Agenda packet — Live Oak City Council, January 18, 2023

LIVE OAK CITY COUNCIL AGENDA – JANUARY 18, 2023

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The Council may take up any agenda item at any time, regardless of the order listed. Action may be taken on any item on this agenda. Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection at City Hall, 9955 Live Oak Boulevard, Live Oak, during normal business hours.

Such documents are also available on the City of Live Oak’s website at www.liveoakcity.org, subject to staff’s availability to post the documents before the meeting.

In compliance with the Americans with Disabilities Act, the meeting room is wheelchair accessible and disabled parking is available. If you have a disability and need disability-related modifications or accommodations to participate in this meeting, please contact the City Clerk’s office at (530) 695-2112 x107. Requests must be made at least 24 hours in advance.
• Remote Viewing:
o Members of the public can view a livestream of the meeting online at https://liveoakca.granicus.com/ViewPublisher.php?view_id=1. o Members of the public can access the Zoom webinar as follows:
▪ Join by Electronic Device:
https://us02web.zoom.us/j/81957358120
▪ Join by Phone:
1-669-900-6833 or 1-833-548-0282 (Toll Free)
Webinar ID: 819 5735 8120
• Public Comment: Members of the public can submit general public comments, as well as comment on specific agenda items in the following ways:
o Public Attendance: Members of the public who attend in person may make comments from the Council Chamber podium.

LIVE OAK

CITY COUNCIL

REGULAR MEETING AGENDA
JANUARY 18, 2023
6:00 PM

MEETING LOCATION

LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953

MEMBERS OF THE COUNCIL

BOB WOTEN, MAYOR

JERAMY CHAPDELAINE, VICE MAYOR

LAKHVIR GHAG, COUNCILMEMBER

ASHLEY HERNANDEZ, COUNCILMEMBER

NANCY SANTANA, COUNCILMEMBER

AARON PALMER,

CITY MANAGER

NICOLE ROSSER,

CITY ATTORNEY
1 LIVE OAK CITY COUNCIL AGENDA – JANUARY 18, 2023

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o Live Remote Public Comment: Members of the public can submit a live remote public comment by:
▪ Joining the virtual Council meeting via the link below. When public comment is opened, raise your virtual hand and be called upon to speak for up to 3 minutes. https://us02web.zoom.us/j/81957358120
▪ Joining the virtual Council meeting by calling the phone number below. When public comment is opened, dial *9 to raise your hand and be called upon to speak for up to 3 minutes. 1-669-900-6833 or 1-833-548-0282 (Toll Free)
Webinar ID: 819 5735 8120
o Email Public Comment: Comments from the public on agenda items will be accepted until 1:00 pm on the date of the meeting, via email to the City Clerk at [email protected]. Comments will be distributed to Council prior to the meeting and attached to the minutes. Please note that emailed comments will NOT be read aloud by staff during the meeting. o eComment Feature: Comments from the public on agenda items will be accepted until 1:00 pm on the date of the meeting, via the eComment feature at
https://liveoakca.granicus.com/ViewPublisher.php?view_id=1. Comments will be distributed to Council prior to the meeting and attached to the minutes. Please note that eComments will NOT be read aloud by staff during the meeting.
2 LIVE OAK CITY COUNCIL AGENDA – JANUARY 18, 2023

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CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE AND INVOCATION

CORRECTIONS AND/OR CHANGES TO THE AGENDA BY CITY MANAGER ONLY

PUBLIC COMMENT
Any person wishing to address the City Council on general jurisdictional matters or consent calendar items may do so at this time. If you are commenting on an agenda item, your comments will be heard at the time that item is scheduled for discussion. The City Council adopted a time limit of three minutes per person. The Brown Act does not allow for Council discussion of items not on the agenda.

Councilmembers may only a) refer the matter to staff; b) ask for additional information; c) request a report back; or d) provide a limited factual response for items not listed on the agenda.

CONSENT ITEMS
Consent Calendar is passed by one motion with exceptions and separate votes as noted.

1. City Council Meeting Minutes
Recommendation: Approve the December 21, 2022, City Council Regular Meeting minutes. (Clarissa Menchaca, City Clerk)

2. Findings to Hold Virtual City Council, Commission, Committee, Board and Other City Bodies Meetings Under AB 361
Recommendation: Adopt resolution.
(Nicole Rosser, City Attorney)

3. Adoption of an Ordinance Amending Section 15.50.020(E) of the Live Oak Municipal Code to Establish New Development Impact Fees for Accessory Dwelling Units Recommendation: 1) Waive the second reading of the ordinance; and 2) Adopt ordinance. (Kevin Valente, Planning Director)

4. Parks and Recreation 2022 Annual Report
Recommendation: Accept for information.
(Luis Cibrian, Parks and Recreation Director)

5. Appointments to the Feather River Air Quality Management District Recommendation: Approve the appointments of City of Yuba City Councilman Michael Pasquale as Director, City of Yuba City Councilman Wade Kirchner as Alternate Member, and City of Wheatland Councilwoman Angela Teter as Alternate Member to the Feather River Air Quality Management District as required by Health and Safety Code Section 40152(b). (Aaron Palmer, City Manager)

BUSINESS ITEMS

6. Annual Audited Financial Statements – Year Ended June 30, 2022 Recommendation: Accept and file annual financial statements. (James Ramsey, Finance Director)
3 LIVE OAK CITY COUNCIL AGENDA – JANUARY 18, 2023

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7. Mid-Year Budget Adjustments for Fiscal Year (FY) 2022-23 Recommendation: Approve mid-year budget adjustments for FY 2022-23. (James Ramsey, Finance Director)

ITEMS REMOVED FROM THE CONSENT AGENDA FOR COUNCIL CONSIDERATION AND ACTION

UPDATES AND ANNOUNCEMENTS FROM THE CITY ATTORNEY AND CITY MANAGER

COUNCILMEMBER COMMENTS

CLOSED SESSION

8. Conference with Labor Negotiators Pursuant to California Government Code Section 54957.6:

Agency Designated Representatives: Aaron Palmer, City Manager Employee Organization: Public Employees Union Local #1 (AFSME)

ADJOURNMENT
4 City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: City Council Meeting Minutes
Contact Information: Clarissa Menchaca, City Clerk
Recommendation: Approve the December 21, 2022 City Council Regular Meeting minutes.

Attachments:

Minutes
5 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 21, 2022

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CALL TO ORDER
Meeting called to order by Vice Mayor Woten at Live Oak City Council Chambers, 9955 Live Oak Boulevard, Live Oak, CA at 6:03 pm.

ROLL CALL

Present: Councilmembers Hernandez, Ghag, Vice Mayor Chapdelaine, and Mayor Woten Appeared via teleconference: Councilmember Santana

PLEDGE OF ALLEGIANCE AND INVOCATION
Councilmember Ghag led the Pledge of Allegiance. Councilmember Hernandez delivered the invocation.

CORRECTIONS AND/OR CHANGES TO THE AGENDA BY CITY MANAGER ONLY There were no corrections and/or changes to the agenda.

PRESENTATIONS AND RECOGNITIONS
A. Holiday Lights Decorating Contest Winners
The Council recognized the following winners of the Holiday Lights Decorating Contest:
3rd place: 2754 Pennington Road
2nd place: 2650 Gillespie Circle
1st place: 2558 Brianne Way
Mayor’s Award: 9146 Ida Street

PUBLIC COMMENT
Public Comment was opened and closed without any speakers.

LIVE OAK

CITY COUNCIL

MINUTES
DECEMBER 21, 2022
6:00 PM

MEETING LOCATION

LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953

MEMBERS OF THE COUNCIL

BOB WOTEN, MAYOR

JERAMY CHAPDELAINE, VICE MAYOR

LAKHVIR GHAG, COUNCILMEMBER

ASHLEY HERNANDEZ, COUNCILMEMBER

NANCY SANTANA, COUNCILMEMBER

AARON PALMER,

CITY MANAGER

NICOLE ROSSER,

CITY ATTORNEY
6 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 21, 2022

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CONSENT ITEMS
Consent Calendar is passed by one motion with exceptions and separate votes as noted.

MOTION: APPROVE THE CONSENT AGENDA.
(MOTION: GHAG; SECOND: CHAPDELAINE)
VOTE: MOTION PASSED UNANIMOUSLY

1. City Council Meeting Minutes
Clarissa Menchaca, City Clerk
Council action: December 7, 2022, City Council Regular Meeting minutes approved.

2. Findings to Hold Virtual City Council, Commission, Committee, Board and Other City Bodies Meetings Under AB 361
Nicole Rosser, City Attorney
Council action: Resolution No. 39-2022 adopted.

3. Resolution Authorizing the County of Yuba to Submit to the California Department of Resources Recycling and Recovery (CalRecycle) a Collaborative Application for the Waste Tire Enforcement Grant, Fiscal Year 2023-24 on Behalf of the City of Live Oak Aaron Palmer, City Manager
Council action: Resolution No. 40-2022 adopted.

4. Filing and Acceptance of State Required Annual Report for Fiscal Year 2022-23 for Community Facilities District No. 92-1 of the City of Live Oak
James Ramsey, Finance Director
Council action: Accepted and filed.

5. Filing and Acceptance of State Required Annual Report for Fiscal Year 2022-23 for Community Facilities District No. 2004-1 of the City of Live Oak
James Ramsey, Finance Director
Council action: Accepted and filed.

6. Filing and Acceptance of AB 1600 (Development Impact Fee) Annual Report James Ramsey, Finance Director
Council action: 1) The annual report on development impact fees accepted; and 2) Findings that funds held longer than five years noted in this staff report are needed for future projects in the City of Live Oak AB 1600 Fee Update Final Report adopted.
7 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 21, 2022

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PUBLIC HEARING ITEMS

7. City Council Consideration to Establish Development Impact Fees (DIF) and Planning Fees for Accessory Dwelling Units (ADU)
Kevin Valente, Planning Director
Kevin Valente, Planning Director, provided a report for the Council.

Public Hearing was opened at 6:16 pm.

Public Comment was opened and closed without any speakers.

Public Hearing was closed at 6:16 pm.

MOTION: 1) INTRODUCE AND WAIVE THE FIRST READING OF THE ORDINANCE OF THE CITY OF LIVE OAK AMENDING SECTION 15.50.020(E) OF THE LIVE OAK MUNICIPAL CODE TO ESTABLISH NEW DIF’S FOR ADUS; AND 2) ADOPT RESOLUTION AMENDING THE CITY’S MASTER FEE SCHEDULE TO ESTABLISH THE FEE AMOUNTS FOR ADUS.
(MOTION: GHAG; SECOND: HERNANDEZ)
VOTE: MOTION PASSED UNANIMOUSLY
Reference Resolution No. 40-2022.

8. City Council Consideration to Amend the City’s Master Fee Schedule to Establish an Entitlement Fee for Proposed Lot Merger Applications
Kevin Valente, Planning Director
Kevin Valente, Planning Director, provided a report for the Council.

Public Hearing was opened at 6:23 pm.

Public Comment was opened and closed without any speakers.

Public Hearing was closed at 6:23 pm.

MOTION: ADOPT RESOLUTION AMENDING THE CITY’S MASTER FEE SCHEDULE TO ESTABLISH AN ENTITLEMENT FEE FOR PROPOSED LOT MERGER APPLICATIONS.
(MOTION: CHAPDELAINE; SECOND: HERNANDEZ)
VOTE: MOTION PASSED UNANIMOUSLY
Reference Resolution No. 41-2022.

ITEMS REMOVED FROM THE CONSENT AGENDA FOR COUNCIL CONSIDERATION AND ACTION There were no items removed from the Consent Agenda for Council consideration and action.

UPDATES AND ANNOUNCEMENTS FROM THE CITY ATTORNEY AND CITY MANAGER Nicole Rosser, City Attorney, discussed a memo she prepared for Council related to a senate bill which includes decorum issues and gives a process for how a disruptive member from the audience would be removed. Some of the changes in the senate bill are items she will be including in the code of conduct. 8 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 21, 2022

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Aaron Palmer, City Manager, highlighted the Small Town Holiday Stroll. Mr. Palmer announced Santa on a Fire Engine is scheduled for December 22, 2022, and City Hall will be closed Friday, December 23, 2022 through January 2, 2023 for the holidays.

COUNCILMEMBER COMMENTS
Councilmember Hernandez highlighted her attendance at the Small Town Holiday Stroll.

Councilmember Santana thanked the Parks and Recreation Department for the work the department staff does for the community and congratulated the new council members.

Councilmember Ghag highlighted his attendance at the Small Town Holiday Stroll and congratulated the city employees and city manager for a great event.

Vice Mayor Chapdelaine highlighted his attendance at the Small Town Holiday Stroll.

Mayor Woten highlighted his attendance at the Small Town Holiday Stroll.

CLOSED SESSION

9. Conference with Labor Negotiators Pursuant to California Government Code Section 54957.6:

Agency Designated Representatives: Aaron Palmer, City Manager Employee Organization: Public Employees Union Local #1 (AFSME) *Clerk’s Note: The Council adjourned to Closed Session at 6:31 pm and reopened the meeting at 7:33 pm.

CLOSED SESSION REPORT
There was no reportable action.

ADJOURNMENT
Mayor Woten adjourned the meeting at 7:33 pm.

Bob Woten, Mayor
ATTEST:

Clarissa Menchaca, City Clerk
9 City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Findings to Hold Virtual City Council, Commission, Committee, Board and Other City Bodies Meetings Under AB 361
Contact Information: Nicole Rosser, City Attorney
Background: On March 17, 2020, Governor Gavin Newson issued Executive Order N-29- 20 suspending certain provisions of the Ralph M. Brown Act in order to allow for local legislative bodies to conduct their meetings completely telephonically or by other electronic means. As the City Council is well aware, this allowed City Council meetings to be conducted by Zoom with councilmembers and staff all joining from remote locations.

The suspension of certain provisions of the Brown Act was further extended by the Governor on June 11, 2021 by the issuance of Executive Order N-08- 21 which continued to allow for complete virtual City Council (and other legislative body) meetings until September 30, 2021.

On September 16, 2021, Governor Newsom signed AB 361 to amend the Brown Act to allow legislative bodies to meet via teleconference during a proclaimed state of emergency in accordance with procedures established by AB 361 rather than under the Brown Act's more narrow standard rules. AB 361 allows legislative bodies to meet virtually, provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees.

AB 361 preserves many of the provisions of the earlier executive orders, while also adding new requirements to the management of remote and teleconference public meetings in order to better achieve the levels of transparency that the Brown Act demands. Specifically, AB 361 imposes two new rules on remote public meetings:

1. Local governments and agencies hosting teleconference meetings in lieu of traditional in-person public meetings must permit direct public comment during the teleconference, and must leave open the opportunity for public comment until the comment period for a given item is closed during the 10 ordinary course of the meeting. The opportunity to make public comment must be of a sufficient duration so as to allow actual public participation.

2. Any action by the governing body during a public teleconference meeting must occur while the agency is actively and successfully broadcasting to members of the public through a call-in option or an internet-based service option. If a technical disruption within the agency's control prevents members of the public from either viewing the meeting of the public agency, or prevents members of the public from offering public comment, the agency must cease all action on the meeting agency until the disruption ends and the broadcast is restored. Action taken during an agency-caused disruption may be challenged as a violation of the Brown Act.

The City has been implementing the above stated requirements for conducting public meetings and is in full compliance with AB 361, thus there will be no change of the currently established procedures. Teleconference accessibility via call-in option or an internet-based service option (via the Zoom Webinars platform) is listed on the published agenda for each meeting as well as on the City's website and the City provides access for public comment opportunities in real time.

In order to continue to qualify for AB 361's waiver of in-person meeting requirements, the Council must adopt a resolution making the findings required by AB 361. This resolution will become a standing item on the City Council's agenda, it must be approved at every meeting until the proclaimed state of emergency is ended. The findings must include (a) state or local officials continue to recommend measures to promote social distancing, or that (b) an in-person meeting would constitute an imminent risk to the safety of attendees. The findings need not be in the form of a resolution, but a resolution is helpful in formalizing these findings.

The enclosed resolution makes the required findings under AB 361, and if adopted, it will allow the City to continue to offer teleconference accessibility for public meetings, to help mitigate the spread of COVID-19, as well as during other state-proclaimed emergencies where physical attendance may present a risk.

Lastly, it is important to note that having virtual meetings under the provisions of AB 361 is optional. If the Council wishes, it may meet in person or in a hybrid format.

Fiscal Impacts: None.

Recommendation: Adopt resolution.

Attachments:

Resolution
11 Resolution No.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVE OAK MAKING FINDINGS AND DETERMINATIONS UNDER AB 361 FOR THE CONTINUATION OF VIRTUAL MEETINGS AND

AUTHORIZING VIRTUAL CITY COUNCIL, COMMISSION, BOARD, AND OTHER CITY MEETINGS PURSUANT TO AB 361
The City Council of the City of Live Oak does hereby find, order and resolve as follows:

WHEREAS, all meetings of the Live Oak City Council are open and public, as required by the Ralph M. Brown Act (Cal. Gov’t Code section 54950 et seq.), so that any member of the public may attend, participate and view the legislative bodies conduct their business; and WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions and requirements; and
WHEREAS, Government Code section 54953(e) requirements include but are not limited to (1) the existence of a state of emergency declared by the Governor pursuant to Government Code section 8625 and (2) State or local officials have imposed or recommended measures to promote social distancing; and
WHEREAS, on March 4, 2020, Governor Gavin Newson issued a Proclamation of State of Emergency in response to the COVID-19 pandemic and as of the date of this Resolution, the proclaimed state of emergency remains in effect; and
WHEREAS, on March 17, 2020, Governor Gavin Newson issued Executive Order N-29-20, which suspended and modified the teleconferencing requirements under the Brown Act (California Government Code Section 54950 et seq.) to allow local legislative bodies to hold public meetings via teleconference; and
WHEREAS, on June 11, 2021, Governor Gavin Newson issued Executive Order N-08021, which extended the provisions of N-29-20 concerning the conduct of public meetings through September 30, 2021, and the Governor subsequently signed legislation revising Brown Act requirements for teleconferenced public meetings (Assembly Bill 361, referred to hereinafter as “AB 361”); and WHEREAS, to preserve public health and safety, the State Public Health Officer has issued various orders and guidance regarding COVID-19 prevention measures, which includes references and a statement of support for social distancing recommendations; and WHEREAS, the California Department of Industrial Relations has issued COVID-19 Prevention regulations in Title 8 of the California Code of Regulations (Section 3205 et seq.); and WHEREAS, based on the foregoing, the City Council finds that (1) the Governor’s Proclaimed State of Emergency as a result of the COVID-19 pandemic is currently in effect and has not been terminated, and (2) State officials have imposed or recommended measures to promote social distancing; and WHEREAS, the City Council has considered the circumstances of the state of emergency, including all information relate to this matter, the associated staff report; and 12 WHEREAS, in light of the foregoing, the City Council desires to continue to have the flexibility to meet via tele/video conference and the City Council finds that it and its legislative bodies shall be permitted to conduct their meetings by teleconferencing without compliance with Government Code section 54953(b)(3) pursuant to section 54953(e), and such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed by section 54953(e)(2).

NOW, THEREFORE BE IS RESOLVED, FOUND AND ORDERED by the Live Oak City Council as follows:

1. The facts set forth in the above recitals are true and correct and incorporated into this resolution by reference.

2. As a result of the continuing COVID-19 state of emergency declared by Governor Newsom, State officials continue to impose or recommend measures to promote social distancing based on the State Public Health Officer’s guidance and recommendations supporting social distancing and the Department of Industrial Relations’ issuance of COVID-19 Prevention regulations through Title 8 of the California Code of Regulations, section 3205 et seq. promoting social distancing in the workplace.

3. Under the present circumstances, the City Council by and through its City Manager, is hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this resolution including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

4. This Resolution shall take effect immediately upon adoption and shall be effective until the earlier of (i) Thirty (30) days from adoption of this Resolution or (ii) such time as the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which its legislative bodies may continue to teleconference without compliance with Section 54953(b)(3).

5. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

PASSED AND ADOPTED by the City Council of the City of Live Oak this 18th day of January, 2023, by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:
_______________________________
Bob Woten, Mayor
ATTEST:
_______________________________
Clarissa Menchaca, City Clerk
13 City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Adoption of an Ordinance Amending Section 15.50.020(E) of the Live Oak Municipal Code (LOMC) to Establish New Development Impact Fees (DIF) for Accessory Dwelling Units (ADU)
Contact Information: Kevin Valente, AICP, Contract Planner Location: Citywide.

Background: On December 7, 2022, the Live Oak City Council voted to adopt the ADU Ordinance, which became effective on January 6, 2023.

On December 21, 2022, the Live Oak City Council voted to waive the first reading of the attached Ordinance amending Section 15.50.020(E) of the LOMC to establish DIFs for ADU projects.

Analysis: Section 17.15.050 of the LOMC now permits ADUs within the City. Based on the impact fee exemptions and limitations of Government Code Section 65852.2, Subdivision (f)(3), the following shall be used to determine the required impact fees for ADUs.
* ADUs that are 750 square feet or larger and located in a single-family zoning district shall pay impact fees based on the square feet of the proposed ADU divided by the square feet of the primary dwelling multiplied by the City's current single-family fees.
* ADUs that are 750 square feet or larger and located in a multi-family zoning district shall pay impact fees based on the square feet of the proposed ADU divided by the average square feet of all existing multi-family dwelling units on the same parcel multiplied by the City's current multi-family fees.

It should be noted that proposed ADUs that are less than 750 square feet are exempt from paying City impact fees.

Fiscal Impacts: The City will begin collecting impact fees for the development of accessory dwelling units.

Recommendation: 1) Waive the second reading of the ordinance; and 2) Adopt ordinance.

Attachments:
14 Ordinance
15 Ordinance No.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LIVE OAK AMENDING SECTION

15.50.020(E) OF THE LIVE OAK MUNICIPAL CODE RELATING TO DEVELOPMENT IMPACT

FEES FOR ACCESSORY DWELLING UNITS
The City Council of the City of Live Oak, State of California, does ordain as follows:

SECTION 1. Purpose and Authority: The purpose of this ordinance is to amend Section 15.50.020(E) of the Live Oak Municipal Code pertaining to the City’s development impact fees to establish development impact fees for projects including accessory dwelling units. This ordinance is adopted pursuant to Government Code sections 65850, 65852.2, 65852.22, and other applicable law.

SECTION 2. Findings.

The City Council finds and determines as follows:

A. In order to effectively implement the Live Oak General Plan, manage new development, and address impacts caused by such development, certain facilities must be constructed or acquired.

B. In order for the City of Live Oak to construct or acquire the needed facilities, it is necessary to require that all new development bear its fair share cost of providing the facilities reasonably needed to serve that development. However, new development shall not be unfairly burdened with the cost of facilities associated with serving the existing population.

