progress toward the City’s total RHNA obligation, remaining unmet needs persist within specific income categories. In particular, the City still has 16 moderateincome units and 49 above-moderate-income units remaining. Although the overall number of permitted units closely matches the total RHNA requirement, housing production to date has been disproportionately concentrated in lower-income categories and has not yet satisfied the remaining moderate- and above-moderate-income RHNA allocations.
• Extremely Low-Income Units: The City has issued building permits for 15 extremely lowincome units. Consistent with HCD reporting methodology, and due to the concentration of very low-income housing units, one-half of the very low-income units are assumed to qualify as extremely low-income units for RHNA accounting purposes. Although this results in a technical shortfall of one unit, HCD’s reporting spreadsheet indicates that the City has satisfied the requirement for 16 extremely low-income units. • Very Low-Income Units: The City has exceeded its RHNA allocation for very low-income deed-restricted units, with 56 units permitted compared to an allocation of 31 units. • Low-Income Units: The City has issued building permits for 45 low-income units, thereby satisfying the RHNA allocation of 21 units for this income category. • Moderate-Income Units: The City has issued building permits for five moderate-income units. A total of 16 units remain to be permitted to fully satisfy the RHNA allocation for this income category.
• Above-Moderate-Income Units: The City has issued building permits for 10 abovemoderate-income units. A total of 49 units remain to be permitted to meet the RHNA allocation for this income category.
8 Housing Program
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. This grant will help fund a series of targeted programs designed to improve housing quality, accessibility, and stability for our residents. The City plans to develop a framework through creation of program policies and procedures for the following programs:

1. Owner Occupied Rehabilitation
o Description: This program is designed to support the rehabilitation of owneroccupied homes for qualified community members. It focuses on improving the quality, safety, and accessibility of housing, with a particular emphasis on addressing the needs of elderly homeowners.
o Objectives: Enhance the livability and safety of existing homes, ensuring they meet the needs of all residents, particularly vulnerable groups, and increase the overall stability of homeownership within the community.

2. First Time Homebuyer Program
o Description: The Homebuyer Program is aimed at helping eligible individuals and families achieve homeownership by providing financial assistance and support throughout the purchasing process.
o Objectives: Increase homeownership rates among low- to moderate-income residents, promoting stable housing, and fostering long-term community investment.

3. Mobile Home Replacement Program
o Description: This program will investigate the potential for replacement of outdated and aging mobile homes in flood-prone areas. The overall goal would permit interested eligible residents to relocate their units to safer areas and replace them with newer, energy-efficient models.
o Objectives: Improve living conditions for mobile home residents, remove housing units from flood-prone areas, and reduce risks for low-income families living in hazardous environments.

4. Housing Condition Survey
o Description: A comprehensive survey will be conducted to assess the current state of housing stock within the community. This survey will identify areas in need of improvement, inform policy decisions, and guide the development of future housing programs.
o Objectives: Provide an evidence-based assessment of housing conditions to support targeted improvements and strategic planning for the Owner-Occupied Rehabilitation and Homebuyer Programs.

To ensure the effective implementation of these initiatives, the City formed diverse local stakeholder groups that worked collaboratively to align program development with community needs and priorities. These groups included residents, housing professionals, community leaders, and other key stakeholders, ensuring the programs are responsive to Lakeport’s unique housing challenges and opportunities.

The City of Lakeport is currently working with its CDBG consultant, Adams Ashby, to prepare the required program policies and procedures manuals. At this time, the Owner-Occupied Rehabilitation Program and the First-Time Homebuyer Program have been identified as the City’s priority programs for initial implementation. Preparation of the program manuals is underway and is anticipated to be completed by the end of Summer 2026, at which point the City will be 9 positioned to move forward with program rollout and apply for program implementation funding allocation.

Tribal Cultural Resource Consultation
The City of Lakeport actively engages in tribal consultation and coordination efforts to ensure that planning decisions consider tribal cultural resources, environmental concerns, and land use priorities.

The City conducts outreach, notification, and consultation with tribal representatives in accordance with state and federal requirements, including:
• Assembly Bill (AB) 52 (2014): The City provides early consultation opportunities to tribes regarding potential impacts to tribal cultural resources as part of the California Environmental Quality Act (CEQA) process for applicable projects. In 2024, AB 52 consultation notifications were sent to the Big Valley Band of Pomo Indians and the Scotts Valley Band of Pomo Indians for all qualifying projects. • Senate Bill (SB) 18 (2004): The City notifies tribes of proposed General Plan Amendments (GPAs) and Rezonings (RZs) to ensure they have the opportunity to provide input on land use decisions.
• General Plan and Long-Range Planning Efforts: The City continues to collaborate with tribal governments on long-term planning efforts, including any updates to the General Plan or Housing Element, to incorporate tribal perspectives on land use, environmental protection, and cultural resource preservation.

The City remains committed to strengthening relationships with the Scotts Valley Band of Pomo Indians and the Big Valley Band of Pomo Indians by maintaining open communication channels, engaging in meaningful consultation, and considering tribal input in planning and development processes.
2025 REPORT ON THE GENERAL PLAN PROGRESS
Table 2 includes the current State required General Plan Elements. The second column includes each Element’s purpose, followed by a brief description of actions the City takes to implement the Lakeport General Plan (2009).

TABLE 2
General Plan
Element
Purpose Progress
Land Use
Element
(Amended
2015)
The Land Use Element functions as
a guide for the ultimate pattern of
development for the City at buildout. The Land Use Element has perhaps the broadest scope of the
seven mandatory elements of the
General Plan. It provides an
As projects undergo discretionary and
ministerial review, the City conducts a
thorough analysis to ensure each
development aligns with the goals,
policies, and vision outlined in the General
Plan. This review process helps maintain
consistency with land use, housing,
10 overview of the land use
characteristics, objectives, policies,
and implementation programs for
achieving the City’s land use goals
over the next 20 years. The
General Plan Land Use Map,
which is also a part of this Element,
graphically represents the City's
land use goals and objectives.
economic development, and
environmental sustainability objectives
while ensuring that new development
enhances the overall character of the
community.

In addition to project-specific evaluations,
the City actively engages with residents,
businesses, and stakeholders through
public hearings. These efforts provide
valuable opportunities for community
input on land use decisions, allowing the
City to address concerns, incorporate
feedback, and refine policies.

Urban
Boundary
Element
(Amended
2015)
The purpose of the Urban
Boundary Element is to
acknowledge and project the
long-term growth potential of
Lakeport, illustrate the ultimate
City Limits, define the parameters
for extending City services and
infrastructure to accommodate
new development and respond to
the need for the City services, and
convey City policies regarding
annexations. The Urban Boundary
Element will provide guidance
related to future annexation of
land within the City’s Sphere of
Influence. The Urban Boundary
Element is not a state-mandated
element; however, it is an
important element because it limits
leap-frog development and
provides for an orderly transition
from rural to urban land uses. The
Element recognizes the
community’s dedication to orderly
and managed growth of the City’s
boundaries and the desire to
maintain the rural character of
many of the areas and
neighborhoods within the Lakeport
Sphere of Influence.

The City of Lakeport continues progress in
managing its growth and ensuring that
new development is supported by the
necessary infrastructure, as outlined in the
Urban Boundary Element. This Element
emphasizes the importance of extending
city services and infrastructure in an
orderly manner while maintaining the rural
character of certain areas.

A key example of this is the ongoing sewer
and water replacement project which
commenced in 2024, which involves
replacing aging utilities across various
locations throughout Lakeport. This project
is critical to improving the City’s
infrastructure and ensuring that it can
accommodate future development within
the existing City Limits and Sphere of
Influence. By replacing outdated sewer
and water systems, the City is not only
addressing immediate needs but also
laying the groundwork for future growth
in that aligns with the policies and goals of
the Urban Boundary Element.

The City of Lakeport initiated an
annexation proposal in 2022 to
incorporate 50 parcels totaling 137 acres
adjacent to South Main Street, Soda Bay
Road, and east of Highway 29. However,
the proposal was not approved as the
annexation did not receive the necessary
support. The local agency formation
commission (LAFCo) terminated the
11 annexation proceedings following the
failure of a public vote in the November
2022 election, where a majority of
property owners opposed the annexation.

As a result, the City must wait at least one
year before submitting another
annexation proposal for the area.

Transportation
Element
(Adopted
2009)
It is a requirement of Government
Code §65302(b) that every
General Plan include a
Transportation Element which
consists of “the general location
and extent of existing and
proposed thoroughfares,
transportation routes, terminals,
and other local public utilities and
facilities, all correlated with the
Land Use Element of the General
Plan.” This Transportation Element
is in conformance with the
requirements of the Government
Code.

The Transportation Element
discusses transportation issues for
the City and the Sphere of
Influence. The Element describes
the existing circulation system and
travel characteristics. It also
projects future traffic, based on
the build-out of the land uses
described in the Land Use Element
and identifies the resulting
anticipated roadway deficiencies.

Policies and implementation
programs contained in this Element
provide a guide for decisions
regarding transportation system
improvements to accommodate
Lakeport’s anticipated growth.

The City of Lakeport continues to make
progress on the goals outlined in the
Transportation Element of the General
Plan. The Element provides a
comprehensive overview of the existing
transportation system and outlines future
transportation needs based on projected
growth and land use changes as described
in the Land Use Element. It identifies key
transportation routes, anticipated traffic
volumes, and potential roadway
deficiencies, ensuring the system can
accommodate future development.

In 2023, the City of Lakeport initiated an
Active Transportation Plan aimed at
improving pedestrian, bicycle, and multimodal transportation options. As part of this effort, a stakeholder group was
created to provide input and feedback
throughout the planning process. This
group included key stakeholders such as
members of the public, schools, businesses,
tribes, local agencies, and community
organizations. The plan is part of the
City’s ongoing efforts to enhance mobility
and sustainability within Lakeport and its
Sphere of Influence. This plan was
adopted in May 2025.

Community
Design
(Adopted
2009)
This Community Design Element is
intended to address the built and
natural environment. This includes
the image and character of
Lakeport’s neighborhoods; the
quality of buildings, streets, and
public spaces; the community’s
historical attributes; and the
As development projects are submitted to
the City of Lakeport, City staff conducts
thorough reviews to ensure consistency
with the General Plan and Community
Design Element. This review process helps
maintain the City’s unique character while
promoting high-quality, sustainable, and
aesthetically cohesive development.
12 importance Clear Lake has in
defining the character of the City.

Community design is about
community building. It is broader in
scope than the mere appearance
of a building; it concerns the built
character, order, and sense of
place of the area. It is the
interrelationship between various
components (buildings,
transportation systems, open
space, vistas, interaction of humans
between each other and the
natural environment, heritage, and
economics) that, when put
together, make up a total
community. Good community
design is building communities that
are safe for children to walk to
school and for the elderly to cross
the street. It is how to maintain the
downtown as a place where local
residents, as well as visitors want
to go to shop, dine, and interact
with each other. It balances the
often conflicting goals of respect
for the environment with economic
gain. It creates places for people
to feel comfortable with each
other and with the built
environment.

For example, multifamily residential
projects are now subject to Objective
Design Standards (ODS) which was
adopted by the City in 2022, which
provide clear and measurable criteria for
building aesthetics, materials, rooflines,
façade articulation, and landscaping.

These standards ensure that new housing
developments contribute to the overall
character of the community while
promoting architectural diversity and
pedestrian-friendly design.

In addition, commercial projects that
involve new development or exterior
modifications are required to undergo
Architectural and Design Review. This
discretionary process ensures that projects
are compatible with surrounding
neighborhoods, enhance visual appeal,
and align with the City's vision for a welldesigned, welcoming environment.

By implementing these design standards
and review processes, the City of
Lakeport continues to guide development
that respects the City's historic and natural
setting while fostering an attractive,
livable, and economically vibrant
community.

Economic
Development
(Adopted
2009)
The purpose of the Economic
Development Element is to provide
guidance for economic
development within the City of
Lakeport in order to attain an
economically viable and self
sustaining community. In this sense,
economic viability means
providing a range of housing and
employment opportunities that
meet the needs of both residents
and workers, attracting families
and businesses to create demand
for planned land uses and
establishing and funding public
service levels that preserve and
enhance Lakeport’s quality of life.

The City of Lakeport is actively working to
foster a thriving, self-sustaining economy
by supporting local businesses, attracting
new investment, and expanding
employment opportunities. The City's
economic development efforts focus on
enhancing the commercial, retail, and
tourism sectors while ensuring a balance
between business growth and community
livability.

To strengthen its retail sector and fill key
market gaps, the City has partnered with
Retail Coach, a national retail recruitment
and development firm. Through this
collaboration, the City is leveraging
market data, demographic analysis, and
13 targeted outreach to attract new retailers
and businesses that align with community
needs. This proactive approach helps
increase commercial activity, expand the
local tax base, and provide residents with
greater shopping, dining, and service
options.

In addition to recruitment efforts, the City
actively supports existing businesses
through the Small Business Loan Program,
which provides low-interest loans to assist
both new and existing businesses with
startup costs, expansion, and equipment
purchases. By offering financial support
and incentives, the City aims to encourage
entrepreneurship, create jobs, and
strengthen the local economy.

The Lakeport Economic Development
Advisory Committee (LEDAC) plays an
important role in business assistance
through its Business Walks Program. Each
year, LEDAC members visit local
businesses to gather firsthand feedback
on challenges, opportunities, and needs.

This outreach effort allows the City to
identify critical issues, address concerns,
and offer resources that support business
success. In addition, LEDAC established the
Business Outreach Working Group
(BOWG) to provide more targeted,
hands-on assistance to both existing and
proposed businesses. The BOWG serves
as a liaison between the business
community and City departments by
facilitating communication, helping
businesses understand permitting
requirements, and assisting with
navigation of City processes and
regulatory compliance. Through early
coordination and problem-solving, the
BOWG helps streamline development
timelines, reduce barriers to entry, and
improve the overall experience for
businesses operating in or seeking to
locate in the City of Lakeport.
14 Through these initiatives, combined with
downtown revitalization efforts,
infrastructure improvements, and
continued public-private collaboration,
Lakeport remains committed to creating a
business-friendly environment that
supports long-term economic growth and
community prosperity.

Conservation
(Amended
2015)
The Conservation Element provides
direction regarding the
conservation, development, and
utilization of natural resources. Its
requirements overlap those of the
open space, land use, safety and
transportation elements. The
conservation element is
distinguished by being primarily
oriented toward natural resources.

Population growth and
development continually require
the use of both renewable and
nonrenewable resources. One role
of the conservation element is to
establish policies that reconcile
conflicting demand on those
resources.

There are nine mandatory issues
which must be addressed by the
Conservation Element: water and
its hydraulic force; forests; soils;
rivers and other waters; harbors;
fisheries; wildlife; minerals and
other natural resources.

The City of Lakeport is committed to
conserving natural resources and
protecting environmental quality through
responsible policies and regional
partnerships. The City’s efforts focus on
water conservation, habitat preservation,
sustainable land use, and pollution
prevention to maintain a healthy and
resilient natural environment.

Lakeport is an active participant in the
Lake County Clean Water Program, a
regional effort dedicated to improving
water quality, reducing pollution, and
protecting Clear Lake and its watershed.

Through this program, the City enforces
stormwater management regulations,
implements public outreach and education
efforts, and supports best management
practices to prevent pollutants from
entering local waterways. Additionally,
the City promotes low-impact
development (LID) strategies that enhance
groundwater recharge and reduce urban
runoff.

The City of Lakeport is committed to
preserving trees and open spaces to
enhance the urban forest, protect
biodiversity, and improve air quality. The
City's Tree Preservation Ordinance
(Lakeport Municipal Code Chapter 17.21)
establishes regulations for the removal,
preservation, and replacement of trees,
particularly heritage and landmark trees
that contribute to the City's natural
character. Developments must adhere to
tree protection measures, including
mitigation requirements for tree removal
15 and replanting guidelines to maintain the
tree canopy.

The City of Lakeport is dedicated to
sustainable development practices that
promote energy efficiency, resource
conservation, and climate resilience. All
new development projects must comply
with California’s Title 24 Building Energy
Efficiency Standards, which set statewide
energy efficiency requirements for
residential and non-residential buildings.

These standards regulate insulation,
lighting, HVAC systems, water heating,
and solar readiness, ensuring that
buildings are designed to reduce energy
consumption, lower greenhouse gas
emissions, and enhance long-term
sustainability.

By enforcing Title 24 compliance,
Lakeport advances its commitment to
environmentally responsible growth,
ensuring that new construction meets highperformance energy standards while supporting the City's climate action goals.

Open Space,
Parks and
Recreation
(Adopted
2009)
This section is intended to guide
public decision making while
providing for a comprehensive
system of open space, parks, and
recreational opportunities
available for public use. This
section of the General Plan
considers the existing open space,
parks, and recreational
opportunities, then it presents some
standards for meeting the needs of
the community, and lastly it
identifies some future needs.

Objectives, policies, and
implementation programs are then
recommended to guide decisions
based on the projected open
space, parks, and recreational
demands of the community.

The City of Lakeport has made notable
progress in expanding recreational
opportunities, including the recent
completion of Xabatin Community Park.

Located at the former Natural High School
site, this park was made possible through
a $5.9 million State Parks grant, allowing
the City to acquire the property and
construct a diverse array of amenities.

These include a skatepark, basketball
court, splash pad, amphitheater, and a
lakeside promenade. Xabatin Park's
grand opening in October 2023 marked
a significant milestone in enhancing the
City’s open space network. The park,
which celebrates the area's Pomo tribal
history, offers both residents and visitors a
valuable resource for recreation and
community events.

The City of Lakeport prioritizes
maintaining Library Park to ensure it
16 remains a welcoming and enjoyable
space for residents. Regular maintenance,
including landscaping, cleaning, and
safety checks, is performed to keep the
park in excellent condition. Additionally,
the City actively monitors the park’s
amenities, such as the children's
playground and picnic areas, and
responds to community feedback to
enhance the park’s functionality. This
commitment helps create a vibrant, safe,
and accessible space for public
gatherings, outdoor activities, and events
year-round.

Noise
(Adopted
2009)
The purpose of the Noise Element
is to protect the health and
welfare of the community by
promoting development which is
compatible with established noise
standards. This section has been
prepared in conformance with
Government Code § 65302(f) and
the guidelines adopted by the
State Office of Noise Control,
pursuant to Health and Safety
Code § 46050.1. Existing and
future noise problems in Lakeport
and its Sphere of Influence have
been identified. The Noise Element
will provide policies and
implementation programs
designed to reduce the
community's exposure to excessive
noise levels. Accomplishing this task
requires an evaluation of the noise
from sources such as roads,
highways, recreation areas,
aviation and from stationary
sources such as factories.

The City of Lakeport consistently monitors
and evaluates noise levels to address
concerns and protect the health and
welfare of residents.

As development continues, the City ensures
that all new projects comply with the
Lakeport Municipal Code’s noise
standards. This is achieved through the
imposition of specific conditions of
approval and mitigation measures
designed to minimize noise impacts. When
required, environmental reviews are
conducted for projects to assess potential
noise impacts, ensuring that any negative
effects are identified and mitigated
before development moves forward.

Furthermore, the City continually monitors
and evaluates noise from various sources,
including roadways, highways,
recreational areas, aviation, and
industrial sites. Through these efforts, the
City is committed to reducing excessive
noise exposure, promoting a quieter and
more comfortable living environment for
all residents.

Safety
(Adopted
2009)
The purpose of the safety element
is to reduce the potential risk of
death, injuries, property damage,
and economic and social
dislocation resulting from fires,
floods, earthquakes and other
hazards. This element is required
In 2024, the City of Lakeport, in
collaboration with the County of Lake and
the City of Clearlake, has partnered to
develop the Multi-Jurisdictional Hazard
Mitigation Plan. This initiative focuses on
reducing risks and improving resilience to
natural hazards such as wildfires, floods,
17 to include mapping of known
seismic and other geologic
hazards and also to address other
locally relevant safety issues such
as:
• hazardous materials spills;
• hazardous and toxic
materials storage and
disposal;
• wildland and urban fires;
• emergency response
capacity;
• flooding, storm drainage;
and
• potable water quality.

A second purpose of this element is
to guide land use planning and
policy decisions in order to achieve
an acceptable level of public
safety from known natural and
man-made hazardous events.
and seismic events. By working together,
these jurisdictions are ensuring a
comprehensive, coordinated approach to
hazard mitigation, enhancing emergency
response capabilities, and promoting
public safety across the region. This plan
provides a framework for addressing and
managing risks, safeguarding residents
and property in the event of a disaster.

Housing
(Amended
2014)
Please refer to section 2025

HOUSING ELEMENT ANNUAL
PROGRESS REPORT on page 5.

Please refer to section 2025 HOUSING

ELEMENT ANNUAL PROGRESS REPORT
on page 5.

General Plan Amendments Completed in Previous Years
The City of Lakeport processed several General Plan Amendments and Zone Changes over the past few years. However, as of the reporting year of 2025, no new General Plan Amendments were processed. Please refer to Table 3 below for previous year amendments:

TABLE 3
Project
Identifier
Description Initiated By Resolution Date Adopted
Application
2021-25 /
Martin Street
Apartments
Zone Change and
General Plan to
amend the zoning
and general plan of
the property from
low-density
residential to highdensity residential.

Private
Property
Owner
Resolution No. 2917 April 4, 2023
18 Application
2021-31 /
Waterstone
Residential
Zone Change and
General Plan to
amend the zoning
and general plan of
a portion of the
property from lowdensity residential
to high-density
residential.

Private
Property
Owner
Resolution No. 2892 November 15,
2022
Application
2021-04 /
GPA Safety
Element
Update
The intent of this
General Plan
Amendment (GPA)
is to include the
Local Hazard
Mitigation Plan by
reference in the
Safety Element.

City of
Lakeport
Resolution No. 2815 July 20, 2021
Application
2020-07 /
Lands of Poso
Zone Change and
General Plan to
amend the zoning
and general plan of
the property from
high-density
residential to lowdensity residential.

Private
Property
Owner
Resolution No. 2779 October 20,
2020
Application
2020-03 /
Bridges
Construction
Zone Change and
General Plan to
amend the zoning
and general plan of
the property from
light low-density
residential to
service commercial.

Private
Property
Owner
Resolution No. 2778 October 20,
2020
Application
2019-17 /
Housing
Element
Update
Adoption of the 6th
Cycle Housing
element
City of
Lakeport
Resolution No. 2765 July 7, 2020
Over the past few years, the City of Lakeport has processed several General Plan Amendments and Zone Changes to support residential growth, enhance safety planning, and facilitate commercial development. Importantly, any zoning amendments that have resulted in a reduction of residential density on specific parcels have been offset in the City to maintain overall residential unit capacity, in compliance with Government Code § 65853(c).