C. The City of Live Oak has an existing development impact fee program that imposes certain fees on new development, but the City finds that the program needs to be expanded to include additional fees for projects including accessory dwelling units. These new development impact fees (fees) are hereby created for that purpose.

D. The fees collected pursuant to this ordinance shall be used toward the construction and acquisition of facilities identified in the City of Live Oak’s Capital Improvement Plan. The need for the facilities is related to new development within the City of Live Oak because such new development will bring additional people and other uses into the City of Live Oak thus creating an increased demand for the facilities.

E. Failure to mitigate growth impacts on public safety facilities within the City of Live Oak will place residents in a condition perilous to their health, safety and welfare.

F. There is a reasonable relationship between the use of the fees and the type of development projects on which the fees are imposed because the fees will be used to construct the facilities and the facilities are necessary for the health and welfare of the development projects on which the fees will be levied.
16 G. There is a reasonable relationship between the need for the facilities and the type of development project on which the fees are imposed because it will be necessary for the development projects to have access to the facilities in order to use, inhabit, and have access to the development projects. New development will benefit from the facilities and the burden of such new development will be mitigated in part by the payment of the fees.

H. The Live Oak City Council finds it necessary to pass and implement the proposed Accessory Dwelling Unit Development Impact Fee Ordinance, and that it will promote and protect the public health, safety, comfort, morals, convenience and general welfare of the residents within the City of Live Oak.

SECTION 3. Amendments.

Section 15.50.020(E) of the Live Oak Municipal Code is amended to read as follows:

E. The development impact fees will be charged as follows:

Land Use
Transporta
tion
Public Safety General Government Parks, Recreation & Community Center
Fire Police General Crop Yard Parks Recreation
Communit
y Center
Total
Residential per Unit
Single-Family1 $3,092 $1,733 $626 $1,143 $653 $3,351 $231 $881 $11,710 Duplex1
(per unit)
$2,945 $1,238 $448 $816 $467 $2,394 $165 $630 $9,103
Multifamily2
(per unit)
$2,361 $1,114 $402 $735 $420 $2,155 $149 $567 $7,903
Nonresidential per 1,000 Square Feet
Office $3,740 $296 $107 $195 $112 $143 $10 $0 $4,603
Commercial $8,019 $366 $132 $241 $137 $177 $12 $0 $9,084 Industrial $2,368 $366 $132 $241 $137 $177 $12 $0 $3,433 Warehouse $1,685 $154 $55 $102 $58 $75 $5 $0 $2,134
1 Accessory dwelling units that are 750 square feet or larger and located in a single-family zoning district shall pay impact fees based on the square feet of the proposed accessory dwelling unit divided by the square feet of the primary dwelling multiplied by the city’s current single-family fees. 2 Accessory dwelling units that are 750 square feet or larger and located in a multi-family zoning district shall pay impact fees based on the square feet of the proposed accessory dwelling unit divided by the average square feet of all existing multi-family dwelling units on the same parcel multiplied by the city’s current multi-family fees.
17 SECTION 4. Exemption from CEQA. The proposed adoption of additional development impact fees is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(5), organizational or administrative activities of governments which will not result in direct or indirect physical changes in the environment, and 15061(b)(3), the commonsense exemption.

SECTION 5. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is held by a court of competent jurisdiction to be invalid or unconstitutional, that portion shall be deemed a separate, distinct and independent provision, and the holding shall not affect the validity of the remaining portions of this ordinance.

SECTION 6. Effective Date. This ordinance shall take effect and be enforced thirty (30) days from and after the date of its adoption.

SECTION 7 Posting. Within fifteen (15) days from the date of passage of this ordinance, the City Clerk shall post a copy of it in at least three public places in the City.

Introduced and the first reading waived at a regular meeting of the City Council of the City of Live Oak on the 21st day of December, 2022, and passed and adopted after waiving the second reading at a regular meeting thereafter on the 18th day of January, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

APPROVED:
____________________________
Bob Woten, Mayor
ATTEST:
_________________________
Clarissa Menchaca, City Clerk
APPROVED AS TO FORM:

Nicole Rosser, City Attorney
18 City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Parks and Recreation 2022 Annual Report
Contact Information: Luis Cibrian, Parks and Recreation Director Location: City wide
Background: The City of Live Oak Parks and Recreation Department plays is vital role in the creation of a thriving and healthy community in Live Oak. The Parks and Recreation Department strives to keep the City's parks and open spaces beautiful, accessible and safe, while also ensuring that a wide variety of exciting recreation opportunities are available to the community. Each year the Live Oak Parks and Recreation Department presents a report to the City Council, which outlines the department's activities, accomplishments, and initiatives.

This annual report provides an overview of the department's programs and services, its continued growth towards access for all and reflects this past year's achievements.

Fiscal Impacts: No Fiscal Impacts
Recommendation: Accept for information.

Attachments:

Annual Report
19 2022 Parks & Recreation Annual Program Report
Title: Presentation of the Parks and Recreation 2022 Annual Report Recommendation: Receive report and file
Background: The City of Live Oak Parks and Recreation Department plays is vital role in the creation of a thriving and healthy community in Live Oak. The Parks and Recreation Department strives to keep our parks and open spaces beautiful, accessible and safe, while also ensuring that a wide variety of exciting recreation opportunities are available to the community. Each year the Live Oak Parks and Recreation Department presents a report to the City Council, which outlines the department’s activities, accomplishments, and initiatives.

This annual report provides an overview of the department’s programs and services, its continued growth towards access for all and reflects this past year’s achievements.

Highlights in the 2022 Annual Report include the following:

Swim Lessons ran from June through August with a continued growth of 180 participants. Lessons were available during three sessions; due to high demand for levels one and two an additional session was added to accommodate the communities needs. A total of 16 local youths were hired as lifeguards from middle of May to end of August.

In 2021 Football Camp proved to be a success so with the help of the Live Oak High School’s Junior Varsity Football Coaches we brought it back for another season. Unfortunately, our projected participation declined from 70 in 2021 to 28 in 2022. Although the numbers declined it opened the door for a new program. The Live Oak Parks and Recreation decided to bring a Flag Football League for the first time and it was a triumph. Several years ago, the program was created, and it was unsuccessful due to lack of interest from the community. We believe the difference between then and now comes from the development of the Football Camp.

The 7 vs 7 Flag Football League had a total of 76, we think participation will continue to grow.

Tennis Camp continues to grow in participation. This year we received 52 participants compared to the 31 from 2021. Our numbers have steadily increased every year and we are very close to being able to run a league for tennis.
20 The Youth Wrestling program is a continuously growing program. With all the progress in this program we are actively seeking more coaches. Since the return from COVID-19 we had a total of 63 co-ed participants, and a total of 5 coaches.

Our annual Soccer Camp also had a big jump in numbers having a total of 142 participants. The demand for soccer in this community is tremendous. With those kinds of numbers we are going to be able to run a mini league in the year. This will help children in preparation for our annual soccer league.

Our Soccer League keeps growing and is the biggest program that we have to offer. With over 431 children ranging in age from 4 through 13. Not only is our league providing a program to our community but to surrounding ones as well. This league also gives us the opportunity to give many high school or college students their first job, as referees. This year we hired a total of 15 referees and 2 employees to operate the snack bar.

Our Youth Basketball league will be returning in 2023, since it was postponed due to COVID-19. A series of unfortunate events caused our Youth Basketball League to be on pause for nearly three years including, COVID-19 ending our season early the last time it was ran and the lack of a gym, but this year we are back at the high school and will have our first game of the season on February 4th. We have a total of 141 registered players and a total of 16 teams. We are currently in the hiring process and will be recruiting about 8 referees.

Our adult programs have still been on pause but are making their way back. The biggest challenge that we faced was not being able to recruit enough referees for our Men’s Basketball League and our Men’s Soccer League. We do plan to bring these two leagues back to the community. We are also planning to bring back a Women’s Bootcamp and or a Yoga Class in 2023.

We did have a very successful Adult Swim Lessons Program, totaling in10 participants.

Adults went through a 2-week course and grew significantly in their swimming ability. Many adults went from not wanting to put their head under water to jumping into the 6 feet end. Our lifeguard instructors did an amazing job teaching the adults and making them feel comfortable while helping them overcome their fear.
21 Our city programs and events are also increasing, and our department is getting more involved with the community. This year the department oversaw the parade for the Live Oak Festival. The community was excited to be part of the parade, a total of 58 groups were a part of it. The Parks and Recreation Department is happy to gradually continue assisting the Live Oak Lions Club with the festival.

Live Oak Clean-up Day totals were 10,080lbs for wood, metal 49,300lbs, general 63,000lbs lbs. We strive to keep our Live Oak community clean and safe one day at a time. This year we are planning to team up with SAY LOVE. After many conversations with them there is a high likelihood that they will volunteer for the next clean-up day or any other city event we may assistance with.

Our annal Small Town Holiday was great. We had a total of 58 vendors attend. The community seems to really enjoy this night of fun. The Parks and Recreation Department is always trying to make this event bigger and better. Save the date for December 1st, 2023.

Other city programs that were offered: Pumpkin Paint Night, Ice Cream and Movie Night, Stay Kool at the Pool, National Night Out, Santa on a Fire Engine, Pencil and Backpack Give Away, Scavenger Hunt, Christmas House Lighting Contest. We are always looking to grow and add more events for the community. We encourage any Council and Community input.

The Parks and Recreation Department hired a total of 16 Lifeguards, 23 Recreation Leaders, 6 Instructor/Coaches. The Parks Department has 4 full time employees and 2 seasonal employees. The Recreation Department has 2 full time employees and 1 part time employee working 20 hours a week. This year we had over 300 hours of community service hours worked by residents of the community. This year we had the pleasure of mentoring a student form Chico State who worked 960 hours in the Parks and Recreation Department.

This past year was successful, and we will do our best to keep the community involved in programs and events.
22 City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Appointments to the Feather River Air Quality Management Contact Information: Aaron Palmer, City Manager
Recommendation: Approve the appointments of City of Yuba City Councilman Michael Pasquale as Director, City of Yuba City Councilman Wade Kirchner as Alternate Member, and City of Wheatland Councilwoman Angela Teter as Alternate Member to the Feather River Air Quality Management District as required by Health and Safety Code Section 40152(b).

Attachments:

Letter of Request
23 24
City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Annual Audited Financial Statements - Year Ended June 30, 2022 Contact Information: James Ramsey, Finance Director
Background: Each year the City of Live Oak issues an Annual Comprehensive Financial Report (ACFR) (attached). The ACFR summarizes the financial transactions of a local government for the year in accordance with the generally accepted accounting standards as promulgated by the Governmental Accounting Standards Board (GASB).

The audit is required by the loan covenants on the water and sewer systems, as well as the as Title 2, Grants and Agreements, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, of the Code of Federal Regulations (Single Audit).

The City has engaged a regional, independent certified public accountants (CPA) firm, Rogers, Anderson, Malody, & Scott, LLP (RAMS) to perform the audit in accordance with generally accepted auditing standards and Government Auditing Standards. RAMS has issued an unmodified or "clean" opinion that was dated on December 28, 2022. The Single Audit is currently underway and is expected to be issued no later than March 31, 2023.

Financial Highlights
The City's net position as of June 30, 2021 was $85,980,107, which was a slight increase of $43,671 as compared to last fiscal year. The net position includes items such as capital assets ($62,6869,621), net pension liability ($1,038,971), and other long-term obligations such as bonds, notes, leases, and compensated absences ($6,266,965).

The City's General Fund ended with a fund balance of $3,960,294, of which $1.35 million was unassigned and available for spending. $2.6 million is committed for a general reserve ($866,300), capital facilities ($693,007), rising PERS retirement costs ($329,0050), rising health insurance costs ($282,814), and others (428,316). The General Fund balance decreased by $234,459 due to expenditures greater than actual revenues received. Across 25 all governmental funds, fund balance ended at $6,603,367, an increase of $1.0 million.

The summary of changes in revenues as compared to the year ended June 30, 2021, are as follows:

Fund Name; FY 2021; FY 2022; Changes
Governmental Funds
General Fund; 3,658,661; 3,730,980; 72,319
Program Income; 33,235; 243, 925; 210,690
American Rescue Plan Act; ---; 619,136; 619,136
16-HOME-11532; 457,935; ---; (457,935)
Capital Improvement Project; 1,701; ---; (1,701)
Nonmajor Governmental Funds; 2,746,541; 1,649,139; (1,097,402) Enterprise Funds
Water; 2,150,938; 878,778; (1,272,160)
Sewer; 2,401,485; 2,416,834; 15,349
Nonmajor Enterprise Funds; 939,221; 919,277; (19,944)
The most significant changes in revenues as compared to the year ended June 30, 2021, was the lack of community facilities districts revenues recorded in the special revenue funds ($795,233) reported in the nonmajor governmental funds. Additionally, the City recognized revenues of $619,136 related to the American Rescue Plan Act. The HOME program received loan payoffs in the prior year that did not occur during the current year. The most significant change related to the Water Fund was due to the recognition of a capital contribution made in the prior year of infrastructure assets from a developer.

The summary of changes in expenditures as compared to the year ended June 30, 2022, are as follows:

Row Labels; FY 2021; FY 2022; Changes
Governmental Funds
General Fund; 3,926,313; 4,549,439; 623,126
Program Income; 123,773; 565; (123,208)
American Rescue Plan Act; ---; 8,136; 8,136
16-HOME-11532; 457,935; 450,827; 34; (450,793)
Capital Improvement Project; 106,507; 108,230; 1,723
Nonmajor Governmental Funds; 4,130,216; 514,222; (3,615,994) Enterprise Funds
Water; 1,618,079; 1,726,549; 108,470
Sewer; 3,038,423; 3,085,361; 46,938
Nonmajor Enterprise Funds; ---; ---; ---
The most significant changes in the general fund is related to the lack of community facilities district transfers in to offset public safety and community development expenditures ($702,000). The other major changes 26 in the program income fund and HOME fund include a reduction of loans issued under the City's loan programs. The most significant changes in the nonmajor governmental funds relates to both the offset for the $702,000 in transfers to the general fund for public safety and community development expenditures as well as payments in the prior year to Caltrans for the Highway 99 project ($1,962,709).

Other Information
The ACFR was submitted to the Government's Finance Officers Association (GFOA) excellence in financial reporting award program.

Additionally, RAMS has issued their board communication letter in accordance with the auditing standards. The letter identified the net pension liability, net other-postemployment benefits (OPEB) asset, accumulated depreciation, and fair value as significant estimates. The pension and OPEB estimates are determined by actuaries in accordance with their applicable standards. The fair value of investments is determined by market prices as reported by financial institutions and accumulated depreciation is determined by applying depreciation on assets used based on the straight-line method of depreciation. There was no misstatement noted.

Finally, RAMS has identified areas of improvement in internal controls that were not considered to be significant deficiencies or material weaknesses.

Management will coordinate to determine the best way to address them to ensure that the City has a sufficiently robust system of internal controls.

Fiscal Impacts: None.

Recommendation: Accept and file annual financial statements.

Attachments:
2022 Final GAGAS Report
2022 Final GANN Report
2022 Final Management Comment Letter
2022 Final SAS114 Letter
2022 Live Oak Annual Comp
27 735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

MANAGERS / STAFF
Gar·denya Duran, CPA. CGMA
Br·ianna Schulu. CPA. CGMA
Seong-Hyea Lee. CPA. MBA
Evelyn Mor·entin-Barcena. CPA
Veronrca Hernandez. CPA
Laura Arvizu. CPA
X rnlu Zoe Zhang, CPA MSA
John Maldonado, CPA. MSA
Julia Rodr·iguez Fuentes. CPA. MSA
Demi Hrte. CPA
Jeffrey McKennan, CPA

MEMBERS
Amer-ican I nstrtute of
Cernfied Public Accountants
PCPS The A/CPA A.I/ranee
{o, CPA Ftrms
Governmental Audit
Quality Cente,
Employee Benefit Plan
Aud,r Qual,ry Cente,
Californra Socrety of
Cen:ifred Publrc Accountants
dil5b Proud Member of
qgp AlliottGlobalAlliance™
mm IIIJ

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
- 1 -

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Honorable City Council
City of Live Oak
Live Oak, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate remaining fund information and each major fund of the City of Live Oak (the City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 28, 2022.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
28 - 2 -
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
December 28, 2022
29 735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Accountant’s Report
To the Honorable City Council
City of Live Oak, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Live Oak, California (the City) for the year ended June 30, 2022. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreedupon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our
procedures.

2. For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

Finding: No exceptions were noted as a result of our
procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.

Finding: No exceptions were noted as a result of our
procedures.
30 -2-

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City of Live Oak, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

San Bernardino, California
December 28, 2022
31 -3-
City of Live Oak

APPROPRIATIONS LIMIT COMPUTATION
2021 – 2022
2021-2022
Per capita personal income change 5.73%
Population change: 1.46%
City population growth
CPI change converted to a ratio 1.0573
Population change converted to a ratio 1.0146
Calculation of growth factor 1.0727
2020 - 2021 limit 5,417,692 $
2021 - 2022 Limit
($5,417,692 x 1.0573 x 1.0146) 5,811,756 $
32 735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
December 28, 2022
Management of the City of Live Oak
In planning and performing our audit of the financial statements of the City of Live Oak (the City) as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses. However, as discussed below, we identified certain matters involving the internal control and other operational matters that are presented for your consideration. This letter does not affect our report dated December 28, 2022 on the financial statements of the City. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with appropriate members of management, are intended to improve the internal control or result in other operating efficiencies. Our comments are summarized as follows:

Observation 1:

During our internal control testing, we noted various journal entries where the preparer and approver were same individual, journal entries that did not have evidence of separate preparer and approver, and some journal entries that did not have complete supporting documentation.

We recommend the City have journal entries be prepared and approved by separate individuals and maintain proper supporting documentation for all entries.
33 -2-
Observation 2:

During our internal control testing, we noted the accounts payable personnel have access to add/edit vendors in the accounting software.

We recommend the City update processes and/or IT controls so that personnel processing accounts payable don’t have the ability to add or edit vendors.

Observation 3:

During our internal control testing, we noted the billing specialist has the ability to enter and edit utility billing rates, adjust customer accounts and post to the general ledger.

We recommend the City update processes and/or IT controls so that personnel processing utility billing don’t have the ability to edit billing rates and/or customer accounts.

We believe that the implementation of these recommendations will provide the City with a stronger system of internal control while also making its operations more efficient. We will be happy to discuss the details of these recommendations with you at your convenience.

This communication is intended solely for the information and use of management and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully,
San Bernardino, California
34 735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
- 1 -
December 28, 2022
To the Honorable City Council
City of Live Oak
Live Oak, California
We have audited the financial statements of City of Live Oak (the City) as of and for the year ended June 30, 2022, and have issued our report thereon dated December 28, 2022. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated August 1, 2022, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
35 - 2 -
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, and our firm have complied with all relevant ethical requirements regarding independence.

Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting: Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition: Management's failure to recognize revenue in accordance with generally accepted accounting principles.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 of the financial statements, during the year, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
36 - 3 -
The most sensitive accounting estimates affecting the financial statements are:

Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the depreciation expense is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net pension liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net OPEB liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

The disclosure of accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosure of net pension liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of net OPEB liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
37 - 4 -
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We did not identify any uncorrected misstatements.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 28, 2022.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City's audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact.

Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
38 - 5 -
This report is intended solely for the information and use of the City Council and Management of the City and is not intended to be and should not be used by anyone other than these specified parties.

San Bernardino, California
December 28, 2022
39 December 28, 2022
Rogers, Anderson, Malody & Scott, LLP
735 E Carnegie Drive, Suite 100
San Bernardino, Ca 92408
This representation letter is provided in connection with your audit of the basic financial statements of the City of Live Oak (the City) as of June 30, 2022, and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).

Certain representations in this letter are described as being limited to matters that are material.

Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 28, 2022:

Financial Statements
 We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated August 1, 2022, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.  We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.  We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
 We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
 We have reviewed, approved, and taken responsibility for the financial statements and related notes.
 We have a process to track the status of audit findings and recommendations.  We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
 Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
 All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 40 Rogers, Anderson, Malody & Scott, LLP
 All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed.  The effects of uncorrected misstatements summarized in the attached schedule and aggregated by you during the current engagement are immaterial, both individually and in the aggregate, to the applicable opinion units and to the financial statements as a whole.  The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
 All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed.  All funds and activities are properly classified.
 All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.  All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved.
 Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
 All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
 All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis.  All interfund and intra-entity transactions and balances have been properly classified and reported.
 Special items and extraordinary items have been properly classified and reported.  Deposit and investment risks have been properly and fully disclosed.  Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
 All required supplementary information is measured and presented within the prescribed guidelines.

41 Rogers, Anderson, Malody & Scott, LLP
 With regard to investments and other instruments reported at fair value:
o The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. o The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. o The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP.
o There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.  With respect to nonattest services provided, we have performed the following:
o Made all management decisions and performed all management functions; o Assigned a competent individual to oversee the services; o Evaluated the adequacy of the services performed;
o Evaluated and accepted responsibility for the result of the service performed; and o Established and maintained internal controls, including monitoring ongoing activities.

Information Provided
 We have provided you with:
o Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters;
o Additional information that you have requested from us for the purpose of the audit; and
o Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
 A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report;
 A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor’s report.
 The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements.
 All transactions have been recorded in the accounting records and are reflected in the financial statements.
 We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 42 Rogers, Anderson, Malody & Scott, LLP
 We have provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, and if necessary, our analysis of management’s plans, and our ability to achieve those plans.  We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
o Management;
o Employees who have significant roles in internal control; or o Others where the fraud could have a material effect on the financial statements.  We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, vendors, regulators, or others.
 We are not aware of any pending or threatened litigation, claims, and assessments whose effects should be considered when preparing the financial statements.  We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware.
 There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices.
 The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
 We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
 We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the entity will make a payment on any guarantee.
 For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range.
 We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year.

Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
 We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds.
43 Rogers, Anderson, Malody & Scott, LLP
 There are no:
o Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations’
o Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62; o Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62; or
o Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
 The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
 We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
 There have been no changes or updates to legal information disclosed to you by our attorneys since the date of such legal response and now.