Key amendments include changes in land use designations to accommodate higher-density housing, such as the Martin Street Apartments and Waterstone Residential projects, which transitioned from low-density to high-density residential zoning. The Safety Element Update integrated the Local Hazard Mitigation Plan to strengthen citywide emergency preparedness. Additionally, land use 19 modifications, such as the Lands of Poso and Bridges Construction projects, adjusted zoning to better align with development needs. The City also completed the 6th Cycle Housing Element Update, ensuring compliance with state housing requirements.

Major Development Applications Processed in Previous Years The City of Lakeport has processed several development applications over the past few years.

Please refer to Table 4 below:

TABLE 4
Project Identifier Description Project Location Date Entitled Notes Application
2023-36 /
Disney’s Boat
Rentals
This project
involved new
construction of a
boat rental
commercial
business as well
as the installation
of piers in the
lakebed for lake
oriented
equipment and
vehicles.
2200 Lakeshore
Boulevard,
Lakeport CA
95453
1/8/2025 Project is
currently under
construction and
its anticipated to
be completed by
Fall 2026.

Application
2022-26 /
Marshals and
Tractor Supply
This project
involved the
renovation of the
former 90,852
square-foot
Kmart building
into three tenant
spaces, which
includes Tractor
Supply,
Marshalls, and a
future tenant.
2019 S Main
Street, Lakeport
CA 95453
12/14/2022 Project was
completed and is
currently
operating.

Application
2021-31/
Parkside
Residential
Project
Housing
development
project featuring
48 single-family
and 128 multifamily dwellings,
totaling 176
dwelling units.
1310 Craig
Avenue,
Lakeport CA
95453
12/06/2022 Project is
currently under
construction for
Phase 1
consisting of 64
apartment units
and Right-ofWay
improvements.

Application
2019-20 / The
Lakeport Hub
Mixed-use
development that
consists of
90,000 square
feet of retail
1842 Todd
Road, Lakeport
CA 95453
01/12/2022 Project is
currently in
review for a
Tentative
Subdivision Map.
20 space, a 70-
room hotel, a
service station, 6-
8 restaurants,
and 2 additional
retail buildings.

Development has
not commenced
for this project.

In recent years, the City of Lakeport has processed several significant development applications that contribute to the city's commercial, residential, and mixed-use growth. These projects include the adaptive reuse of a former retail space, new housing developments, new lake oriented development, and large-scale commercial expansions.

Notably, the Disney’s Boat Rentals project will provide a new and expanded location to provide for lake oriented activities. The Marshalls and Tractor Supply project repurposed a vacant Kmart building into multiple tenant spaces, now successfully operating. The Parkside Residential Project aims to deliver 176 dwelling units, with Phase 1 currently under construction. Lastly, the Lakeport Hub proposes a dynamic mixed-use development, though it remains in the review phase for a Tentative Subdivision Map.

These projects reflect ongoing efforts to enhance economic development and expand housing opportunities in Lakeport.

Annual Progress Report Authorization
This Annual Progress Report (APR) is submitted to the Lakeport City Council, and the Governor's Office of Land Use and Climate Innovation (LCI), formerly known as Governor’s Office of Planning and Research (OPR), in compliance with the statutory requirements outlined in Government Code Section 65400. The report provides an overview of the status of the City of Lakeport’s General Plan, including progress on the implementation of key policies, programs, and initiatives as required by state law.

In accordance with state guidelines, this report serves to fulfill the City of Lakeport’s responsibility to document and communicate the ongoing efforts to advance the objectives outlined in the General Plan. It reflects the city’s commitment to transparent governance, community engagement, and the continuous improvement of general plan policies and strategies.

As mandated, the report will be transmitted to LCI, the Department of Housing and Community Development, and other relevant agencies, ensuring that the progress and outcomes of the City’s planning and housing efforts are shared with state officials for further review and guidance.

Submitted By:
_________________________
21 Joey Hejnowicz, Director
Community Development Department
225 Park Street, Lakeport, CA 95453
(707) 263-5615
Meeting Date: 03/03/2026 Page 1 Agenda Item # VII.C.1.

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

STAFF REPORT
RE: Annual Comprehensive Financial Report (ACFR), Fiscal Year 2024-25
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, City of Lakeport Municipal Sewer District and the Lakeport Redevelopment Successor Agency is being asked to receive and file the City’s ACFR for the fiscal year ended June 30, 2025.

BACKGROUND/DISCUSSION:

Management is pleased to present the City’s ACFR for the fiscal year ended June 30, 2025. This document is the official, audited financial report of the City and includes the audit report from the City’s external, independent auditor, JJACPA. It was issued on February 4, 2026 and has been posted to the City’s website.

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

The ACFR communicates the City’s financial condition and activity in a transparent and organized manner and in compliance with accounting and financial reporting standards established by the Governmental Accounting Standards Board (GASB). The report presents historical and comparative information that can be useful to City staff, elected officials, and external users such as debt rating agencies, businesses, other public agencies, and the City’s residents. The most recent ACFR and 12 years of prior year reports are available on the City’s Finance website at:
https://www.cityoflakeport.com/finance_it_and_utility_accounts_and_billing/publications_finance.php#outer306 Financial statements are prepared by the City and audited by independent auditors. The City selects its independent auditor through a competitive procurement process. The City’s current independent auditor is Joe Arch CPA, Inc. (JJACPA).

Meeting Date: 03/03/2026 Page 2 Agenda Item # VII.C.1.

Auditors follow audit industry standards established by the American Institute of Certified Public Accountants (AICPA). These standards require auditors to provide an opinion on specific areas of the City’s financial statements based on observations, inquiries, testing of transactions, and analysis.

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

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

Financial Section (the main body of the ACFR for current year information) • Independent Auditors’ Report – the City’s report card on the content of the ACFR • Management’s Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status and results for the year
• Basic Financial Statements – reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), and cash flows
• City-Wide Statements – overview of financial information including all of the City’s operations by financial activity
• Fund Financial Statements – a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance
• Notes to the Financial Statements (Notes) – a narrative explanation that accompanies the Basic Financial Statements
Required Supplementary and Supplementary Information Sections • Budget to Actual Comparisons – for all governmental funds with a legally adopted budget • Notes to Required Supplementary Information
• Pension Information – schedule of changes in the net pension liability and related ratios; schedule of contributions by plan
• OPEB Information – schedule of changes in the net Other Post-Employment Benefits (OPEB) liability and related ratios; schedule of contributions
• A breakout of individual non-major funds – for funds that were presented in a cumulative manner in the Financial Section
Statistical Section (current and historical information – up to 10 years) • Financial Trends
• Revenue Capacity Information
• Debt Capacity Information
• Demographic and Economic Information
• Operating Information
Meeting Date: 03/03/2026 Page 3 Agenda Item # VII.C.1.

The attached ACFR for fiscal year 2024-25 has received an unmodified opinion by JJACPA. An unmodified opinion communicates that the financial statements are fairly presented and that the information used in the report is reliable. In their written communications to Council (Attachment B), the auditors note that they encountered no significant difficulties with management in performing or completing the audit. Statement on Auditing Standards (SAS) 114 establishes standards for the auditors’ communication with those charged with governance.

The Single Audit, also known as the OMB Uniform Guidance, is an organization-wide audit of an entity that expends $750,000 or more in federal financial assistance annually. Local governments are required to obtain an audit pursuant to the Federal Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). These audits are performed in accordance with Generally Accepted Governmental Auditing Standards and are an assessment of internal controls over federal programs, a test of how those controls are working, and tests for compliance with federal requirements. A Single Audit was completed for the fiscal year 2024-25, as required, and is included as Attachment C.

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

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

Meeting Date: 03/03/2026 Page 4 Agenda Item # VII.C.1.

OPTIONS:

Receive and file the communication letter and ACFR for the fiscal year 2024-25 FISCAL IMPACT:
☒ None ☐ $ Budgeted Item? ☐Yes ☐ No
Budget Adjustment Needed? ☐Yes ☐ No If yes, amount of appropriation increase: $ Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☐ Other:

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

Move to accept and file the ACFR for the fiscal year ended June 30, 2025. ☒ Attachments: 1. Lakeport ACFR, 2024-25

2. Auditor Communications Letter to Those Charged with Governance

3. Lakeport Single Audit, 2024-25
CITY OF LAKEPORT, CALIFORNIA
FISCAL YEAR ENDED JUNE 30, 2025
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
This page intentionally left blank.

ANNUAL COMPREHENSIVE FINANCIAL REPORT
City of Lakeport, California
Fiscal Year Ended June 30, 2025
Prepared By
Finance Department
City of Lakeport
This page intentionally left blank.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents, Continued
Page
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... i List of Officials .............................................................................................................................................. vi City Organizational Chart ........................................................................................................................... vii FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................... 1 Management Discussion and Analysis (MD&A) (Required Supplementary Information) ..................... 4 Financial Highlights ............................................................................................................................... 4 Overview of the Annual Comprehensive Financial Report ................................................................ 4 Governmental Activities ..................................................................................................................... 12 Business‐type Activities ...................................................................................................................... 14 Financial Analysis of the Government’s Funds ................................................................................. 16 Capital Assets ..................................................................................................................................... 17 Debt Administration ........................................................................................................................... 18 Economic Outlook............................................................................................................................... 19 Requests for Information ................................................................................................................... 19 Basic Financial Statements:

Government‐Wide Financial Statements .......................................................................................... 21 Statement of Net Position ........................................................................................................... 23 Statement of Activities ................................................................................................................. 24 Fund Financial Statements ................................................................................................................. 27 Balance Sheet .............................................................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position .......................................................................................... 29 Statement of Revenue, Expenditures, and Change in Fund Balances ...................................... 30 Reconciliation of Fund Basis Statements to Government‐wide Statement of Activities .......................................................................................................... 31 City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents, Continued
Page
Statement of Revenue, Expenditures, and Change in Fund Balances – Budget and Actual General and Major Special Revenue Funds ................................................................................ 32 Proprietary Funds ............................................................................................................................... 35 Statement of Net Position ........................................................................................................... 36 Statement of Revenue, Expenses, and Changes in Net Position .............................................. 37 Statement of Cash Flows ............................................................................................................. 38 Fiduciary Funds ................................................................................................................................... 40 Statement of Fiduciary Net Position ........................................................................................... 41 Statement of Changes in Fiduciary Net Position ........................................................................ 42 Notes to the Basic Financial Statements .......................................................................................... 44 Note 1 ‐ Summary of Significant Accounting Policies ................................................................ 44 Note 2 ‐ Cash and Investments ................................................................................................... 58 Note 3 ‐ Accounts Receivable ...................................................................................................... 62 Note 4 – Loans, Notes Receivable, and Interfund Borrowing ................................................... 63 Note 5 – Capital Assets ................................................................................................................ 64 Note 6 – Long Term Liabilities ..................................................................................................... 66 Note 7 – Net Position/Fund Balances ......................................................................................... 71 Note 8 – Interfund Transactions ................................................................................................. 75 Note 9 – Risk Management ......................................................................................................... 76 Note 10 – Public Employee Retirement Plan ............................................................................. 77 Note 11 – Post Retirement Healthcare Benefits ........................................................................ 84 Note 12 – Successor Agency Trust for Assets of Former Redevelopment Agency ................. 88 Note 13 – New Accounting Pronouncements ............................................................................ 90 Required Supplementary Information (RSI):

Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................ 94 Net OPEB Liability Schedule of Contributions ................................................................................... 96 Schedule of Contributions, Pension .................................................................................................. 98 Schedule of City’s Proportionate Share of Net Pension Liability ................................................... 100 Combining Non‐Major Governmental Funds:

Combining Balance Sheet ................................................................................................................. 106 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance ........................ 110 City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents, Continued
Page
Non‐Major Governmental Fund Budget Comparisons .................................................................. 115 Gas Tax Fund (HUTA) ................................................................................................................. 115 Prop 172 Public Safety Fund ...................................................................................................... 116 Lakeport Housing Fund .............................................................................................................. 117 K‐9 Fund ...................................................................................................................................... 118 10th Street Bike and Pedestrian ................................................................................................. 119 Lake Area Planning Commission ATF ........................................................................................ 120 CDBG Grant 2018 DR Fund ........................................................................................................ 121 CDBG Grant 2021 ....................................................................................................................... 122 CDBG Grant 2020 ....................................................................................................................... 123 CDBG Grant 2022 ....................................................................................................................... 124 Lakeport Blvd Improvement Fund ............................................................................................ 125 ER Storm Damage Repair Fund ................................................................................................. 126 Storm Drainage Fund ................................................................................................................. 127 City Wide Sign Improvement – HSIP ......................................................................................... 128 CDBG Grant Program Income Fund .......................................................................................... 129 PHLA Navigation Center ............................................................................................................. 130 STATISTICAL SECTION
Statistical Section .................................................................................................................................... 131 Financial Trends ................................................................................................................................ 132 Net Position by Component ...................................................................................................... 132 Changes in Net Position ............................................................................................................. 134 Fund Balances, Governmental Funds ....................................................................................... 138 Changes in Fund Balances, Governmental Funds .................................................................... 140 Revenue Capacity ............................................................................................................................. 142 Assessed Value and Actual Value of Taxable Property ............................................................ 142 Direct and Overlapping Tax Rates ............................................................................................. 143 Property Tax Collections and Levies.......................................................................................... 144 Principal Property Tax Payers .................................................................................................... 145 Schedule of Top 25 Principal Sales Tax Remitters (listed alphabetically) ............................... 146 City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents, Continued
Page
STATISTICAL SECTION, Continued
Debt Capacity .................................................................................................................................... 148 Ratios of Outstanding Debt by Type ......................................................................................... 148 Ratios of General Bonded Debt Outstanding ........................................................................... 150 Direct and Overlapping Debt ..................................................................................................... 151 Legal Debt Margin Information ................................................................................................. 152 Demographic and Economic Information ....................................................................................... 154 Demographic and Economic Statistics ...................................................................................... 154 Principal Employers .................................................................................................................... 155 Operating Indicators ......................................................................................................................... 156 Full‐time and Part‐time City Employees by Function .............................................................. 156 Capital Asset Statistics by Function ........................................................................................... 157 Capital Asset Statistics ............................................................................................................... 158 Introductory Section

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City of Lakeport, California i
Introductory Section

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

MEMORANDUM
DATE:   January 30, 2026
TO:   Citizens of the City of Lakeport
Honorable Mayor and Members of the City Council and City Manager FROM:   City Manager Kevin Ingram
RE:   Presentation of the Annual Comprehensive Financial Report California Government Code sections 25250 and 25253 require that every general‐purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. The Annual Comprehensive Financial Report (ACFR) of the City of Lakeport (City) for the fiscal year ended June 30, 2025, is hereby published to fulfill that requirement.

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

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

The City’s basic financial statements have been audited by JJACPA, Inc., an accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The financial statements included in this report were audited in accordance with generally accepted auditing standards and government auditing standards. The independent auditors concluded that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s basic financial statements for the fiscal year ended June 30, 2024, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

As the City did expend over $750,000 of federal money during this reporting period, and will be required to conduct a broader, federally mandated CFR 200 Uniform Guidance “Single Audit” designed to meet the special needs of federal grantor agencies. This report will be provided by the independent auditor in a separate document.

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

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

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

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

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

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

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

Incorporated on April 30, 1888 as a general law city, Lakeport serves as the administrative seat for the County of Lake and has a residential population of 4,9761
in a 2.4 square‐mile area, Lakeport is graced with a strong business base and a well‐established residential community.

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

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

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

Citywide Achievements in FY 2024‐25
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 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‐ City of Lakeport, California iv
Introductory Section
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.

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 City of Lakeport, California v
Introductory Section
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 long‐ term 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.

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

Respectively Submitted
_______________________
Kevin M. Ingram
City Manager
Danielle Dizon
Finance Director
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
List of Officials
vi
CITY COUNCIL
LAKEPORT REDEVELOPMENT SUCCESSOR AGENCY BOARD OF
DIRECTORS CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT BOARD OF DIRECTORS

Brandon Disney Mayor
Stacey Mattina Mayor Pro Tem
Kenneth Parlett, II Council Member
Christina Price Council Member
Kim Costa Council Member
MANAGEMENT TEAM
Kevin Ingram City Manager
David Ruderman City Attorney
Dale Stoebe Chief of Police
Danielle Dizon Finance Director
Kelly Buendia City Clerk/Administrative Services Director Ron Ladd Public Works Director
Joey Hejnowicz Community Development Director
Paul Harris Utilities Director
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
City Organizational Chart
vii

FINANCIAL SECTION

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

7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Lakeport
Lakeport, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, 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 City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Lakefront Park Grant and HOME Grant Program Income for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

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

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4–19, the Schedule of Changes in the Net OPEB Liability and Related Ratios on page 94-95, the Net OPEB Liability Schedule of Contributions on page 96-97, the City’s Schedules of Contributions, Pensions on pages 98-99, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 100-101, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and City Council
The City of Lakeport
Lakeport, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. 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 GAAS. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

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January 30, 2026 JJACPA, Inc.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis
4 This section provides a narrative overview and analysis of the financial activities of the City of Lakeport (City) for the fiscal year ended June 30, 2025. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
 The City’s Net Position increased from $32.8 million to $34.1 million. Components of this increase are discussed in more detail subsequently in the analysis.  At the close of the most recent fiscal year the City’s governmental funds reported combined fund balances of $15.8 million, a decrease of $100 thousand from the prior fiscal year’s balance.

Approximately 16% of combined fund balance on June 30, 2025, ($2.6 million) is available for spending at the government’s discretion (unassigned and assigned fund balances). The fund balance of the General Fund increased from $6.8 million to $7.7 million.  The Budget vs. Actual had a positive variance in the General Fund of $1.2 million.  The Water Enterprise Net Position decreased $351 thousand, and the Sewer Enterprise Net Position increased $209 thousand.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT

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

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

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
5 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Government‐wide Financial Statements
The Government‐wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net position and the Statement of Activities. The Statement of Net position provides information about the financial position of the City as a whole, including all its capital assets and long‐term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net position for the year.

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

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

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
6 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government‐wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government‐ wide Financial Statement. By doing so, readers may better understand the long‐term impact of the government’s near‐term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

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

For the fiscal year ended June 30, 2025, the City’s major funds are as follows:

Governmental Funds:
 General Fund
 HOME Grant Program income Special Revenue Fund
 ARPA Capital Project Fund
For the fiscal year ended June 30, 2025, the City adopted annual appropriated budgets for all funds.

Budgetary comparison schedules have been provided for the general fund and major governmental funds to demonstrate compliance with this budget and may be found on pages 32‐33.

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

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
7 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
Proprietary funds provide the same type of information as the Government‐wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.

Proprietary Funds:
 Water Enterprise Fund
 Sewer Enterprise Fund

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government‐wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 46–91 of this report. Required Supplementary Information follows the notes on page

94. Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with nonmajor governmental funds are presented on pages 106‐130 of this report.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
8 GOVERNMENT‐WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $32,80,9346 as of June 30, 2025. The following table represents a comparative analysis of the net position of governmental and business‐type activities as of June 30, 2025 and June 30, 2023.

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 17,733,962 $      8,512,708 $        26,246,670 $      18,003,489 $      15,833,226 $      33,836,715 $ Capital assets 22,873,571         26,574,506         49,448,077         20,892,236         22,151,773         43,044,009 Total assets 40,607,533         35,087,214         75,694,747         38,895,725         37,984,999         76,880,724 Deferred outflows of resources 1,028,266           738,386              1,766,652           1,442,352           399,102              1,841,454 Total assets and deferred outflows of
resources 41,635,799         35,825,600         77,461,399         40,338,077         38,384,101         78,722,178 Current and other liabilities 2,393,525           2,549,580           4,943,105           1,581,555           1,552,713           3,134,268 Long‐term liabilities 11,797,325         24,044,057         35,841,382         12,714,874         25,411,200         38,126,074 Total liabilities 14,190,850         26,593,637         40,784,487         14,296,429         26,963,913         41,260,342 Deferred inflows of resources 1,487,258           1,067,982           2,555,240           2,600,316           1,646,443           4,246,759 Total liabilities and deferred  inflows of
resources         27,661,619 15,678,108         43,339,727         16,896,745         28,610,356         45,507,101 Net position:

Net investment in
Capital Assets 20,860,647 7,458,030 28,318,677 20,874,450 921,607 21,796,057 Restricted 1,936,854 69,502 2,006,356 2,914,945 688,210 3,603,155 Unrestricted (deficit) 3,160,190 636,449 3,796,639 (348,063) 8,163,928 7,815,865 Total net position $ 8,163,981 25,957,691 $ 34,121,672 $ 23,441,332 $ 9,773,745 $ 33,215,077 $ 2025 2024
Summary of Net Position
Overall, total Net Position increased by approximately $1.3 million. With most balances remaining relatively stable over the prior year, the most notable changes were in increased investment in Capital Assets with the completion of several major capital improvement projects.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
9 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2025, and 2024, follows:

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

Program revenues:

Charges for services 289,726 $ 6,474,613 $ 6,764,339 $ 180,324 $ 6,025,049 $ 6,205,373 $ Grants and contributions:

Operating 1,868,818 46,053 1,914,871 1,089,935 ‐ 1,089,935 Capital 76,535 ‐ 76,535 2,390,285 ‐ 2,390,285 General revenues:

Sales taxes 4,421,206 ‐ 4,421,206 3,986,850 ‐ 3,986,850 Property taxes 1,306,868 325,149 1,632,017 1,262,787 319,872 1,582,659 Transient and other taxes 310,202 ‐ 310,202 215,117 ‐ 215,117 Licenses and franchises 520,823 ‐ 520,823 393,006 ‐ 393,006 Use of money and property 282,069 164,302 446,371 272,233 163,034 435,267 Other revenues 11,023 ‐ 11,023 599,682 ‐ 599,682 Total revenues 9,087,270 7,010,117 16,097,387 10,390,219 6,507,955 16,898,174 Expenses:

Governmental activities:

General government 1,086,605 ‐ 1,086,605 1,842,661 ‐ 1,842,661 Community development 646,294 ‐ 646,294 626,777 ‐ 626,777 Roads and infrastructure 2,470,214 ‐ 2,470,214 2,174,057 ‐ 2,174,057 Housing and support programs 116,620 ‐ 116,620 189,567 ‐ 189,567 Economic development 174,192 ‐ 174,192 233,951 ‐ 233,951 Public safety 2,405,043 ‐ 2,405,043 2,382,565 ‐ 2,382,565 Parks, buildings, and grounds 567,344 ‐ 567,344 645,314 ‐ 645,314 Interest and fiscal charges 166,142 ‐ 166,142 170,433 ‐ 170,433 Business‐type activities:

Water ‐ 3,555,838 3,555,838 ‐ 3,068,321 3,068,321 Sewer ‐ 3,596,768 3,596,768 ‐ 3,646,029 3,646,029 Total expenses 7,632,454 7,152,606 14,785,060 8,265,325 6,714,350 14,979,675 Excess (Deficiency) of revenues over
expenditures before transfers 1,454,816 (142,489) 1,312,327 2,124,894 (206,395) 1,918,499 Net position:

Beginning of year 24,502,875 8,306,470 32,809,345 22,377,981 8,512,865 30,890,846 End of year 25,957,691 $ 8,163,981 $ 34,121,672 $ 24,502,875 $ 8,306,470 $ 32,809,345 $ 2025 2024
Changes in Net Position
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
10 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City’s total revenues for governmental and business‐type activities were $16,097,387 for the fiscal year ended June 30, 2025, which represents a 5% decrease over the previous fiscal year. Significant revenues for the City for fiscal year ended June 30, 2025 were derived from charges for services (42%), sales and use tax (27%), property tax (10%) and operating and capital grants and contributions (12%).

Combining to make up 91% of the City’s revenue.

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

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

2. Grants and Contributions. Operating grants increased from the prior fiscal year by approximately $825 thousand due to an increase in spending related to economic development activities. Capital grants decreased approximately $2.3 million due to several capital improvement projects coming to completion.

3. Sales and Use Tax. Sales and use taxes showed an increase of approximately $430 thousand after a relatively stable previous fiscal year. The expectation is for growth in this revenue category to remain very slow but steady for the foreseeable future.

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

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
11 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

Expenses
Governmental and business‐type activity expenses of the City for the year totaled $14,785,060 which represents a steady trend over the previous fiscal year. Governmental activity expenses totaled $7,632,454 or 55% of total expenses. Of the governmental activities, the most significant categories were represented by public safety (32%), general government (14%), and roads and infrastructure (32%). Combining to make up 78% of governmental activity expenses. Business‐type activities incurred $7,152,606 in expenses during the fiscal year or 48% of the total City expenses.

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

1. General Government. Expenditures in this category decreased approximately $756 thousand compared to the prior fiscal year. This is primarily the result of fluctuations in pension and OPEB expenses.

2. Public Safety. Normal operating costs associated with public safety remained relatively stable compared to the prior fiscal year.

3. Roads and infrastructure. Expenses increased by approximately $296 thousand. This is the result of an increase in costs associated with specific one‐time project.

4. Water Enterprise. Costs associated with water increased approximately $487 thousand compared to the prior fiscal year. This is primarily the result of fluctuations in pension and OPEB expenses and an increase in overall operating costs.

5. Sewer Enterprise. Costs associated with sewer remained relatively stable as compared to the prior fiscal year.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
12 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs.

Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2025, and 2024, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $ (664,178) 1,086,605 $ 1,842,661 $ (1,522,410) $ Community development (643,682) 646,294 626,777 (565,305) Roads and infrastructure (1,655,843) 2,470,214 2,174,057 (1,586,455) Housing and support programs 435,727 116,620 189,567 45,966 Economic development 260,230 174,192 233,951 (116,230) Public safety (2,396,143) 2,405,043 2,382,565 (2,329,382) Parks, buildings, and grounds (567,344) 567,344 645,314 1,639,468 Interest and fiscal charges (166,142) 166,142 170,433 (170,433) Total 7,632,454 $ (5,397,375) $ 8,265,325 $ (4,604,781) $ 2025 2024
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
13 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities, Continued
Revenues by source for the fiscal years ended June 30, 2025, and 2024, are as follows:

Sales and use taxes,
4,421,206 , 49%
Property taxes,
1,306,868 , 14%
Transient
occupancy and
other taxes,
310,202 , 3%
Licenses, permits
and franchises,
520,823 , 6%
Use of money and
property, 282,069 ,
3%
Other general
revenues, 11,023 ,
0%
Charges for
services, 289,726 ,
3%
Operating grants
and contributions,
1,868,818 , 21%
Capital grants and
contributions,
76,535 , 1%
Revenues by Source ‐ Governmental Activities 2025
Sales and use taxes,
3,986,850 , 38%
Property taxes,
1,262,787 , 12%
Transient
occupancy tax,
215,117 , 2%
Licenses, permits
and franchises,
393,006 , 4%
Use of money and
property, 272,233 ,
3%
Other general
revenues, 599,682 ,
6%
Charges for
services, 180,324 ,
2%
Operating grants
and contributions,
1,089,935 , 10%
Capital grants and
contributions,
2,390,285 , 23%
Revenues by Source ‐ Governmental Activities 2024
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
14 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

Business‐type Activities

Business‐type activities decreased the City’s net position by $142,489. The City has two business‐type activities: Water and Sewer. While both activities generated positive changes in net position the changes were marginal with no specific significant items.
$2,800,000
$2,900,000
$3,000,000
$3,100,000
$3,200,000
$3,300,000
$3,400,000
$3,500,000
$3,600,000
Water Sewer
Operating revenues
Operating expenses
$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Water Sewer
Operating revenues
Operating expenses
Operating Revenues and Expenses
Business‐type Activities
2025
Operating Revenues and Expenses
Business‐type Activities
2024
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
15 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Business‐type Activities, Continued
The revenues by source for the business‐type activities for the fiscal years ended June 30, 2025, and 2024, are as follows:

Charges for services
6,474,613

92.36%
Operating grants
and contributions
46,053

0.66%
Property taxes
325,149

4.64%
Use of money and
property
164,302

2.34%
Revenues by Source ‐ Business‐type Activities
2025
Charges for services
6,025,049

92.58%
Property taxes
319,872

4.92%
Use of money and
property
163,034

2.51%
Revenues by Source ‐ Business‐type Activities
2024
City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
16 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Financial Analysis of the Government’s Funds
The City of Lakeport uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government‐wide financial statements.

Governmental funds. The City’s governmental funds provide information on near‐term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2025, the City’s governmental funds reported combined fund balances of $15,761,058. This is a decrease of $116,071 from last fiscal year.

The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2025, General Fund unassigned and assigned fund balance totaled $2,872,715.

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

Budgetary Highlights
General Fund
The difference between the final budget and actual differs favorably by $855 thousand. While sales taxes overperformed as compared to expectations, property taxes also increased slightly as expected.

Interest earned on investments also exceeded expectations by approximately $180 thousand.

Expenditure levels were relatively consistent with the prior year, however when compared to the budget there was a $365 thousand favorable variance. For public safety the approximately $264 thousand variance was the result of salary savings from unfilled positions. For planning the variance was a combination of salary savings and budgeted planning related activities that were not completed.

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

ARPA Special Revenue Fund
This fund is used for tracking and expending ARPA funds that were received from the Federal government for COVID‐19 relief. The City spent these funds rehabilitating a portion of S. Main Street.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
17 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

Capital Assets

The capital asset balances net of accumulated depreciation for the fiscal years ended June 30, 2025, and 2025, are as follows:
2025 2024 2025 2024 2025 2024
Land 2,498,113 $ 2,498,113 $ 2,475,403 $ 2,475,403 $ 4,973,516 $ 4,973,516 $ Construction in progress 111,119 ‐ 6,994,624 131,159 7,105,743 131,159 Buildings and structures 10,619,782 10,398,351 7,206,840 7,446,163 17,826,622 17,844,514 Improvements 9,045,390 9,447,399 9,078,458 9,983,196 18,123,848 19,430,595 Vehicles and equipment 417,532 582,086 819,181 866,457 1,236,713 1,448,543 Infrastructure 181,935 ‐ ‐ ‐ 181,935 ‐ Total 22,873,871 $ 22,925,949 $ 26,574,506 $ 20,902,378 $ 49,448,377 $ 43,828,327 $ Governmental Activities Totals Business‐type Activities There were no significant changes to Governmental Activities Capital Assets. Significant increases to Capital Assets in Business‐type Activities are primarily construction in progress costs associated with the replacement of several utility mains. More detail of the capital assets and current activity can be found in the notes to the financial statements on Page 52 for significant accounting policies and Note 5 on Page 66 for other capital asset information.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
18 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Debt Administration

Governmental Activities 2025 2024
USDA Police Station Bond 950,000 $ 970,000 $
2021 Pension Obligation Bonds - Governmental Share 3,996,000 4,245,000 Less: Discount (30,795) (31,987)
2018 Series B Solar Bonds - Governmental Share 1,090,000 1,110,000 Less: Discount (27,076) (28,501)
Total Governmental Activities 5,978,129 6,264,512
Business-Type Activities
USDA Water Revenue Bonds, 2016 2,704,300 2,768,400
Pinnacle Water Loan 1,655,000 1,783,000
Banner 2022 Water Bonds 5,831,000 5,910,000
Wastewater Revenue Bonds, 2017 Refunding 1,310,000 1,514,000 USDA WasteWater Revenue Bonds, 2017 3,008,000 3,071,000 2017 CLMSD Sewer District Assessment Bonds 1,630,000 1,811,000 2021 Pension Obligation Bonds - Business-type Share 2,664,000 2,830,000 Less: Discount (21,198) (21,326)
2018 Series B Solar Bonds - Business-type Share 2,950,000 3,095,000 Add: Premium 28,176 28,371
Total Business-Type Activities 21,759,278 22,789,445
Total $ 29,053,957 27,737,407 $

During the year ended June 30, 2025, the City did not issue any new debt instruments and made all debt service payments as required. Additional information on the City’s outstanding long‐term liabilities can be found in Note 6 on page 68.

City of Lakeport, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
19 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Economic Outlook

As of June 30, 2025, the City of Lakeport continues to operate in a challenging economic environment influenced by elevated personnel and benefit costs, and ongoing uncertainty related to federal and state fiscal policies. Although inflationary pressures have moderated from prior‐year levels, expenditure growth—particularly related to pensions, other postemployment benefits (OPEB), and labor costs— continues to exceed historical norms. As a result, the City remains focused on controlling operating costs to ensure long‐term structural budget balance.

On the revenue side, property tax revenues have remained stable, reflecting continued strength in the local real estate market. Sales and use tax revenues have stabilized following declines in prior fiscal years; however, future growth in this revenue source is expected to remain modest due to broader economic conditions. The City’s successful use of grant funding and completion of major capital projects have helped mitigate near‐term capital and operating pressures while improving community infrastructure and service capacity.

The City’s financial position continues to benefit from the application of conservative financial policies and disciplined fiscal management. These policies guide decision‐making related to debt administration, capital improvement planning, labor negotiations, and service delivery, and have contributed to the maintenance of adequate reserve levels. Such reserves provide flexibility to address economic volatility, unforeseen events, and future infrastructure needs.

Looking forward, management will continue to monitor economic conditions, revenue trends, and expenditure pressures while maintaining a focus on long‐term financial sustainability. While economic uncertainty persists, the City of Lakeport’s overall outlook remains cautiously optimistic, supported by stable revenues, prudent financial management, and a commitment to maintaining fiscal resilience.

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

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

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

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

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

The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its business‐type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business‐type program. The City’s general revenues are then listed in the Governmental Activities or Business‐type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
21 This page intentionally left blank.
22 City of Lakeport, California
Statement of Net Position
June 30, 2025
Governmental Business‐type
Activities Activities Total
ASSETS
Cash and investments $ 7,249,817 8,973,492 $ 16,223,309 $ Restricted cash and investments 69,502 22,588 92,090 Receivables:

Accounts 1,089,827 2,296,693 3,386,520 Loans/Notes receivable 103,562 6,441,189 6,544,751 Total current assets 8,512,708 17,733,962 26,246,670 Capital assets:

Nondepreciable 2,609,232 9,470,027 12,079,259
Depreciable 17,104,479 20,264,339 37,368,818 Total noncurrent assets 26,574,506 22,873,571 49,448,077 Total assets 35,087,214 40,607,533 75,694,747 DEFERRED OUTFLOWS OF RESOURCES
Pension plan 738,386 1,028,266 1,766,652 Total deferred outflows of resources 738,386 1,028,266 1,766,652 Total assets and deferred outflows $ 35,825,600 41,635,799 $ 77,461,399 $

LIABILITIES
Accounts payable $ 1,076,672 1,523,824 $ 2,600,496 $ Other liabilities 200,183 19,231 219,414 Deposits payable 68,625 429,849 498,474 Compensated absences ‐ current portion 137,000 123,621 260,621 Due within one year 1,067,100 297,000 1,364,100 Total current liabilities 2,549,580 2,393,525 4,943,105 Long‐term liabilities:

Compensated absences 180,966                          65,128                           246,094 Due after one year 5,681,129                       20,692,178                   26,373,307 Net OPEB liability                       1,286,500 3,149,707                     4,436,207 Net pension liability                       2,000,251 2,785,523                     4,785,774 Total noncurrent liabilities                     24,044,057 11,797,325                   35,841,382 Total liabilities                     26,593,637 14,190,850                   40,784,487 DEFERRED INFLOWS OF RESOURCES
Pension Plan                       1,067,982 1,487,258                     2,555,240 Total deferred inflows of resources                       1,067,982 1,487,258                     2,555,240 NET POSITION
Net investment in capital assets                     7,458,030 20,860,647                     28,318,677 Restricted for:

Debt service 69,502 22,588 92,090 Housing programs ‐ 831,350 831,350 Economic development programs ‐ 550,271 550,271 Transportation infrastructure ‐ 484,082 484,082 ARPA ‐ 48,563 48,563 Unrestricted (deficit) 636,449 3,160,190 3,796,639 Total net position 8,163,981 25,957,691 34,121,672 Total liabilities, deferred inflows and net position $ 35,825,600 41,635,799 $ 77,461,399 $ The accompanying notes are an integral part of these basic financial statements. 23 City of Lakeport, California
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $ ‐ 1,086,605 $ 422,427 $ ‐ $ Community development ‐ 646,294 2,612 ‐ Roads and infrastructure 280,826 457,010 2,470,214 76,535 Housing and support programs ‐ 116,620 552,347 ‐ Economic development ‐ 174,192 434,422 ‐ Public safety 8,900 2,405,043 ‐ ‐ Parks, buildings and grounds ‐ 567,344 ‐ ‐ Interest and fiscal charges ‐ 166,142 ‐ ‐ Total governmental activities 7,632,454 289,726 1,868,818 76,535 Business‐type activities:

Water 3,119,202 3,555,838 45,462 ‐ Sewer 3,355,411 3,596,768 591 ‐ Total business‐type activities 7,152,606 6,474,613 46,053 ‐ Total primary government $ 6,764,339 14,785,060 $ 1,914,871 $ 76,535 $ General revenues:

Taxes:

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

Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 24 Governmental Business‐Type
Activities Activities Totals
$              ‐ (664,178) $                             (664,178) $ ‐ (643,682)                                (643,682)
‐ (1,655,843)                                (1,655,843) ‐ 435,727                                435,727
‐ 260,230                                260,230
‐ (2,396,143)                                (2,396,143) ‐ (567,344)                                (567,344)
‐ (166,142)                                (166,142)
‐ (5,397,375)                                (5,397,375) (391,174) ‐                  (391,174)
(240,766) ‐                  (240,766)
(631,940) ‐                  (631,940)
(631,940) (5,397,375)                  (6,029,315)
4,421,206 ‐                                4,421,206
1,306,868 325,149                   1,632,017
223,140 ‐                                223,140
87,062 ‐                                87,062
520,823 ‐                                520,823
282,069 164,302                   446,371
11,023 ‐                                11,023
489,451 6,852,191                   7,341,642
(142,489) 1,454,816                  1,312,327
8,306,470 24,502,875                32,809,345
$          8,163,981 25,957,691 $            34,121,672 $ Net (Expense) Revenue and
Changes in Net Position
25 This page intentionally left blank.
26 Fund Description
General Fund
HOME Grant Program Income Special Revenue Fund
ARPA Capital Project Fund
FUND FINANCIAL STATEMENTS
MAJOR FUNDS
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The major revenue sources for this fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures, and interest income. Expenditures are made for community development, public safety, public works, and other services.

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

Established to account for the revenues and expenditures associated with the American Rescue Plan Act granted by the federal government for the South Main Capital Project.
27 City of Lakeport, California
Balance Sheet
Governmental Funds
June 30, 2025
HOME Grant
Program Income ARPA Nonmajor
General Special Revenue Capital Project Governmental
Fund Fund Fund Funds Totals
ASSETS
Cash and investments $ 831,350 5,775,639 $ 1,100,563 $ $ 8,973,492 1,265,940 $ Restricted cash and investments 22,588 ‐ ‐ ‐ 22,588 Receivables:

Intergovernmental ‐ 1,616,028 ‐ 661,157 2,277,185 Loans/Notes receivable 5,311,982 ‐ ‐ 1,129,207 6,441,189 Other receivable ‐ 11,062 ‐ 8,446 19,508 Due from other funds 718,840 ‐ ‐ ‐ 718,840 Advances to other funds 289,481 ‐ ‐ ‐ 289,481 Total assets $ 6,143,332 8,433,638 $ 1,100,563 $ 3,064,750 $ 18,742,283 $

LIABILITIES
AND FUND BALANCES
Liabilities:

Accounts payable 293,360 $ ‐ $ 1,052,000 $ 178,464 $ 1,523,824 $ Due to other funds ‐ ‐ ‐ 718,840 718,840 Deposits payable 429,849 ‐ ‐ ‐ 429,849 Interest payable 19,231 ‐ ‐ ‐ 19,231 Advances from other funds ‐ ‐ ‐ 289,481 289,481 Total liabilities ‐ 742,440 1,052,000 1,186,785 2,981,225 Fund balances:

Nonspendable
Advances to other funds 289,481                   ‐                                ‐                                ‐                                289,481 Loans/Notes receivable ‐                                5,311,982               ‐                                1,129,207               6,441,189 Restricted
Debt service 22,588                     ‐                                ‐                                ‐                                22,588 Housing programs ‐                                831,350                   ‐                                ‐                                831,350 Economic development programs ‐                                ‐                                ‐                                550,271                   550,271 Transportation infrastructure ‐                                ‐                                ‐                                484,082                   484,082 ARPA ‐                                ‐                                48,563                     ‐                                48,563 Committed
Operating reserve 1,153,680               ‐                                ‐                                ‐                                1,153,680 Reserve for economic uncertainties 1,538,240               ‐                                ‐                                ‐                                1,538,240 Vehicles and equipment replacement reserve 207,735                   ‐                                ‐                                ‐                                207,735 Road improvement reserve 244,253                   ‐                                ‐                                ‐                                244,253 Pension and OPEB reserve 1,057,920               ‐                                ‐                                ‐                                1,057,920 Compensated absences 304,586                   ‐                                ‐                                ‐                                304,586 Assigned
Capital projects 1,500,000               ‐                                ‐                                1                               1,500,001 Transportation infrastructure ‐                                ‐                                ‐                                164,916                   164,916 Unassigned (deficit) 1,372,715 ‐                                ‐                                (450,512)                 922,203 Total fund balances               6,143,332 7,691,198               48,563                     1,877,965               15,761,058 Total liabilities, deferred inflows and fund
balances $            6,143,332 8,433,638 $            1,100,563 $            3,064,750 $            18,742,283 $ The accompanying notes are an integral part of these basic financial statements.

Major Funds
28 City of Lakeport, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2025
Total fund balances ‐ total governmental funds $    15,761,058 22,873,571
Compensated absences (304,587) $
Long‐term debt (5,978,129)
Net OPEB liability (3,149,707)
Net pension liability (2,785,523)        (12,217,946)
Deferred outflows ‐ pensions        1,028,266
Deferred inflows ‐ pensions (1,487,258)        (458,992) Net Position of governmental activities $    25,957,691 The accompanying notes are an integral part of these basic financial statements.

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

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

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

Pension obligations result in deferred outflows and inflows of resouces associated with the actuarial value of contributions, assets, and liaiblities 29 City of Lakeport, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
HOME Grant
Program Income ARPA Other
General Special Revenue Capital Project Governmental
Fund Fund Fund Funds Totals
REVENUES:

Taxes:

Sales $ ‐ 4,376,512 $ ‐ $ 44,694 $ 4,421,206 $ Property ‐ 1,306,868 ‐ ‐ 1,306,868 Transient occupancy ‐ 223,140 ‐ ‐ 223,140 Other taxes ‐ 87,062 ‐ 87,062 Licenses, permits and franchises ‐ 520,823 ‐ ‐ 520,823 Fines, forfeitures and penalties ‐ 8,900 ‐ ‐ 8,900 Intergovernmental ‐ 422,427 1,522,926 1,945,353 Use of money and property 8,434 270,443 ‐ 3,192 282,069 Charges for services ‐ 270,113 ‐ 10,713 280,826 Other revenues 1,053 5,639 4,332 11,024 Total revenues 9,487 7,491,927 ‐ 1,585,857 9,087,271 EXPENDITURES:

Current:

General government:

Council ‐ 125,668 ‐ ‐ 125,668 Administration ‐ 416,165 ‐ ‐ 416,165 Attorney ‐ 67,607 ‐ ‐ 67,607 Finance and information technology ‐ 439,272 ‐ ‐ 439,272 Non‐departmental ‐ 375,630 ‐ ‐ 375,630 Community development:

Planning ‐ 340,430 ‐ ‐ 340,430 Building ‐ 364,642 ‐ ‐ 364,642 Roads and infrastructure:

Public works ‐ 570,705 ‐ 667,947 1,238,652 Engineering ‐ 320,416 ‐ ‐ 320,416 Housing and support programs ‐ 3,500 ‐ 113,120 116,620 Economic development 72,306 ‐ ‐ 101,886 174,192 Public safety ‐ 2,624,023 ‐ 6,165 2,630,188 Parks, buildings and grounds 370,615 ‐ ‐ ‐ 370,615 Capital outlay ‐ 96,931 1,145,974 421,890 1,664,795 Debt service:

Principal ‐ 289,000 ‐ ‐ 289,000 Interest and fiscal charges ‐ 163,525 ‐ ‐ 163,525 Total expenditures 3,500 6,636,935 1,145,974 1,311,008 9,097,417 REVENUES OVER (UNDER)
EXPENDITURES 5,987 854,992 (1,145,974) 274,849 (10,146) OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐ ‐ ‐ (105,925) (105,925) Transfers in 497,618 ‐ ‐ 418,672 916,290 Transfers out (452,925) ‐ ‐ (463,365) (916,290) Total other financing sources (uses) ‐ 44,693 ‐ (150,618) (105,925) Net change in fund balances 5,987 899,685 (1,145,974) 124,231 (116,071) FUND BALANCES (DEFICITS):

Beginning of year 6,791,513 6,137,345 1,194,537 1,753,734 15,877,129 End of year 7,691,198 $ 6,143,332 $ 48,563 $ 1,877,965 $ 15,761,058 $ The accompanying notes are an integral part of these basic financial statements.