Use of a Specialist
 We agree with the findings of specialists in evaluating the City’s pension liability and related deferred amounts and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.
 We believe that the actuarial assumptions and methods used to measure pension and other postemployment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances
Supplementary Information in Relation to the Financial Statements as a Whole With respect to supplementary information accompanying the financial statements:
 We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America.
 We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America.
 The methods of measurement or presentation have not changed from those used in the prior period.
44 45

CITY OF LIVE OAK, STATE OF CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2022

PREPARED BY THE FINANCE DEPARTMENT
46 Financial Statements
Year Ended June 30, 2022
City of Live Oak, California
Prepared by: Finance Department
47 City of Live Oak, California
Table of Contents
June 30, 2022

INTRODUCTORY SECTION
Transmittal Letter ....................................................................................................................................................... i Organization Chart .................................................................................................................................................... iv GFOA Award ............................................................................................................................................................... v

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................... 1 Management’s Discussion and Analysis
Statement of Net Position ................................................................................................................................... 14 Statement of Activities ......................................................................................................................................... 16 Fund Financial Statements - Governmental Funds
Balance Sheet ....................................................................................................................................................... 18 Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Position.................. 20 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................... 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................... 24 Proprietary Funds
Statement of Net Position ................................................................................................................................... 26 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................................ 27 Statement of Cash Flows ..................................................................................................................................... 28 Fiduciary Funds
Statement of Fiduciary Net Position .................................................................................................................... 30 Statement of Changes in Fiduciary Net Position ................................................................................................. 31 Notes to Financial Statements ............................................................................................................................. 33

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................................ 74 General Fund ........................................................................................................................................................ 74 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................................ 75 Program Income ................................................................................................................................................... 75 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................................ 76 American Rescue Plan Act ................................................................................................................................... 76 Note to Required Supplementary Information .................................................................................................... 77 Cost-Sharing Multiple Employer Defined Pension Plan – Miscellaneous Plan - Schedule of the City’s Proportionate Share of the Net Pension Liability ................................................................................................ 78 Cost-Sharing Multiple Employer Defined Pension Plan – Miscellaneous Plan - Schedule of Contributions - Pension ................................................................................................................................................................. 80 Schedule of Changes in the Net OPEB Liability and Related Ratios - OPEB Plan ................................................. 82 Schedule of Contributions - OPEB ........................................................................................................................ 83

SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds
Combining Balance Sheet .................................................................................................................................... 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. 96 Budgetary Comparison Schedule – Streets and Roads ...................................................................................... 102 Budgetary Comparison Schedule – Traffic Safety .............................................................................................. 103 48 City of Live Oak, California
Table of Contents
June 30, 2022
Budgetary Comparison Schedule – COPS .......................................................................................................... 104 Budgetary Comparison Schedule – Sidewalk Improvement .............................................................................. 105 Budgetary Comparison Schedule – Street Lighting............................................................................................ 106 Budgetary Comparison Schedule – Mello Roos CFD 92-1 ................................................................................. 107 Budgetary Comparison Schedule – Fire Assessment ......................................................................................... 108 Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Fire ...................................................................... 109 Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Police ................................................................... 110 Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Animal Services ................................................... 111 Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Street Lighting ..................................................... 112 Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Parks / Recreation / Pool .................................... 113 Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Storm Drain ......................................................... 114 Budgetary Comparison Schedule – Parks & Recreation Impact Fees ................................................................ 115 Budgetary Comparison Schedule – Community Center Impact Fees ................................................................ 116 Budgetary Comparison Schedule – Public Works Impact Fees .......................................................................... 117 Budgetary Comparison Schedule – General Government Impact Fees............................................................. 118 Budgetary Comparison Schedule – Police Impact Fees ..................................................................................... 119 Budgetary Comparison Schedule – Fire Impact Fees ......................................................................................... 120 Budgetary Comparison Schedule – Signal Impact Fees ..................................................................................... 121 Budgetary Comparison Schedule – Flood Control Impact Fees ......................................................................... 122 Budgetary Comparison Schedule – Storm Drain Connection Fees .................................................................... 123 Budgetary Comparison Schedule – 13-CDBG-8933 Skate Park ......................................................................... 124 Budgetary Comparison Schedule – Transportation ........................................................................................... 125 Nonmajor Enterprise Funds
Combining Statement of Net Position ............................................................................................................... 129 Combining Statement of Revenues, Expenditures and Changes in Net Position .............................................. 130 Combining Statement of Cash Flows ................................................................................................................. 131

STATISTICAL SECTION
Financial Trends
Net Position by Component ............................................................................................................................... 138 Changes in Net Position ..................................................................................................................................... 139 Fund Balances of Governmental Funds ............................................................................................................. 142 Changes in Fund Balances of Governmental Funds - ......................................................................................... 143 Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property - ................................................................... 144 Principal Property Tax Payers - .......................................................................................................................... 146 Property Tax Levies and Collections .................................................................................................................. 147 Ratios of General Bonded Debt Outstanding..................................................................................................... 149 Computation of Legal Bonded Debt Margin ...................................................................................................... 151 Principal Employers ............................................................................................................................................ 153 Full-time and Part-time City Government Employers ....................................................................................... 154 Debt Capacity
Operating Indicators .......................................................................................................................................... 155 Capital Asset Statistics ....................................................................................................................................... 156 49 City Hall: 530-695-2112 Fax: 530-695-2595 9955 Live Oak Blvd., Live Oak, CA 95953 www.liveoakcity.org i
December 28, 2022
To the Honorable Mayor, City Council and Citizens of Live Oak:

ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF LIVE OAK We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Live Oak for the fiscal year ended June 30, 2022. Although addressed to the City’s governing body and its citizens, the ACFR is intended also to provide relevant financial information to creditors, investors, and other interested parties. This transmittal letter provides a summary of City of Live Oak finances, services, achievements and economic prospects for readers without a technical background. Those wishing a more detailed discussion of the City’s financial results should refer to Management’s Discussion and Analysis (MD&A) contained in the Financial Section of the ACFR.

Management takes sole responsible for the accuracy of the information contained in this report, the adequacy of its disclosures, and the fairness of its presentation. To provide a reasonable basis for making this representation, the City has established a system of internal controls designed to protect City assets from loss, to identify and record transactions accurately, and to compile the information necessary to produce financial statements in conformity with generally accepted accounting principles.

The City contracted with Rogers, Anderson, Malody & Scott, LLP, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit. The goal of the audit is to obtain reasonable, but not absolute assurance that the financial statements are free of material misstatements and are fairly presented in conformity with the generally accepted accounting principles (GAAP). The City auditors have issued an unmodified (“clean”) opinion that the City’s financial statements for fiscal year ended June 30, 2022.

This conclusion is the most favorable kind and is presented as the component of the financial section of this report.

REPORTING ENTITY
The City of Live Oak is a growing, rural community located on the Highway 99 corridor 60 miles north of Sacramento at the north end of Sutter County. Incorporated in 1947 and named for the oak forest that once dominated the landscape, Live Oak is rooted strongly in agriculture, surrounded on all sides by bountiful agriculture production including peaches, nuts, rice, and other crops. Live Oak has grown to a population of 9,300 residents and comprises of 3.1 square miles.

The City is a full-service general law city that operates under a Council-Manager form of government. The City’s five Council Members are elected at large and serve four-year terms. The elections are staggered every two years, with three seats open in one election and two seats open in the next election. The Mayor and Vice-Mayor are elected by the City Council to serve one-year terms. The City Council appoints a City Manager to implement its policies and directives. All of the City departments operate under the supervision of the City Manager.

The City provides a full range of municipal services, including police and fire protection, street and park maintenance, community development, building inspection, code enforcement, recreation programs, finance, grants and general administration. The City also operates a municipal pool, water treatment plant and a wastewater treatment facility. 50 City Hall: 530-695-2112 Fax: 530-695-2595 9955 Live Oak Blvd., Live Oak, CA 95953 www.liveoakcity.org ii
At one time a major hub for shipping produce, Live Oak is still linked to transportation with both the Union Pacific Railroad tracks and Highway 99 running north and south through the community. The world’s smallest mountain range, the Sutter Buttes, is seven miles west of the city providing magnificent views of this natural attraction. The Feather River flows quietly less than two miles to the east.

The Live Oak City Council has responded to recent growth with significant policy accomplishments including adoption of a new 2030 General Plan, new zoning ordinance, building design guidelines, water/sewer/storm drain master plans and a streetscape design master plan for the Highway 99 corridor. Over 300 acres of highway frontage zoned for business growth was annexed in 2011. A state-of-the-art wastewater treatment plant was completed in 2012 ensuring adequate capacity for expected growth. The newly renovated Live Oak Depot, an icon of the community’s historic link to the railroad, anchors the downtown core. New renovated parks provide recreational opportunities for Live Oak residents. Live Oak is poised as one of the nicest rural communities in the northern Sacramento Valley.

ECONOMIC CONDITION AND OUTLOOK
Property taxes, sales taxes, general taxes and assessments received by the City's governmental funds had a slight increase in revenues over the prior years as part of the recovery from the COVID-19 pandemic. These modest increases have restored the City's core revenue base to what it was received in the peak year of FY 2007-08. The widening of Highway 99 is expected to lead to new commercial opportunities. In the past 12 months, the City has experienced the addition of 82 new single-family homes, with another 60 pending permits.

In recent years, the City has leveraged various grant sources in funding significant public improvements projects including the City's new soccer park, sheriff and fire station rehabilitation and recent expansion of its bike/pedestrian trail system. Such projects add to the existing community assets and provides for new facilities for the betterment of public services being delivered to the City's residents.

SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
Highlights of activities and accomplishments for the fiscal year ended June 30, 2022 include the following:
 Completed construction of the Highway 99 widening.
 Completed construction of the new municipal water well.  Continued construction of the Pennington Road water main project.

FINANCIAL INFORMATION
The City’s management staff is responsible for establishing and maintaining internal controls that safeguard the assets of the government from loss, theft, or misuse and allow the compilation of adequate accounting data for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP).

Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met.

The concept of reasonable assurance recognizes that the cost of a control should not exceed its likely benefits and that the evaluation of costs and benefits is subject to management estimates and judgments. 51 City Hall: 530-695-2112 Fax: 530-695-2595 9955 Live Oak Blvd., Live Oak, CA 95953 www.liveoakcity.org iii
Budgetary Controls
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the majority of the funds are included in the annual appropriated budget. In administering the budget, the City Manager shall have the authority to provide each department with sufficient funding to meet its needs so long as a decision to vary from approved appropriations does not exceed, except in the case of emergencies, the total resources estimated to be available to the affected municipal fund at the time of the decision. If necessary, staff recommends budgetary changes during periodic financial status reports to the City Council.

The City continues to meet its responsibility for sound financial management as demonstrated by the statements and schedules included in the financial section of this report.

AWARD AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate for Excellence in Financial Reporting to the City of Live Oak for its comprehensive annual financial report for the fiscal year ended June 30, 2021. This award recognizes the City’s conformance with the highest standards for preparation of state and local government financial reports.

In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirement and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this ACFR represents the culmination of a concerted team effort by the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In addition, staff in all City departments should be recognized for their timely and positive response to the requests for detailed information necessary to prepare the annual audit. The role of Rogers, Anderson, Malody & Scott, LLP, should also be acknowledged as a significant contribution.

Finally, we wish to express our sincere appreciation to the Mayor and City Council for providing policy direction and a firm foundation of support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully submitted,
James W Ramsey, CPA
Director of Finance
52 iv
53 v
54 vi
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55 Financial Section
June 30, 2022
City of Live Oak, California
56 This Page Left Intentionally Blank
57 735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Live Oak, 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 Live Oak, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, 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, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Other Matters
As discussed in Note 1 to the financial statements, in the year ended June 30, 2022, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter. 58 2
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

59 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other schedules listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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 and budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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

Other Information Included in the Annual Report
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section 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.

60 4
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2022 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.

San Bernardino, California
December 28, 2022
61 5
MANAGEMENT’S DISCUSSION AND ANALYSIS
The following discussion provides readers of the City of Live Oak, California’s (City) financial statements a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. This document should be read in conjunction with the accompanying Letter of Transmittal and basic financial statements, which follows this section.

FINANCIAL HIGHLIGHTS
The City’s assets and deferred outflows exceeded its liabilities and deferred inflows by $85,980,107 as of June 30, 2022, an increase of $43,671 from the prior year.

The City’s governmental funds reported a combined fund balance of $6,603,367, a decrease of $1,035,553 from the prior year.

General Fund revenues of $3,703,980 were $45,319 higher than the prior year.

General Fund expenditures of $4,549,439 represented an increase of $623,126 from the prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements, commonly referred to as the City’s basic financial statements. The management’s discussion and analysis introduces these statements and includes two different views of the City’s financial activities and position: (1) Government-Wide Financial Statements provide information about the activities of the City as a whole and present a longer-term view of the City’s finances; (2) fund financial statements provide detailed information about the individual functions of City government, telling how services were financed in the short-term as well as what remains for future spending.

Each set of statements presents the City’s finances in a distinct way. To assist the reader in understanding the differences between them, a brief discussion of each follows, including the relationship of these statements to each other and the significant differences in the information they provide.

Government-Wide Financial Statements
The government-wide financial statements provide a broad overview of City finances in a manner similar to private sector business. These statements separate the City’s activities into two areas:

Governmental Activities – these services are principally supported by taxes and intergovernmental revenues. Most of the City’s basic services are considered to be governmental activities including public safety, community development, public works, parks and recreation, and general administration.

Business-Type Activities – these services rely upon user fees and charges to help cover all or most of their costs. The City’s water and wastewater systems are reported here. Unlike governmental activities, these services are supported by charges supported by users based on the amount of the service they use.

The two statements can be generally described as follows:

The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between them reported as 62 6
net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs regardless of the timing of related cash flows.

Notably, these statements differ from the fund financial statements in that they include all assets of the City (including infrastructure) and all liabilities (including long-term debt) and exclude certain interfund receivables, payables and other interfund activity. For additional reference, reconciliation between the two is provided on pages 14 and 16 of this report.

Fund Financial Statements
The fund financial statements provide detailed information about each of the City’s most significant funds – not the City as a whole. Management establishes funds to help control and manage money for purposes.

The City uses three types of funds: governmental, proprietary and fiduciary.

Governmental Funds – most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. This information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship between governmental activities (reported in the statement of net position and the statement of activities) and the governmental funds in reconciliation at the bottom of the fund financial statements.

Proprietary Funds – when the City charges customers for services it provides, whether outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds provide the same type of information as shown in the government-wide financial statements (i.e., business-type activities), only in more detail. The City uses enterprise funds to account for its water and sewer operations; in addition, the City uses enterprise funds to account for water and sewer connection fees.

Fiduciary Funds – the City is the trustee, or fiduciary, for certain funds held on behalf of external parties.

The City’s fiduciary activities are reported in a separate statement of fiduciary net position. These activities are excluded from the City’s other financial statements because the resources of the funds are not available to support the City’s own programs. The City is responsible for ensuring that the assets reported in these funds are used for the intended purposes.

NOTES TO 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.
63 7

REQUIRED SUPPLEMENTARY INFORMATION
In addition to the basic financial statements and accompanying notes, this report presents the following required supplementary information: budgetary comparisons for the City’s General Fund and major special revenue funds as well as a description of the City’s accounting policies with regard to the annual budget. The City also reports certain schedules related to the net pension liability and net OPEB asset.

FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
The government-wide financial statements provide long-term and short-term information about the City’s overall financial conditions. This analysis addresses the financial statements of the City as a whole.

Following is a summary of net position:
2022 2021 2022 2021 2022 2021
Current and Other Assets $ 27,049,337 $ 26,981,880 $ 5,883,051 $ 6,274,142 $ 32,932,388 $ 33,256,022 Capital Assets 28,835,154 29,518,958 34,034,467 35,477,020 62,869,621 64,995,978 Total Assets 55,884,491 56,500,838 39,917,518 41,751,162 95,802,009 98,252,000 Deferred Outflows 260,658 285,059 267,693 304,274 528,351 589,333 Current and Other Liabilities 1,626,674 2,996,208 580,252 1,593,188 2,206,926 4,589,396 Long-term Liabilities 802,488 1,310,601 6,211,807 6,951,133 7,014,295 8,261,734 Total Liabilities 2,429,162 4,306,809 6,792,059 8,544,321 9,221,221 12,851,130 Deferred Inflows 628,999 32,792 500,033 20,975 1,129,032 53,767 Net Position:

Net Investment in Capital Assets 28,551,024 29,188,335 28,157,398 29,355,009 56,708,422 58,543,344 Restricted 23,228,119 3,691,906 - 1,306,135 23,228,119 4,998,041 Unrestricted (Deficit) 1,307,845 19,566,055 4,735,721 2,828,996 6,043,566 22,395,051 Total Net Position $ 53,086,988 $ 52,446,296 $ 32,893,119 $ 33,490,140 $ 85,980,107 $ 85,936,436 Governmental Activities Business-type Activities Total
Net position represents the difference between the City’s resources and its obligations. At June 30, 2022, the largest portion of the City’s total net position, 66 percent, reflects the net investment in capital assets.

This component of net position, which reflects the total amount of funds used to acquire those assets less any outstanding debt used for such acquisition, was $56.7 million at June 30, 2022. These capital assets are used by the City to provide services to the citizens.

Overall, the net position for the governmental and business-type activities of the City funds has improved due to both operating results and increase contributions from operating and capital grants.

Restricted net position of $23.2 million represents resources subject to external restrictions as to how they may be used. Restricted net position increased by 78% primarily due to the reclassification of loans receivable to restricted net position from unrestricted net position. Unrestricted net position of $11.1 million represents amounts that may be used to meet the City’s ongoing obligations to its residents, businesses, customers, and creditors.
64 8
Following is a summary of changes in net position: 2022 2021 2022 2021 2022 2021 Revenues:

Program Revenues:

Charges for services $ 947,739 $ 858,711 $ 4,166,245 $ 4,255,518 $ 5,113,984 $ 5,114,229 Operating grants and contributions 1,143,071 1,399,265 123,864 - 1,266,935 1,399,265 Capital grants and contributions 57,965 38,118 - - 57,965 38,118 General revenues:

Property taxes 1,843,633 1,878,102 - - 1,843,633 1,878,102 Sales taxes 520,544 371,363 - - 520,544 371,363
Franchise taxes 284,861 245,828 - - 284,861 245,828
Other taxes 745,456 1,619,334 - - 745,456 1,619,334
Motor vehicle in lieu - unrestricted 415,704 429,421 - - 415,704 429,421 Use of money and property 358,364 84,839 (30,926) 4,126 327,438 88,965 Other miscellaneous 306,961 458,167 - - 306,961 458,167 Total revenues 6,624,298 7,383,148 4,259,183 4,259,644 10,883,481 11,642,792 Expenses:

General government 931,014 774,096 - - 931,014 774,096
Public safety 2,517,012 2,328,780 - - 2,517,012 2,328,780 Community development 1,243,057 537,626 - - 1,243,057 537,626 Culture and recreation 1,207,729 1,188,279 - - 1,207,729 1,188,279 Public ways and facilities 52,895 1,827,022 - - 52,895 1,827,022 Interest on long-term debt 31,899 16,884 - - 31,899 16,884 Water - - 1,770,843 1,596,824 1,770,843 1,596,824
Sewer - - 3,085,361 3,038,425 3,085,361 3,038,425
Total expenses 5,983,606 6,672,687 4,856,204 4,635,249 10,839,810 11,307,936 Excess before transfers 640,692 710,461 (597,021) (375,605) 43,671 334,856 Transfers - (1,210,750) - 1,210,750 - - Change in net position 640,692 (500,289) (597,021) 835,145 43,671 334,856 Net position - beginning 52,446,296 52,946,585 33,490,140 32,654,995 85,936,436 85,601,580 Net position - ending $ 53,086,988 $ 52,446,296 $ 32,893,119 $ 33,490,140 $ 85,980,107 $ 85,936,436 Governmental Activities Business-type Activities Total
Governmental Activities:

The City’s governmental activities increased the City’s net position by $640,692. Revenues, net of transfers, were $6.6 million which represented a decrease of $758,850 or 10.3 percent, and expenses were $6.0 million which represented an increase of $689,081 or 10.3 percent. Governmental activities highlights include the following:

Taxes provided $3.8 million or 57.5 percent of the total governmental activities revenue of the City.

This amount is a decrease of $733,850 from the prior year. This is primarily a result of a decrease in other taxes received. The cause of the decrease is primarily due to the Mello Roos special assessment taxes not collected during the fiscal year.

Charges for services, operating grants and capital grants provided $2.1 million or 2.1 percent of the total governmental-activities revenue of the City. This amount is a decrease of $147,319 million from the prior year and attributable to a decrease in grant funds received.

Business Type Activities
Business-type activities decreased the City’s net position by $597,021. Revenues were $4.3 million.

Business type activities highlights include the following:

Charges for services provided $4.2 million or 97.8 percent of the total business type activities revenue of the City. This is a decrease of approximately 2.1 percent from the prior year due 65 9
to increased consumption. Transfers between the governmental activities and business-type activities were eliminated during year due to no more construction projects.

FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The City uses fund accounting to assure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operation in more detail than the government-wide statements. The City’s governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The City’s governmental funds reported combined fund balances at June 30, 2022 of $6,603,367. The General Fund decreased by $237,459 and all other Governmental Funds increased by $1,270,012. Within the governmental funds, the increase in fund balance was primarily attributable to the recognition of federal grants.

Analysis of Major Governmental Funds
General Fund
There were no changes to the revenue budget or appropriations budget of the General Fund. General Fund revenues totaled $3,703,980 in fiscal year 2021-22, which was a positive variance of $387,728 as compared to the final budget amount and an increase of $45,319 over last year. The variance is primarily attributable to the transfer in from the American Rescue Plan Act fund to the General Fund. The transfer was offset by a negative variance in intergovernmental due certain grant revenues not materializing during the current year. The fund ended with a negative variance of $11,960 between the actual expenditures incurred and final budget amounts. The largest negative variance of $257,098 was in police services due rising personnel costs and increased patrol hours. The largest positive variance of $163,480 was in park operations primarily due to a grant-funded park improvement project not started.

The primary increases, as compared to the prior year, were in property taxes in the amount of $147,068, offset by a decrease in other taxes of $140,560. The increase in property taxes is due to elevated property values during the fiscal year. The decrease is primarily due to the recognition of the one-time revenue from the CARES Act grant in the amount of $113,594 during fiscal year ended June 30, 2021. General Fund expenditures totaled $4,549,439 in fiscal year 2021-22, an increase of $623,126 over last year. The primary increase was due to a lack of offsetting transfers from the Mello Roos special revenue funds.

At the end of fiscal year 2022, the fund balance for the City’s General Fund was $3,960,294 a decrease of $234,459 over last year. The fund balance in General Fund comprised of $10,143 in nonspendable fund balance, $2,599,487 committed fund balance and $1,350,664 unassigned fund balance. The nonspendable fund balanced decreased by $19,176, the committed fund balance decreased by $5,948, while the unassigned fund balance decreased $209,335.

The following table summarizes the budget to actual results for the City's General Fund. Overall, the actual expenses for the year were slightly less than budgeted:

Original Budget Final Budget Actual Amounts
General government $ 732,919 $ 732,919 $ 673,645
Public safety 2,222,981 2,222,981 2,351,008
Public ways and facilities 18,230 18,230 39,726
Culture and recreation 1,095,503 1,095,503 879,404
Community development 313,514 313,514 317,265
Capital outlay 9,000 9,000 110,801
Debt service 145,332 145,332 177,590
$ 4,537,479 $ 4,537,479 $ 4,549,439
As of June 30, 2022
66 10
Program Income
There were no changes made to the original budget during the current year. The fund ended with a positive revenue variance of $60,725 primarily due to unscheduled payoffs of loan balances. The positive expenditure variance of $177,435 is primarily due to less demand for loan programs. Program Income Fund revenues totaled $243,925 in fiscal year 2021-22, an increase of $210,690 due to loan payoffs.

Program income expenditures totaled $565 a decrease of $123,208. At the end of fiscal year 2022 the Program income fund balance was $296,144 an increase of $243,360.

American Rescue Plan Act
The American Rescue Plan Act Special Revenue Fund was established during fiscal year ended June 30, 2022, to account for amounts received under the Federal Program for COVID recovery. The increase in appropriations of $940,000 was made as the City Council approved the spending areas associated with the grant. Revenues in the amount of $619,136 were recognized that were attributable to lost revenues in the general fund as well as capital projects recorded in the program. Transfers to the General Fund in the amount of $611,000 represents amounts associated with lost revenues. 16-HOME-11532
There were no revenues recorded in the 16-HOME-11532 Fund for fiscal year 2021-22, a decrease of $457,935. This is a result of receiving a large grant reimbursement in the prior year. Expenditures in the fund totaled $34, a decrease of $450,793 million. This is primarily due to the issuance of a loan to a developer for the development of affordable housing in the prior year. At the end of fiscal year 2022 fund balance was ($2,028), a decrease of $34.

Capital Improvement Project
The Capital Improvement Fund accounts for major City capital improvement projects. The Fund is budgeted on a project length basis and therefore is not comparable on an annual basis. There were no revenues received in fiscal year 2022. Expenditures totaled $108,231 in fiscal year 2022.

Other Governmental Funds
These funds are presented in aggregate on the face of the fund financial statements and individually in the Supplementary Information.

Analysis of Major Enterprise Funds
Water
The Water Fund is financed and operated in a manner similar to that of a private business. Overall, operating revenues decreased $140,981 compared to fiscal year 2021-22. In addition, operating expenses increased to $1,687,300 annually, up $131,272 over the prior year. As of June 30, 2022, the fund’s net position went from $10,469,954 in 2021 to $9,622,183 in 2022 representing a decrease of $847,771. The Fund's net investment in capital assets decreased by $502,528 due to depreciation as well as the recognition of a new lease liability. The Fund reported a deficit in unrestricted net position in the amount of ($1,070,636) at the close of fiscal year 2022. Due to the age of the water system infrastructure, significant investments will be required in future years to update water lines and equipment. 67 11
Sewer
The Sewer Fund is financed and operated in a manner similar to that of a private business. As of June 30, 2022, the Fund’s net position totaled $20,596,524 of which $17,015,579 remains invested in capital assets net of related debt. The fund's unrestricted net position was $3,580,945 at the close of fiscal year 2022.

Overall, operating revenues remained fairly constant at $2,436,477 with an increase of $58,062 over the prior year. Operating expenses totaled $3,010,493 for the year, a 2 percent increase of $49,162 over the prior year. Non-operating items did not significantly change from the previous year. Due to the age of the sewer system infrastructure, significant investments will be required in future years to update sewer lines and equipment.

CAPITAL ASSET AND DEBT ADMINISTRATION
The City records all of its capital assets including infrastructure. At the end of 2022, the City had invested $62.9 million in a broad range of capital assets, including park facilities, streets and roads improvements, and water well construction. Additional detailed information on the City’s capital assets is presented in Note 4 to the financial statements on pages 49 through 51.

The financial statements summarize the City's accounting policies regarding capital assets in Note 1 Section I of the note disclosures.

As of June 30, 2022, the City’s capital assets consisted of:
2022 2021 2022 2021 2022 2021
Land $ 6,584,996 $ 6,584,996 $ 233,241 $ 233,241 $ 6,818,237 $ 6,818,237 Construction in progress 3,356,370 3,225,245 1,070,668 5,097,514 4,427,038 8,322,759 Right-to-use leased assets 45,150 45,150 22,514 22,514 67,664 67,664 Buildings and improvements 7,561,067 7,561,067 38,641 38,641 7,599,708 7,599,708 Equipment 4,830,684 4,687,200 1,597,191 1,597,191 6,427,875 6,284,391 Infrastructure 22,199,263 22,199,263 53,358,714 49,259,827 75,557,977 71,459,090 Less: Accumulated depreciation
amortization (15,742,376) (14,738,813) (22,286,502) (20,749,394) (38,028,878) (35,488,207) $ 28,835,154 $ 29,564,108 $ 34,034,467 $ 35,499,534 $ 62,869,621 $ 65,063,642 Governmental Activities Business-type Activities Total
At June 30, 2022, major construction in progress include the undergrounding of utility lines in the governmental activities and business-type activities.

Long-term Debt:

At June 30, 2021 and 2022 the City had $6.6 million and $6.3 million respectively in long-term debt outstanding. The City made all scheduled repayments on existing debt on time. Additional detailed information about the City’s total long-term liabilities is presented in Note 7 to the financial statements.

As of June 30, 2022, the City’s debt consisted of:
2022 2021 2022 2021 2022 2021
Loan $ 105,766 $ 158,648 $ 4,222,159 $ 4,412,011 $ 4,327,925 $ 4,570,659 Financed purchase 252,264 330,623 - - 252,264 330,623
Lease liability 31,866 45,150 14,910 22,514 46,776 67,664 Certificates of Participation - - 1,640,000 1,710,000 1,640,000 1,710,000 $ 389,896 $ 534,421 $ 5,877,069 $ 6,144,525 $ 6,266,965 $ 6,678,946 Governmental Activities Business-type Activities Total
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ECONOMIC FACTORS AND NEXT YEARS BUDGET
Assessed property values began increasing over the recent two years moving from $454 million in 2021 to $474 million in 2022. The City’s revenue base has slowly increased over the past several years and are now nearly at the same level as it was in FY 2008-2009.

The local economy continued to improve during the fiscal year, however the effects of the pandemic are still being felt. Due to the age of the infrastructure system for its water and sewer services, the City expects to continue making significant investments in the upgrading of those systems.

The City continued to review and update various fees in fiscal year 2021-22. The City’s development impact fees were updated in 2010-2011. Fee adjustments are necessary to ensure that the costs of providing services are matched closer to the fee revenues charged for providing these services.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City Finance Department, 9955 Live Oak Blvd, Live Oak, California 95953, (530) 695-2112. 69 13
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70 See Notes to Financial Statements 14
City of Live Oak, California
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
Assets
Current assets
Cash and cash equivalents $ 7,022,531 $ 6,070,463 $ 13,092,994 Receivables
Accounts 48,518 552,460 600,978
Accrued interest 10,255 6,354 16,609
Leases 112,299 - 112,299
Notes and loans 18,470,922 - 18,470,922
Internal balances 765,967 (765,967) - Prepaid items 50,689 4,583 55,272 Due from other governments 384,333 - 384,333
Total current assets 26,865,514 5,867,893 32,733,407
Noncurrent assets
Net OPEB asset 183,823 15,158 198,981
Capital assets not being depreciated 9,941,366 1,303,909 11,245,275 Capital assets, net of accumulated depreciation 18,893,788 32,730,558 51,624,346 Total noncurrent assets 29,018,977 34,049,625 63,068,602 Total assets 55,884,491 39,917,518 95,802,009
Deferred Outflows of Resources
Deferred outflows related to pensions 242,150 266,889 509,039 Deferred outflows related to OPEB 18,508 804 19,312
Total deferred outflows of resources 260,658 267,693 528,351 Liabilities
Current liabilities
Accounts payable 385,902 190,011 575,913
Retention payable - - - Due to other governments 15,286 - 15,286 Salaries and benefits payable 46,082 41,456 87,538
Deposits payable 188,110 3,999 192,109
Unearned revenues 820,801 - 820,801
Accrued interest payable 3,752 34,850 38,602
Compensated absences 19,227 40,524 59,751
Lease liability 13,475 7,662 21,137
Bonds and notes 134,039 261,750 395,789
Total current liabilities 1,626,674 580,252 2,206,926
Primary Government
71 See Notes to Financial Statements 15
City of Live Oak, California
Statement of Net Position (Continued)
June 30, 2022
Governmental Business-type
Activities Activities Total
Primary Government
Noncurrent liabilities
Compensated absences 65,868 59,417 125,285
Lease liability 18,391 7,248 25,639
Bonds and notes 223,991 5,600,409 5,824,400
Net pension liability 494,238 544,733 1,038,971
Total noncurrent liabilities 802,488 6,211,807 7,014,295 Total liabilities 2,429,162 6,792,059 9,221,221
Deferred Inflows of Resources
Lease revenues 113,155 - 113,155
Deferred inflows related to pensions 448,911 494,775 943,686 Deferred inflows related to OPEB 66,933 5,258 72,191
Total deferred inflows of resources 628,999 500,033 1,129,032 Net Position
Net investment in capital assets 28,551,024 28,157,398 56,708,422 Restricted for
Public safety 1,628,433 - 1,628,433
Public ways and facilities 2,651,905 - 2,651,905
Community development 18,374,525 - 18,374,525
Cuture and recreation 573,256 - 573,256
Unrestricted 1,307,845 4,735,721 6,043,566
Total Net Position $ 53,086,988 $ 32,893,119 $ 85,980,107

72 See Notes to Financial Statements 16
City of Live Oak, California
Statement of Activities
Year Ended June 30, 2022
Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Governmental Activities:

General government $ 931,014 $ 402,145 $ 673,430 $ - $ 1,075,575 Public safety 2,517,012 6,607 69,947 - 76,554
Community development 1,243,057 - 399,694 - 399,694
Culture and recreation 1,207,729 38,968 - - 38,968
Public ways and facilities 52,895 500,019 - 57,965 557,984 Interest on long-term debt 31,899 - - - - Total governmental activities 5,983,606 947,739 1,143,071 57,965 2,148,775 Business-type activities
Water 1,770,843 799,208 123,864 - 923,072
Sewer 3,085,361 2,436,477 - - 2,436,477
Water connection - 448,210 - - 448,210
Sewer connection - 482,350 - - 482,350
Total business-type activities 4,856,204 4,166,245 123,864 - 4,290,109 Total primary government $ 10,839,810 $ 5,113,984 $ 1,266,935 $ 57,965 $ 6,438,884 General revenues:

Taxes:

Property taxes
Business priviledge
Public utility
Transient occupancy tax
Unrestricted grants and contributions
Investment income (loss)
Miscalleneous
Total general revenues
Change in Net Position
Net Position - Beginning, as restated
Net Position - End of Year
Program Revenues
73 See Notes to Financial Statements 17
City of Live Oak, California
Statement of Activities (Continued)
Year Ended June 30, 2022
Governmental Business-type
Activities Activities
$ 144,561 $ - $ 144,561
(2,440,458) - (2,440,458)
(843,363) (843,363)
(1,168,761) (1,168,761)
505,089 505,089
(31,899) (31,899)
(3,834,831) - (3,834,831)
- (847,771) (847,771)
- (648,884) (648,884)
- 448,210 448,210
- 482,350 482,350
- (566,095) (566,095)
(3,834,831) (566,095) (4,400,926)
1,843,633 - 1,843,633
520,544 - 520,544
284,861 - 284,861
745,456 - 745,456
415,704 - 415,704
358,364 (30,926) 327,438
306,961 - 306,961
4,475,523 (30,926) 4,444,597
640,692 (597,021) 43,671
52,446,296 33,490,140 85,936,436
$ 53,086,988 $ 32,893,119 $ 85,980,107
Net (Expense) Revenue and Changes in Net Position
Total
74 See Notes to Financial Statements 18
City of Live Oak, California
Balance Sheet
June 30, 2022
General Program American Rescue
Fund Income Plan Act
Assets
Cash and cash equivalents $ 1,210,025 $ 295,824 $ 406,288 Cash & investments with fiscal agent - restricted - - - Receivables:

Accounts 48,518 - - Accrued interest 4,661 320 - Leases 112,299 - - Notes and loans 108,158 12,651,954 - Due from other funds 2,932,068 - - Prepaid items 10,143 - 40,546 Due from other governments 273,504 - - Total assets $ 4,699,376 $ 12,948,098 $ 446,834 Liabilities, deferred inflows of resources, and fund balances Liabilities
Accounts payable $ 305,663 $ - $ - Due to other governments 15,286 - - Salaries and benefits payable 41,181 - - Deposits payable 4,974 - - Due to other funds - - - Unearned revenues - - 446,834 Total liabilities 367,104 - 446,834
Deferred inflows of resources
Unavailable revenues 150,665 - - Lease revenues 113,155 Deferred loan payments 108,158 12,651,954 - Total deferred inflows of resources 371,978 12,651,954 - Fund balances Nonspendable 10,143 - - Restricted - 296,144 - Committed 2,599,487 - - Unassigned (deficit) 1,350,664 - - Total fund balances 3,960,294 296,144 - Total liabilities, deferred inflows of resources and fund balances $ 4,699,376 $ 12,948,098 $ 446,834 Special Revenue Funds
75 See Notes to Financial Statements 19
City of Live Oak, California
Balance Sheet (Continued)
June 30, 2022
Special Capital Projects
Revenue Fund Fund Total
Capital Non-major Total
Improvement Governmental Governmental
16-HOME-11532 Project Funds Funds
$ - $ - $ 5,110,394 $ 7,022,531
- - - -
- - - 48,518
- - 5,274 10,255
- - - 112,299
4,893,534 - 817,276 18,470,922
- - - 2,932,068
- - - 50,689
- - 110,829 384,333
$ 4,893,534 $ - $ 6,043,773 $ 29,031,615
$ - $ 30,652 $ 49,587 $ 385,902
- - - 15,286
- - 4,901 46,082
- - 183,136 188,110
2,028 401,730 1,762,343 2,166,101
- - 373,967 820,801
2,028 432,382 2,373,934 3,622,282
- - 71,224 221,889
113,155
4,893,534 - 817,276 18,470,922
4,893,534 - 888,500 18,805,966
- - - 10,143
- - 4,572,136 4,868,280
- - - 2,599,487
(2,028) (432,382) (1,790,797) (874,543)
(2,028) (432,382) 2,781,339 6,603,367
$ 4,893,534 $ - $ 6,043,773 $ 29,031,615
76 See Notes to Financial Statements 20
City of Live Oak, California
Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Position June 30, 2022
Fund balances of governmental funds $ 6,603,367
Amounts reported for governmental activities in the statement of net position are different because:

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

Capital assets, non depreciable 9,941,366
Capital assets, net of depreciation 18,893,788
Liabilities that are not due and payable in the current period and, therefore, are not reported in the governmental funds. These liabilities consist of:

Bonds and notes payable (358,030)
Leases (31,866)
Compensated absences (85,095)
Interest (3,752)
Some other assets are not financial resources and therefore, are not reported in the governmental funds. Unavailable revenue is shown in the governmental statement, because it will not be available as a current financial resource. Since this revenue is earned, it is recognized in the government-wide statements. 18,692,811 Pension and OPEB related items are not reported in the governmental fund financial financial statements since they are not related to current financial resources, with the exception of contributions to the pension and OPEB plans, which are recorded as expenditures in the governmental funds and deferred outflows of resources in the statement of net position. The pension and related items included in governmental activities (excluding internal service fund portions) consist of:

Net OPEB asset 183,823
Deferred outflows related to OPEB 18,508
Deferred inflows related to OPEB (66,933)
Net Pension liability (494,238)
Deferred outflows related to OPEB 242,150
Deferred inflows related to OPEB (448,911)
Net Position of Governmental Activities $ 53,086,988
77 21
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78 See Notes to Financial Statements 22
City of Live Oak, California
Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2022
General Program American Rescue
Fund Income Plan Act
Revenues
Taxes and assessments $ 2,869,646 $ - $ - Licenses and permits 393,720 - - Fines and forfeitures 1,363 - - Use of money and property 64,248 (1,904) - Intergovernmental 21,307 245,829 619,136
Charges for services 51,451 - - Other revenues 302,245 - - Total revenues 3,703,980 243,925 619,136 Expenditures
Current:

General government 673,645 - - Public safety 2,351,008 - - Public ways and facilities 317,265 - - Culture and recreation 879,404 - - Community development 39,726 565 - Capital outlay 110,801 - 8,136 Debt service:

Principal 144,525 - -
Interest 33,065 - - Total expenditures 4,549,439 565 8,136 Excess (deficiency) of revenues
over (under) expenditures (845,459) 243,360 611,000
Other financing sources (uses)
Transfers in 611,000 - - Transfers out - - (611,000)
Total other financing sources (uses) 611,000 - (611,000) Net change in fund balances (234,459) 243,360 - Fund balances (deficit), beginning of year, as restated 4,194,753 52,784 - Fund balances (deficit), end of year $ 3,960,294 $ 296,144 $ - Special Revenue Funds
79 See Notes to Financial Statements 23
City of Live Oak, California
Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Year Ended June 30, 2022
Special Capital Projects
Revenue Fund Fund Total
Capital Non-major Total
Improvement Governmental Governmental
16-HOME-11532 Project Funds Funds
$ - $ - $ 9,255 $ 2,878,901
- - 1,000,442 1,394,162
- - 6,254 7,617
- - (17,858) 44,486
- - 569,328 1,455,600
- - 9,783 61,234
- - 71,935 374,180
- - 1,649,139 6,216,180
- - 3,494 677,139
- - 21,883 2,372,891
- - 387,234 704,499
- - 14,863 894,267
- - 9,311 49,602
34 108,231 77,437 304,639
- - - 144,525
- - - 33,065
34 108,231 514,222 5,180,627
(34) (108,231) 1,134,917 1,035,553
- - - 611,000
- - - (611,000)
- - - -
(34) (108,231) 1,134,917 1,035,553
(1,994) (324,151) 1,646,422 5,567,814
$ (2,028) $ (432,382) $ 2,781,339 $ 6,603,367
80 See Notes to Financial Statements 24
City of Live Oak, California
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2022
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets, current liabilities, and deferred inflows of resources on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.

Net Change in Fund Balances - Total Governmental Funds $ 1,035,553 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

Governmental Funds include capital outlays as expenditures. However, in the Statement of Activities the cost of those assets are allocated over their useful lives and reported as depreciation expense. This is the amount by which capital outlay exceed depreciation in the current period:

Capital outlay reported as expenditures, net of expensed items $ 274,609 Depreciation expense (1,003,563) (728,954)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. 220,359 Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces liabilities long-term liabilities in the statement of net position. This is the amount by which proceeds exceeded repayments:

Repayment of debt principal 144,525
Accrued interest expense is not recorded in the governmental funds. The following amount is the change in accrued interest. 1,166
Expense in the statement of activities that do not use current financial resources are not reported as expenditures in the funds.

Changes in the compensated absences liability (8,869)
Changes in the OPEB asset and related ratios 21,030
Changes in the pension liability and related outflows (44,118) Change in Net Position of Governmental Activities $ 640,692 81 25
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82 See Notes to Financial Statements 26
City of Live Oak, California
Statement of Net Position
June 30, 2022
Non-major
Water Sewer Enterprise Funds Total
Assets
Current:

Cash and cash equivalents $ - $ 3,847,303 $ 2,223,160 $ 6,070,463 Receivables: - - - - Accounts 88,525 463,935 - 552,460
Accrued interest - 4,102 2,252 6,354
Prepaid items 2,705 1,878 - 4,583
Due from other governments - - - - Total current assets 91,230 4,317,218 2,225,412 6,633,860 Noncurrent:

Net OPEB asset 7,579 7,579 - 15,158
Capital assets not being depreciated 32,707 822,202 449,000 1,303,909 Capital assets, net of accumulated depreciation 11,587,567 21,142,991 - 32,730,558 Total noncurrent assets 11,627,853 21,972,772 449,000 34,049,625 Total assets 11,719,083 26,289,990 2,674,412 40,683,485 Deferred outflows of resources
Deferred outflows related to pensions 92,492 174,397 - 266,889 Deferred outflows related to OPEB 402 402 - 804
Total deferred outflows of resources 92,894 174,799 - 267,693 Liabilities
Current:

Accounts payable 56,032 133,979 - 190,011
Salaries and benefits payable 17,737 23,719 - 41,456
Accrued interest payable 19,550 15,300 - 34,850
Deposits payable 1,053 2,946 - 3,999
Due to other funds 765,967 - - 765,967
Compensated absences 15,863 24,661 - 40,524
Lease liability 3,831 3,831 - 7,662
Bonds and notes 40,000 221,750 - 261,750
Total current liabilities 920,033 426,186 - 1,346,219
Noncurrent:

Compensated absences 23,259 36,158 - 59,417
Lease liability 3,624 3,624 - 7,248
Bonds and notes 880,000 4,720,409 - 5,600,409
Net pension liability 188,781 355,952 - 544,733
Total noncurrent liabilities 1,095,664 5,116,143 - 6,211,807 Total liabilities 2,015,697 5,542,329 - 7,558,026
Deferred inflows of resources
Deferred inflows related to pensions 171,468 323,307 - 494,775 Deferred inflows related to OPEB 2,629 2,629 - 5,258
Total deferred inflows of resources 174,097 325,936 - 500,033 Net position
Net investment in capital assets 10,692,819 17,015,579 449,000 28,157,398 Restricted for capital projects - - - - Unrestricted (1,070,636) 3,580,945 2,225,412 4,735,721 Total net position $ 9,622,183 $ 20,596,524 $ 2,674,412 $ 32,893,119 Business-type activities
83 See Notes to Financial Statements 27
City of Live Oak, California
Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended June 30, 2022
Non-major
Water Sewer Enterprise Funds Total
Operating revenues
Sales and service charges $ 799,208 $ 2,436,477 $ 930,560 $ 4,166,245 Total operating revenues 799,208 2,436,477 930,560 4,166,245 Operating expenses
Salaries and benefits 570,943 871,590 - 1,442,533
Administration 34,221 55,204 - 89,425
Utilities 280,723 221,008 - 501,731
Insurance 44,164 121,070 - 165,234
Supplies 76,874 64,076 - 140,950
Repair and extension 67,336 282,926 - 350,262
Professional services 120,710 245,499 - 366,209
Depreciation expense 424,431 1,112,677 - 1,537,108
Other expense 67,898 36,443 - 104,341
Total operating expenses 1,687,300 3,010,493 - 4,697,793 Operating income (loss) (888,092) (574,016) 930,560 (531,548) Nonoperating revenues (expenses)
Use of money and property - (19,643) (11,283) (30,926)
Intergovernmental 123,864 - - 123,864
Interest expense (39,249) (74,868) - (114,117)
Total nonoperating
revenues (expenses) 84,615 (94,511) (11,283) (21,179)
Income before transfers and
capital contributions (803,477) (668,527) 919,277 (552,727) Other financing sources (uses)
Capital contributions (44,294) - - (44,294)
Total other financing
sources (uses) (44,294) - - (44,294)
Changes in net position (847,771) (668,527) 919,277 (597,021) Net position at beginning of year, as restated 10,469,954 21,265,051 1,755,135 33,490,140 Net position at end of year $ 9,622,183 $ 20,596,524 $ 2,674,412 $ 32,893,119 Business-type activities
84 See Notes to Financial Statements 28
City of Live Oak, California
Statement of Cash Flows
Year Ended June 30, 2022
Non-major
Water Sewer Enterprise Funds Total
Cash flows from operating activities:

Cash received from customers and users $ 844,121 $ 2,324,982 $ 930,560 $ 4,099,663 Cash payments to suppliers for goods and services (710,311) (1,509,656) - (2,219,967) Cash payments to employees for services (550,259) (922,934) - (1,473,193) Cash flows provided by (used by) operating activities (416,449) (107,608) 930,560 406,503 Cash flows from noncapital financing activities:

Intergovernmental 123,864 - - 123,864
Cash borrowed from other funds 376,486 - - 376,486
Cash flows provided by noncapital financing activities 500,350 - - 500,350 Cash flows from capital and related financing activities:

Acquisition and construction of capital assets - (116,339) (449,000) (565,339) Principal paid on capital debt (43,802) (223,654) - (267,456) Interest paid on capital debt (40,099) (75,506) - (115,605) Cash flows used by capital
and related financing activities (83,901) (415,499) (449,000) (948,400) Cash flows from investing activities:

Interest on investments - (21,723) (12,741) (34,464)
Net increase (decrease) in cash and cash equivalents - (544,830) 468,819 (76,011) Cash and cash equivalents at beginning of year - 4,392,133 1,754,341 6,146,474 Cash and cash equivalents at end of year $ - $ 3,847,303 $ 2,223,160 $ 6,070,463 Reconciliation of operating (loss) to cash flows
provided by (used for) operating activities:

Operating income (loss) $ (888,092) $ (574,016) $ 930,560 $ (531,548) Adjustments to reconcile operating income to net cash provided (used) by operating activities:

Depreciation and amortization 424,431 1,112,677 - 1,537,108 Pension expense 17,686 80 - 17,766
OPEB expense (795) (795) - (1,590)
Other adjustments:

Decrease (increase) in assets
Accounts receivable 44,817 (111,864) - (67,047)
Prepaid items 6,193 8,966 - 15,159
Due from other governments 150 430 - 580
Increase (decrease) in liabilities / deferred inflows of resources:

Accounts payable (24,728) (548,030) - (572,758)
Salaries and benefits payable (1,519) (3,702) - (5,221) Deposits payable 96 369 - 465
Compensated absences 5,312 8,277 - 13,589
Net cash provided (used) by
operating activities $ (416,449) $ (107,608) $ 930,560 $ 406,503 Non-cash investing, capital, and financing activities:

Non-cash contributed capital assets $ (44,294) $ - $ - $ (44,294) Business-type activities
85 29
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86 See Notes to Financial Statements 30
City of Live Oak, California
Statement of Fiduciary Net Position
June 30, 2022
PrivatePurpose Trust
Fund
Assets
Cash and cash equivalents $ 29,376
Total assets 29,376
Liabilities
Due to other governments $ 29,376
Total liabilities 29,376
Fiduciary Net Position
Restricted for:

Held in trust - Total fiduciary net position $ -
87 See Notes to Financial Statements 31
City of Live Oak, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2022
PrivatePurpose Trust
Fund
Additions
Cash collected for other governments $ - Total additions - Deductions Cash distributions to other governments - Total deductions - Changes in net position - Net position Beginning Fiduciary Net Position - Ending Fiduciary Net Position $ - 88 32
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89 33
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
Note 1 - Summary of Significant Accounting Policies
a. Reporting Entity
The City operates under a Council form of government and provides the following services: public safety, highways and streets, health and sanitation, culture-recreation, public improvements, planning and zoning, general administrative services, and water and sewer.

Generally accepted accounting principles require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an organization’s governing body and is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.

Reporting for component units on the City’s financial statements can be blended or discretely presented.

Blended component units are, although legally separate entities, in substance part of the City’s operations and, therefore, data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, would be reported in a separate column in the government-wide financial statements to emphasize that they are legally separate from the government.

For financial reporting purposes, the City’s basic financial statements include all financial activities that are controlled by or are dependent upon actions taken by the City Council. Separate financial statements for the City of Live Oak Public Improvement Corporation are not issued.

Blended component units:

City of Live Oak Public Improvement Corporation (Corporation) The Corporation, established August 18, 1987, was formed to assist the City in the financing of real or personal property for the benefit of the City of Live Oak. The Corporation is t`he lessor for the City’s Farmers Home Administration Loan, the City’s 2004 Certificates of Participation, and the City’s 2003 Certificates of Participation and makes debt service payments on behalf of the City. The City Council is the governing body of the Corporation and because its financial and operational relationship with the City is closely integrated, the Corporation’s loans payable are reported in the governmental activities, certificates of participation in the water and sewer enterprise funds and certificates of participation in the sewer enterprise fund financial statements.

Joint Agencies
The City is a participant in Small Cities Organized Risk Effort (SCORE), the purpose of which is for member-cities to share in the administrative costs of providing liability and workers’ compensation insurance. SCORE is composed of 19 member-cities and is governed by a board of directors appointed by the member-cities. Complete financial information can be obtained from the SCORE offices in San Francisco, California. The City is not financially accountable for this organization and therefore it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board.
90 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
34 The City is a participant in California Joint Powers Risk Management Authority (CJPRMA), the purpose of which is to provide excess coverage for its members. The CJPRMA is governed by a board of directors representing its member-cities. Complete financial information can be obtained from the claims administrator at 3201 Doolan Road, Suite 285, Livermore, California 94551. The City is not financially accountable for this organization and therefore it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board. b. Basis of Presentation
The statement of net position and statement of activities display information on all of the nonfiduciary activities of the City and its blended component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions and 3) capital grants and contributions. Taxes and other items not properly included among program revenues are reported instead as general revenues.

The fund financial statements provide information about the City’s funds, including blended component units. Funds are organized into three major categories: governmental, proprietary and fiduciary. The emphasis is placed on major funds within the governmental and proprietary categories; each is displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

The City reports the following major governmental funds:

The General fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as public safety, community development, and recreation and culture services.

The Program Income special revenue fund is a special revenue fund used to account for revenues and expenditures related to HOME, Community Development Block Grant (CDBG) and Economic Development Block Grant (EDBG) program income. Funding comes primarily from program income from federal grants.

The American Rescue Plan Act (ARPA) special revenue fund is used to account for revenues and expenditures related to Coronavirus State and Local Fiscal Recovery Funds (CSLFRF). 91 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
35 The 16-HOME-11532 special revenue fund is a special revenue fund used to account for HOME grant funds used for the Kristen Court Phase 2 project.

The Capital Improvement Project capital projects fund is a capital projects fund used to account for revenues and expenditures for capital projects.

The City reports the following proprietary funds:

The Water fund is an enterprise fund used to account for activity related to providing customers with water service and billing for services provided by the City.

The Sewer fund is an enterprise fund used to account for activity related to providing customers with sewer service and billing for services provided by the City.

The City reports the following additional fund types:

The Private Purpose Trust fund accounts for property held under other trust arrangement under which principal and income benefit individuals, private organizations, or other governments.

Private purpose trust funds include the Successor Agency to the Redevelopment Agency of the City of Live Oak.
c. Basis of Accounting and Measurement Focus
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales tax, grants, entitlements, and donations.

Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain state and federal grants and charges for services are considered susceptible to accrual and are recognized as revenue when their receipt occurs within sixty days after the end of the fiscal year. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences, and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in the various functions of the governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the 92 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
36 enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Fiduciary funds include trust funds and custodial funds. The City’s private purpose trust fund is recorded using the economic resources measurement focus and the accrual basis of accounting. d. Noncurrent governmental assets/liabilities
Non-current governmental assets and liabilities, such as capital assets and long-term liabilities, are reported in the governmental activities column in the government-wide statement of net position. Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments are discounted based on a borrowing rate determined by the City.
e. Cash and cash equivalents
For purposes of the accompanying Statement of Cash Flows, the City considers all highly liquid investments with an original maturity of three months or less and amounts held in the City’s investment pool to be cash and cash equivalents.
f. Investments
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.

Investment transactions are recorded on the trade date. The fair value of investments is determined annually. Investments in nonparticipating interest-earning investment contracts are reported at cost; short term investments are reported at amortized cost, investments in Local Agency Investment Fund, an external pool, are reported at amortized cost which approximates fair value, and the fair value of all other investments are obtained by using quotations obtained from independent published sources or by the safekeeping institution. The fair value represents the amount the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller.

Income from pooled investments is allocated to the individual funds based on the fund or participant’s average daily cash balance at quarter end in relation to the total pool investments. Income from nonpooled investments is recorded based on the specific investments held by the fund. g. Receivables
Receivables for governmental activities consist mainly of accounts, interest, taxes, intergovernmental, and notes and loans. Management believes its receivables are fully collectible and, accordingly, no allowance for doubtful accounts is required.
93 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
37 Receivables for enterprise funds consist mainly of user fees and interest. Management records an allowance for doubtful accounts based on actual customer balances that the City Council has approved to be written off. At June 30, 2021, the allowance for doubtful accounts was $0.00. h. Prepaid items
Payments made for services that will benefit periods beyond June 30, 2021, are recorded as prepaid items under both the accrual and modified accrual basis of accounting. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. The City records both prepaid costs for expenditures/expenses paid for services that will benefit future periods and prepaid insurance for the net investment in a joint powers self-insurance agency. i. Capital assets
Capital assets, including public domain (infrastructure such as roads, bridges, sidewalks, sewer and similar items) are defined by the City as assets with a cost greater than $5,000 ($10,000 for enterprise funds) for assets other than infrastructure and $75,000 for infrastructure and an estimated useful life of more than two years. Capital assets are recorded at historical cost or estimated historical cost if actual historical cost is unavailable. Contributed capital assets are recorded at their acquisition value at the date of donation.

Right to use leased assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right to use leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to please the lease asset into services.

Capital used in operations are depreciated using the straight-line method over the assets estimated useful life in the government-wide financial statements. Right to use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight-line method. The range of estimated useful lives by type of asset is as follows:

Useful Lives Years
Equipment 3 - 25
Buildings and Improvements 5 - 50
Infrastructure 20 - 75
Leased assets 3 - 25
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. 94 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
38 j. Lease receivables
Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lease during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee. k. Property tax
Sutter County assesses properties, bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.

Property taxes are levied on a fiscal year (July 1 - June 30). The secured property tax assessments are due on November 1 and February 1 and become delinquent after December 10 and April 10, respectively. The unsecured property tax assessments are due on August 1 and become delinquent after August 31. Property taxes become a lien on the property effective January 1 of the preceding year.

The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.
l. Interfund
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.

Loans reported as receivables and payables are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a non-spendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide statement of activities.

Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.

All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation. 95 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
39 m. Unearned revenues
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned. When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue. n. Compensated Absences
Compensated absences comprise unused vacation leave, vested sick pay and certain compensated time off, which is paid at the date of termination from City employment. All compensated pay is accrued when incurred in the government-wide and proprietary fund financial statements. For all governmental funds, termination pay-outs expected to be paid out of current financial resources are recorded as fund liabilities.

Compensated absences recorded within Governmental Activities are expected to be primarily liquidated by the General Fund as they become due. Amounts recorded within Business-type Activities are expected to be liquidated from the both the Water and Sewer funds, as appropriate. o. 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 (CalPERS) plan (Plan) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. 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. The General Fund is used to liquidate the government activities liability.
p. Deferred Outflows / Inflows of Resources
In addition to assets, the statement of financial 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 future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has two items which qualify for reporting in this category. These items relate to outflows from changes in the net pension liability and the net OPEB asset and are reportable on the Statement of Net Position.

In addition to liabilities, the statement of financial 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 future periods and so will not be recognized as an inflow of resources (revenue) until that time. The government has four types of items which qualify for reporting in this category. One item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for receivables that have not been received within the period of availability. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second and third items relate to inflows from changes in the net pension liability and net OPEB asset and are reportable on the Statement of Net Position. The fourth item is deferred inflows related to leases where the City is the lessor and is reported 96 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
40 in the governmental funds balance sheet and statement of net position. The deferred inflow of resources related to leases are recognized as an inflow of resources (revenue) on a straight-line basis over the lease term.
q. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. r. Other Postemployment Benefits
For purposes of measuring the net OPEB asset, 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), the assets of which are held by the California Employers' Retiree Benefit Trust (CERBT), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. 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, the effect of interfund activity has been removed from the government-wide financial statements. Net interfund activity and balances between governmental activities and business-type activities are shown in the Statement of Net Position as Internal Balances. The "doubling-up" effect of internal service fund activity has been removed by adjusting the expenses shown in the various functions within the Statement of Activities. The General Fund is used to liquidate the government activities liability. s. Net Position
Net position is the excess of all the City's assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three categories. These categories apply only to net position which is determined only for proprietary funds and at the government-wide level, and are described below:

Net investment in capital assets - describes the portion of net position which is represented by the current net book value of the capital assets, less the outstanding balance of debt issued to finance these assets.

Restricted net position - amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Unrestricted net position - all other net position that does not meet the definition of “restricted” or “net investment in capital assets.”
97 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
41 Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $23,228,119 of restricted net position, of which $5,703,557 is restricted by enabling legislation.

Net Position Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted net position are available, it is considered that restricted resources are used first, followed by the unrestricted resources. t. Fund Balance
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2022, fund balance for governmental funds is made up of the following:

Nonspendable fund balance - amounts that cannot be spent because they are either: (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories and prepaid amounts.

Restricted fund balance - amounts with constraints placed on their use that are either: (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed fund balance - amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance commit fund balance. Once adopted, the limitation imposed remains in place until a similar action is taken to remove or revise the limitation. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.

Assigned fund balance - amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision-making, or by a body or an official designated for that purpose.

Unassigned fund balance - the residual classification for the City’s General fund that includes all amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.
98 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
42 Fund Balance Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance), a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted fund balance are available, it is considered that restricted fund balance is depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. u. New GASB Pronouncements
During the fiscal year ended June 30, 2022, the City implemented the following GASB standards:

GASB Statement No. 87 – Leases. As of July 1, 2021, the City adopted GASB Statement No. 87, Leases.

The implementation of this standard establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The standard requires recognition of certain right to use leased assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provision of the contract. The standard also requires lessors to recognize a lease receivable and deferred inflow of resources. As a result of implementing this standard the City recognized a lease receivable and deferred inflow of resources in the amount of $169,732 as of July 1, 2021. The City also recognized a right to use asset and lease liability of $67,664 as of July 1, 2021. As a result of these adjustments there was no effect on beginning net position. The additional disclosures required by this standard are included in Note 8.

GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to simplify accounting for certain interest costs. This Statement is effective for reporting periods beginning after December 15, 2020. The City has determined that this Statement does not have a material impact on the financial statements.

GASB Statement No. 92 – In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance comparability in accounting and financial reporting to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The Statement is effective for reporting periods beginning after June 15, 2021. The City has determined that this Statement does not have a material impact on the financial statements.

GASB Statement No. 93 – In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is to address the accounting and financial reporting implications that result from the replacement of an IBOR. The Statement is effective for reporting periods beginning after June 15, 2021. The City has determined that this Statement does not have a material impact on the financial statements.
99 City of Live Oak, California
Notes to Financial Statements
June 30, 2022
43 GASB Statement No. 97 – In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statement No. 14 and No. 84 and A Supersession of GASB Statement No. 32. The objective of this Statement is (1) to increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The Statement is effective for reporting periods beginning after June 15, 2021. The City has determined that this Statement does not have a material impact on the financial statements.

Standards applicable to future periods:

The City has not determined the effect on the financial statements.

GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. The City has not determined the effect on the financial statements.

GASB Statement No. 94 – In March 2020, the GASB issued Statement No. 94, Public-Private and PublicPublic Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the effect on the financial statements.

GASB Statement No. 96 – In May 2020, the GASB issued Statement No. 96, Subscription-based Information Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the effect on the financial statements. 100
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
44 GASB Statement No. 99 – In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objective of this Statement is to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. This Statement is effective for reporting periods beginning after June 15, 2022.

The City has not determined the effect on the financial statements.

GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes for Error Corrections – an amendment of GASB Statement No. 62. The 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. This Statement is effective for reporting periods beginning after June 15, 2023.

The City has not determined the effect on the financial statements.

GASB Statement No. 101 – In June 2022, GASB 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. This Statement is effective for reporting periods beginning after December 15, 2023. The City has not determined the effect on the financial statements.

Note 2 - Stewardship, Compliance, and Accountability
The following nonmajor special revenue funds had a deficit fund balance:

Amount
14-HOME-9274 $ 3,945
Fire Benefit Assessment 17,318
Mello Roos CFD 2004-1 Street Lighting 53,462
13-CDBG-8933 Skate Park 430,713
CDBG PI Waiver Water Main 246,000
State Grants 1,039,359
Fund
101
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
45 Note 3 - Cash and Investments
a. Financial Statement presentation
At June 30, 2022, the city’s cash and investments are reported in the financial statements as follows:

City cash and investments in primary government
Governmental activities $ 7,022,531
Business-type activities 6,070,463
Total City cash and investments in primary government 13,092,994 Cash and investments in Fiduciary Funds (separate statement) Cash and investments 29,376
Total cash and investments $ 13,122,370
As of June 30, 2022, the City’s cash and investments consisted of the following:

Cash on hand $ 1,020
Deposits with financial institutions 3,755,314
Investments:

Certificate of deposit $ 31,000
Local Agency Investment Fund 8,755,441
Money Market Funds 579,595
9,366,036
Total cash and investments $ 13,122,370
b. Cash
At year end, the carrying amount of the City’s cash deposits (including amount in checking accounts and money market accounts) was $3,755,314 and the bank balance was $4,396,614. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit.

In addition, the City had cash on hand of $1,020.

Custodial Credit Risk for Deposits - Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The City’s investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 105 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits more than the $250,000 insured amount are collateralized.
102
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
46 c. Investments
Pursuant to Section 53646 of the Government Code, the City prepares an investment policy annually and presents it to the City Council for review and approval. The investment policy provides the basis for the management of a prudent, conservative investment program. Funds are invested to provide the maximum security of principal with secondary emphasis on achieving the highest return, while meeting daily cash flow needs. All investments are made in accordance with the Government Code and, in general, the investment policy is more restrictive than state law.

Under the provisions of the City’s investment policy the City may invest or deposit in the following:

Maximum Maximum Minimum
Maximum Percentage Investment In Credit
Authorized Investment Type Maturity of Portfolio One Issuer Quality U.S. government obligations 5 years None None None
U.S. government agencies 5 years None None None
Repurchase Agreements 1 year None None None
Banker's Acceptances 180 Days 40% 30% None
Commercial Paper 270 Days 30% 5% A-1 or
equivalent
Medium-Term Notes 5 years 30% None A
Certificates of deposit 5 years None None None
Negotiable Certificates of Deposit 5 years 30% None AA
Local Agency Investment Fund N/A None $75 million None
California Asset Management Program N/A None None None
Money Market Mutual Funds N/A 20% 10% Highest Rating
Fair Value Measurements - The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a threetiered fair value hierarchy, as follows:

Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs.

When quoted prices in active market are available, investments are classified within Level 1. For investments classified within Level 2, the City’s custodians generally use asset market prices derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, brokerdealer quotes and matrix pricing. The City does not have any investments classified with Level 3.

The City’s position in external investment pools is, in itself, regarded as a type of investment, and looking through to the underlying investments of the pool is not appropriate. Therefore, the City’s investment in external investment pools is not recognized in the three-tiered fair value hierarchy described above. 103
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
47 At June 30, 2022, the City had the following recurring fair value measurements:

Investments by Fair Value Level Level 2 Total
Certificate of Deposit $ 31,000 $ 31,000
Total Investments at Fair Value $ 31,000 31,000
Investments Measured at Amortized Cost
Money Market Mutual Fund 579,595
Investments Exempt from Fair Value Hierarchy
Local Agency Investment Fund 8,755,441
Total Cash and investments $ 9,366,036
Interest Rate Risk - Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To limit exposure to fair value losses resulting from increases in interest rates, the City’s investment policy limits investment maturities to a term appropriate to the need for funds so as to permit the City to meet all projected obligations. Any investments that mature more than five years from the date of purchase cannot occur without prior approval of the City Council.

At June 30, 2022, the City had the following investments, all of which had a maturity of five (5) years or less:
12 Months
or less Total
Cash and Investments in City Treasury
Certificate of deposit $ 31,000 $ 31,000
Local Agency Investment Fund (LAIF) 8,755,441 8,755,441 Money market mutual funds 579,595 579,595
Total Investments $ 9,366,036 $ 9,366,036
Investment Type
Credit Risk - 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 a nationally recognized statistical rating organization. The City’s investment policy sets specific parameters by type of investment to be met at the time of purchase. As of June 30, 2022, the City investments were all pooled with the State of California Local Agency Investment Fund which is not rated by a nationally recognized statistical rating organization.

Custodial Credit Risk - Custodial credit risk for investments is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that 104
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
48 are in the possession of an outside party. To mitigate the custodial credit risk the City’s investment policy requires that all of its managed investments be held in safekeeping by a third-party bank trust department.