Major Funds
30 City of Lakeport, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2025
Net change in fund balances ‐ total governmental funds $          (116,071) Capital asset purchases capitalized $            757,846 Depreciation expense (810,224)               (52,378)
Debt payments               286,383               286,383 Change in compensated absences 123,261                              123,261 Net OPEB liability               455,907
Net Pension liability                1,213,621 757,714
Change in Net Position of governmental activities $        1,454,816 Amounts reported for governmental activities in the Statement of Activities are different because:

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

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

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

The issuance of long‐term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long‐term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.
31 City of Lakeport, California
Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual ‐ General and Major Special Revenue Funds For the year ended June 30, 2025
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes:

Sales 3,998,723 $ 3,998,723 $ 4,376,512 $ 377,789 $ Property 1,273,500 1,273,500 1,306,868 33,368 Transient occupancy 225,000 225,000 223,140 (1,860) Other taxes 84,200 84,200 87,062 2,862 Licenses, permits and franchises 445,000 445,000 520,823 75,823 Fines, forfeitures and penalties 12,000 12,000 8,900 (3,100) Intergovernmental 403,500 403,500 422,427 18,927 Use of money and property 87,000 87,000 270,443 183,443 Charges for services 141,800 141,800 270,113 128,313 Other revenues ‐ ‐ 5,639 5,639 Total revenues 6,670,723 6,670,723 7,491,927 821,204 EXPENDITURES:

Current:

General government:

Council 140,132 140,132 125,668 14,464 Administration 457,796 457,796 416,165 41,631 Attorney 50,000 50,000 67,607 (17,607) Finance and information technology 417,664 417,664 439,272 (21,608) Non‐departmental 317,000 317,000 375,630 (58,630) Community development:

Planning 413,907 413,907 340,430 73,477 Building 418,328 418,328 364,642 53,686 Roads and infrastructure:

Public works 564,955 564,955 570,705 (5,750) Engineering 310,631 310,631 320,416 (9,785) Housing and support programs ‐ ‐ ‐ ‐ Economic development 151,500 151,500 72,306 79,194 Public safety 2,888,230 2,888,230 2,624,023 264,207 Parks, buildings and grounds 366,611 366,611 370,615 (4,004) Capital outlay 50,006 50,006 96,931 (46,925) Debt service:

Principal 289,000 289,000 289,000 ‐ Interest and fiscal charges 166,830 166,830 163,525 3,305 Total expenditures 7,002,590 7,002,590 6,636,935 365,655 REVENUES OVER (UNDER)
EXPENDITURES (331,867) (331,867) 854,992 1,186,859 OTHER FINANCING SOURCES (USES):

Debt issuance costs ‐ ‐
Loss on note receivable - - - ‐ Transfers in 500,830 500,830 497,618 3,212 Transfers out (455,830) (455,830) (452,925) (2,905) Total other financing sources (uses) 45,000 45,000 44,693 307 Net change in fund balances (286,867) (286,867) 899,685 1,187,166 FUND BALANCES (DEFICITS):

Beginning of year 6,791,513 6,791,513 6,791,513 ‐ End of year $ 6,504,646 6,504,646 $ 7,691,198 $ 1,187,166 $ General Fund
The accompanying notes are an integral part of these basic financial statements.

Budgeted Amounts
32 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ ‐ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,434 8,434 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,053 1,053 ‐ ‐ ‐ ‐ ‐ ‐ 9,487 9,487 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,000 10,000 3,500 6,500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,200,000 1,200,000 1,145,974 54,026 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,000 10,000 3,500 6,500 1,200,000 1,200,000 1,145,974 54,026 (10,000) (10,000) 5,987 2,987 (1,200,000) (1,200,000) (1,145,974) (54,026) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (10,000) (10,000) 5,987 2,987 (1,200,000) (1,200,000) (1,145,974) (54,026) ‐ ‐ 6,137,345 ‐ 1,194,537 1,194,537 1,194,537 ‐ $ (10,000) (10,000) $ 6,143,332 $ 2,987 $ (5,463) $ (5,463) $ 48,563 $ (54,026) $ ARPA Special Revenue Fund
Budgeted Amounts
HOME Grant Program Income
Budgeted Amounts
33 This page intentionally left blank.
34 The City maintains two enterprise funds: water and sewer described as follows:

Fund
Major Funds:

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

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

Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
35 City of Lakeport, California
Statement of Net Position
Proprietary Funds
June 30, 2025
Water Sewer Totals
ASSETS
Current assets:

Cash and investments 3,684,863 $ 3,564,954 $ 7,249,817 $ Restricted cash 15,831 53,671 69,502 Receivables:

Accounts, net of uncollectibles 454,557 630,392 1,084,949 Intergovernmental ‐ 4,878 4,878 Notes receivable 32,104 71,458 103,562 Total current assets 4,325,353 4,187,355 8,512,708 Noncurrent assets:

Capital assets not being depreciated:

Land 740,170 1,735,233 2,475,403 Construction in progress 3,769,052 3,225,572 6,994,624 Capital assets being depreciated:

Buildings and improvements 12,929,618 29,363,126 42,292,744 Machinery, equipment and vehicles 869,922 1,852,890 2,722,812 Less: Accumulated depreciation (6,464,466) (21,446,611) (27,911,077) Total noncurrent assets 14,730,210 11,844,296 26,574,506 Total Assets 19,055,563 16,031,651 35,087,214 DEFERRED OUTFLOWS OF RESOURCES
Pension plan 338,845 399,541 738,386
Total assets and defered outflows of resources $ 19,455,104 16,370,496 $ 35,825,600 $

LIABILITIES
Current liabilities:

Accounts payable 827,169 $ 249,503 $ 1,076,672 $ Interest payable 138,080 62,103 200,183 Deposits payable 65,900 2,725 68,625 Compensated absences ‐ current portion 69,145 67,855 137,000 Pension obligation bonds ‐ current portion 84,000 84,000 168,000 Due within one year 305,100 594,000 899,100 Total current liabilities 1,060,186 1,489,394 2,549,580 Noncurrent liabilities:

Compensated absences 40,661 24,467 65,128
Pension obligation bonds 1,237,401 1,237,401 2,474,802 Due after one year 10,590,078 7,627,298 18,217,376 Net pension liability 917,915 1,082,336 2,000,251 Net OPEB liability 621,069 665,431 1,286,500 Total noncurrent liabilities 10,636,933 13,407,124 24,044,057 Total liabilities 11,697,119 14,896,518 26,593,637 DEFERRED INFLOWS OF RESOURCES
Pension Plan 490,097 577,885 1,067,982 Total deferred inflows of resources 577,885 490,097 1,067,982 NET POSITION
Net Position:

Net investment in capital assets 942,262 6,515,768 7,458,030 Restricted for debt service 15,831 53,671 69,502 Unrestricted (deficit) 25,788 610,661 636,449 Total net position 7,180,100 983,881 8,163,981 Total liabilities, deferred inflows and net position $ 19,455,104 16,370,496 $ 35,825,600 $ The accompanying notes are an integral part of these basic financial statements. 36 City of Lakeport, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2025
Water Sewer Totals
OPERATING REVENUES:

Charges for service 3,119,202 $ 3,355,411 $ 6,474,613 $ Total operating revenues 3,355,411 3,119,202 6,474,613 OPERATING EXPENSES:

Personnel services 933,082 616,590 1,549,672 Materials, services and supplies 1,882,188 1,762,075 3,644,263 Depreciation and amortization 367,798 957,916 1,325,714 Total operating expenses 3,336,581 3,183,068 6,519,649 OPERATING INCOME 18,830 (63,866) (45,036) NONOPERATING REVENUES (EXPENSES):

Property taxes and special assessments ‐ 325,149 325,149 Intergovernmental 45,462 591 46,053 Investment revenue 39,960 99,342 139,302 Lease revenue ‐ 25,000 25,000 Interest and fiscal charges expense (372,770) (260,187) (632,957) Total non‐operating revenues, net 189,895 (287,348) (97,453) NET INCOME BEFORE TRANSFERS 208,725 (351,214) (142,489) Transfers in ‐ ‐ ‐ Transfers out ‐ ‐ ‐ Total transfers ‐ ‐ ‐ CHANGE IN NET POSITION 208,725 (351,214) (142,489) NET POSITION:

Beginning of year 1,335,095 6,971,375 8,306,470 End of year 983,881 $ 7,180,100 $ 8,163,981 $ The accompanying notes are an integral part of these basic financial statements. 37 City of Lakeport, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Water Sewer Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers/users for services provided 3,129,292 $ 3,309,322 $ 6,438,614 $ Cash payments to suppliers for goods and services (1,109,902) (1,611,300) (2,721,202) Cash payments to employees for services (1,367,818) (1,363,944) (2,731,762) Net cash provided by operating activities 334,078 651,572 985,650 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Grants received 45,462 ‐ 45,462 Property taxes and assessments received ‐ 325,149 325,149 Net cash used by noncapital financing activities 325,149 45,462 370,611 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (3,873,143) (3,124,303) (6,997,446) Principal paid on long term debt (379,100) (650,872) (1,029,972) Interest paid on long term debt (377,087) (264,820) (641,907) Proceeds from lease revenue ‐ 25,000 25,000 Net cash (used) by capital and related financing activities (4,014,995) (4,629,330) (8,644,325) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received (loss) 39,960 99,342 139,302 Net cash provided by investing activities 99,342 39,960 139,302 Net increase (decrease) in cash and cash equivalents (3,256,426) (3,892,336) (7,148,762) CASH AND CASH EQUIVALENTS:

Beginning of year 7,593,030 6,875,051 14,468,081 End of year 3,700,694 $ 3,618,625 $ 7,319,319 $ Presentation in Statement of Financial Position:

Cash and investments 3,684,863 $ 3,564,954 $ 7,249,817 $ Restricted cash and investments 15,831 53,671 69,502 Total Cash and investments 3,700,694 $ 3,618,625 $ 7,319,319 $ Reconciliation of income from operations to net
cash provided by operating activities:

Operating income (63,866) $ 18,830 $ (45,036) $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 367,929 957,852 1,325,781 Amortization 64 (131) (67) Changes in net pension liability (329,017) (630,910) (959,927) Changes in net OPEB liability (89,897) (96,318) (186,215) (Increase) decrease in current assets:

Accounts receivable (3,664) (62,703) (66,367) Intergovernmental receivables ‐ 473 473 Note receivable 6,129 13,641 19,770 Increase (decrease) in liabilities:

Accounts payable 772,286 150,775 923,061 Deposits payable 7,625 2,500 10,125 Compensated absences (15,822) (20,126) (35,948) Net cash provided by operating activities $ 334,078 651,572 $ 985,650 $ There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2025.

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

Redevelopment Non‐Housing
Successor Private Purpose Trust Fund
Accounts for funds collected and disbursed for the dissolution of the former Lakeport Redevelopment Agency related to administration and retirement of enforceable obligations.
40 City of Lakeport, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2025
Redevelopment
Non‐Housing Successor
Private Purpose
Trust Fund
ASSETS
Current assets:

Cash and investments 425,405 $
Cash and investments with trustee/fiscal agent 111
Intergovernmental receivable 375,194 Total current assets 800,710
Total assets 800,710

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 4,695
Interest payable 43,886
Due within one year 255,000
Total current liabilities 303,581
Long‐term liabilities:

Due after one year 3,005,000
Total long‐term liabilities 3,005,000
Total liabilities 3,308,581
NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments (2,507,871) Total net position (deficit) $ (2,507,871) The accompanying notes are an integral part of these basic financial statements. 41 City of Lakeport, California
Statement of Changes in Fiduciary Net Position
Redevelopment Agency Successor Private Purpose Trust Fund For the year ended June 30, 2025
Private Purpose
Trust Fund
ADDITIONS:

Property taxes 440,480 $
Total additions 440,480
DEDUCTIONS:

Administrative costs 103,584
Interest and trustee fees 130,473
Total deductions 234,057
CHANGE IN FIDUCIARY NET POSITION 206,423 NET POSITION (DEFICIT):

Beginning of year (2,714,294)
End of year $ (2,507,871)
The accompanying notes are an integral part of these basic financial statements. 42 43
NOTES TO BASIC FINANCIAL STATEMENTS
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements
44 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applied to government agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below:

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

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

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
45 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government‐wide and Fund Financial Statements
The government‐wide financial statements report information on all of the non‐fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business‐type activates, which rely to a significant extent on fees and charges for support.

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

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

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government‐wide and Fund Financial Statements, Continued Proprietary Funds
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprise –the intent of the governing body is that the cost (expenses, including depreciation) of providing goods or services to the general public on a continuing basis, be financed or recovered primarily through user charges. The City accounts for the operation of its water and sewer utility fund on this basis.

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government‐wide and Fund Financial Statements, Continued

The City reports the following major funds:
 General Fund ‐ The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The major revenue sources for this fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures, and interest income. Expenditures are made for community development, public safety, public works, and other services.  HOME Grant Program Income ‐ This fund is used for reinvestment into housing programs from program income generated by past HOME grants.
 ARPA Capital Project Fund – This fund is used to account for the revenues and expenditures associated with the American Rescue Plan Act granted by the federal government for the South Main Capital Project.
 Water ‐ Chapter 13.04 of the Lakeport Municipal Code provides the authority for City to operate water system. Revenues (fees and charges) are collected to pay for service (water) received.  Sewer ‐ Chapter 13.20 of the Lakeport Municipal Code provides the authority for the City to operate sewer system. Revenues (fees and charges) are collected to pay for availability of collection, transportation, treatment, and disposal system. In addition, grazing lease payments, LACOSAN payments for flows, tax revenues, FEMA storm damage reimbursement, OES storm damage reimbursement, and insurance rebates have been credited to this fund.

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Accounting and Measurement Focus, Continued In the fund financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when they become both measurable and available to finance the expenditures of the current period (susceptible to accrual). Major revenue sources susceptible to accrual include substantially all property taxes, taxpayer‐assessed taxes (such as sales and use, utility users, business license, transient occupancy, franchise fees and gas taxes), interest, special assessments levied, state and federal grants and charges for current services. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period.

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

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash and Investments, Continued
The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available.

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

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

I. Capital Assets

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

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

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

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

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

Buildings and improvements 5 – 50 years
Roadway improvements 50 years
Sidewalks, curbs and gutters 50 years
Storm drainpipes/structures 50 years
Traffic signal devices 5 – 40 years
Landscaping 30 years
Signage 25 years
Leasehold improvements 5 years
Machinery and equipment 3 – 5 years
Vehicles 3 years
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

I. Capital Assets, Continued
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government‐wide statements.

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Long‐term Liabilities
In both the governmental‐wide financial statements and proprietary fund financial statements, long‐ term debt and other long‐term liabilities are reported as liabilities in the applicable statement of net position. Bond premiums, issuance costs and discounts are deferred and amortized over the life of the bond.

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

M. Equity Classification

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

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

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

Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

M. Equity Classification, Continued

Fund Financial Statements

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

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Equity Classification, Continued
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted fund balance resources first, followed by the unrestricted resources in the Committed and Unassigned fund balances, as they are needed.

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Property Taxes, Continued
Tax Collections are the responsibility of the Lake County Treasurer‐Tax Collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments.
 The First is due on November 1 of the fiscal year and is delinquent if not paid by December 10;  The second is due on March 1 of the fiscal year and is delinquent if not paid by April 10.

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Budgetary Information
The City follows these procedures annually in establishing the budgetary data reflected in the financial statements:

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

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued R. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS.

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

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

Valuation Date June 30, 2024
Measurement Date June 30, 2025
Measurement Period July 1, 2024 to June 30, 2025

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
58 2. CASH AND INVESTMENTS
The City follows the practice of pooling cash and investments of all funds except for the restricted funds required to be held by outside custodians, fiscal agents or trustees under the provisions of bond indentures. Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:

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

Cash in bank ‐ $ ‐ $ ‐ $ 10,175,985 $ 10,175,985 $ Petty cash ‐ ‐ ‐ 400 400 Total pooled items ‐ ‐ ‐ 10,176,385 10,176,385 Pooled investments, at fair value:

Interest obligations:

Par Rate
$ .95‐5% Certificate of Deposits 444,463 2,390,000 993,655 970,804 ‐ 2,408,922 Money market 16,966 ‐ ‐ ‐ 16,966 State of California Local Agency Investment Fund 2,984,153 ‐ ‐ ‐ 2,984,153 PARS Section 115 Pension Trust Fund ‐ Mutual Funds 1,154,489 ‐ ‐ ‐ 1,154,489 Total pooled investments ‐ interest obligations 4,600,071 993,655 970,804 ‐ 6,564,530 Total cash equivalents and investments pooled $ 993,655 4,600,071 $ 970,804 $ 10,176,385 $ 16,740,915 $ Amounts reported in:

Governmental activities 8,973,492 $
Governmental activities ‐ Restricted 22,588
Business‐type activities 7,249,817
Business‐type activities ‐ Restricted 69,502
Fiduciary activities 425,405
Fiduciary activities ‐ Restricted 111
Total 16,740,915 $
Maturities (in years)
Cash, Cash Equivalents and Investments Pooled
Collateral and Categorization Requirements
At the fiscal year end, the City’s carrying amount of demand deposits was $10,175,985 and the bank account balance was $10,126,452. The difference of $49,533 represented outstanding checks and deposits in transit. Of the total deposit balance, $250,000 was insured by Federal Depository Insurance Corporation (FDIC), the remaining amount of $9,876,452 was collateralized in accordance with California Government Code Section 53600‐53609.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
59 2. CASH AND INVESTMENTS, Continued
Investment Policy
The table below identifies the investment types that are authorized under provisions of the City’s investment policy adopted August 16, 2005 (subsequently updated July 6, 2010), and in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address interest rate risk, credit risk, and concentration of credit risk.

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

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

Maximum Maximum
Authorized Maximum Percentage Investment Minimum
Investment Type Maturity of Portfolio in One Issuer Rating U.S. Treasury Securities 5 years None None None
U.S. Government Securities 5 years None None None
Bankers' Acceptances 270 days 30% None None
Certificates of Deposit 5 years 30% None None
Negotiable Certificates of Deposit 5 years 30% None None Repurchase Agreements 30 days None None None
Commercial Paper 31‐180 days 15‐30% None A1/P1
Corporate Medium‐term Notes 5 years 30% None A1/P1
Mutual Funds None 15% None Two/Three
Passbook Savings N/A None None None
Local Agency Investment Fund (LAIF) N/A $10M None None
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
60 2. CASH AND INVESTMENTS, Continued
Concentration of Credit Risk
The concentration of credit risk is the risk of loss that may be caused by the City’s investment in a single issuer. The investment policy of the City contains no limitations on the amount that can be invested in any single issuer beyond that stipulated by the California government code. There were no concentrations in any one issuer for the year.

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

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

At June 30, 2025, the City had $9,876,452 in financial institutions that were not covered by the FDIC but were covered by collateralized securities of the financial institutions where the deposits were maintained.

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
61 2. CASH AND INVESTMENTS, Continued

Fair Value of Investments

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

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

Investments by Fair Value Level June 30, 2025 Level 1 Level 2 Level 3 Certificate of Deposits 2,408,922 $ 2,408,922 $ ‐ $ ‐ $ Money market 16,966 16,966 ‐ ‐ Total fair value 2,425,888 2,425,888 ‐ ‐ Investments Exempt from Fair Value Hierarchy
Local Agency Investment Fund (LAIF) 2,984,153
PARS Section 115 Pension Trust Fund ‐ Mutual Funds 1,154,489 $ 6,564,530
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
62 2. CASH AND INVESTMENTS, Continued
Participation in an External Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statue and is chaired by the State Treasurer who is responsible for the day‐to‐day administration of LAIF. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis, which is different from the fair value of the City’s position in the LAIF pool. The State Treasurer determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available. As of June 30, 2025, the City’s investment in LAIF was $2,984,153. The total amount invested by all public agencies at that date was $24.49 billion. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2025 has a balance of $178.1 billion. Financial Statements of LAIF and PMIA may be obtained from the California Treasurer’s web site at www.treasurer.ca.gov.

3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2025:

Receivables
Governmental activities:

Due from other governments:

Grants and subventions 2,277,185 $
Accounts receivable:

Accounts 19,508
Total 2,296,693 $
Business‐type activities:

Accounts 1,089,827 $
Total 1,089,827 $
Accounts Receivable and Due from Other
Governments
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
63 3. ACCOUNTS RECEIVABLE, Continued
These amounts resulted in the following concentrations in receivables:

Other governments 67.2%
Individuals/businesses 32.8%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business or agency.

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

Loans and notes receivable for the year ended June 30, 2025, consisted of the following:

Beginning Ending
July 1, 2024 Additions Deletions June 30, 2025
Nonmajor governmental funds:

Special revenue funds:

Lakeport Housing 300,732 $ ‐ $ (3,008) $ 297,724 $ CDBG Economic Development PI 5,333,968 ‐ (21,986) 5,311,982 HOME PI 790,806 204,406 (163,729) 831,483 Total governmental funds 6,425,506 204,406 (188,723) 6,441,189 Major enterprise funds:

Water 38,233 ‐ (6,129) 32,104 Sewer 85,099 ‐ (13,641) 71,458 Total enterprise funds 123,332 ‐ (19,770) 103,562 Total loans/notes receivable 6,548,838 $ 204,406 $ (208,493) $ 6,544,751 $ Loans and Notes Receivable
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
64 5. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2025, was as follows:

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Governmental activities:

Nondepreciable assets:

Land 2,498,113 $ ‐ $ ‐ $ 2,498,113 $ Construction in progress ‐ 111,119 ‐ 111,119 Total nondepreciable assets 111,119 2,498,113 ‐ 2,609,232 Depreciable assets:

Buildings and structures 13,133,741 421,890 ‐ 13,555,631 Improvements 12,519,939 ‐ ‐ 12,519,939 Vehicles and equipment 2,991,181 ‐ (480,826) 2,510,355 Infrastructure/underground facilities ‐ 224,837 224,837 Total depreciable assets 646,727 28,644,861 (480,826) 28,810,762 Total 757,846 31,142,974 (480,826) 31,419,994 Accumulated depreciation:

Buildings and structures (2,735,390) (200,759) ‐ (2,936,149) Improvements (3,072,540) (402,009) ‐ (3,474,549) Vehicles and equipment (2,409,095) (164,554) 480,826 (2,092,823) Infrastructure/underground facilities ‐ (42,902) ‐ (42,902) Total accumulated depreciation (810,224) (8,217,025) 480,826 (8,546,423) Net depreciable assets (163,497) 20,427,836 ‐ 20,264,339 Total net capital assets $ (52,378) 22,925,949 $ ‐ $ 22,873,571 $ Depreciation expense of $810,224 was allocated in the Statement of Activities as follows:

General governement 309,582 $
Roads and infrastructure 151,735
Public Safety 136,965
Parks, buildings, grounds 211,942
$ 810,224
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
65 5. CAPITAL ASSETS, Continued
Business‐type capital asset activity for the year ended June 30, 2025, was as follows:

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Business‐type activities:

Nondepreciable assets:

Land 2,475,403 $ ‐ $ ‐ $ 2,475,403 $ Construction in progress 131,159 6,863,465 ‐ 6,994,624 Total nondepreciable assets 6,863,465 2,606,562 ‐ 9,470,027 Depreciable assets:

Buildings and structures 9,955,195 ‐ ‐ 9,955,195 Improvements 32,337,549 ‐ ‐ 32,337,549 Vehicles and equipment 2,588,368 134,444 ‐ 2,722,812 Total depreciable assets 44,881,112 134,444 ‐ 45,015,556 Total 134,444 47,487,674 ‐ 54,485,583 Accumulated depreciation:

Buildings and structures (2,509,032) (239,323) ‐ (2,748,355) Improvements (22,354,353) (904,738) ‐ (23,259,091) Vehicles and equipment (1,721,911) (181,720) ‐ (1,903,631) Total accumulated depreciation (1,325,781) (26,585,296) ‐ (27,911,077) Net depreciable assets (1,191,337) 18,295,816 ‐ 17,104,479 Total business‐type capital assets, net $ (1,191,337) 20,902,378 $ ‐ $ 26,574,506 $ Depreciation expense for capital assets for the year ended June 30, 2025, was charged to functions as follows:

Water 367,929 $
Sewer 957,852
$ 1,325,781
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
66 6. LONG TERM LIABILITIES
The following is a summary of changes in long‐term liabilities for the year ended June 30, 2025:

Governmental Activities
Beginning
Balance
7/1/2024 Additions Reductions
Ending
Balance
6/30/2025
Due within
One Year
USDA Police Station Bond 970,000 $ - $ (20,000) $ 950,000 $ 20,000 $ 2021 Pension Obligation Bonds - Governmental Share 4,245,000 - (249,000) 3,996,000 252,000 Less: Discount (31,987) - 1,192 (30,795) -
2018 Series B Solar Bonds - Governmental Share 1,110,000 - (20,000) 1,090,000 25,000 Less: Discount (28,501) - 1,425 (27,076) -
Compensated Absences 427,848 181,601 (304,862) 304,587 123,621 Total 6,692,360 $ 181,601 $ (591,245) $ 6,282,716 $ 420,621 $ Business-Type Activities
USDA Water Revenue Bonds, 2016 2,768,400 $ - $ (64,100) $ 2,704,300 $ 65,100 $ Pinnacle Water Loan 1,783,000 - (128,000) 1,655,000 131,000 Banner 2022 Water Bonds 5,910,000 - (79,000) 5,831,000 79,000 Wastewater Revenue Bonds, 2017 Refunding 1,514,000 - (204,000) 1,310,000 209,000 USDA WasteWater Revenue Bonds, 2017 3,071,000 - (63,000) 3,008,000 64,000 2017 CLMSD Sewer District Assessment Bonds 1,811,000 - (181,000) 1,630,000 186,000 2021 Pension Obligation Bonds - Business-type Share 2,830,000 - (166,000) 2,664,000 168,000 Less: Discount (21,326) - 128 (21,198) -
2018 Series B Solar Bonds - Business-type Share 3,095,000 - (145,000) 2,950,000 165,000 Add: Premium 28,371 - (195) 28,176 -
Compensated Absences 238,076 101,052 (137,000) 202,128 137,000 Total 23,027,521 $ 101,052 $ (1,167,167) $ 21,961,406 $ 1,204,100 $

Governmental Activities

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

Balance due $ 950,000
Business‐type Activities
USDA Water Revenue Bonds, 2016
Total issue $3,182,000. Annual principal and interest payments of approximately $109,500, at an interest rate of 2.85%, are due August 1 and February 1 each year, secured by water fund revenue. The total obligation matures in the year 2056.

Balance due $ 2,704,300

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
67 6. LONG TERM LIABILITIES, Continued
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 $ 1,655,000
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 $ 1,310,000
USDA Wastewater Revenue Bonds, 2017
Series 2017 Wastewater enterprise revenue bonds. Total issue $3,433,000. Annual principal and interest payments of approximately $127,000, at an interest rate of 2.125%, are due April 1 and October 1 each year, secured by wastewater fund revenue. The total obligation matures in the year 2057.

Balance due $ 3,008,000
2017 CLMSD Sewer District Assessment Bonds
2017‐1 Sewer Assessment bonds. Total issue $2,854,000. Annual principal and interest payments of approximately $230,000, at an interest rate of 2.85%, are due March 2 and September 2 each year, secured by Municipal Sewer District No.1 revenue from the South Assessment District 91‐1 area. The total obligation matures in the year 2032.

Balance due $ 1,630,000
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 $ 5,831,000
Pension Obligation Bonds
On October 20, 2021 the City issued $7,920,000 in Pension Obligation Bonds. Of the proceeds, $1,995,000 was used to refund the existing Pension Obligation Bonds to reduce its total debt service payments by $125,192 and obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $156,889. The remaining proceeds were used to pay down the majority of the outstanding UAL projected by CalPERS. Interest is payable semi‐annually on June 1 and December 1 of each year, commencing June 1, 2022. The bonds mature in 2041, and principal is payable on June 1 each year, commencing June 1, 2022. The average coupon for the refunding bonds is

2.07%
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
68 6. LONG TERM LIABILITIES, Continued
The maturity schedule for the bonds is as follows:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2026 252,000 $ 105,034 $ 168,000 $ 70,022 $ 420,000 $ 175,056 $ 2027 258,000 101,430 172,000 67,620 430,000 169,050 2028 261,000 96,915 174,000 64,610 435,000 161,525 2029 267,000 91,826 178,000 61,217 445,000 153,043 2030 273,000 86,192 182,000 57,461 455,000 143,653 2031‐2035 1,464,000 324,778 976,000 216,519 2,440,000 541,297 2036‐2040 1,161,000 105,212 774,000 70,142 1,935,000 175,354 2041‐2045 60,000 1,950 40,000 1,300 100,000 3,250 Total 3,996,000 $ 913,337 $ 2,664,000 $ 608,891 $ 6,660,000 $ 1,522,228 $ Due within one year 252,000 $ 105,034 $ 168,000 $ 70,022 $ 420,000 $ 175,056 $ Due after one year 3,744,000 808,303 2,496,000 538,869 6,240,000 1,347,172 Total 3,996,000 $ 913,337 $ 2,664,000 $ 608,891 $ 6,660,000 $ 1,522,228 $ Total
Governmental Activities Business‐type Activities
Pension Obligation Bonds Pension Obligation Bonds Pension Obligation Bonds Future Debt Service

Future debt service for Governmental and Business‐type activities at June 30, 2025 is as follows for all debt except compensated absences and claims liabilities:

Year Ending
June 30,
Principal Interest
2026 20,000 $             22,325 $
2027 21,000                 21,838
2028 21,000                 21,339
2029 22,000                 20,829
2030 22,000                 20,306
2031‐2035 119,000              93,278
2036‐2040 133,000              78,363
2041‐2045 150,000              61,536
2046‐2050 169,000              42,643
2051‐2055 190,000              21,375
2056‐2060 83,000                 1,983
Total $           405,815 950,000 $
Due within one year 20,000 $             22,325 $
Due after one year 930,000              383,490
Total $           405,815 950,000 $
Governmental Activities
USDA Police Station
Bond
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
69 6. LONG TERM LIABILITIES, Continued
Debt Service Schedule
Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2026 186,000 $         43,805 $           209,000 $           30,379 $          131,000 $           42,122 $ 2027 191,000            38,432              214,000              25,049             135,000              38,597 2028 196,000            32,918              220,000              19,580             139,000              34,967 2029 200,000            27,275              226,000              13,961             142,000              31,244 2030 204,000            21,518              231,000              8,203               146,000              27,428 2031‐2035 653,000            28,229              210,000              2,646               791,000              76,174 2036‐2040 ‐                       ‐                       ‐                         ‐                       171,000              2,266 Total 1,630,000 $      192,177 $         1,310,000 $        99,818 $          1,655,000 $        252,798 $ Due within one year 186,000 $         43,805 $           209,000 $           30,379 $          131,000 $           42,122 $ Due after one year 1,444,000         148,372            1,101,000           69,439             1,524,000           210,676 Total 1,630,000 $      192,177 $         1,310,000 $        99,818 $          1,655,000 $        252,798 $ Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2026 65,100 $           43,453 $           64,000 $             63,240 $          79,000 $             222,973 $ 2027 66,200              42,377              65,000                61,869             78,000                219,951 2028 67,200              41,282              67,000                60,467             82,000                216,871 2029 68,300              40,169              68,000                59,033             82,000                213,714 2030 69,400              39,038              69,000                57,577             87,000                210,460 2031‐2035 364,600            177,580            370,000              264,903           433,000              1,002,290 2036‐2040 395,100            146,420            411,000              223,454           1,349,000           856,837 2041‐2045 428,200            112,631            456,000              177,395           2,143,000           500,981 2046‐2050 464,200            75,989              507,000              126,342           1,498,000           88,011 2051‐2055 503,100            36,249              563,000              69,498             ‐                      ‐ 2056‐2060 212,900            2,633                368,000              11,836             ‐                      ‐ Total 2,704,300 $      757,821 $         3,008,000 $        1,175,614 $     5,831,000 $        3,532,088 $ Due within one year 65,100 $           43,453 $           64,000 $             63,240 $          79,000 $             222,973 $ Due after one year 2,639,200         714,368            2,944,000           1,112,374        5,752,000           3,309,115 Total 2,704,300 $      757,821 $         3,008,000 $        1,175,614 $     5,831,000 $        3,532,088 $ USDA Water Revenue
Bonds, 2016
Pinnacle Water Loan
Bonds, 2017
USDA WasteWater Revenue
Banner 2022 Water Bonds
Business‐type Activities
2017 CLMSD Assessment Wastewater Revenue
Bonds Series‐2017‐1 Bonds Series Refunding
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
70 6. LONG TERM LIABILITIES, Continued

2018 Series A Solar Bonds

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

Debt Service Schedule
Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2026 $ 35,494 25,000 $ 165,000 $ 98,838 $ 190,000 $ 134,332 $ 2027 34,806 30,000 180,000 91,938 210,000 126,744 2028 34,119 25,000 175,000 84,838 200,000 118,957 2029 33,431 30,000 195,000 77,438 225,000 110,869 2030 32,509 35,000 210,000 69,338 245,000 101,847 2031‐2035 142,478 235,000 1,405,000 225,081 1,640,000 367,559 2036‐2040 92,497 360,000 620,000 23,619 980,000 116,116 2041‐2045 25,900 350,000 ‐ ‐ 350,000 25,900 Total $ 431,234 1,090,000 $ 2,950,000 $ 671,090 $ 4,040,000 $ 1,102,324 $ Due within one year $ 35,494 25,000 $ 165,000 $ 98,838 $ 190,000 $ 134,332 $ Due after one year 395,740 1,065,000 2,785,000 572,252 4,040,000 1,102,324 Total $ 431,234 1,090,000 $ 2,950,000 $ 671,090 $ 4,230,000 $ 1,236,656 $ Total
Governmental Activities Business‐type Activities
2018 Series B Solar Bonds 2018 Series B Solar Bonds 2018 Series B Solar Bonds Various bond indentures contain limitations and restrictions, with which, in the opinion of management, the City is in compliance.

Compensated Absences

The City records employee absences, such as vacation, illness, deferred overtime, and holidays, for which it is expected that employees will be paid as compensated absences. The governmental activities compensated absences balance at June 30, 2025 was $304,587 with $123,621 expected to be paid within a year and to be liquidated by the general fund; the business‐type activities compensated absences balance at June 30, 2025 was $202,128 with $137,000 expected to be paid within a year. Of which the water fund will liquidate $69,145 and the sewer fund $67,855.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
71 7. NET POSITION/FUND BALANCES
Net Position

Governmental Business‐type
Activities Activities
Net investment in capital assets 20,860,647 $ 7,458,030 $ Restricted for:

Law enforcement 1,874                  ‐
Debt service 22,588               69,502
Housing programs 831,350             ‐
Economic development programs 550,271             ‐
Transportation infrastructure 648,997             ‐
ARPA 48,563
Unrestricted 2,993,401          636,449
Total 25,957,691 $    8,163,981 $
Net Investment in Capital Assets
As of June 30, 2025, the calculation of the District’s net investment in capital assets is as follows:

Governmental Business-type
Net Investment in Capital Assets Activities Activities Total Total capital assets 31,419,994 $ 54,485,583 $ 85,905,577 $ Less: Accumulated depreciation/amortization (8,546,423) (27,911,077) (36,457,500) Net carrying value of capital assets 22,873,571 26,574,506 49,448,077 Less:

USDA Police Station Bond (950,000) - (950,000)
2018 Series B Solar Bonds - Governmental Share (1,090,000) - (1,090,000) Discount 27,076 - 27,076
USDA Water Revenue Bonds, 2016 - (2,704,300) (2,704,300) Pinnacle Water Loan - (1,655,000) (1,655,000)
Banner 2022 Water Bonds - (5,831,000) (5,831,000)
Wastewater Revenue Bonds, 2017 Refunding - (1,310,000) (1,310,000) USDA WasteWater Revenue Bonds, 2017 - (3,008,000) (3,008,000) 2017 CLMSD Sewer District Assessment Bonds - (1,630,000) (1,630,000) 2018 Series B Solar Bonds - Business-type Share - (2,950,000) (2,950,000) Premium - (28,176) (28,176)
Net investment in capital assets 20,860,647 $ 7,458,030 $ 28,318,677 $ City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
72 7. NET POSITION/FUND BALANCES, Continued
Restricted
 Restrictions of Net position for Law enforcement, Governmental Activities Debt service, Housing programs, Economic development programs and Transportation infrastructure are the same as described on the next page as restrictions of fund balances.

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

Fund Balance
Nonspendable:

Long‐term interfund advances $ 289,481
Loans/notes receivable 6,441,189
Total nonspendable 6,730,670
Restricted:

Debt service 22,588
Housing programs 831,350
Economic development programs 550,271
Transportation infrastructure 484,082
ARPA Fund 48,563
Total restricted 1,936,854
Committed:

Operating reserve 1,153,680
Reserve for economic uncertainties 1,538,240
Vehicles and equipment replacement reserve 207,735
Road improvements reserve 244,253
Pension and OPEB reserve 1,057,920
Compensated absences 304,586
Total committed 4,506,414
Assigned:

Capital projects 1,500,001
Transportation infrastructure 164,916
Total assigned 1,664,917
Unassigned:

General fund 1,372,715
Special revenue funds (450,512)
Total unassigned 922,203
Total fund balance 15,761,058 $
Fund Balance Detail

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
73 7. NET POSITION/FUND BALANCES, Continued
The following describe the purpose of each nonspendable, restricted, committed, assigned, and unassigned category used by the City:

Nonspendable
 Long‐term interfund advances – cash transfers to special revenue funds to provide financing for those activities. This also includes a loan from the general fund to the water fund for a capital purchase, reported on the statement face as an internal balance.  Loans/notes receivable – represents loans made to individuals and businesses.

Restricted
 Debt service reserve – funds restricted for future debt service payments related to capital acquisitions.
 Housing programs – consists of cash and notes receivable expressly restricted for the use in providing housing for low and moderate income residents.
 Economic development programs – consists of funds restricted for business stabilization programs.  Transportation infrastructure – restricted in special revenue funds to finance transportation projects funded by state and federal sources.
 ARPA – consists of funds restricted for use by the American Rescue Plan Act.

Committed
 Operating reserve – funds committed as operating reserves by the City Council.  Reserve for economic uncertainties – funds committed by the City Council for economic uncertainties.
 Vehicles and equipment replacement reserve – funds committed by the City Council for the replacement of vehicles and equipment.
 Road improvements reserve – funds committed by the City Council for road improvement projects.  Pension and OPEB reserve – funds committed by the City Council for pension and OEPB costs.  Compensated absences – funds committed as a reserve for future leave benefits.

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
74 7. NET POSITION/FUND BALANCES, Continued
Fund Deficits
Deficit fund balances consisted of the following:

Non‐Major Special Revenue Funds
Fund Deficit
Fund Name Number Amount Discussion/Explanation
Parkland 202 (175,140) $
Dedication Fund
Lakeport Housing 219 (59,470)
Lake Area Planning 232 (1,076)
Commission ATP
Lakeport Blvd Improvement 402 (214,698)
PLHA Navigation Center 210 (128)
Deficit resulted from costs exceeding grant sources to be funded in subsequent years.

Deficit resulted from a large payment to the Witt loan in fiscal year 2013.

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

Deficit resulting from costs exceeding development fee sources to be funded in subsequent years.

Deficit resulting from costs exceeding grant sources to be funded in subsequent years.

Deficit resulting in delayed release of PLHA funds by the state.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
75 8. INTERFUND TRANSACTIONS AND INTERFUND BORROWING
With City Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to reimburse a fund which has made expenditure on behalf of another fund. Transfers between funds during the fiscal year 2025 were as follows:

Transfers were made to offset police department costs, cover debt service costs, and to contribute to program costs.

Transferred In Transferred Out
Governmental Funds
Major funds:

Fund: 110 ‐ General Fund $ 497,618 $ 452,925 Total major funds 497,618 452,925 Non‐major funds:

Special revenue funds:

Fund:  207 ‐ Prop 172 Public Safety                         ‐                  44,694 Fund:  203‐ Gas Tax                         ‐                  51,430 Fund:  234 ‐ CDBG Grant 2021                         ‐                350,000 Fund:  410‐ ER Storm Damage Repair              17,241                             ‐ Fund:  414‐ Storm Drainage                         ‐                  17,241 Fund:  415 ‐ Lakeshort Blvd. HSIPL (Safety)              45,812                             ‐ Fund:  241 ‐ CDBG Grant Program Income           350,000                             ‐ Fund:  420 ‐ 2017 Storm Capital Projects                5,619                             ‐ Total non‐major funds           418,672                463,365 Total Transfers $       916,290 $           916,290
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
76 8. INTERFUND TRANSACTIONS AND INTERFUND BORROWING, Continued Fund Fund
Number Fund Name Amount Number Fund Name Amount
207 Prop 172 Public Safety 7,933 $                  110 General Fund 7,933 $ 211 K‐9 Fund 8,138                     110 General Fund 8,138 219 10th Street Bike and Pedestrian Improvement 39,252                   110 General Fund 39,252 232 Lake Area Planning Commission ATP 54,664                   110 General Fund 54,664 233 CDBG Grant 2018 DR 31,710                   110 General Fund 31,710 234 CDBG Grant 2021 21,962                   110 General Fund 21,962 236 CDBG Grant 2020 234,746                110 General Fund 234,746 239 CDBG Grant 2022 4,403                     110 General Fund 4,403 402 Lakeport Blvd. Improvement 156,771                110 General Fund 156,771 210 PLHA Navigation Center 159,261                110 General Fund 159,261 Total due to 718,840 $             Total due from 718,840 $ Fund Fund
Number Fund Name Amount Number Fund Name Amount
202 Parkland Dedication 175,140 $             110 General Fund 175,140 $ 209 Lakeport Housing 114,341                110 General Fund 114,341 Total advances to 289,481 $             Total advances from 289,481 $ $          Total interfund borrowing 1,008,321 1,008,321 $ Interfund Borrowing and Internal Balances
Borrowing Fund (Due To) Lending Fund (Due From)
Borrowing Fund (Advances To) Lending Fund (Advances From)

9. RISK MANAGEMENT
The City of Lakeport is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member entity obtains insurance coverage.

The City of Lakeport is a member of the California Intergovernmental Risk Authority (CIRA), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers' compensation, and property claims.

Under the General Liability program, the City of Lakeport has a $10,000 deductible, with CIRA responsible for losses above that amount up to $1 million. CIRA has additional coverage of $39 million in excess of its $1 million retention limit through affiliated risk management authorities. CIRA also provides $600 million aggregate property coverage to its members with such coverage provided by purchased insurance.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
77 9. RISK MANAGEMENT, Continued
Liabilities of the member entity are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example, from salvage or subrogation, are another component of the claims liability estimate.

CIRA covers workers' compensation claims for participating members up to its self‐insurance limit of $500,000. Safety National and Gray Insurance Company provide excess coverage to statutory limits.

Financial Statements of CIRA may be obtained from its administrative office located at 2330 E. Bidwell Street, Suite 150, Folsom, CA 95630; www.cira‐jpa.org or by calling (916) 927‐7727.

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

General Information about the Pension Plans
Plan Descriptions ‐ All qualified permanent and probationary employees are eligible to participate in the Local Government's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, cost‐sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
78 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
Benefits Provided ‐ CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

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

The Plans' provisions and benefits in effect at June 30, 2025, are summarized as follows:

Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 ‐ 55 52 ‐ 67
Monthly benefits, as a & of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8% 9%
Required employer contribution rates 14.13% 7.87%
Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 50 ‐ 57
Monthly benefits, as a & of eligible compensation 3% 2.0% to 2.7% Required employee contribution rates 9% 11.5%
Required employer contribution rates 24.33% 13.76%
Miscellaneous
Benefits Provided
Safety
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Local Government is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
79 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
For the year ended June 30, 2025, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Safety
Contributions ‐ employer 416,715 $ 214,634 $
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous 3,027,569 $
Safety 1,758,205
Total Net Pension Liability 4,785,774 $
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The Local Government's proportion of the net pension liability was based on a projection of the Local Government's long‐term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each Plan as of June 30, 2025 and 2024, was as follows:

Miscellaneous Safety
Proportion ‐ June 30, 2024 0.06109% 0.02451%
Proportion ‐ June 30, 2025 0.06260% 0.02412%
Change ‐ Increase /(Decrease) 0.00151% ‐0.00039%
For the year ended June 30, 2025, the City recognized a pension credit of $1,086,290.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
80 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows Inflow Outflows Inflow Outflows Inflow
of Resources of Resources of Resources of Resources of Resources of Resources Changes in assumptions 77,815 $          ‐ $                43,319 $          ‐ $                121,134 $        ‐ $ Differences between expected and actual
experiences           10,214 261,761             143,485           4,665               405,246           14,879 Differences between projected and actual
investment earnings 174,293           ‐                   84,984             ‐                   259,277           ‐ Differences between the employer's
contributions and proportionate share of the                   748,306 ‐           ‐                   509,415           ‐                   1,257,721 Change in employer's proportion           951,104 225,001           124,645           331,536           349,646           1,282,640 Pension contributions subsequent to
measurement date           ‐ 416,715                   214,634           ‐                   631,349           ‐ Total 1,155,585 $    1,709,624 $    611,067 $        845,616 $        1,766,652 $    2,555,240 $ Miscellaneous Plan Safety Plan Total
The $631,349 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
30‐Jun Miscellaneous Safety Total
2026 (1,053,167) $    (449,443) $        (1,502,610) $
2027 195,421            67,674              263,095
2028 (53,278)             (38,337)             (91,615) 2029 (59,728)             (29,078)             (88,806) 2030 ‐                     ‐                     ‐
Thereafter ‐                     ‐                     ‐ $        (449,184) (970,752) $        (1,419,936) $
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
81 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions:

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

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

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

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

The long ‐term expected rate of return on pension plan investments was determined using a building‐ block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
82 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short‐term (first 10 years) and the long‐term (11‐60 years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and long‐term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long‐term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

New Strategic Real Return
Allocation Years 1‐10 (1, 2)
Global equity ‐ cap‐weighted 30% 4.45%
Global equity non‐cap‐weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage‐backed Securities 5% 0.50%
Investment Grade Corprates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage ‐5% ‐0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021‐22 Asset Liability Management study.