Concentration of Credit Risk - Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. The City’s investment policy contains limitations on the amount that can be invested in any one issuer. As of June 30, 2022, the City investments were mostly pooled with the State of California Local Agency Investment Fund which holds a diversified portfolio of high-quality investments.
a. Investment in external investment pools
The City of Live Oak maintains an investment in the State of California Local Agency Investment Fund (LAIF), managed by the State Treasurer. This fund is not registered with the Securities and Exchange Commission as an investment company but is required to invest according to California State Code. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2022, the City’s investment in LAIF valued at amortized cost was $8,844,941 and is the same as the value of the pool shares. There are no restrictions on withdrawal of funds. The total amount invested by all public agencies in LAIF on that day was $179.1 billion.
105
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
49 Note 4 - Capital assets
Capital asset activity for the year ended June 30, 2022, was as follows:
(Restated)
Balance at
June 30, 2021 Additions Retirements
Transfers/
Adjustments
Balance at
June 30, 2022
Governmental activities
Capital assets not being depreciated or
amortized
Land $ 6,584,996 $ - $ - $ - $ 6,584,996
Construction in progress 3,225,245 131,125 - - 3,356,370 Total capital assets not being depreciated
or amortized 9,810,241 131,125 - - 9,941,366
Capital assets being depreciated and
amortized
Right to use asset - Equipment 45,150 - - - 45,150
Buildings and improvements 7,561,067 - - - 7,561,067
Equipment 4,687,200 143,484 - - 4,830,684
Infrastructure 22,199,263 - - - 22,199,263
Total capital assets being depreciated
and amortized 34,492,680 143,484 - - 34,636,164
Less accumulated depreciation and
amortization for:

Right to use asset - Equipment - (13,545) (13,545)
Buildings and improvements (2,092,288) (211,664) - - (2,303,952) Equipment (3,394,675) (245,571) - - (3,640,246)
Infrastructure (9,251,850) (532,783) - - (9,784,633)
Total accumulated depreciation
and amortization (14,738,813) (1,003,563) - - (15,742,376) Net capital assets being depreciated
and amortized 19,753,867 (860,079) - - 18,893,788
Governmental activities capital assets, net $ 29,564,108 $ (728,954) $ - $ - $ 28,835,154 Depreciation and amortization expense was charged to governmental functions as follows:

Governmental Activities
General government $ 26,195
Public safety 144,121
Community development 531,369
Culture and recreation 299,922
Public ways and facilities 1,956
Total depreciation and amortization
- governmental activities $ 1,003,563
106
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
50 Balance at
June 30, 2021 Additions Retirements
Transfers/
Adjustments
Balance at
June 30, 2022
Business-type activities
Capital assets not being depreciated or
amortized
Land $ 233,241 $ - $ - $ - $ 233,241
Construction in progress 5,097,514 116,339 (44,298) (4,098,887) 1,070,668 Total capital assets not being depreciated
or amortized 5,330,755 116,339 (44,298) (4,098,887) 1,303,909 Capital assets being depreciated and
amortized
Right to use asset - Equipment 22,514 - - - 22,514
Buildings and improvements 38,641 - - - 38,641
Equipment 1,597,191 - - - 1,597,191
Infrastructure 49,259,827 4,098,887 - - 53,358,714
Total capital assets being depreciated
and amortized 50,918,173 4,098,887 - - 55,017,060
Less accumulated depreciation and
amortization for:

Right to use asset - Equipment - (7,692) - - (7,692)
Buildings and improvements (38,641) - - - (38,641)
Equipment (1,422,647) (32,546) - - (1,455,193)
Infrastructure (19,288,106) (1,496,870) - - (20,784,976) Total accumulated depreciation
and amortization (20,749,394) (1,537,108) - - (22,286,502) Net capital assets being depreciated
and amortized 30,168,779 2,561,779 - - 32,730,558
Business-type activities capital assets, net $ 35,499,534 $ 2,678,118 $ (44,298) $ (4,098,887) $ 34,034,467 Depreciation and amortization expense was charged to business-type activities as follows:

Business-Type Activities
Water utility $ 424,431
Sewer utility 1,112,677
Total depreciation and amortization
- business-type activities $ 1,537,108
107
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
51 Construction in progress for governmental activities and business-type activities relate primarily to work performed on the following projects:

Balance
Governmental activities:

Parks and recreation
Rec trail segment 4 $ 97,389
City signs 113,911
Total parks and recreation 211,300
Streets & roads:

Underground utility 2,942,281
Pennington road project 202,789
Total streets & roads 3,145,070
Total governmental activities $ 3,356,370
Business-type activities
Sewer enterprise:

Underground utility - Rule 20A $ 684,647
P. Street lift station 386,021
Total sewer enterprise 1,070,668
Total governmental activities $ 1,070,668
108
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
52 Note 5 - Interfund Transactions
Interfund receivables/payables represent cash transfers between funds as of June 30, 2022. These are necessary to cover short term timing differences between cash outflows and inflows for specific funds to be reimbursed to the general fund. The following governmental interfund receivables/payables are eliminated in the government-wide financial statements:

Amount
Due to other funds Due from other funds Transferred
16-HOME-11532 General Fund $ 2,028
Capital improvement project General Fund 401,730
Nonmajor Governmental Funds
14-HOME-9274 General Fund 3,945
Fire benefit assessment General Fund 17,318
Mello Roos CFD 2004-1 street lighting General Fund 51,234 13-CDBG-8933 skate park General Fund 430,713
CDBG PI Waiver Water Main General Fund 246,000
State Grants General Fund 1,013,133
1,762,343
Enterprise funds
Water fund General Fund 765,967
Total Interfund Transfers $ 2,932,068
Transfers made during the year ended June 30, 2022, were as follows:

Transfers In
General Fund
American Rescue Plan Act $ 611,000
Total $ 611,000
Transfers Out
Transfers from the American Rescue Plan Act special revenue fund are the reimburse the General Fund for expenditures.
109
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
53 Note 6 - Loans Receivable
At June 30, 2022, the City had the following loans receivable, including principal and accrued interest:

Loan Type Principal Interest Total
CDBG Housing Rehab $ 426,252 $ 114,223 $ 540,475
CDBG First Time Home Buyer 388,000 203,350 591,350
CDBG Public Improvements 680,800 - 680,800
EDBG Business Assistance 22,986 9 22,995
HOME Owner Occupied Rehab 1,490,073 153,066 1,643,139
HOME First Time Home Buyer 142,000 66,262 208,262
HOME Housing New Construction 12,000,000 1,683,298 13,683,298 HOME Program Income First
Time Home Buyer 127,000 61,327 188,327
HOME Program Income Owner - Occupied Rehab 55,483 16,480 71,963 City Loan First Time Home Buyer 75,000 33,158 108,158
Impact Fees Housing Construction 667,349 64,806 732,155 Total payments due $ 16,074,943 $ 2,395,979 $ 18,470,922 A total of $18,470,922 was recorded as loans receivable at June 30, 2022. These represent low interest notes principal portion to finance multi-family and single-family construction and rehabilitation projects, home buyer assistance for low income families, as well as business start-up costs. Loan terms are 15 to 55 years with interest rates at 0.00 to 5.00 percent. The primary source of funding for these loans comes from grants from the federal Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) programs. The CDBG and HOME grants contain monitoring requirements to ensure grant compliance. These requirements are reflected in the loan agreements. Due to the terms of the loans, offsetting deferred inflows of resources of $18,470,922 have been established in the Governmental Funds Balance Sheet for the housing and business loan principal and interest payments.
110
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Notes to Financial Statements
June 30, 2022
54 Note 7 - Long-Term Debt
Current Year Transactions and Balances
The following is a summary of changes in long-term liabilities as of June 30, 2022:
(Restated)
Balance Balance Due Within
Type of Indebtedness June 30, 2021 Retirements June 30, 2022 One Year Governmental activities:

Direct borrowings:

City of Yuba City Loan $ 158,648 $ (52,882) $ 105,766 $ 52,883 Financed purchase: fire engine 330,623 (78,359) 252,264 81,156 Lease liability 45,150 (13,284) 31,866 13,475
Total governmental activities $ 534,421 $ (144,525) $ 389,896 $ 147,514 Business-type activities:

Direct borrowings and private
placements:

State Department of Water
Resources revolving fund loan $ 4,412,011 $ (189,852) $ 4,222,159 $ 191,750 Certificates of participation 1,710,000 (70,000) 1,640,000 70,000 Lease liability 22,514 (7,604) 14,910 7,662
Total business-type activities $ 6,144,525 $ (267,456) $ 5,877,069 $ 269,412 For business-type activities, all debt is accounted for in the proprietary fund where the liability occurred.

Individual issues of debt payable outstanding at June 30, 2022, are as follows:
a. Governmental Activities
The City of Yuba City loan dated, August 2012 in the amount of $528,825 payable in semi-annual installments of $26,156 to $26,728 with an interest rate of 0.228% and a maturity of September 1, 2023. The loan was used to provide funding to the Sutter Animal Services Authority. In the event of default, the City will forfeit all rights and interest in the animal control facility. Total outstanding as of June 30, 2022 is $105,766. Debt service requirements for the loan are as follows:

For the Year Ending June 30, Principal Interest Total
$ 52,883 $ 211 $ 53,094
52,883 90 52,973
Total payments due $ 105,766 $ 301 $ 106,067
Loans
2023
2024
The City entered into a lease purchase agreement with US Bancorp Government Leasing and Financing Inc in January 2018. Using the lease proceeds, the City purchased a fire engine from Ferrara Rev Group for $549,863. 111
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
55 The fire engine was delivered to the City in September 2018 and went into service at that time. The lease arrangement goes out seven years at an interest rate of 3.57% with annual payments commencing in January 2019. The lease is an obligation of the City’s General Fund and is accounted for as a long-term general liability.

Total outstanding as of June 30, 2022 is $252,264. Debt service requirements for the financing lease are as follows:

For the Year Ending June 30, Principal Interest Total
$ 81,156 $ 9,006 $ 90,162
84,054 6,109 90,163
87,054 3,108 90,162
Total payments due $ 252,264 $ 18,223 $ 270,487
Fire Engine
2023
2024
2025
b. Business-type Activities
The City entered into a direct borrowing loan with the State Department of Water Resources on February 26, 2010 in the amount of $6,040,511, payable in annual installments of $175,812 to $231,656 with an interest rate of 1.00% and a maturity of June 30, 2042. The loan was used to finance a wastewater treatment plant upgrade. Total outstanding as of June 30, 2022 is $4,222,159. Debt service requirements are as follows:

For the Year Ending June 30, Principal Interest Total
$ 191,750 $ 42,222 $ 233,972
193,668 40,304 233,972
195,605 38,367 233,972
197,561 36,411 233,972
1,017,837 152,025 1,169,862
2028-2032 1,069,757 100,105 1,169,862
2033-2037 1,124,325 45,536 1,169,861
2038-2042 231,656 2,317 233,973
Total payments due $ 4,222,159 $ 457,287 $ 4,679,446
2024
2025
2026
2027
Loans
2023
The City issued the 2003 Certificates of Participation on January 1, 2004 in the amount of $1,269,025, payable in annual installments of $30,000 to $39,025 with an interest rate of 4.25% and a maturity of July 1, 2043. The certificates were used to finance a wastewater improvement project. The certificates are backed by a pledge of net revenues of the wastewater fund. Total outstanding as of June 30, 2022 is $720,000.

The City issued the 2005 Certificates of Participation on January 1, 2006 in the amount of $1,441,000, payable in annual installments of $1,000 to $40,000 with an interest rate of 4.25% and a maturity of July 1, 2044. The certificates were used to finance a water meter installation and improvement project. The certificates are backed by a pledge of net revenues of the water fund. Total outstanding as of June 30, 2022 is $920,000.

Debt service requirements for the certificates of participation are as follows:
112
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
56 For the Year Ending June 30, Principal Interest Total $ 70,000 $ 34,850 $ 104,850
70,000 33,362 103,362
70,000 31,875 101,875
70,000 30,388 100,388
70,000 28,900 98,900
2028-2032 350,000 236,938 586,938
2033-2037 350,000 162,563 512,563
2038-2042 350,000 88,188 438,188
2043-2045 240,000 17,850 257,850
Total payments due $ 1,640,000 $ 664,914 $ 2,304,914
2027
Certificates of Participation
2023
2024
2025
2026
Note 8 - Leases
a. Lease receivables
The City has accrued a receivable for a lease agreement for a City building. The remaining receivable for the lease was $112,299. Deferred inflows related to the lease was $113,155 as of June 30, 2022. Interest revenue recognized on the lease was $2,604 for the year ended June 30, 2022. Principal receipts of $57,433 were recognized during the fiscal year. The interest rate on the lease was 2.00% with final payment expected in September 2024.
b. Lease liabilities
The City has entered into lease agreements for equipment. The City is required to make principal and interest payments through January 2025. The lease liabilities were valued using a discount rate of 2.00%, which is the City’s incremental borrowing rate. The following are the remaining payments on the leases:

For the Year Ending June 30, Principal Interest Total
$ 13,475 $ 514 $ 13,989
13,747 242 13,989
4,644 20 4,664
Total payments due $ 31,866 $ 776 $ 32,642
For the Year Ending June 30, Principal Interest Total
$ 7,662 $ 238 $ 7,900
6,266 84 6,350
982 6 988
Total payments due $ 14,910 $ 328 $ 15,238
2023
2024
2025
Governmental activities - Leases
2023
2024
2025
Business-type activities - leases
113
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
57 Note 9 - Compensated absences
A summary of the changes in compensated absences for the year ended June 30, 2022 is as follows:

Balance Balance Due Within
Type of Indebtedness June 30, 2021 Additions Retirements June 30, 2022 One Year Governmental activities $ 76,226 $ 55,210 $ (46,341) $ 85,095 $ 19,227 Business-type activities: 86,352 59,672 (46,083) 99,941 40,524 Total compensated absences $ 162,578 $ 114,882 $ (92,424) $ 185,036 $ 59,751 114
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
58 Note 10 - Fund Balance
The fund balances for all major and nonmajor governmental funds as of June 30, 2022 were distributed as follows:

Capital Other
General Program American Rescue 16 - HOME - Improvement Governmental Fund Balance Classifications Fund Income Plan Act 11532 Project Funds Total Nonspendables:

Items not in spendable form
Prepaid items $ 10,143 $ - $ - $ - $ - $ - $ 10,143
Subtotal 10,143 - - - - - 10,143
Restricted for
Developer deposits - - - - - 1,345 1,345
Street maintenance
and construction - - - - - 593,118 593,118
Law enforcement services - - - - - 254,654 254,654
Sidewalk improvement - - - - - 17,960 17,960
Street lighting - - - - - 87,966 87,966
Mello Roos - - - - - 323,770 323,770
Impact fees - - - - - 2,519,914 2,519,914
Storm drain connection fees - - - - - 509,231 509,231
Community development - 296,144 - - - 9,920 306,064
Transportation - - - - - 254,258 254,258
Subtotal - 296,144 - - - 4,572,136 4,868,280
Commited to: - General reserve 866,300 - - - - - 866,300 City/County major fire 27,245 - - - - - 27,245
Equipment replacement 106,428 - - - - - 106,428
Info technology 106,426 - - - - - 106,426
PERS retirement 329,050 - - - - - 329,050
Health insurance 282,814 - - - - - 282,814
OPEB 188,217 - - - - - 188,217
Capital facilities 693,007 - - - - - 693,007
Subtotal 2,599,487 - - - - - 2,599,487
Unassigned
General Fund 1,350,664 - - - - - 1,350,664
Other Governmental Funds
Deficit Residuals - - - (2,028) (432,382) (1,790,797) (2,225,207) Subtotal 1,350,664 - - (2,028) (432,382) (1,790,797) (874,543) Total Fund Balance $ 3,960,294 $ 296,144 $ - $ (2,028) $ (432,382) $ 2,781,339 $ 6,603,367 Fund Balance Policy
The City Council adopted the City of Live Oak Fund Balance Policy in 2011. The policy establishes procedures for reporting fund balance classifications, establishes prudent reserve requirements and establishes a hierarchy of fund balance expenditures. The policy also provides for a measure of financial protection for the City against unforeseen circumstances and to comply with GASB Statement No. 54. Included in the City’s adopted budget each year are the City’s Budget Policies. The Budget Policies state that the City will maintain a minimum General Fund general reserve equal to 30 percent of the General Fund’s appropriations. This is considered Live Oak’s “Healthy Cities Reserve”.
115
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
59 Note 11 - Defined Benefit Pension Plan
a. General Information about the pension plan
Plan description
All qualified permanent and probationary employees are eligible to participate in the City of Live Oak Miscellaneous cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan 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.

At the measurement date, the City had 11 employees participating in the Miscellaneous “Classic” Plan and 17 employees participating in the Miscellaneous PEPRA Plan.

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 the measurement date, are summarized as follows:

Miscellaneous
Miscellaneous
PEPRA
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% or 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 55 62
Monthly benefits, as a % of eligible compensation 2% to 2.7% 2% Required employee contribution rates 7.956% 6.750%
Required employer contribution rates 14.202% 7.590%
Unfunded Actuarial Liability Payment $ 136,377 $ 2,548
116
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
60 Contribution description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) 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. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Regarding the “Classic” Plan employees, 6 of them were employed by the City prior to 2014 and the City pays the employee portion of the contributions for these individuals as of the balance sheet date.

The contributions that will be recognized as a reduction to the net pension liability for each plan in fiscal year 2022 are $309,687.
a. Pension liabilities, pension expense and deferred outflows / inflows of resources related to pensions
As of June 30, 2022, the City reported a liability of $1,038,971 for its proportionate share of the net pension liability of the Plan. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures.

The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Miscellaneous risk pool rate plan was 0.04578%, which was a decrease of 0.00893% from its proportion measured as of June 30, 2020.

For the year ended June 30, 2021, the City recognized pension expense of $378,408. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
117
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
61 Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 309,687 $ - Differences between actual and expected experience 116,509 - Change in employer's proportion and differences between the employer's contributions and the employer's
proportionate share of contributions 82,843 36,719
Net difference between projected and actual earnings on plan investments - 906,967
Total $ 509,039 $ 943,686

$309,687 reported as deferred outflows of resources related to contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2023. 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 Annual
June 30 Amortization
2023 $ (140,055)
2024 (157,549)
2025 (196,090)
2026 (250,640)
$ (744,334)
Actuarial Methods and Assumptions Used to Determined Total Pension Liability For the measurement period ended June 30, 2021, (the measurement date), the total pension liability was determined by rolling forward the June 30, 2020, total pension liability. The June 30, 2020 and the June 30, 2021, total pension liabilities were based on the following actuarial methods and assumptions:
118
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
62 Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.15%
Mortality Derived using CalPERS' Membership Data for all Funds (1) Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

Contract COLA up to 2.50% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies
The mortality table used in the June 30, 2020 valuation was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016.

For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website at:
https://www.calpers.ca.gov/docs/forms-publications/calpers-experience-study-2017.pdf Discount rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate, and the use of the municipal bond rate calculation is not deemed necessary. The longterm expected discount rate of 7.15 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section.

Long-term expected rate of return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, staff 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 of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns 119
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
63 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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed:

Asset Class
Strategic
Allocation
Real Return
Years 1 - 10(a)
Real Return
Years 11+(b)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Asset 13.0% 3.75% 4.93%
Liquidity 1.0% - -0.92%
Total 100%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period.

Sensitivity of the proportionate share of the net pension liability to changes in the discount rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentagepoint higher (8.15 percent) than the current rate:
1% Decrease Current Discount 1% Increase
(6.15%) Rate (7.15%) (8.15%)
City's proportionate share of the net
pension liability $ 2,092,558 $ 1,038,971 $ 167,986
Pension plan fiduciary net position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Subsequent events
In July of 2022, CalPERS announced a net investment return of negative 6.1% for fiscal year ended June 30, 2022. This, along with the change in the discount rate to 6.85% will negatively impact the GASB 68 Net Pension Liability in future reporting periods. As the investment pool experienced gains in fiscal year 2021 resulting in a drastically reduced liability in fiscal year 2022, the City expects the inverse to be true in fiscal year 2023 as all gains were lost in fiscal year 2022.
120
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
64 Note 12 - Other Post-Employment Benefits
a. Plan Description
The City contributes to California Public Employees Retirement System (CalPERS), an agent multipleemployer defined benefit postemployment healthcare plan administrator (“the Retiree Health Plan”).

An employee is eligible for lifetime medical benefits under the Plan, along with his/her spouse at the time of retirement, if he or she retires from the City under CalPERS. The retiree receives a benefit of $149 per month from the City. Payments cease at age 65 when the retiree is eligible for Medicare.

Employees Covered
As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

Active Employees 27
Retirees or beneficiaries currently
receiving benefit payments 6
Inactive employees entitled to but
not yet receiving benefit payments 8
Total 41
Contributions
The Retiree Health 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. The City’s contributions were $13,104 for the fiscal year, which will be recognized as an increase to the net OPEB asset.

The City’s public safety pension contributions are paid by the General Fund and Section 115 Trust Fund.

OPEB contributions are paid from the same funds as the employee’s salary, with the largest component coming from the General Fund.
b. OPEB assets
The City’s net OPEB asset was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation dated June 30, 2021 to determine the June 30, 2021 total OPEB liability, based on the following actuarial methods and assumptions:
121
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
65 Valuation Date
Measurement Date
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Asset Valuation Method Market value of assets
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increase
Mortality Rate Mortality rates used were those published by CalPERS, adjusted to back out 15 years of Scale MP 2016 to central year 2015, then projected.

Mortality Improvement Mortality projected fully gnerational with scale MP-2021 Healthcare Trend Rate
Partipation at Retirement Actives: 50% of employees currently covered by a City plan are assumed to continue their current plan election in retirement; Retirees: 100% if covered
Aggregate - 2.75% annually
Non-medicare 6.5% in 2023, decreasing to an ultimate rate of 3.75% for years 2076 and thereafter.

Medicare (non-Kaiser) 5.65% in 2023, decreasing to an ultimate rate of 3.75% for years 2076 and thereafter.

Medicare (Kaiser) 4.6% in 2023, decreasing to an ultimate rate of

3.75% for years 2076 and thereafter.

Actuarial Assumptions
June 30, 2021
June 30, 2021

6.25%

2.50%
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Expected Rate
Target of Return
Global Equity 59.0% 4.56%
Fixed Income 25.0% 0.78%
Treasury Inflation Protection Securities 5.0% -0.08%
Real Estate Investment Trusts 3.0% 1.22%
Commodities 8.0% 4.06%
Total 100.0%
Asset Class
122
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
66 c. Discount rate
The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City 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 Net OPEB asset
The changes in the net OPEB asset for the Retiree Health Plan are as follows:

Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability/(Asset)
(a)-(b)
Balance at June 30, 2021 $ 327,703 $ 435,089 $ (107,386) Changes Recognized for the Measurement Period
Service Cost 17,354 - 17,354
Interest 22,849 - 22,849
Differences between expected and actual experience (4,393) - (4,393) Assumption changes 5,118 5,118
Contribution - employer - 13,104 (13,104)
Benefit payments, including refunds of employee
contributions (13,104) (13,104) - Net investment income - 119,584 (119,584) Administrative expenses - (165) 165
Net changes 27,824 119,419 (91,595)
Balance at June 30, 2022 $ 355,527 $ 554,508 $ (198,981) Increase (Decrease)
Sensitivity of the net OPEB asset to changes in the discount rate The following presents the net OPEB asset 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, 2021:

Discount Rate -1%
(5.25 %)
Current Discount Rate
(6.25%)
Discount Rate +1%
(7.25%)
Net OPEB asset $ (155,619) $ (198,981) $ (234,887)
Sensitivity of the net OPEB asset to changes in the healthcare cost trend rates 123
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
67 The following presents the net OPEB asset 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, 2021:
1% Decrease
Current Healthcare Cost
Trend Rates 1% Increase
Net OPEB asset $ (239,481) $ (198,981) $ (148,763)
OPEB Plan Fiduciary Net Position
CalPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained directly from the CalPERS website.

OPEB expense and deferred outflows/ inflows of resources related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB credit of $7,909. As of fiscal year ended June 30, 2022, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Amounts paid for OPEB benefits subsequent to the
measurement date $ 14,711 $ - Changes in assumptions 4,601 1,045 Differences between actual and expected experience - 7,108 Net difference between projected and actual earnings on plan investments - 64,038
Total $ 19,312 $ 72,191
The $14,711 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as an increase to the net OPEB asset during the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ended June 30 Annual Amortization
2023 $ (16,376)
2024 (15,488)
2025 (15,944)
2026 (18,650)
2027 (605)
Thereafter (527)
Total $ (67,590)
124
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
68 Note 13 - Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disaster. The City has joined together with other municipalities to participate in Small Cities Organized Risk Effort (SCORE) for general liability, vehicle liability, and errors and omissions purposes. SCORE is a public entity risk pool which serves as a common risk management and insurance program for member cities. The City pays an annual premium to SCORE for its insurance coverage. The agreements with SCORE provide that they will be self-sustaining through member premiums and will reinsure through commercial companies for excess coverage.

Note 14 - Redevelopment Successor Agency
The City of Live Oak established the Live Oak Redevelopment Agency and its only project area in 2006. The City and Redevelopment Agency entered into a cooperation agreement whereby the Agency intends to reimburse the City for costs associated to the formation of the Agency and its project area. The City incurred $356,849 of formation costs and the cooperation agreement called for the amount to be reimbursed over a 10-year term with a 3 percent simple interest rate. Repayment was to be made from future redevelopment tax increment revenues.

In 2008 the City and surrounding region experienced a significant downturn in property values and the project area did not produce any tax increment revenue for the next three years. Therefore, no payments were made by the Redevelopment Agency to the City in that time frame. Due to the lack of tax increment, the Redevelopment Agency did not incur any further expenses on redevelopment functions other than meeting the ordinary compliance requirements.

In June 2011 the State of California passed legislation dissolving all redevelopment agencies including the Live Oak Redevelopment Agency. The State dissolution action was re-affirmed by the State Supreme Court in January 2012 resulting in the termination of all redevelopment activities and the dissolving of the Live Oak Redevelopment Agency. Upon its dissolution, the Redevelopment Agency had no assets and one liability (the City cooperation agreement).

On May 4, 2022, the City Council voted to dissolve the Successor Agency. The final payment was remitted to the Sutter County Auditor Controller’s Office on October 17, 2022. 125
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
69 Note 15 - Other information
a. Commitments
The following material construction commitments existed at June 30, 2022:

Expenditures
Contract to date as of Remaining
Amount June 30, 2022 Commitments
Capital Improvements Fund:

Rec Trail #4 $ 136,182 $ 131,851 $ 4,331
Dewatering 86,195 83,156 3,039
P Street Lift Station 420,616 124,461 296,155
Total $ 642,993 $ 339,468 $ 303,525
Project Name
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the appreciable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial. b. Development Agreements
KB Homes Development Agreement
In July 2017, the City of Live Oak and KB Homes agreed upon various arrangements for the prospective development. The 2017 agreement with KB Homes resolved previous reimbursement arrangements stemming from KB Homes incurring the costs of building the City’s largest water storage facility in 2012.

The 2017 agreement provides that the City not assess its water connection, sewer connection fees and general development impact fees upon the 97 prospective single family homes to be built by KB Homes in Pennington Ranch Phase IV. As of June 30, 2022, there are no financial effects upon the City stemming from the development arrangements with KB Homes.

Sutter County (Annexation and Sphere of Influence Development Arrangements with City) In September 2008 the City of Live Oak and the County of Sutter agreed upon various arrangements for prospective development for land annexed by the City and for development governed by the County for properties within the City’s sphere of influence. These arrangements include land use planning, property tax sharing, sales tax sharing, public safety services, development impact fees and regional transportation.

The arrangements are memorialized in City Resolution 46-2008 and Sutter County Resolution 08-069.

At the end of each fiscal year, the Sutter County Auditor-Controller reconciles the property tax allocations subject to the development arrangements and distributes the adjusting amounts due to City and County.

Any amounts due to the City for each fiscal year are shown as a receivable as of the balance sheet date in conformity with the City’s revenue recognition practices. 126
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
70 At the end of each fiscal year, the City calculates the amount of sales tax due to the County based upon the agreed upon development arrangements. The sales taxes subject to the development arrangements are accounted for in the City’s general Fund. As of June 30, 2022, the City recorded a liability of zero of sales tax due to the County of Sutter.

As of June 30, 2022, there are no financial effects upon the City stemming from the development arrangements with the County of Sutter other than the aforementioned amounts. c. Acquisition and Fee Deferral Loan Agreement Live Oak Pacific Associates (Kristen Court Apartments)
In November 2015, the City entered into an acquisition and fee deferral loan agreement with Live Oak Pacific Associates. The agreement deferred the payment of acquisition costs ($293,0000) for a portion of land and certain development impact fees ($374,349) of the Kristen Court Apartments. The City obtained two promissory notes (one for each amount) which mature in 55 years. The note bears a simple interest rate of three percent (3%) per year. Interest began accruing upon the completion of the construction in December 2016.

The loan agreement provides that interest payments be limited to a portion of “Residual Receipts” as prescribed with their annual accounting of operations. The City receives its first interest payment from the project in July 2018. Any unpaid interest over the life of the loan is due and payable at the maturity of the promissory notes. The City accounts for the receipt of the note receivable and unpaid interest as a revenue in the year it is received in the Fire Impact Fees and Storm Drain Connection fund.

The total outstanding balances by component related to this agreement were:

For the Year Ending June 30, Principal Interest Total
Acquisition Note $ 293,000 $ 20,568 $ 313,568
Development Impact Fee Note (drainage) 94,349 6,623 100,972 Development Impact Fee Note (fire facilities) 280,000 37,615 317,615 Total payments due $ 667,349 $ 64,806 $ 732,155
Loans
August 2019, the City entered into an agreement with Live Oak Pacific Associates II, in the amount of $4,500,000 to provide for gap financing of a 24-unit rental housing development (Kristen Court II). The note bears a simple interest rate of three percent (3%) per year and matures in 55 years from the date of the project completion. The loan agreement provides that payments shall be made annually based on residual receipts with the first payment due, if any, on October 30, 2021. Payments shall be credited to accrued interest and then to principal in the 16-HOME-11532 fund. Total outstanding balances for the principal was $4,500,000.
127
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
71 d. Contingent Liability (CalTrans Hwy 99 Project City Funding Contribution) In August 2019 the City of Live Oak entered into a reimbursement agreement with the State of California Department of Transportation (CalTrans) whereby the City agreed to provide funding of $2,338,088 towards the relocating of water and sewer lines associated with the widening of Highway 99. The entire highway project is expected to cost about $28 million and will be completed over a three-year period.

During FY 19-20, the City made various budget authorizations for fulfilling the City’s obligation for the $2.3 million agreement. The City’s funding towards this agreement were budgeted in the Sewer Enterprise, Sewer Connection, Local Transportation, Gas Tax, the General Fund and Water Connection. In August 2021, the City paid $2,338,088 to CalTrans for the project.

The August 2019 agreement provides the ability for CalTrans to bill the City for cost overruns of up to 25% of the original agreement. The 2019 agreement continues to obligate the City for up to $584,522 for cost overruns. It is unknown at this time the amount of potential cost overruns. As of June 30, 2022, the City considers the $584,522 a contingent liability against the Water Connection and Sewer Connection Funds.

Note 16 - Adoption of New Standard
As of July 1, 2021, the City adopted GASB Statement No. 87, Leases. The implementation of this standard establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The standard also requires lessors to recognize a lease receivable and deferred inflow of resources. Beginning net position was restated to retroactively adopt the provisions of GASB Statement No. 87 as follows:

Governmental Business-type
Activities Activities
Net Position at July 1, 2021, as previously reported $ 52,446,296 $ 33,490,140 Recognition of right to use leased asset 327,051 - Recognition of lease receivables 557,256 557,256 Recognition of lease liability (327,051) - Recognition of deferred inflows from leases (557,256) (557,256) Net Position at July 1, 2021, as adjusted $ 52,446,296 $ 33,490,140 128
City of Live Oak, California
Notes to Financial Statements
June 30, 2022
72 Water Sewer
Fund Fund
Net Position at July 1, 2021, as previously reported $ 10,469,954 $ 21,265,051 Recognition of right to use leased asset 11,257 11,257
Recognition of lease liability (11,257) (11,257)
Net Position at July 1, 2021, as adjusted $ 10,469,954 $ 21,265,051 General
Fund
Fund Balance at July 1, 2021, as previously reported $ 4,194,753 Recognition of lease receivables 557,256
Recognition of deferred inflows from leases (557,256)
Fund Balance at July 1, 2021, as adjusted $ 4,194,753
129
73 Required Supplementary Information
June 30, 2022
City of Live Oak, California
130
74 City of Live Oak, California
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 4,194,753 $ 4,194,753 $ 4,194,753 $ - Resources (Inflows):

Taxes and assessments 2,783,000 2,783,000 2,869,646 86,646 Licenses and permits 423,000 423,000 393,720 (29,280)
Fines and forfeitures 2,000 2,000 1,363 (637)
Use of money and property 84,000 84,000 64,248 (19,752) Intergovernmental 221,352 221,352 21,307 (200,045)
Charges for services 47,500 47,500 51,451 3,951
Other revenues 366,400 366,400 302,245 (64,155)
Transfers in - - 611,000 611,000
Amounts available for appropriations 8,122,005 8,122,005 8,509,733 387,728 Charges to appropriations (outflows)
Current:

General government
City council 126,731 126,731 86,058 40,673
Administrative services 284,918 284,918 316,316 (31,398) Finance services 248,770 248,770 215,654 33,116
City attorney 72,500 72,500 55,617 16,883
Public safety
Building inspection 135,831 135,831 171,509 (35,678)
Police services 1,147,250 1,147,250 1,404,348 (257,098) Animal control services 120,450 120,450 111,587 8,863
Fire services 819,450 819,450 663,564 155,886
Community development
Community development 289,789 289,789 300,670 (10,881)
Economic development 23,725 23,725 16,595 7,130
Culture and recreation
Park operations 571,010 571,010 407,530 163,480
Recreation services 325,975 325,975 278,208 47,767
Pool operations 95,976 95,976 122,289 (26,313)
Facility maintenance 102,542 102,542 67,786 34,756
Community center - - 3,591 (3,591)
Public ways and facilities
Engineering 18,230 18,230 39,726 (21,496)
Capital outlay 9,000 9,000 110,801 (101,801)
Debt service:

Principal 128,882 128,882 144,525 (15,643)
Interest 16,450 16,450 33,065 (16,615)
Transfers out - Total charges to appropriations 4,537,479 4,537,479 4,549,439 (11,960) Budgetary fund balance, June 30 $ 3,584,526 $ 3,584,526 $ 3,960,294 $ 375,768 Budgeted Amounts
131
75 City of Live Oak, California
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Program Income
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 52,784 $ 52,784 $ 52,784 $ - Resources (Inflows):

Use of money and property 1,000 1,000 (1,904) (2,904)
Intergovernmental 182,200 182,200 245,829 63,629
Amounts avaialble for appropriations 235,984 235,984 296,709 60,725 Charges to appropriations (outflows)
Current:

Community development 178,000 178,000 565 177,435
Total charges to appropriations 178,000 178,000 565 177,435 Budgetary fund balance, June 30 $ 57,984 $ 57,984 $ 296,144 $ 238,160 Budgeted Amounts
132
76 City of Live Oak, California
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual American Rescue Plan Act
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ - $ - $ - $ - Resources (Inflows):

Intergovernmental - 940,000 619,136 (320,864)
Amounts avaialble for appropriations - 940,000 619,136 (320,864) Charges to appropriations (outflows)
Current:

Capital outlay - 329,000 8,136 320,864
Transfers out - 611,000 611,000 - Total charges to appropriations - 940,000 619,136 320,864 Budgetary fund balance, June 30 $ - $ - $ - $ -
Budgeted Amounts
133
77 City of Live Oak, California
Note to Required Supplementary Information
Year Ended June 30, 2022
NOTE – BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year. The City presents a comparison of annual budgets to actual results for the City’s General Fund and major special revenue funds. The amounts reported on the budgetary basis are generally on a basis consistent with accounting principles generally accepted in the United States of America (U.S. GAAP).

The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:
1) In May of each year, the Finance Department is to submit to the City Council a recommended operating budget for the fiscal year commencing the following July 1. The operating budget includes recommended expenditures and estimated revenues.
2) Public hearings are to be conducted at City Hall to obtain taxpayer comments. Generally by the first of July, after adjustment as appropriate by the City Council, the budget is to be legally enacted through council motion.
3) Council approval is required for transfers between funds, or for an increase in total appropriations.

Therefore, the level of budgetary responsibility is by total appropriations; however, for report purposes, this level has been expanded to a functional basis (General Government, Public Safety, etc.). 4) All unused appropriations for budgeted amounts lapse at the end of the year.

Annual appropriated budgets are not adopted for certain funds established to meet or satisfy a specific purpose.

For the fiscal year ended June 30, 2022, the following funds did not have annual appropriated budgets:
 14-HOME-9274
 Developer Deposits
 State Grant Fund
 13-CDBG-8933
 11-HOME-7661
 16-HOME-11532
 16-HOME-11380
 17-CDBG-12011
 CDBG PI Waiver Water Main
The City does not use encumbrance accounting under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. 134
78 City of Live Oak, California
Cost-Sharing Multiple Employer Defined Pension Plan – Miscellaneous Plan - Schedule of the City’s Proportionate Share of the Net Pension Liability Last 10 Years
2015 2016 2017 2018
City's Proportion of the Net Pension Liability 0.01965% 0.50690% 0.04705% 0.04629% City's Proportionate Share of the Net Pension Liability $ 1,222,792 $ 1,390,791 $ 1,634,430 $ 1,824,719 City's Covered Payroll $ 1,126,901 $ 961,817 $ 1,091,598 $ 1,108,151 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 108.51% 144.60% 149.73% 164.66% Plan Fiduciary Net Position as a
Percentage of the Plan's Total Pension Liability 79.82% 78.40% 74.06% 73.31% Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 (1) Fiscal year 2015 was the 1st year of implementation.

Notes to Schedule:

Changes of assumptions: In 2019, demographic assumptions and inflation rates were changed in accordance with the CalPERS experience study and review of actuarial assumptions December 2017. In 2018, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). 135
79 City of Live Oak, California
Cost-Sharing Multiple Employer Defined Pension Plan – Miscellaneous Plan - Schedule of the City’s Proportionate Share of the Net Pension Liability Last 10 Years
2019 2020 2021 2022

0.04617% 0.04589% 0.04578% 0.05472%
$ 1,739,893 $1,837,496 $ 1,931,204 $ 1,038,971
$ 1,152,712 $ 911,603 $ 1,330,269 $ 1,356,262
150.94% 201.57% 145.17% 76.61%

75.26% 75.26% 75.10% 75.10%
6/30/2018 6/30/2019 6/30/2020 6/30/2021
136
80 City of Live Oak, California
Cost-Sharing Multiple Employer Defined Pension Plan – Miscellaneous Plan - Schedule of Contributions - Pension
Last 10 Years
2015 2016 2017 2018
Actuarially determined contributions
Contributions in relation to the actuarially $ 212,735 $ 219,352 $ 234,653 $ 246,864 determined contributions (212,735) (219,352) (234,653) (246,864) Contribution deficiency (excess) $ - $ - $ - $ - Covered payroll $ 961,817 $ 1,091,598 $ 1,108,151 $ 1,152,712 Contributions as a percentage of covered payroll 22.12% 20.09% 21.18% 21.42% (1) Fiscal year 2015 was the 1st year of implementation.

Note to schedule:

Valuation date June 30, 2019
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal cost method
Amortization method/period Level percentage of pay
Inflation 2.50%
Investment rate of return
Other methods and assumptions

7.00% (net of pension plan investment and administrative expenses, includes inflation)
Details of other methods and assumptions can be found within Section 2 of the Actuarial Valuation for June 30, 2019, located at www.calpers.ca.gov under Forms & Publications
137
81 City of Live Oak, California
Cost-Sharing Multiple Employer Defined Pension Plan – Miscellaneous Plan - Schedule of Contributions – Pension
Last 10 Years
2019 2020 2021 2022
$ 242,734 $ 310,939 $ 340,276 $ 309,687
(242,734) (310,939) (340,276) (309,687)
$ - $ - $ - $ - $ 911,603 $ 1,330,269 $ 1,356,262 $ 1,524,173

26.63% 23.37% 25.09% 20.32%
138
82 City of Live Oak, California
Schedule of Changes in the Net OPEB Liability and Related Ratios - OPEB Plan
Last 10 Fiscal Years
Fiscal Year 2018 2019 2020 2021 2022
Total OPEB Liability
Service Cost $ 23,510 $ 24,215 $ 24,941 $ 16,849 $ 17,354 Interest 16,459 18,226 20,010 21,068 22,849
Difference between expected
and actual experience - - (4,689) - (4,393)
Changes in assumptions - - (1,549) - 5,118
Benefit payments (14,428) (14,578) (18,875) (10,991) (13,104) Net change in total OPEB Liability 25,541 27,863 19,838 26,926 27,824 Total OPEB Liability - beginning 227,535 253,076 280,939 300,777 327,703 Total OPEB Liability - ending (a) $ 253,076 $ 280,939 $ 300,777 $ 327,703 $ 355,527 Plan fiduciary net position
Contributions - employer $ 14,428 $ 14,578 $ 18,875 $ 10,991 $ 13,104 Net investment income 35,119 29,243 24,440 14,852 119,584 Administrative expense (178) (682) (85) (205) (165)
Benefit payments (14,428) (14,578) (18,875) (10,991) (13,104) Net change in plan fiduciary
net position 34,941 28,561 24,355 14,647 119,419
Plan fiduciary net position - beginning 332,585 367,526 396,087 420,442 435,089 Plan fiduciary net position - ending (b) $ 367,526 $ 396,087 $ 420,442 $ 435,089 $ 554,508 City's net OPEB liability/(asset) -
ending (a)-(b) $ (114,450) $ (115,148) $ (119,665) $ (107,386) $ (198,981) Plan fiduciary net position as a percentage
of the total OPEB liability/(asset) 145.22% 140.99% 139.79% 132.77% 155.97% Covered-employee payroll $ 1,011,920 $ 1,200,174 $ 913,598 $ 1,330,269 $ 1,356,262 Net OPEB liability/(asset) as a percentage
of covered-employee payroll -11.31% -9.59% -13.10% -8.07% -14.67% Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 * Fiscal Year 2018 was the first year of implementation. 139
83 City of Live Oak, California
Schedule of Contributions - OPEB
OPEB Plan
Last 10 Fiscal Years
2018 2019 2020 2021 2022
Actuarially determined contribution $ 32,072 $ 18,498 $ 19,094 $ 9,061 $ 14,711 Contributions in relation to the
actuarially determined contribution (14,578) (18,875) (10,991) (13,104) (14,711) Contribution deficiency (excess) $ 17,494 $ (377) $ 8,103 $ (4,043) $ - Covered-employee payroll $ 1,200,174 $ 913,598 $ 1,330,269 $ 1,356,262 $ 1,474,266 Contributions as a percentage of
covered-employee payroll 1.21% 2.07% 0.83% 0.97% 1.00%
Valuation date June 30, 2017 June 30, 2017 June 30, 2019 June 30, 2019 June 30, 2021 Methods and assumptions used to determine contribution rates:

Actuarial Assumptions
Discount Rate 6.25%
General Inflation 2.50%
Salary increase 2.75%
Investment Rate of Return 6.25%
Mortality Rate CalPERS 2000-2019 Experience Study
Projected with Scale MP21
Healthcare Trend Rate 6.5% stepping down 0.25% each year to 3.75% in 2076
* Fiscal year 2018 was the first year of implementation. 140
84 This Page Left Intentionally Blank
141
85 Supplementary Information
June 30, 2022
City of Live Oak, California
142
86 This Page Left Intentionally Blank
143
87 Non-Major Special Revenue Funds
Special Revenue Funds are used to account for and report the proceeds of specific revenues that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Nonmajor special revenue funds used by the City are listed below:
14-HOME-9274
This fund is used to account for HOME grant revenues and expenditures Developer Deposits
The developer deposits fund is used to account for developer deposits.

Streets and Roads
The Streets and Roads fund is used to account for gas tax revenue allocations received from the State. Funds received are restricted to expenditures for street maintenance, traffic safety, and construction.

Traffic Safety
This fund is used to account for court fines collected on the City’s account for moving violations.

COPS
This fund is used to account for special police revenue received under the Citizens Options for Public Safety for frontline law enforcement services.

Sidewalk Improvement
This fund is used to account for monies to be used for sidewalk improvements.

Street Lighting
This fund is used to account for monies to be used for various street lighting districts. This assessment district excludes property within Community Facilities District (CD) 2004-1.

Mello Roos CFD 92-1
This fund is used to account for special assessment revenue received to finance the purchase, construction, expansion or rehabilitation of sites and structures for general government, police, fire parks, recreation, streets, schools and other governmental facilities. The revenues received are shared with the Live Oak Unified School District receiving 2/3 of the annual assessments received.

Fire Benefit Assessment
This fund is used to account for special assessment revenue received for the purposes of fire protection services.

This assessment district excludes property within CFD 2004-1. 144
88 Non-Major Special Revenue Funds
Mello Roos CFD 2004-1 Fire
This fund is used to account for special assessment revenue received for the purposes of fire protection services.

Mello Roos CFD 2004-1 Police
This fund is used to account for special assessment revenue received for the purposes of police protection services.

Mello Roos CFD 2004-1 Animal Services
This fund is used to account for special assessment revenue received for the purposes of animal protection services.

Mello Roos CFD 2004-1 Street Lighting
This fund is used to account for special assessment revenue received for the purposes of street lighting services.

Mello Roos CFD 2004-1 Parks/Recreation/Pool
This fund is used to account for special assessment revenue received for the purposes of parks and pool maintenance and recreation programs.

Mello Roos CFD 2004-1 Storm Drain
This fund is used to account for special assessment revenue received for the purposes of storm drain maintenance and improvements.

Parks & Recreation Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of parks and recreation facilities.

Community Center Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of community centers.

Public Works Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of public works/corporate yard facilities and equipment.

General Government Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of general government administration facilities and equipment.

Police Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of public safety police facilities and equipment.
145
89 Fire Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of public safety fire facilities and equipment.

Signal Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of signals.

Flood Control Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of storm drainage facilities.

Storm Drain Connection Fees
This fund is used to account for capacity and connection fees received for the rehabilitation, expansion, and construction of storm drainage facilities.
13-CDBG-8933 Skate Park
This fund is used to account for CDBG grant funds used for public improvements for the skate park. Funding comes from the 13-CDBG-8933 grant revenues.
11-HOME-7661
This fund is used to account for HOME grant funds used to make loans to residents for the purposes of housing rehabilitation and down payment assistance for first time home buyers. 16-HOME-11380
This fund is used to account for HOME grant funds used for the Owner-Occupied Rehab Loan Program.

CDBG PI Waiver Water Main
This fund is used to account for CDBG Program Income funds granted to the City from Sutter County for the Pennington Road Water Main Construction Project.

State Grants
This fund is used to account for revenues and expenditures related to state grants.