Rates of Return
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
83 10. PUBLIC EMPLOYEE RETIREMENT PLAN, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate ‐The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I‐percentage point lower or I‐ percentage point higher than the current rate:

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

Current
1% Decrease Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Net Pension Liability as of
June 30, 2025
Miscellaneous 6,529,751 $ 3,027,569 $ 144,757 $ Safety 3,959,523 1,758,205 (42,163)
Total 10,489,274 $ 4,785,774 $ 102,594 $
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
84 11. POST RETIREMENT HEALTHCARE BENEFITS
Plan Description
The City’s single‐employer defined benefit retiree health plan provides certain health care benefits to qualified retired employees until they become eligible for Medicare benefits. Employees of the City may become eligible for these benefits when they reach normal retirement age while working for the City based upon years of service. The Plan has no assets accumulated in a trust that meets the requirements to be netted against pension liabilities (i.e., to which contributions are irrevocable, the assets are dedicated to paying benefits and the assets are protected from creditors of the City).

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

Other postemployment benefits paid by the City for the year totaled $258,154.

The plan provisions and benefits are summarized below:

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
85 11. POST RETIREMENT HEALTHCARE BENEFITS, Continued
Inactive employees receiving benefits 34
Inactive employees entitled to but not receiving benefits 0 Participating active employees 7
Total number of participants 41
OPEB Eligibility Summary
Contributions
The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2025, the City’s cash contributions were $258,154.

Net OPEB Liability

The City’s net OPEB liability was measured as of June 30, 2025 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2025, based on the following actuarial methods and assumptions:

Discount Rate 5.20%
Inflation 2.50%
Salary Increases 2.75%
Investment Rate of Return 5.20%
Mortality Rate (1) Derived using CalPERS' Membership Data for all funds.

Retirement Rates 2021 CalPERS 2.5%@55 Rates for Miscellaneous Employees Healthcare Trend Rate 4%
Actuarial Assumptions:

Notes:
(1) The mortality table was developed based on CalPERS‐specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
86 11. POST RETIREMENT HEALTHCARE BENEFITS, Continued

Discount Rate

The discount rate used to measure the total OPEB liability was 5.2 percent. The projection of cash flows used to determine the discount rate assumed that Authority contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long‐term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the OPEB Liability

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

Total OPEB
Liability
Fiduciary
Net
Position
Net OPEB
Liability
Balance at 6/30/2024 5,078,329 $ ‐ $ 5,078,329 $ Changes for the year
Service Cost 41,807 ‐ 41,807 Interest 195,327 ‐ 195,327 Experience (Gains)/Losses ‐ ‐ ‐ Changes in Assumptions (621,102) ‐ (621,102) Contributions ‐ employer ‐ 229,757 (229,757) Benefit payments (258,154) (229,757) (28,397) Net Changes (642,122) ‐ (642,122) Balance at 6/30/2025 4,436,207 $ ‐ $ 4,436,207 $ Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2025 is 5.2%. The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2025:

Discount Rate Valuation Discount Rate
Change in Discount Rate 1% Lower Discount Rate 1% Higher Net OPEB Liability 4,921,003 $ 4,436,207 $ 4,082,541 $ City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
87 11. POST RETIREMENT HEALTHCARE BENEFITS, Continued

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:

Trend Trend
Change in Healthcare Cost Trend Rate 1% Lower Current Trend 1% Higher Net OPEB Liability 3,967,060 $ 4,436,207 $ 4,935,787 $ Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected and
actual earnings on OPEB plan
investments
All other amounts
5 years
Expected average remaining service
lifetime (EARSL) (6.0 Years at June 30, 2025)
OPEB Expense

For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $383,968.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
88 12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Lakeport that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

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

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

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

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

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

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
89 12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2013. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City included in the fund financial statements as Former Redevelopment Agency Special Revenue Fund and Low/Moderate Income Housing Fund.

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

The following is a summary of changes in long‐term liabilities for the year ended June 30, 2024:

Balance Balance Due within
Fiduciary activities: July 1, 2024 Additions Retirements June 30, 2025 one year 2004 Series B RDA Tax Exempt Bonds 245,000 $ ‐ $ ( $ 165,000 80,000) $ 80,000 $ 2016 Tax Allocation Bonds 3,265,000 ‐ ( 3,095,000 170,000) 175,000 Total fiduciary activities 3,510,000 $ ‐ $ ( $ 3,260,000 250,000) $ 255,000 $ Redevelopment Successor Private Purpose Trust
Debt Service Activity
2004 Series B Bonds
2004 Series B bond, total issue $1,170,000. Annual principal is due on September 1 and interest payments are due semi‐annually, at an annual interest rate of 5.31%, September 1 and March 1 each year. Payments are secured by redevelopment tax increment revenue, maturing in year 2027.

Balance due $ 165,000
2016 Tax Allocation Bond
2016 Tax Allocation Bond, total issue $4,120,000. Annual principal is due on September 1 and interest payments are due semi‐annually, September 1 and March 1 each year. Payments are secured by redevelopment tax increment revenue, maturing in year 2034.

Balance due $ 3,095,000
City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
90 12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued Future debt service for Fiduciary Activities at June 30, 2024, is as follows:

June 30, Principal Interest Principal Interest Principal Interest 2026 80,000 $ 7,063 $ 175,000 $ 117,750 $ 255,000 $ 124,813 $ 2027 85,000 2,401 205,000 110,150 290,000 112,551 2028 ‐ ‐ 310,000 99,850 310,000 99,850 2029 ‐ ‐ 325,000 87,150 325,000 87,150 2030 ‐ ‐ 335,000 73,950 335,000 73,950 2031‐2035 ‐ ‐ 1,745,000 156,025 1,745,000 156,025 $ 9,464 165,000 $ 3,095,000 $ 644,875 $ 3,260,000 $ 654,339 $ Due within one year 80,000 $ 7,063 $ 175,000 $ 117,750 $ 255,000 $ 124,813 $ Due after one year 85,000 2,401 2,920,000 527,125 3,005,000 529,526 $ 9,464 165,000 $ 3,095,000 $ 644,875 $ 3,260,000 $ 654,339 $ Totals
2004 Series B RDA 2016 Tax
Tax Exempt Bond Allocation Bond

13. NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued Statement No. 100, "Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62." The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The implementation of this statement did not have an effect on the financial statements.

The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The implementation of this statement did not have an effect on the financial statements.

The GASB has issued Statement No. 102, “Certain Risk Disclosures.” The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The implementation of this statement did not have an effect on the financial statements.

City of Lakeport, California
Basic Financial Statements
For the year ended June 30, 2025
Notes to the Basic Financial Statements, Continued
91 13. NEW ACCOUNTING PRONOUNCEMENTS, Continued
The GASB has issued Statement No. 103, “Financial Reporting Model Improvements.” The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2026.

The GASB has issued Statement No. 104, “Disclosure of Certain Capital Assets.” The objective of this Statement is to improve the clarity and consistency of note disclosures related to capital assets by requiring governments to separately disclose certain types of capital assets, including lease assets, intangible right‐to‐use assets, subscription assets, and capital assets held for sale. These enhanced disclosures are intended to provide financial statement users with more decision‐useful information about the nature and composition of a government’s capital assets. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2026. 92 This page intentionally left blank.

REQUIRED SUPPLEMENTARY INFORMATION
93 City of Lakeport, California
Required Supplementary Information ‐ Schedule of Changes in the Net OPEB Liability and Related Ratios
for the Measurement Periods Ended June 30,
Last 10 Fiscal Years*
2025 2024 2023
Total OPEB Liability
Service Cost $        39,100 41,807 $        39,301 $
Interest on the total OPEB liability                 164,767 195,327                 162,604 Experience (Gains)/Losses                          597,969 ‐                 ‐ Changes of benefit terms                          ‐ ‐                          ‐ Changes of assumptions               (103,237) (621,102)               (57,752) Benefit payments               (229,757) (258,154)               (216,718) Net change in total OPEB liability (642,122) 468,842 (72,565) Total OPEB liability ‐ beginning             4,609,487 5,078,329             4,682,052 Total OPEB liability ‐ ending (a) $ 5,078,329 4,436,207 $ 4,609,487 $ Plan fiduciary net position
Contributions ‐ employer $      229,757 258,154 $      216,718 $ Contributions ‐ employee ‐                          ‐                          ‐ Actual investment income ‐                          ‐                          ‐ Administrative expense ‐                          ‐                          ‐ Benefit payments (258,154)               (229,757)               (216,718) Net change in plan fiduciary net position                          ‐ ‐                          ‐ Plan fiduciary net position ‐ beginning                          ‐ ‐                          ‐ Plan fiduciary net position ‐ ending (b) $              ‐ ‐ $              ‐ $ Net OPEB liability ‐ ending (a) ‐ (b) $ 5,078,329 4,436,207 $ 4,609,487 $ Covered payroll 4,031,562 $          3,973,663 $          3,633,164 $ Net OPEB liability as a percentage of covered
payroll 110.04% 127.80% 126.87%
Notes to Schedule
* AddiƟonal years will be presented as they become available. 94 2022 2021 2020 2019 2018
$        67,272 69,944 $        59,557 $         53,802 $         52,362 $ 149,529 146,506                 185,682                  173,339                  189,647 ‐ (1,329,702)                          378,406                  ‐                           ‐ ‐ ‐                          ‐                           ‐                           ‐ 36,502 (816,174)                   1,113,983               359,286                  ‐ (264,877) (272,508)               (235,007)                 (238,287)                 (324,908) (2,201,934) (11,574) 1,502,621 348,140 (82,899)
6,895,560 6,883,986             5,392,938               5,044,798               5,127,697 $ 6,883,986 4,682,052 $ 6,895,559 $   5,392,938 $   5,044,798 $ $      264,877 272,508 $      235,007 $       238,287 $       324,908 $ ‐ ‐                          ‐                           ‐                           ‐ ‐ ‐                          ‐                           ‐                           ‐ ‐ ‐                          ‐                           ‐                           ‐ (264,877) (272,508)               (235,007)                 (238,287)                 (324,908) ‐ ‐                          ‐                           ‐                           ‐ ‐ ‐                          ‐                           ‐                           ‐ $              ‐ ‐ $              ‐ $               ‐ $               ‐ $ $ 6,883,986 4,682,052 $ 6,895,559 $   5,392,938 $   5,044,798 $ $          3,111,833 3,036,393 $          2,632,480 $           2,570,660 $           2,444,280 $ 154.20% 221.22% 261.94% 209.79% 206.39%
95 City of Lakeport, California
Required Supplementary Information ‐ Net OPEB Liability Schedule of Contributions June 30, 2025
Last 10 Fiscal Years*
Fiscal Year Ended June 30, 2025 2024 2023
Actuarially Determined Contribution (ADC) 258,154 $            229,757 $            216,718 $ Contributions in relation to the ADC 258,154               229,757               216,718 Contribution deficiency ( excess) ‐ $                     ‐ $                     ‐ $ Covered payroll 4,031,562 $         3,973,663 $         3,633,164 $ Contributions as a percentage of covered payroll 6.40% 5.78% 5.96% Notes to Schedule
* AddiƟonal years will be presented as they become available. 96 2022 2021 2020 2019 2018
$            264,877 272,508 $            235,007 $            238,287 $            324,908 $ 264,877 272,508               235,007               238,287               324,908 $                     ‐ ‐ $                     ‐ $                     ‐ $                     ‐ $ $         3,036,393 3,257,242 $         3,111,833 $         2,632,480 $         2,570,660 $

8.37% 8.72% 7.55% 9.05% 12.64%
97 City of Lakeport, California
Required Supplementary Information ‐ Schedule of Contributions Miscellaneous Plan
Last 10 Fiscal Years* 2025 2024 2023 2022
Contractually required contribution (actuarially
determined) $ 298,083 416,715 $ 405,356 $ 634,230 $ Contributions in relation to the actuarially
determined contributions (298,083) (416,715) (405,356) (634,230) Contribution deficiency (excess) ‐ $ ‐ $ ‐ $ Covered payroll $ 2,883,219 3,079,321 $ 2,783,863 $ 2,425,775 $ Contribution as a percentage of covered payroll 13.53% 10.34% 14.56% 26.15% Notes to Schedule
1) Covered employee payroll represents
compensation earnable and pensionable
compensation. Only compensation earnable and
i bl i h ld ibl * Additional years will be presented as they become available.

Safety Plan
Last 10 Fiscal Years* 2025 2024 2023 2022
Contractually required contribution (actuarially
determined) $       187,349 214,634 $       207,215 $       330,350 $ Contributions in relation to the actuarially
determined contributions         (187,349) (214,634)         (207,215)         (330,350) Contribution deficiency (excess) ‐ $                    ‐ $                    ‐ $                    ‐ $ Covered payroll $       1,090,444 952,242 $    849,301 $       831,467 $ Contribution as a percentage of covered payroll 22.54% 17.18% 24.40% 39.73% Notes to Schedule
1) Covered employee payroll represents
compensation earnable and pensionable
compensation. Only compensation earnable and
i bl i h ld ibl * Additional years will be presented as they become available.
98 2021 2020 2019 2018 2017
$       549,955 556,587 $       114,309 $       299,811 $       279,716 $ (549,955) (556,587)         (114,309)         (299,811)         (279,716) $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $ $    1,807,816 2,511,453 $    1,854,631 $    1,854,631 $    1,727,792 $

22.16% 30.42% 6.16% 16.17% 16.19%
2021 2020 2019 2018 2017
$ 278,551 288,238 $ 193,615 $ 178,679 $ 175,590 $ (278,551) (288,238) (193,615) (178,679) (175,590) $ ‐ ‐ $ ‐ $ ‐ $ ‐ $ $ 824,664 873,415 $ 716,030 $ 716,030 $ 701,870 $

33.00% 33.78% 27.04% 24.95% 25.02%
99 City of Lakeport, California
Required Supplementary Information ‐ Schedule of City's Proportionate Share of Net Pension Liability
Miscellaneous Plan
Last 10 Fiscal Years* 2025 2024 2023
Plan's Proportion of the Net Pension Liability/(Asset) 0.06260% 0.06109% 0.06183% Plan's Proportionate Share of the Net Pension Liability/(Asset) $ 3,054,647 3,027,569 $ 2,893,126 $ Plan's Covered Payroll 3,079,321 $ 2,883,219 $ 2,783,863 $ Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 98.32% 105.95% 103.92% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 88.33% 87.74% 87.81% Plan's Proportionate Share of Aggregate Employer Contribution $ 908,961 875,086 $ 1,081,383 $ Notes to Schedule
Safety Plan
Last 10 Fiscal Years* 2025 2024 2023
Plan's Proportion of the Net Pension Liability/(Asset) 0.02412% 0.02451% 0.02449% Plan's Proportionate Share of the Net Pension Liability/(Asset) $ 1,832,051 1,758,205 $ 1,682,994 $ Plan's Covered Payroll 952,242 $ 1,090,444 $ 849,301 $ Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 184.64% 168.01% 198.16% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 89.09% 87.91% 88.65% Plan's Proportionate Share of Aggregate Employer Contribution $ 530,877 530,249 $ 877,096 $ Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensatio retirement benefits are included.
* Additional years will be presented as they become available. 1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensatio retirement benefits are included.
* Additional years will be presented as they become available. 100
2022 2021 2020 2019 2018 2017

0.16224% 0.12715% 0.12259% 0.11803% 0.11413% 0.11527%
$ 5,363,393 3,080,609 $ 4,909,060 $ 4,448,040 $ 4,498,927 $ 4,004,316 $ $ 2,511,453 2,425,775 $ 2,236,404 $ 2,174,275 $ 1,854,631 $ 1,727,792 $ 126.99% 213.56% 219.51% 204.58% 242.58% 231.76%

86.30% 75.24% 76.11% 77.33% 77.17% 78.69%
$ 728,301 763,563 $ 648,195 $ 578,074 $ 575,409 $ 550,660 $ 2022 2021 2020 2019 2018 2017

0.03455% 0.04183% 0.03910% 0.03711% 0.03613% 0.03744%
$ 2,787,027 1,212,626 $ 2,440,583 $ 2,177,340 $ 2,158,780 $ 1,938,947 $ $ 873,415 831,467 $ 875,428 $ 788,343 $ 716,030 $ 701,870 $ 145.84% 319.10% 278.79% 276.19% 301.49% 276.25%

91.36% 78.63% 80.36% 81.91% 80.21% 79.63%
$ 530,860 685,355 $ 437,945 $ 415,848 $ 301,957 $ 261,963 $ n earnable and pensionable compensation that would possibly go into the determination of n earnable and pensionable compensation that would possibly go into the determination of 101
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
102
Fund Description
Parkland Dedication Fund
Gas Tax Fund
Prop 172 Public Safety Fund
Lakeport Housing Fund A special revenue fund established for the provision of affordable housing.

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

Lake Area Planning Commition
Active Transportation Planning
(ATP) Grant
CDBG Grant 2017
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues received that have special restrictions placed on their use or are committed to expenditure for specified purposes either through statute or by Council policy. The City has a number of different special revenue funds which are part of the non‐operating budget. The City’s nonmajor special revenue funds include the following:

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

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

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

K‐9 Fund
Established to account for the revenues and expenditures associated with a CDBG funded economic development business loans and planning and technical assistance in the Forbes Creek Neighborhood.

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

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

CDBG Grant 2018 Established to account for the revenues and expenditures associated with a CDBG funded off site improvements projects related to low‐ income family housing development.

Established to account for funding sources and costs associated with the Police K‐9 program
10th Street Bike and Pedestrian
Improvement Fund
Fund set up to track activities funded by the Lake County Area Planning Committee for bike and pedestrian improvements on 10th Steet. 103
Fund Description
CDBG Grant 2022 Fund set up to track activities funded by a 2022 grant from CDBG.

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

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

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

Parkside Traffic Mitigation Fund
Storm Drainage Fund
City Wide Sign ‐ HSIP
CDBG Grant Program Income
PLHA Navigation Center Established to account for the revenues and expenditures associated with the Permanent Local Housing Allocation Program
NON‐MAJOR SPECIAL REVENUE FUNDS, Continued
Assessments are made against larger properties to pay for prior and future storm drain projects (see Chapter 3.16 Lakeport Municipal Code).

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

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

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

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

Fund set up to account for revenue received and expenditures made in conjunction with development along the Parallel Drive and Bevins Drive Special assessment of developer to mitigate traffic impacts of K‐Mart (now Bruno's) development in 1987.
104
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105
City of Lakeport, California
Combining Balance Sheet
Nonmajor Special Revenue and Capital Projects Funds, Continued June 30, 2025
10th Street Bike
Parkland Prop 172 Lakeport and Pedestrian
Dedication Gas Tax Public Safety Housing K‐9 Fund Improvement ASSETS
Cash and investments ‐ $ 484,082 $ ‐ $ 54,871 $ ‐ $ ‐ $ Receivables:

Intergovernmental ‐ ‐ 7,933 ‐ ‐ 77,923 Loans/Notes ‐ ‐ ‐ 297,724 ‐ ‐ Other ‐ ‐ ‐ ‐ 8,138 ‐ Total assets $ 484,082 ‐ $ 7,933 $ 352,595 $ 8,138 $ 77,923 $ LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable ‐ ‐ ‐ ‐ ‐ 38,671 Due to other funds ‐ ‐ 7,933 ‐ 8,138 39,252 Advances from other funds 175,140 ‐ ‐ 114,341 ‐ ‐ Total liabilities ‐ 175,140 7,933 114,341 8,138 77,923 Fund Balances:

Nonspendable:

Loans receivable ‐ ‐ ‐ 297,724 ‐ Restricted:

Community development ‐ ‐ ‐ ‐ ‐ ‐ Transportation infrastructure ‐ 484,082 ‐ ‐ ‐ ‐ Assigned:

Capital projects ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Transportation infrastructure ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Unassigned (deficit) (175,140)           ‐                          ‐                          (59,470)              ‐                          ‐ Total fund balances           484,082 (175,140)             ‐                          238,254             ‐                          ‐ Total liabilities and fund balances $                       484,082 ‐ $         7,933 $              352,595 $         8,138 $              77,923 $ 106
Lake Area
Planning CDBG Grant CDBG Grant CDBG Grant CDBG Grant Tenth Street Commission ATP 2018 DR 2021 2020 2022 Drainage
$                        ‐ ‐ $                       ‐ $                       ‐ $                       ‐ $                       87,087 $ 62,023 79,784               23,424               234,747             5,503                 ‐ ‐ ‐                          ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                          ‐                          ‐                          ‐ $             62,023 79,784 $            23,424 $            234,747 $         5,503 $              87,087 $ 30,313 26,196               1,462                 ‐                          1,100                 ‐ 31,710 54,664               21,962               234,746             4,403                 ‐ ‐ ‐                          ‐                          ‐                          ‐                          ‐ 62,023 80,860               23,424               234,746             5,503                 ‐ ‐ ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                          ‐                          ‐                          ‐ ‐ ‐                          ‐                          1                         ‐                          ‐ ‐ ‐                          ‐                          87,087 ‐ (1,076)                          ‐                          ‐                          ‐                          ‐ ‐ (1,076)                          ‐                          1                         ‐                          87,087 $             62,023 79,784 $            23,424 $            234,747 $         5,503 $              87,087 $ (continued)
107
City of Lakeport, California
Combining Balance Sheet
Nonmajor Special Revenue and Capital Projects Funds, Continued June 30, 2025
Parkside Parallel/Bevins
Lakeport Blvd South Main St Traffic Storm ER Storm
Improvement Improvement Mitigation Maintenance Damage Repair ASSETS
Cash and investments ‐ $                       32,031 $            17,635 $            20,387 $            ‐ $ Receivables:

Intergovernmental ‐ ‐ ‐ ‐ 10,687 Loans/Notes ‐ ‐ ‐ ‐ ‐ Other 308 ‐ ‐ ‐ ‐ Total assets $ 32,031 308 $ 17,635 $ 20,387 $ 10,687 $ LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 58,235 $ ‐ ‐ ‐ 10,686 Due to other funds 156,771 ‐ ‐ ‐ ‐ Advances from other funds ‐ ‐ ‐ ‐ ‐ Total liabilities ‐ 215,006 ‐ ‐ 10,686 Fund Balances:

Nonspendable:

Loans receivable ‐ ‐ ‐ ‐ ‐ Restricted:

Community development ‐ ‐ ‐ ‐ ‐ Transportation infrastructure ‐ ‐ ‐ ‐ ‐ Assigned:

Capital projects ‐                          ‐                          ‐                          ‐                          ‐ Transportation infrastructure ‐                          32,031               17,635               20,387               1 Unassigned (deficit) (214,698)           ‐                          ‐                          ‐                          ‐ Total fund balances           32,031 (214,698)               17,635               20,387               1 Total liabilities and fund balances $                 32,031 308 $            17,635 $            20,387 $            10,687 $ 108
City Wide Sign PLHA Non‐major
Storm Improvement Navigation 2017 Storm Governmental
Drainage ‐ HSIP Center Capital Projects Totals
$            ‐ 19,576 $                       550,271 $         ‐ $                       ‐ $                       1,265,940 $ ‐ ‐                          ‐                          159,133             ‐                          661,157 ‐ ‐                          831,483             ‐                          ‐                          1,129,207 ‐ ‐                          ‐                          ‐                          ‐                          8,446 $            ‐ 19,576 $                       1,381,754 $      159,133 $         ‐ $                       3,064,750 $ ‐ 11,801                          ‐                          ‐                          ‐                          178,464 ‐ ‐                          ‐                          159,261             ‐                          718,840 ‐ ‐                          ‐                          ‐                          ‐                          289,481 ‐ 11,801                          ‐                          159,261             ‐                          1,186,785 ‐ ‐                          831,483             ‐                          1,129,207 ‐ ‐                          550,271             ‐                          ‐                          550,271 ‐ ‐                          ‐                          ‐                          ‐                          484,082 ‐ ‐                          ‐                          ‐                          1 ‐ 7,775                          164,916
‐ ‐                          ‐                          (128)                   ‐                          (450,512) ‐ 7,775                          1,381,754         (128)                   ‐                          1,877,965 $            ‐ 19,576 $                       1,381,754 $      159,133 $         ‐ $                       3,064,750 $ (concluded)
CDBG Grant
Program
Income
109
City of Lakeport, California
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2025
10th Street Bike
Parkland Prop 172 Lakeport and Pedestrian
Dedication Gas Tax Public Safety Housing K‐9 Fund Improvement REVENUES:

Taxes:

Sales ‐ $ ‐ $ 44,694 $ ‐ $ ‐ $ ‐ $ Intergovernmental revenue ‐ 254,063 ‐ ‐ ‐ 43,846 Use of money and property ‐ ‐ ‐ 3,192 ‐ ‐ Charges for services ‐ ‐ ‐ ‐ 8,138 ‐ Other revenues ‐ ‐ ‐ ‐ ‐ Total revenues 254,063 ‐ 44,694 3,192 8,138 43,846 EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ 241,851 ‐ ‐ ‐ 43,846 Housing and support programs ‐ ‐ ‐ ‐ ‐ ‐ Economic development ‐ ‐ ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ 6,165 ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ ‐ Total expenditures 241,851 ‐ ‐ ‐ 6,165 43,846 REVENUES OVER (UNDER)
EXPENDITURES 12,212 ‐ 44,694 3,192 1,973 ‐ OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Transfers in ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Transfers out ‐                          (51,430)              (44,694)              ‐                          ‐                          ‐ Total other financing
sources and uses                          (51,430) ‐              (44,694)              ‐                          ‐                          ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                          (39,218) ‐              ‐                          3,192                 1,973                 ‐ FUND BALANCES (DEFICITS):

Beginning of year (175,140) 523,300 ‐ 235,062 (1,973) ‐ End of year (175,140) $ 484,082 $ ‐ $ 238,254 $ ‐ $ ‐ $ 110
Lake Area
Planning CDBG Grant CDBG Grant CDBG Grant CDBG Grant Tenth Street Commission ATP 2018 DR 2021 2020 2022 Drainage
$ ‐ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 47,734 159,101 386,688 439,355 12,603 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 47,734 159,101 386,688 439,355 12,603 ‐ ‐ 159,101 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12,603 ‐ 47,734 ‐ 36,688 17,464 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 421,890 ‐ ‐ 47,734 159,101 36,688 439,354 12,603 ‐ ‐ ‐ 350,000 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (350,000) ‐ ‐ ‐ ‐ ‐ (350,000) ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ (1,076) ‐ ‐ ‐ 87,087 $ ‐ (1,076) $ ‐ $ 1 $ ‐ $ 87,087 $ (continued)
111
City of Lakeport, California
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue and Capital Projects Funds, Continued For the year ended June 30, 2025
Parkside Parallel/Bevins
Lakeport Blvd South Main St Traffic Storm ER Storm
Improvement Improvement Mitigation Maintenance Damage Repair REVENUES:

Taxes:

Sales ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ Intergovernmental revenue ‐ ‐ ‐ ‐ 28,122 Use of money and property ‐ ‐ ‐ ‐ ‐ Charges for services ‐ ‐ ‐ ‐ ‐ Other revenues ‐ ‐ ‐ ‐ ‐ Total revenues ‐ ‐ ‐ ‐ 28,122 EXPENDITURES:

Current:

Roads and infrastructure:

Public works 59,516 ‐ ‐ ‐ 45,362 Housing and support programs ‐ ‐ ‐ ‐ ‐ Economic development ‐ ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ Total expenditures ‐ 59,516 ‐ ‐ 45,362 REVENUES OVER (UNDER)
EXPENDITURES ‐ (59,516) ‐ ‐ (17,240) OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐                          ‐                          ‐                          ‐                          ‐ Transfers in ‐                          ‐                          ‐                          ‐                          17,241 Transfers out ‐                          ‐                          ‐                          ‐                          ‐ Total other financing
sources and uses                          ‐ ‐                          ‐                          ‐                          17,241 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)              ‐ (59,516)                          ‐                          ‐                          1 FUND BALANCES (DEFICITS):

Beginning of year (155,182)           32,031               17,635               20,387               ‐ End of year (214,698) $        32,031 $            17,635 $            20,387 $            1 $ 112
City Wide Sign PLHA Non‐major
Storm Improvement CDBG Grant Navigation 2017 Storm Governmental Drainage ‐ HSIP Program Income Center Capital Projects Totals $                       ‐ ‐ $                       ‐ $                       ‐ $                       ‐ $                       44,694 $ 30,957 ‐               2,612                 100,389             17,456               1,522,926 ‐ ‐                          ‐                          ‐                          ‐                          3,192 ‐ 2,575                          ‐                          ‐                          10,713 ‐ ‐                          4,332                 ‐                          ‐                          4,332 30,957 2,575               6,944                 100,389             17,456               1,585,857 76,769 18,427               ‐                          ‐                          23,075               667,947 ‐ ‐                          ‐                          100,517             ‐                          113,120 ‐ ‐                          ‐                          ‐                          101,886 ‐ ‐                          ‐                          ‐                          ‐                          6,165 ‐ ‐                          ‐                          ‐                          421,890 76,769 18,427               ‐                          100,517             23,075               1,311,008 (45,812) (15,852)              6,944                 (128)                   (5,619)                274,849 ‐ ‐                          (105,925)           ‐                          ‐                          (105,925) 45,812 ‐               350,000             ‐                          5,619                 418,672 ‐ (17,241)                          ‐                          ‐                          (463,365) 45,812 (17,241)               244,075             ‐                          5,619                 (150,618) ‐ (33,093)                          251,019             (128)                   ‐                          124,231 ‐ 40,868                          1,130,735         ‐                          ‐                          1,753,734 $              ‐ 7,775 $                       1,381,754 $      (128) $                ‐ $                       1,877,965 $ (concluded)
113
NONMAJOR GOVERNMENTAL FUNDS BUDGET COMPARISONS
114
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances  ‐ Budget to Actual Gas Tax Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 316,104 $ 316,104 $ 254,063 $ (62,041) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 316,104 316,104 254,063 (62,041) EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 241,851 (241,851) Capital outlay 550,007 550,007 ‐ 550,007 Total expenditures 550,007 550,007 241,851 308,156 REVENUES OVER (UNDER)
EXPENDITURES (233,903) (233,903) 12,212 (370,197) OTHER FINANCING SOURCES (USES):

Transfers out                    (51,430) (51,430)
Total other financing
sources and uses                                ‐ ‐                                (51,430)                    (51,430) REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                  (233,903) (233,903)                  (39,218)                    (421,627) FUND BALANCES (DEFICITS):

Beginning of year 523,300 523,300 523,300 ‐ End of year 289,397 $ 289,397 $ 484,082 $ (421,627) $ Budgeted Amounts
115
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Prop 172 Public Safety Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Taxes:

Sales 45,000 $ 45,000 $ 44,694 $ ‐ $ Total revenues 45,000 45,000 44,694 ‐ EXPENDITURES:

Current:

Public safety ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES 45,000 45,000 44,694 ‐ OTHER FINANCING SOURCES (USES):

Transfers out (45,000)                    (45,000)                    (44,694)                    306 Total other financing
sources and uses                    (45,000) (45,000)                    (44,694)                    306 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                306 FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ 306 $ Budgeted Amounts
116
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Lakeport Housing Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Use of money and property ‐ $ ‐ $ 3,192 $ 3,192 $ Total revenues ‐ ‐ 3,192 3,192 EXPENDITURES:

Current:

Housing and support programs ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ 3,192 3,192 OTHER FINANCING SOURCES (USES):

Transfer in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                3,192                       3,192 FUND BALANCES (DEFICITS):

Beginning of year 235,062 235,062 235,062 ‐ End of year 235,062 $ 235,062 $ 238,254 $ 3,192 $ Budgeted Amounts
117
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual K‐9 Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Use of money and property
Charges for services 15,000 $ 15,000 $ 8,138 $ (6,862) Total revenues 15,000 15,000 8,138 (6,862) EXPENDITURES:

Current:

Public safety 15,000 15,000 6,165 8,835 Total expenditures 15,000 15,000 6,165 8,835 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ 1,973 (15,697) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                1,973                       (15,697) FUND BALANCES (DEFICITS):

Beginning of year (1,973) (1,973) (1,973) ‐ End of year (1,973) $ (1,973) $ ‐ $ (15,697) $ Budgeted Amounts
118
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual 10th Street Bike and Pedestrian Improvement
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 80,000 $ 80,000 $ 43,846 $ (36,154) $ Total revenues 80,000 80,000 43,846 (36,154) EXPENDITURES:

Current:

Capital outlay 80,000 80,000 ‐ ‐ Total expenditures 80,000 80,000 43,846 (43,846) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ 7,692 OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                7,692 FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ 7,692 $ Budgeted Amounts
119
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Lake Area Planning Commission ATF
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 200,000 $ 200,000 $ 159,101 $ (40,899) $ Total revenues 200,000 200,000 159,101 (40,899) EXPENDITURES:

Current:

Roads and infrastructure:

Public works 200,000 200,000 159,101 40,899 Total expenditures 200,000 200,000 159,101 40,899 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (81,798) OTHER FINANCING SOURCES (USES):

Transfers in ‐                                ‐                                ‐                                ‐ Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (81,798) FUND BALANCES (DEFICITS):

Beginning of year (1,076) (1,076) (1,076) ‐ End of year (1,076) $ (1,076) $ (1,076) $ (81,798) $ Budgeted Amounts
120
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2018 DR Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 100,000 $ 100,000 $ 47,734 $ (52,266) $ Total revenues 100,000 100,000 47,734 (52,266) EXPENDITURES:

Current:

Economic development 100,000 100,000 47,734 52,266 Total expenditures 100,000 100,000 47,734 52,266 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (104,532) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (104,532) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (104,532) $ Budgeted Amounts
121
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2021
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 500,000 $ 500,000 $ 386,688 $ (113,312) $ Use of money and property ‐ Total revenues 500,000 500,000 386,688 (113,312) EXPENDITURES:

Current:

Economic development 500,000 500,000 36,688 463,312 Total expenditures 500,000 500,000 36,688 463,312 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ 350,000 (576,624) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                (350,000)                  (350,000) Total other financing
sources and uses                                ‐ ‐                                (350,000)                  (350,000) REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (926,624) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (926,624) $ Budgeted Amounts
122
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2020
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 250,000 $ 250,000 $ 439,355 $ 189,355 $ Total revenues 250,000 250,000 439,355 189,355 EXPENDITURES:

Economic development 12,500 12,500 17,464 (4,964) Capital outlay 467,500 467,500 421,890 ‐ Total expenditures 480,000 480,000 439,354 (4,964) REVENUES OVER (UNDER)
EXPENDITURES (230,000) (230,000) 1 194,319 OTHER FINANCING SOURCES (USES):

Transfers in 230,000                   230,000                   ‐                                230,000 Transfers out ‐                                ‐                                ‐ Total other financing
sources and uses                   230,000 230,000                   ‐                                230,000 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                1                               424,319 FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ 1 $ 424,319 $ Budgeted Amounts
123
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant 2022
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 208,650 $ 208,650 $ 12,603 $ (196,047) $ Total revenues 208,650 208,650 12,603 (196,047) EXPENDITURES:

Current:

Housing and support programs 208,650 208,650 12,603 196,047 Total expenditures 208,650 208,650 12,603 196,047 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ ‐ (392,094) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                ‐                                (392,094) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (392,094) $ Budgeted Amounts
124
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Lakeport Blvd Improvement Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Charges for services ‐ $ ‐ $ ‐ $ ‐ $ Total revenues ‐ ‐ ‐ ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 59,516 (59,516) Capital outlay ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ 59,516 (59,516) REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (59,516) 59,516 OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                (59,516)                    59,516 FUND BALANCES (DEFICITS):

Beginning of year (155,182) (155,182) (155,182) ‐ End of year (155,182) $ (155,182) $ (214,698) $ 59,516 $ Budgeted Amounts
125
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual ER Storm Damage Repair Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 208,650 $ 208,650 $ 28,122 $ (180,528) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 208,650 208,650 28,122 (180,528) EXPENDITURES:

Current:

Roads and infrastructure:

Public works 140,000 140,000 45,362 94,638 Capital Outlay ‐ ‐ ‐ ‐ Total expenditures 140,000 140,000 45,362 94,638 REVENUES OVER (UNDER)
EXPENDITURES 68,650 68,650 (17,240) (275,166) OTHER FINANCING SOURCES (USES):

Transfers in                     17,241 17,241
Total other financing
sources and uses                                ‐ ‐                                17,241                     17,241 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                     68,650 68,650                     1                               (257,925) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ End of year 68,650 $ 68,650 $ 1 $ (257,925) $ Budgeted Amounts
126
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual Storm Drainage Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Charges for services $ 1,000 1,000 $ 2,575 $ (1,575) $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 1,000 1,000 2,575 (1,575) EXPENDITURES:

Current:

Roads and infrastructure: ‐ ‐ ‐ ‐ Public works 10,000 10,000 ‐ 10,000 Capital outlay 10,000 10,000 ‐ 10,000 Total expenditures 20,000 20,000 ‐ 20,000 REVENUES OVER (UNDER)
EXPENDITURES (19,000) (19,000) 2,575 (21,575) OTHER FINANCING SOURCES (USES):

Transfers out                   (17,241) (17,241)
Total other financing
sources and uses                               ‐ ‐                               (17,241)                   (17,241) REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                   (19,000) (19,000)                   (14,666)                   (38,816) FUND BALANCES (DEFICITS):

Beginning of year 40,868 40,868 40,868 ‐ End of year 21,868 $ 21,868 $ 26,202 $ (38,816) $ Budgeted Amounts
127
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual City Wide Sign Improvement ‐ HSIP
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue $ 260,000 260,000 $ 30,957 $ ‐ $ Use of money and property ‐ ‐ ‐ ‐ Total revenues 260,000 260,000 30,957 ‐ EXPENDITURES:

Current:

Roads and infrastructure:

Public works ‐ ‐ 76,769 (76,769) Capital outlay 260,000 260,000 ‐ 260,000 Total expenditures 260,000 260,000 76,769 183,231 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (45,812) (183,231) OTHER FINANCING SOURCES (USES):

Transfer in ‐                               ‐                               45,812                    45,812 Transfers out ‐                               ‐                               ‐                               ‐ Total other financing
sources and uses                               ‐ ‐                               45,812                    45,812 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                               ‐ ‐                               ‐                               (137,419) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ ‐ $ (137,419) $ Budgeted Amounts
128
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual CDBG Grant Program Income Fund
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Taxes:

Sales ‐ $ ‐ $ ‐ $ ‐ $ Intergovernmental revenue ‐ ‐ 2,612 ‐ Other revenues ‐ ‐ 4,332 4,332 Total revenues ‐ ‐ 6,944 ‐ EXPENDITURES:

Housing and support programs ‐ ‐ ‐ ‐ Economic development ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ 6,944 ‐ OTHER FINANCING SOURCES (USES):

Loss on note receivable ‐                                ‐                                (105,925)                  ‐ Transfer in ‐                                ‐                                350,000                   ‐ Transfers out (230,000)                  (230,000)                  ‐                                230,000 Total other financing
sources and uses                  (230,000) (230,000)                  244,075                   230,000 REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                  (230,000) (230,000)                  251,019                   230,000 FUND BALANCES (DEFICITS):

Beginning of year 1,130,735 1,130,735 1,130,735 ‐ End of year 900,735 $ 900,735 $ 1,381,754 $ 230,000 $ Budgeted Amounts
129
City of Lakeport, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget to Actual PLHA Navigation Center
For the year ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive (Negative)
REVENUES:

Intergovernmental revenue 319,000 $ 319,000 $ 100,389 $ (218,611) $ Othe revenues ‐ ‐ ‐ ‐ Total revenues 319,000 319,000 100,389 (218,611) EXPENDITURES:

Current:

Roads and infrastructure:

Engineering and information technology ‐ ‐ ‐ ‐ Housing and support programs 319,000 319,000 100,517 218,483 Total expenditures 319,000 319,000 100,517 218,483 REVENUES OVER (UNDER)
EXPENDITURES ‐ ‐ (128) (437,094) OTHER FINANCING SOURCES (USES):

Transfers out ‐                                ‐                                ‐ Total other financing
sources and uses                                ‐ ‐                                ‐                                ‐ REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES)                                ‐ ‐                                (128)                         (437,094) FUND BALANCES (DEFICITS):

Beginning of year ‐ ‐ ‐ ‐ End of year ‐ $ ‐ $ (128) $ (437,094) $ Budgeted Amounts
130
Schedules Content
Financial Trends
Revenue Capacity
Debt Capacity
Operating Information
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. Information was available beginning with the year ended June 30, 2016, for the financial trend schedules.

STATISTICAL SECTION
This part of the City of Lakeport's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health.

Demographic and Economic
Information
These schedules contain trend information to help the reader understand how the City's financial performance and well‐being have changed over time.

These schedules contain information to help the reader assess the City's ability to generate revenues. Property taxes, sales and use taxes, charges for services, licenses, permits and fees, and intergovernmental revenue are the City's most significant revenue sources.

These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
131
City of Lakeport, California
Net Position by Component
Fiscal year ended June 30 (last ten fiscal years)
(Accrual basis of accounting)
(In thousands)
2016 2017 2018
Governmental activities
Net investment in capital assets 9,627 $             12,025 $           12,297 $ Restricted 1,537                1,034                845 Unrestricted (801)                  (1               (1 ,238)               ,877) Total governmental activities net position $           11,821 10,363 $           11,265 $ Business‐type activities
Net investment in capital assets 8,844 $             10,503 $           9,186 $ Restricted 580                    500                    785 Unrestricted (2,483)               (1               (64) ,615) Total business‐type activities net position $             9,388 6,941 $             9,907 $ Primary government
Net investment in capital assets 18,471 $           22,528 $           21,483 $ Restricted 2,117                1,534                1,630 Unrestricted (3,284)               (2               (1 ,853)               ,941) Total primary government net position $           21,209 17,304 $           21,172 $ Source: City Finance Department
$‐
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2016 2017 2018 2019
Governmental activities Business‐type activities
132
2019 2020 2021 2022 2023 2024 2025
$           12,382 13,385 $           14,644 $           15,478 $           18,802 $           20,874 $           20,861 $ 1,180 1,041                4,069                2,956                3,115                4,109                1,937 749 (1,147)                    1,951                4,669                460                    (                  3,160 481) $           14,311 13,279 $           20,664 $           23,103 $           22,377 $           24,502 $           25,957 $ $             8,648 7,150 $             8,109 $             1,546 $             1,341 $             1,341 $             7,458 $ 813 785                    688                    688                    688                    688                    70 1,856 2,109                2,197                9,115                6,484                6,484                636 $           11,317 10,044 $           10,994 $           11,349 $           8,513 $             8,513 $             8,164 $ $           21,030 20,535 $           22,753 $           17,024 $           20,144 $           20,144 $           28,319 $ 1,993 1,826                4,757                3,644                3,803                3,803                2,007 5,605 962                4,148                13,784              6,944                6,944                3,796 $           28,628 23,323 $           31,658 $           34,452 $           30,891 $           30,891 $           34,122 $ 2020 2021 2022 2023 2024 2025
133
City of Lakeport, California
Changes in Net Position
Fiscal year ended June 30 (last ten fiscal years)
(Accrual basis of accounting)
(In thousands)
2016 2017 2018
Expenses:

Governmental activities:

General government 962 $ 969 $ 873 $ Community development 451 410 314 Roads and infrastructure 893 906 1,375 Sanitation ‐ ‐ ‐ Housing and support programs 108 21 501 Redevelopment/economic development 237 137 113 Public safety 1,959 1,986 1,917 Parks and recreation 437 433 404 Interest on long term debt 78 42 93 Total governmental activities expenses 5,089 4,940 5,590 Business‐type activities:

Water utility 2,523 1,247 1,793 Sewer utility 3,342 2,737 2,240 Total business‐type activities expenses 5,865 3,984 4,033 Total primary government expenses 8,924 10,954 9,623 Program revenues:

Governmental activities:

Charges for services:

General government ‐ ‐ ‐ Community development 30 ‐ 49 Roads and infrastructure ‐ 87 76 Sanitation ‐ ‐ ‐ Public safety 46 2 1 Parks and recreation 5 ‐ ‐ Operating grants and contributions 463 321 285 Capital grants and contributions 1,994 599 784 Total governmental activities program revenues 2,538 1,009 1,195 Business‐type activities:

Charges for services:

Water utility 2,062 2,190 2,379 Sewer utility 2,812 2,696 3,009 Operating grants and contributions ‐ ‐ ‐ Capital and grants and contributions ‐ 1,097 ‐ Total business‐type activities program revenues 4,874 5,983 5,388 Total primary government program revenues 6,992 7,412 6,583 Net (Expense)/Revenue:

Governmental activities (3,931) (2,551) (4,395) Business‐type activities (991) 1,999 1,355 Total primary government net expense (1,932) (3,542) (3,040) 134
2019 2020 2021 2022 2023 2024 2025
$ 2,507 1,217 $ 2,064 $ 1,425 $ 2,565 $ 1,843 $ 1,087 $ 510 319 469 487 1,053 627 646 1,337 1,222 749 3,257 2,444 2,174 2,470 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,533 2,751 14 186 142 190 117 165 97 356 318 279 234 174 2,180 2,043 2,253 2,559 4,283 2,383 2,405 332 704 347 375 739 645 567 120 143 117 216 174 170 166 8,684 8,496 6,369 8,824 11,679 8,266 7,632 2,432 2,261 2,372 2,299 4,185 3,068 3,556 3,348 3,142 3,794 3,261 5,230 3,646 3,597 5,780 5,403 6,166 5,560 9,415 6,714 7,153 14,464 13,899 12,535 14,384 21,094 14,980 14,785 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 52 50 53 58 60 59 ‐ 54 28 91 48 38 112 281 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7 2 12 6 12 9 9 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,293 3,452 1,115 1,458 870 1,090 1,869 685 531 610 1,506 3,640 2,390 77 4,091 4,063 1,881 3,076 4,620 3,660 2,235 2,690 2,302 2,494 2,457 2,869 2,787 3,119 3,885 2,823 2,988 3,129 3,167 3,238 3,355 ‐ ‐ ‐ ‐ ‐ ‐ 46 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,575 5,125 5,482 5,587 6,036 6,025 6,521 10,666 9,188 7,363 8,662 10,656 9,685 8,756 (4,591) (4,433) (4,487) (5,748) (7,059) (5,397) (4,605) 794 (278) (684) 27 (3,379) (689) (632) (3,797) (4,711) (5,171) (5,722) (10,438) (5,294) (6,029) (continued)
135
City of Lakeport, California
Changes in Net Position, Continued
Fiscal year ended June 30 (last ten fiscal years)
(Accrual basis of accounting)
(In thousands)
2016 2017 2018
General Revenues and Other Changes
in Net Position:

Governmental activities:

Sales tax 2,091 2,520 3,384 Property taxes 873 918 932 Transient occupancy taxes 200 228 62 Other taxes 412 400 653 Franchise fees ‐ ‐ ‐ Fines, forfeitures, and penalties ‐ 19 23 Use of money and property 148 146 54 Other revenues 397 146 1,807 Sale of land held for resale ‐ ‐ ‐ Transfers in (out) (33) 193 ‐ Extraordinary gain ‐ ‐ ‐ Special items (1,974) 820 ‐ Total governmental activities 2,114 5,390 6,915 Business‐type activities:

Property taxes 310 415 317 Use of money and property 37 50 49 Other revenues ‐ ‐ ‐ Transfers in (out) 33 (15) ‐ Total business‐type activities 380 450 366 Total primary government 5,840 2,494 7,281 Changes in Net Position:

Governmental activities                  1,458 (437)                2,519 Business‐type activities                  2,448 (611)                1,721 Total primary government $            3,906 (1,048) $             4,240 $ Source: City Finance Department
Note: The City implemented Governmental Accounting
Standards Board Statement No. 68 and No. 71 (GASB 54 and GASB 71) for fiscal year ended June 30, 2015. The
implementation resulted in a prior period adjustment of $6,305,808 for Governmental activities and $690,158 for Business type activities
136
2019 2020 2021 2022 2023 2024 2025
3,567 3,751                4,225                4,235                3,983                3,987                4,421 1,106 870                1,155                1,111                1,188                1,263                1,307 162 198                    215                    239                    211                    215                    223 586 520                    562                    551                    535                    393                    608 ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ 27                         ‐                         ‐                         ‐                         ‐                         ‐ 162 147                    107                    64                      163                    272                    282 41 935                      75                      1,988                254                    600                    11 ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 5,624 6,448                6,339                8,187                6,334                6,730                6,852 342 290                    310                    319                    344                    320                    325 137 125                    50                      9                        83                      163                    164 ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ ‐ ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 479 415                    360                    329                    427                    483                    489 6,103 6,863                6,699                8,516                6,761                7,213                7,342 1,033 2,015                1,853                2,439                (725)                  2,125                1,455 1,273 137                (323)                  355                    (2,950)               (206)                  (142) $             2,306 2,152 $             1,529 $             2,794 $             (3,675) $            1,919 $             1,312 $ (concluded)
137
2016 2017 2018
General Fund
Nonspendable 329 $                294 $                289 $ Restricted 21                      21                      10 Committed 421                   421                   ‐ Assigned 2,062                2,172                3,310 Unassigned ‐                         337                   341 Total general fund $             3,245 2,833 $             3,951 $ All Other Governmental Funds
Nonspendable 3,012 $             2,992 $             2,623 $ Restricted 1,516                1,013                834 Committed ‐                         ‐                         ‐ Assigned 777                   351                   2,038 Unassigned (271)                  (281)                  (273) Total all other governmental funds                4,075 5,034                5,223 Total all governmental funds $             7,320 7,867 $             9,175 $ Source: City Finance Department
City of Lakeport, California
Fund Balances of Governmental Funds
Fiscal year ended June 30 (last ten fiscal years)
(Modified accrual basis of accounting)
(In thousands)
$‐
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2016 2017 2018 2019
General Fund All Other Governmental Funds
138
2019 2020 2021 2022 2023 2024 2025
$                289 289 $                289 $                289 $                289 $                289 $                289 $ 10 10                      57                      24                      24                      24                      23 ‐ ‐                         2,706                3,957                4,654                4,270                4,506 3,310 3,310                2,000                2,000                1,500                2,000                1,500 2,055 843                914                   253                   265                   208                   1,373 $             5,665 4,453 $             5,967 $             6,524 $             6,733 $             6,792 $             7,691 $ $             2,662 2,480 $             ‐ $                     5,455 $             5,407 $             5,334 $             6,441 $ 1,170 1,030                4,012                2,932                3,090                2,890                1,914 ‐ ‐                         805                   739                   ‐                         ‐                         ‐ 1,399 3,479                1,234                807                   1,396                ‐                         0 (224) (259)                  (175)                  (241)                  (401)                  (333)                  (451) 5,007 6,730                5,876                9,692                9,492                7,891                7,905 $             10,671 9,175 $          11,842 $          16,216 $          16,224 $          14,682 $          15,596 $ 2020 2021 2022 2023 2024 2025
139
City of Lakeport, California
Changes in Fund Balances of Governmental Funds
Fiscal year ended June 30 (last ten fiscal years)
(Modified accrual basis of accounting)
(In thousands)
Revenues 2016 2017 2018
Taxes $                 3,739 3,244 $                 4,463 $ Licenses, permits, and franchises                        327 315                        567 Fines and forfeitures                          19 18                          23 Intergovernmental revenue                        921 463                        1,069 Use of money and property                        146 148                        54 Charges for services                          88 80                          126 Other revenues                     146 2,391                        1,807 Total revenues                     5,386 6,659                     8,109 Expenditures
Current
General government                        671 796                        901 Community development                        410 401                        314 Roads and infrastructure                        1,066 737                     1,641 Sanitation                             ‐ ‐                             ‐ Housing and support programs                          21 96                          156 Redevelopment/economic development                        137 211                        113 Public safety                     1,920 1,784                     1,844 Parks, buildings, and ground 365                        355                        323 Capital outlay 531                        2,388                     354 Debt service
Cost of issuance ‐                             ‐                             ‐ Principal retirement 92                          175                        171 Interest 42                          78                          93 Total expenditures                     7,221 5,055                     5,910 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity
Revenues over (under) expenditures 1,604                     (1,835)                   2,199 Other financing sources (uses):

Proceeds from sale of capital assets ‐ 3 ‐ Proceeds from issuance of debt 1,974 1,095 ‐ Payments to CalPERS (1,974) ‐ ‐ Payments to refunded Bond escrow agent ‐ ‐ ‐ Loss on note receivable ‐ ‐ ‐ Housing loans ‐ ‐ (345) Extraordinary gain (loss) ‐ ‐ ‐ Transfers in 65 760 2,765 Transfers out (98) (567) (2,765) Total other financing sources (uses) 1,291 (33) (345) Net change in fund balances $ (544) 1,571 $ 1,854 $ Debt service as a percentage of noncapital expenditures 3.3% 6.0% 5.1% Source: City Finance Department
$(1,000)
$(500)
$‐
$500
$1,000
$1,500
$2,000
$2,500
2016 2017 2018
Net change in fund balances $1,571 $(544) $1,854 $
140
2019 2020 2021 2022 2023 2024 2025
$ 4,912 4,900 $ 5,596 $ 5,585 $ 5,382 $ 5,465 $ 6,038 $ 509 439 562 551 535 393 521 7 27 12 6 12 9 9 3,979 3,983 1,725 2,964 4,510 3,480 1,945 162 147 107 64 163 272 282 107 79 145 106 97 172 281 41 935 75 174 202 600 11 9,716 10,510 8,221 9,449 10,903 10,903 9,087 1,160 903 1,379 1,121 1,186 1,287 1,424 510 319 469 487 681 669 705 1,256 1,678 615 3,118 1,436 2,092 1,559 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,533 2,751 14 56 125 190 117 165 97 356 318 279 234 174 2,071 1,946 2,138 2,438 2,302 2,504 2,630 250 621 263 293 529 570 371 3,030 1,027 1,555 1,432 3,889 2,737 1,665 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 135 148 146 45 280 288 289 119 143 116 215 171 167 164 10,229 9,633 7,050 9,524 10,878 10,738 9,097 (513) 876 1,171 (75) 25 (347) (10) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,134 ‐ 4,716 ‐ ‐ ‐ ‐ ‐ ‐ (3,453) ‐ ‐ ‐ ‐ ‐ ‐ (1,184) ‐ ‐ ‐ ‐ ‐ ‐ (130) (17) ‐ (106) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 561 129 1,032 102 74 554 916 (561) (129) (1,032) (102) (74) (554) (916) ‐ 1,134 ‐ (51) (17) ‐ (106) $ (513) 2,010 $ 1,171 $ (126) $ 8 $ (347) $ (116) $

3.3% 2.7% 4.8% 3.3% 4.8% 5.0% 6.0%
2019 2020 2021 2022 2023 2024 2025
$2,010 $(513) $1,171 $(126) $8 $(347) $(116)
141
Assessed Value and Actual Value of Taxable Property
(In thousands)
Taxable Taxable Taxable Total
Year Secured Unsecured Assessed Secured Unsecured Assessed Secured Unsecured Assessed Direct Tax Ended Property Property Value Property Property Value Property Property Value Rate 2016 449,070 $ 21,098 $ 470,168 $ 190,570 $ 12,008 $ 202,578 $ 437,842 $ 21,020 $ 458,862 $ 1.000 2017 448,318 21,389 469,707 192,454 12,276 204,730 437,231 21,317 458,548 1.000 2018 469,113 23,294 492,407 200,752 12,578 213,330 457,774 23,222 480,996 1.000 2019 486,304 23,876 510,180 208,062 13,157 221,219 474,826 23,807 498,633 1.000 2020 510,692 24,274 534,966 220,476 13,728 234,204 498,296 24,207 522,503 1.000 2021 542,946 27,711 570,657 233,891 14,021 247,912 529,862 27,648 557,510 1.000 2022 565,488 27,818 593,306 243,184 15,038 258,222 551,716 27,764 579,480 1.000 2023 594,216 29,730 623,946 254,601 15,526 270,127 579,755 29,649 604,404 1.000 2024 630,154 32,948 663,102 271,993 16,490 288,423 614,929 32,877 647,806 1.000 2025 656,610 29,184 685,795 287,034 11,880 298,914 640,987 28,882 669,870 1.000 Source: Lake County Auditor‐Controller
Note: As of February 1, 2011, the Lakeport Redevelopment Agency was dissolved by the State of California. Property taxes formerly allocated to the Agency are now done so to satisfy existing debt obligations administered by its successor, the City of Lakeport.

City of Lakeport, California
Fiscal year ended June 30 (last ten fiscal years)
City Redevelopment Agency Lakeport Municipal Sewer
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
$‐
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
City Redevelopment Agency Lakeport Municipal Sewer
142
(Rate per $1,000 of assessed value)
Lakeport Unified Mendocino
Basic Total High School Community Total
Year Ended Rate Direct Bond College Tax Rate
2016 1.00000 1.00000 0.11494 0.02500 1.13994
2017 1.00000 1.00000 0.10699 0.02200 1.12899
2018 1.00000 1.00000 0.10867 0.02100 1.12967
2019 1.00000 1.00000 0.09191 0.02100 1.11291
2020 1.00000 1.00000 0.10364 0.02200 1.12564
2021 1.00000 1.00000 0.08591 0.02300 1.10891
2022 1.00000 1.00000 0.11498 0.02100 1.13598
2023 1.00000 1.00000 0.09844 0.02300 1.12144
2024 1.00000 1.00000 0.09753 0.02000 1.11753
2025 1.00000 1.00000 0.09097 0.02100 1.11197
Source: Lake County Auditor‐Controller
Note: Jurisdictions within Lake County have the authority to tax properties within their jurisdictions. Properties lying within multiple jurisdictions therefore can be assessed by multiple jurisdictions. The overlapping debt statement presents the debt for all jurisdictions with territory overlapping the City. Debt of overlapping jurisdictions is allocated based upon the assessed value of that jurisdiction within City as compared to total assessed value for that jurisdiction. In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies whose boundaries include the subject property.

In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of Kelseyville Unified School Bonds, Lucerne Elementary School Bond, Lake Sanitation Bonds, County Service Area #6, Callayomi Water, Clearlake Oaks Water, Konocti Unified School Bond, Middletown Unified School Bond, Upper Lake High School Bond, Lakeport Unified High School Bonds, Yuba Community College Bonds, and Mendocino Community College.

City of Lakeport, California
Direct and Overlapping Tax Rates
Fiscal year ended June 30 (last ten fiscal years)
Direct Rates Overlapping Rates
143
Taxes Levied Collections
Year for the Percentage in Subsequent Percentage
Ended Fiscal Year Amount of Levy Years Amount of Levy
2016 512 $ 512 $ 100% 512 ‐ $ 100% 2017 526 526 100% 526 ‐ 100% 2018 545 545 100% 545 ‐ 100% 2019 566 566 100% 532 ‐ 100% 2020 595 595 100% 595 ‐ 100% 2021 634 634 100% ‐ 634 100% 2022 660 660 100% ‐ 660 100% 2023 662 662 100% ‐ 662 100% 2024 663 663 100% ‐ 663 100% 2025 685 685 100% ‐ 685 100% Source: Lake County Auditor‐Controller
Total Collections to Date
Note: Amounts reported and collected under the Teeter Plan, in which all taxes are distributed to the City in the year of the levy with the County retaining any interest or penalties on uncollected balances.

City of Lakeport, California
Property Tax Collections and Levies
Fiscal year ended June 30 (last ten fiscal years)
(In thousands)
Collected within the Fiscal Year of
the Levy
$‐
$100
$200
$300
$400
$500
$600
$700
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Collected within the Fiscal Year of the Levy Total Collections to Date 144
(In thousands)
Assessed Percent Assessed Percent
Property Owner Valuation Rank of Total Valuation Rank of Total Safeway, Inc. 20,645 $ 1 28.05% 17,178 $ 1 39.75% Arton, Inc. 7,024 2 9.54% 5,844 4 13.52% Lany Lakeport Limited Partnership 8,833 3 12.00% 6,008 3 13.90% California Aviv, LLC 7,557 4 10.27% 6,571 2 15.20% Jeanrenaud Henri & Jeanrenaud Barbara O 6,710 5 9.12% 0.00% Bruno's Property Management, LLC 6,607 6 8.98% 5,497 5 12.72% Pontus Vault Portfolia LLC 4,572 7 6.21% 0.00% Lakeport Investment LLC 8 6.05% 0.00% 4,450
Lake County Tribal Health Consortium Inc 3,490 9 4.74% 0.00% Dias Samydra Priya Trustee 3,702 10 5.03% 2,120 9 4.91% Total $ 100.00% 43,218 73,590 $ 100.00%
Source: Lake County Auditor‐Controller's Office
Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency (RDA). Information prior to the years above was not maintained by the City.

City of Lakeport, California
Principal Property Tax Payers
Last fiscal year and ten years ago
2024‐25 2015‐16
145
Top 25 Principal Sales Tax Remitters (listed alphabetically) 2025 2024 2023 2022 2021
Amazon Amazon Amazon Amazon Amazon
Bruno's Shop Smart Autozone Baywa R.E. Solar Systems Autozone Autozone Burger King Restaurants Big Daddy Garden Supply Big Daddy Garden Supply Big Daddy Garden Supply Big Daddy Garden Supply Cache Creek Vinyards and Wine Bruno's Shop Smart Bruno's Shop Smart Bruno's Shop Smart Bruno's Foods Chevron Service Stations Burger King Restaurants Burger King Restaurants Burger King Restaurants Burger King Restaurants CVS Pharmacy Chevron Service Stations Chevron Service Stations Chevron Service Stations Chevron Service Stations Dollar General Stores CVS Pharmacy CVS Pharmacy CVS Pharmacy CVS Pharmacy Dollar Tree Stores Department of Motor Vehicles Allocation Department of Motor Vehicles Allocation Daniels Jewlers Department of Motor Vehicles Allocatio Grocery Outlet Dollar General Stores Dollar General Stores Department of Motor Vehicles Allocatio Dollar General Stores Guy Strohmeier's Auto Center Dollar Tree Stores Dollar Tree Stores Dollar General Stores Dollar Tree Stores Lakeport Express Guy Strohmeier's Auto Center Guy Strohmeier's Auto Center Dollar Tree Stores Guy Strohmeier's Auto Center Marshall's Stores Grocery Outlet Grocery Outlet Guy Strohmeier's Auto Center Grocery Outlet Matt Mazzei Chevrolet Lakeport Express Kentucky Fried Chicken Grocery Outlet Kentucky Fried Chicken McDonald's Restaurants Matt Mazzei Chevrolet Lakeport Express Kentucky Fried Chicken Lake Parts O'Reilly Auto Parts McDonald's Restaurants Matt Mazzei Chevrolet Lakeport Express Lakeport Express Pace Supply O'Reilly Auto Parts McDonald's Restaurants Matt Mazzei Chevrolet Matt Mazzei Chevrolet Pacific Gas & Electric Co. Park Place O'Reilly Auto Parts McDonald's Restaurants McDonald's Restaurants Park Place Plaza Paint Plaza Paint O'Reilly Auto Parts O'Reilly Auto Parts Plaza Paint Pacific Gas & Electric Co. Pacific Gas & Electric Co. Plaza Paint Plaza Paint Renee's Café Round Table Pizza Round Table Pizza Round Table Pizza Round Table Pizza Safeway Stores Safeway Stores Safeway Stores Safeway Stores Safeway Stores Shell Service Stations Shell Service Stations Shell Service Stations Shell Service Stations Shell Service Stations Taco Bell Taco Bell Taco Bell Taco Bell Taco Bell
Tractor Supply Company Verizon Wireless Verizon Wireless Verizon Wireless Verizon Wireless Verizon Wireless West Lake Auto Center West Lake Auto Center West Lake Auto Center West Lake Auto Center City of Lakeport, California
Last fiscal year and previous five years
Note: The lists above include both public and private entities and, therefore, the dollar values have been omitted because the information is not public information. Rankings are determined by the sales dollar volume.

Source: City Finance Department
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147
General Special Total
Fiscal Year Ended Obligation Capital Revenue Assessment Outstanding June 30, Bonds Leases Bonds Bonds Debt
2016 1,882,000 $ ‐ $ 8,675,587 $ 3,435,000 $ 13,992,587 $ 2017 2,802,000 ‐ 9,395,000 2,854,000 15,051,000 2018 2,631,000 ‐ 12,638,000 2,800,000 18,069,000 2019 3,652,000 ‐ 15,747,000 2,648,000 22,047,000 2020 3,515,916 ‐ 15,200,500 2,489,000 21,205,416 2021 3,337,348 ‐ 14,655,191 2,328,000 20,320,539 2022 9,962,249 ‐ 19,594,628 2,160,000 31,716,877 2023 9,522,800 ‐ 19,599,953 1,986,000 31,108,753 2024 9,073,186 ‐ 18,169,771 1,811,000 29,053,957 2025 8,620,931 ‐ 17,486,476 1,630,000 27,737,407 City of Lakeport, California
Ratios of Outstanding Debt by Type
Last ten fiscal years
Governmental Activities: Business‐type Activiites:
148
Percentage of
Personal Debt
Income Population Per Capita

0.57% 4,765 4,011 $

0.59% 4,786 4,150

0.68% 4,699 4,836

0.80% 4,784 5,434

0.74% 4,677 5,474

0.67% 4,774 4,257

0.98% 4,999 6,345

1.00% 5,008 6,212

1.00% 4,982 5,832

1.00% 5,026              5,519
149
General Less: Amounts Percentage of Estimated
Fiscal Year Ended Obligation Available in Debt Actual Taxable Value June 30, Bonds(1) Service Fund(2) Total of Property (3) Per Capita(4) 2016 1,882,000 $   ‐ $                                 1,882,000 $   0.4% 395 $ 2017 2,802,000 ‐                                    2,802,000      0.6% 585 2018 2,631,000 ‐                                    2,631,000      0.5% 560 2019 3,652,000 ‐                                    3,652,000      0.7% 763 2020 3,515,916 ‐                                    3,515,916      0.7% 735 2021 3,337,348 ‐                                    3,337,348      0.6% 735 2022 9,962,249 ‐                                    9,962,249      1.7% 1,993 2023 9,522,800 ‐                                    9,522,800      1.5% 1,902 2024 9,073,186 ‐                                    9,073,186      1.4% 1,821 2025 8,620,931 ‐                                    8,620,931      1.3% 1,715 (1) This is the general bonded debt of the general fund, net of original issuance discounts and premiums (2) This is the amount restricted for debt service principal payment (3) See the Schedule of Assessed Value and the Estimated Actual Value of Taxable Property (4) Population data can be found in the Schedule of Demographic and Economic Statistics City of Lakeport, California
Ratios of General Bonded Debt Outstanding
Last ten fiscal years
150
2025 Assessed Valuation (in thousands) $   685,794,756
% Applicable Debt 6/30/24
Overlapping Tax and Assessment Debt:

Lakeport City CouncilMarch 3, 2026

Lakeport City Council
March 3, 2026