Transportation
This fund is used to account for monies received through the Transportation Development Act (TDA) tax and Surface Transportation Development Program (STP).
146
90 City of Live Oak, California
Combining Balance Sheet
June 30, 2022
Developer Streets and
14-HOME-9274 Deposits Roads Traffic Safety
Assets
Cash and cash equivalents $ - $ 184,288 $ 572,323 $ 17,311 Accrued interest - 193 584 17
Notes and loans - - - - Due from other governments - - 39,158 447 Total assets $ - $ 184,481 $ 612,065 $ 17,775
Liabilities, deferred inflows of resources, and fund balances Liabilities
Accounts payable $ - $ - $ 14,046 $ - Salaries and benefits payable - - 4,901 - Deposits payable - 183,136 - - Due to other funds 3,945 - - - Unearned revenues - - - - Total liabilities 3,945 183,136 18,947 - Deferred inflows of resources Unavailable revenues - - - - Deferred loan payments - - - - Total deferred inflows of resources - - - - Fund balances Restricted 1,345 593,118 17,775
Unassigned (deficit) (3,945) - - - Total fund balances (3,945) 1,345 593,118 17,775 Total liabilities, deferred inflows of
resources and fund balances $ - $ 184,481 $ 612,065 $ 17,775 147
91 City of Live Oak, California
Combining Balance Sheet (Continued)
June 30, 2022
Sidewalk Mello Roos CFD Fire Benefit Mello Roos CFD Mello Roos CFD COPS Improvement Street Lighting 92-1 Assessment 2004-1 Fire 2004-1 Police $ 610,220 $ 17,941 $ 93,340 $ 98,670 $ - $ 25,042 $ 7,281 633 19 100 102 - 26 8
- - - - - - -
65,271 - 736 - 1,488 666 1,806
$ 676,124 $ 17,960 $ 94,176 $ 98,772 $ 1,488 $ 25,734 $ 9,095 $ 7 $ - $ 5,474 $ - $ - $ - $ -
- - - - - - -
- - - - - - -
- - - - 17,318 - -
373,967 - - - - - -
373,974 - 5,474 - 17,318 - -
65,271 - 736 - 1,488 666 1,806
- - - - - - -
65,271 - 736 - 1,488 666 1,806
236,879 17,960 87,966 98,772 25,068 7,289
- - - - (17,318) - -
236,879 17,960 87,966 98,772 (17,318) 25,068 7,289
$ 676,124 $ 17,960 $ 94,176 $ 98,772 $ 1,488 $ 25,734 $ 9,095 148
92 City of Live Oak, California
Combining Balance Sheet (Continued)
June 30, 2022
Assets
Cash and cash equivalents
Accrued interest
Notes and loans
Due from other governments
Total assets
Liabilities, deferred inflows of resources, and fund balances Liabilities
Accounts payable
Salaries and benefits payable
Deposits payable
Due to other funds
Unearned revenues
Total liabilities
Deferred inflows of resources
Unavailable revenues
Deferred loan payments
Total deferred inflows of resources
Fund balances
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Mello Roos CFD Mello Roos CFD Mello Roos CFD Mello Roos CFD 2004-1 Animal 2004-1 Street 2004-1 Parks/ 2004-1 Storm
Services Lighting Recreation/Pool Drain
$ 3,398 $ - $ 42,884 $ 146,748
4 - 46 154
- - - -
105 109 825 218
$ 3,507 $ 109 $ 43,755 $ 147,120
$ - $ 2,228 $ 550 $ 43
- - - -
- - - -
- 51,234 - -
- - - -
- 53,462 550 43
105 109 825 218
- - - -
105 109 825 218
3,402 42,380 146,859
- (53,462) - -
3,402 (53,462) 42,380 146,859
$ 3,507 $ 109 $ 43,755 $ 147,120
149
93 City of Live Oak, California
Combining Balance Sheet (Continued)
June 30, 2022
Parks & Community General
Recreation Center Impact Public Works Government Police Impact Fire Impact Signal Impact Impact Fees Fees Impact Fees Impact Fees Fees Fees Fees $ 530,337 $ 341,869 $ 109,934 $ 503,337 $ 248,728 $ 363,908 $ 417,139 539 354 112 522 258 373 423
- - - - - 307,191 -
- - - - - - - $ 530,876 $ 342,223 $ 110,046 $ 503,859 $ 248,986 $ 671,472 $ 417,562 $ - $ - $ - $ - $ - $ - $ -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - 307,191 -
- - - - - 307,191 -
530,876 342,223 110,046 503,859 248,986 364,281 417,562 - - - - - - -
530,876 342,223 110,046 503,859 248,986 364,281 417,562 $ 530,876 $ 342,223 $ 110,046 $ 503,859 $ 248,986 $ 671,472 $ 417,562 150
94 City of Live Oak, California
Combining Balance Sheet (Continued)
June 30, 2022
Assets
Cash and cash equivalents
Accrued interest
Notes and loans
Due from other governments
Total assets
Liabilities, deferred inflows of resources, and fund balances Liabilities
Accounts payable
Salaries and benefits payable
Deposits payable
Due to other funds
Unearned revenues
Total liabilities
Deferred inflows of resources
Unavailable revenues
Deferred loan payments
Total deferred inflows of resources
Fund balances
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Flood Control Storm Drain 13-CDBG-8933
Impact Fees Connection Fees Skate Park 11-HOME-7661
$ 2,079 $ 508,722 $ - $ 6,777
2 509 - -
- 424,964 - -
- - - - $ 2,081 $ 934,195 $ - $ 6,777
$ - $ - $ - $ -
- - - -
- - - -
- - 430,713 -
- - - -
- - 430,713 -
- - - -
- 424,964 - -
- 424,964 - -
2,081 509,231 6,777
- - (430,713) -
2,081 509,231 (430,713) 6,777
$ 2,081 $ 934,195 $ - $ 6,777
151
95 City of Live Oak, California
Combining Balance Sheet (Continued)
June 30, 2022
Total Nonmajor
CDBG PI Waiver Governmental
16-HOME-11380 Water Main State Grants Transportation Funds $ 3,143 $ - $ - $ 254,975 $ 5,110,394
- - - 296 5,274
85,121 - - - 817,276
- - - - 110,829
$ 88,264 $ - $ - $ 255,271 $ 6,043,773
$ - $ - $ 26,226 $ 1,013 $ 49,587
- - - - 4,901
- - - - 183,136
- 246,000 1,013,133 - 1,762,343
- - - - 373,967
- 246,000 1,039,359 1,013 2,373,934
- - - - 71,224
85,121 - - - 817,276
85,121 - - - 888,500
3,143 - - 254,258 4,572,136
- (246,000) (1,039,359) - (1,790,797)
3,143 (246,000) (1,039,359) 254,258 2,781,339
$ 88,264 $ - $ - $ 255,271 $ 6,043,773
152
96 City of Live Oak, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2022
Developer Streets and
14-HOME-9274 Deposits Roads Traffic Safety
Revenues
Taxes and assessments $ - $ - $ - $ - Licenses and permits - - - - Fines and forfeitures - - - 6,254 Use of money and property - (1,327) (2,814) (83)
Intergovernmental - - 404,742 - Charges for services - - 8,008 - Other revenues - - - - Total revenues - (1,327) 409,936 6,171 Expenditures
Current:

General government - - - - Public safety - - - - Public ways and facilities - - 298,850 - Culture and recreation - - - - Community development - - - - Capital outlay - - 25,779 - Total expenditures - - 324,629 - Net change in fund balances - (1,327) 85,307 6,171 Fund balances (deficit), beginning of year (3,945) 2,672 507,811 11,604 Fund balances (deficit), end of year $ (3,945) $ 1,345 $ 593,118 $ 17,775 153
97 City of Live Oak, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Year Ended June 30, 2022
Sidewalk Mello Roos CFD Fire Benefit Mello Roos CFD Mello Roos CFD COPS Improvement Street Lighting 92-1 Assessment 2004-1 Fire 2004-1 Police $ - $ - $ 1,099 $ 4,448 $ 2,172 $ 282 $ 766
- - - - - - -
- - - - - - -
(3,117) (89) (455) (485) - (124) (23)
- - - - - - -
- - 1,775 - - - -
4,676 - - - - - -
1,559 (89) 2,419 3,963 2,172 158 743
- - - - - 2,794 -
97 - - - - - 21,287
- - 47,645 - - - -
- - - - - - -
- - - 9,311 - - -
4,579 - - - - - -
4,676 - 47,645 9,311 - 2,794 21,287
(3,117) (89) (45,226) (5,348) 2,172 (2,636) (20,544)
239,996 18,049 133,192 104,120 (19,490) 27,704 27,833
$ 236,879 $ 17,960 $ 87,966 $ 98,772 $ (17,318) $ 25,068 $ 7,289 154
98 City of Live Oak, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Year Ended June 30, 2022
Revenues
Taxes and assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for services
Other revenues
Total revenues
Expenditures
Current:

General government
Public safety
Public ways and facilities
Culture and recreation
Community development
Capital outlay
Total expenditures
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
Mello Roos CFD Mello Roos CFD Mello Roos CFD Mello Roos CFD 2004-1 Animal 2004-1 Street 2004-1 Parks/ 2004-1 Storm
Services Lighting Recreation/Pool Drain
$ 45 $ 47 $ 350 $ 46
- - - -
- - - -
(16) - (209) (731)
- - - -
- - - -
- - - -
29 47 141 (685)
- - - -
499 - - -
- 23,833 - 5,519
- - 14,863 -
- - - -
- - - -
499 23,833 14,863 5,519
(470) (23,786) (14,722) (6,204)
3,872 (29,676) 57,102 153,063
$ 3,402 $ (53,462) $ 42,380 $ 146,859
155
99 City of Live Oak, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Year Ended June 30, 2022
Parks & Community General
Recreation Center Impact Public Works Government Police Impact Fire Impact Signal Impact Impact Fees Fees Impact Fees Impact Fees Fees Fees Fees $ - $ - $ - $ - $ - $ - $ -
229,205 56,346 41,835 73,487 40,105 111,063 212,546
- - - - - - -
(2,708) (1,724) (560) (2,536) (1,255) (1,849) (2,128)
- - - - - - -
- - - - - - -
- - - - - - -
226,497 54,622 41,275 70,951 38,850 109,214 210,418
- - - 700 - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
27,925 - - - - - -
27,925 - - 700 - - -
198,572 54,622 41,275 70,251 38,850 109,214 210,418
332,304 287,601 68,771 433,608 210,136 255,067 207,144
$ 530,876 $ 342,223 $ 110,046 $ 503,859 $ 248,986 $ 364,281 $ 417,562 156
100
City of Live Oak, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Year Ended June 30, 2022
Revenues
Taxes and assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for services
Other revenues
Total revenues
Expenditures
Current:

General government
Public safety
Public ways and facilities
Culture and recreation
Community development
Capital outlay
Total expenditures
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
Flood Control Storm Drain 13-CDBG-8933
Impact Fees Connection Fees Skate Park 11-HOME-7661
$ - $ - $ - $ -
- 235,855 - -
- - - -
(10) 5,706 - (49)
- - - -
- - - -
- - - -
(10) 241,561 - (49)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
(10) 241,561 - (49)
2,091 267,670 (430,713) 6,826
$ 2,081 $ 509,231 $ (430,713) $ 6,777
157
101
City of Live Oak, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Year Ended June 30, 2022
Total Nonmajor
CDBG PI Waiver Governmental
16-HOME-11380 Water Main State Grants Transportation Funds $ - $ - $ - $ - $ 9,255
- - - - 1,000,442
- - - - 6,254
- - - (1,272) (17,858)
129,586 - 35,000 - 569,328
- - - - 9,783
- - 67,259 - 71,935
129,586 - 102,259 (1,272) 1,649,139
- - - - 3,494
- - - - 21,883
- - - 11,387 387,234
- - - - 14,863
- - - - 9,311
- - - 19,154 77,437
- - - 30,541 514,222
129,586 - 102,259 (31,813) 1,134,917
(126,443) (246,000) (1,141,618) 286,071 1,646,422
$ 3,143 $ (246,000) $ (1,039,359) $ 254,258 $ 2,781,339 158
102
City of Live Oak, California
Budgetary Comparison Schedule – Streets and Roads
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 507,811 $ 507,811 $ 507,811 $ - Resources (Inflows):

Use of money and property 2,000 2,000 (2,814) (4,814)
Intergovernmental 333,000 333,000 404,742 71,742
Other agencies - - - - Charges for services 6,000 6,000 8,008 2,008 Amounts avaialble for appropriations 848,811 848,811 917,747 68,936 Charges to appropriations (outflows)
Current:

Public ways and facilities 311,763 311,763 298,850 12,913 Capital outlay 50,000 50,000 25,779 24,221
Total charges to appropriations 361,763 361,763 324,629 37,134 Budgetary fund balance, June 30 $ 487,048 $ 487,048 $ 593,118 $ 106,070 Budgeted Amounts
159
103
City of Live Oak, California
Budgetary Comparison Schedule – Traffic Safety
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 11,604 $ 11,604 $ 11,604 $ - Resources (Inflows):

Fines and forfeitures - - 6,254 6,254
Use of money and property 25 25 (83) (108)
Intergovernmental 5,000 5,000 - (5,000)
Amounts avaialble for appropriations 16,629 16,629 17,775 1,146 Budgetary fund balance, June 30 $ 16,629 $ 16,629 $ 17,775 $ 1,146 Budgeted Amounts
160
104
City of Live Oak, California
Budgetary Comparison Schedule – COPS
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 239,996 $ 239,996 $ 239,996 $ - Resources (Inflows):

Use of money and property 1,000 1,000 (3,117) (4,117)
Other revenues 100,000 100,000 4,676 (95,324)
Amounts avaialble for appropriations 340,996 340,996 241,555 (99,441) Charges to appropriations (outflows)
Current:

Public safety 205,000 205,000 97 204,903
Capital outlay 70,000 70,000 4,579 65,421
Total charges to appropriations 275,000 275,000 4,676 270,324 Budgetary fund balance, June 30 $ 65,996 $ 65,996 $ 236,879 $ 170,883 Budgeted Amounts
161
105
City of Live Oak, California
Budgetary Comparison Schedule – Sidewalk Improvement
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 18,049 $ 18,049 $ 18,049 $ - Resources (Inflows):

Use of money and property 100 100 (89) (189)
Amounts avaialble for appropriations 18,149 18,149 17,960 (189) Charges to appropriations (outflows)
Capital outlay 17,500 17,500 - 17,500
Total charges to appropriations 17,500 17,500 - 17,500
Budgetary fund balance, June 30 $ 649 $ 649 $ 17,960 $ 17,311 Budgeted Amounts
162
106
City of Live Oak, California
Budgetary Comparison Schedule – Street Lighting
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 133,192 $ 133,192 $ 133,192 $ - Resources (Inflows):

Taxes and assessments - - 1,099 1,099
Use of money and property 500 500 (455) (955)
Charges for services 1,500 1,500 1,775 275
Amounts avaialble for appropriations 135,192 135,192 135,611 419 Charges to appropriations (outflows)
Public ways and facilities 55,000 55,000 47,645 7,355
Total charges to appropriations 55,000 55,000 47,645 7,355 Budgetary fund balance, June 30 $ 80,192 $ 80,192 $ 87,966 $ 7,774 Budgeted Amounts
163
107
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 92-1
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 104,120 $ 104,120 $ 104,120 $ - Resources (Inflows):

Taxes and assessments - - 4,448 4,448
Use of money and property 500 500 (485) (985)
Amounts avaialble for appropriations 104,620 104,620 108,083 3,463 Charges to appropriations (outflows)
Current:

Community development 89,700 89,700 9,311 80,389
Total charges to appropriations 89,700 89,700 9,311 80,389 Budgetary fund balance, June 30 $ 14,920 $ 14,920 $ 98,772 $ 83,852 Budgeted Amounts
164
108
City of Live Oak, California
Budgetary Comparison Schedule – Fire Assessment
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance (deficit), July 1 $ (19,490) $ (19,490) $ (19,490) $ - Resources (Inflows):

Taxes and assessments - - 2,172 2,172
Use of money and property 200 200 - (200)
Amounts avaialble for appropriations (19,290) (19,290) (17,318) 1,972 Budgetary fund balance (deficit), June 30 $ (19,290) $ (19,290) $ (17,318) $ 1,972 Budgeted Amounts
165
109
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Fire Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 27,704 $ 27,704 $ 27,704 $ - Resources (Inflows):

Taxes and assessments - - 282 282
Use of money and property - - (124) (124)
Amounts avaialble for appropriations 27,704 27,704 27,862 158 Charges to appropriations (outflows)
Current:

General government 2,794 2,794 2,794 - Total charges to appropriations 2,794 2,794 2,794 - Budgetary fund balance, June 30 $ 24,910 $ 24,910 $ 25,068 $ 158 Budgeted Amounts
166
110
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Police Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 27,833 $ 27,833 $ 27,833 $ - Resources (Inflows):

Taxes and assessments - - 766 766
Use of money and property - - (23) (23)
Amounts avaialble for appropriations 27,833 27,833 28,576 743 Charges to appropriations (outflows)
Current:

Public safety 23,500 23,500 21,287 2,213
Total charges to appropriations 23,500 23,500 21,287 2,213 Budgetary fund balance, June 30 $ 4,333 $ 4,333 $ 7,289 $ 2,956 Budgeted Amounts
167
111
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Animal Services Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 3,872 $ 3,872 $ 3,872 $ - Resources (Inflows):

Taxes and assessments - - 45 45
Use of money and property - - (16) (16)
Amounts avaialble for appropriations 3,872 3,872 3,901 29 Charges to appropriations (outflows)
Current:

Public safety 500 500 499 1
Total charges to appropriations 500 500 499 1
Budgetary fund balance, June 30 $ 3,372 $ 3,372 $ 3,402 $ 30 Budgeted Amounts
168
112
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Street Lighting Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance (deficit), July 1 $ (29,676) $ (29,676) $ (29,676) $ - Resources (Inflows):

Taxes and assessments - - 47 47
Amounts avaialble for appropriations (29,676) (29,676) (29,629) 47 Charges to appropriations (outflows)
Public ways and facilities 26,000 26,000 23,833 2,167
Total charges to appropriations 26,000 26,000 23,833 2,167 Budgetary fund balance (deficit), June 30 $ (55,676) $ (55,676) $ (53,462) $ 2,214 Budgeted Amounts
169
113
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Parks / Recreation / Pool Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 57,102 $ 57,102 $ 57,102 $ - Resources (Inflows):

Taxes and assessments - - 350 350
Use of money and property 100 100 (209) (309)
Amounts avaialble for appropriations 57,202 57,202 57,243 41 Charges to appropriations (outflows)
Current:

Culture and recreation 18,100 18,100 14,863 3,237
Total charges to appropriations 18,100 18,100 14,863 3,237 Budgetary fund balance, June 30 $ 39,102 $ 39,102 $ 42,380 $ 3,278 Budgeted Amounts
170
114
City of Live Oak, California
Budgetary Comparison Schedule – Mello Roos CFD 2004-1 Storm Drain Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 153,063 $ 153,063 $ 153,063 $ - Resources (Inflows):

Taxes and assessments - - 46 46
Use of money and property 300 300 (731) (1,031)
Amounts avaialble for appropriations 153,363 153,363 152,378 (985) Charges to appropriations (outflows)
Current:

Public ways and facilities 114,800 114,800 5,519 109,281 Total charges to appropriations 114,800 114,800 5,519 109,281 Budgetary fund balance, June 30 $ 38,563 $ 38,563 $ 146,859 $ 108,296 Budgeted Amounts
171
115
City of Live Oak, California
Budgetary Comparison Schedule – Parks & Recreation Impact Fees Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 332,304 $ 332,304 $ 332,304 $ - Resources (Inflows):

Licenses and permits 217,296 217,296 229,205 11,909
Use of money and property - - (2,708) (2,708)
Amounts avaialble for appropriations 549,600 549,600 558,801 9,201 Charges to appropriations (outflows)
Capital outlay 330,000 330,000 27,925 302,075
Total charges to appropriations 330,000 330,000 27,925 302,075 Budgetary fund balance, June 30 $ 219,600 $ 219,600 $ 530,876 $ 311,276 Budgeted Amounts
172
116
City of Live Oak, California
Budgetary Comparison Schedule – Community Center Impact Fees Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 287,601 $ 287,601 $ 287,601 $ - Resources (Inflows):

Licenses and permits 53,424 53,424 56,346 2,922
Use of money and property 500 500 (1,724) (2,224)
Amounts avaialble for appropriations 341,525 341,525 342,223 698 Charges to appropriations (outflows)
Capital outlay 280,000 280,000 - 280,000
Total charges to appropriations 280,000 280,000 - 280,000 Budgetary fund balance, June 30 $ 61,525 $ 61,525 $ 342,223 $ 280,698 173
117
City of Live Oak, California
Budgetary Comparison Schedule – Public Works Impact Fees Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 68,771 $ 68,771 $ 68,771 $ - Resources (Inflows):

Licenses and permits 39,588 39,588 41,835 2,247
Use of money and property 150 150 (560) (710)
Amounts avaialble for appropriations 108,509 108,509 110,046 1,537 Charges to appropriations (outflows)
Capital outlay 60,000 60,000 - 60,000
Total charges to appropriations 60,000 60,000 - 60,000
Budgetary fund balance, June 30 $ 48,509 $ 48,509 $ 110,046 $ 61,537 Budgeted Amounts
174
118
City of Live Oak, California
Budgetary Comparison Schedule – General Government Impact Fees Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 433,608 $ 433,608 $ 433,608 $ - Resources (Inflows):

Licenses and permits 69,300 69,300 73,487 4,187
Use of money and property 1,000 1,000 (2,536) (3,536)
Amounts avaialble for appropriations 503,908 503,908 504,559 651 Charges to appropriations (outflows)
Current:

General government 425,000 425,000 700 424,300
Total charges to appropriations 425,000 425,000 700 424,300 Budgetary fund balance, June 30 $ 78,908 $ 78,908 $ 503,859 $ 424,951 Budgeted Amounts
175
119
City of Live Oak, California
Budgetary Comparison Schedule – Police Impact Fees
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 210,136 $ 210,136 $ 210,136 $ - Resources (Inflows):

Licenses and permits 38,000 38,000 40,105 2,105
Use of money and property 500 500 (1,255) (1,755)
Amounts avaialble for appropriations 248,636 248,636 248,986 350 Charges to appropriations (outflows)
Capital outlay 200,000 200,000 - 200,000
Total charges to appropriations 200,000 200,000 - 200,000 Budgetary fund balance, June 30 $ 48,636 $ 48,636 $ 248,986 $ 200,350 Budgeted Amounts
176
120
City of Live Oak, California
Budgetary Comparison Schedule – Fire Impact Fees
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 255,067 $ 255,067 $ 255,067 $ - Resources (Inflows):

Licenses and permits 105,160 105,160 111,063 5,903
Use of money and property 500 500 (1,849) (2,349)
Amounts avaialble for appropriations 360,727 360,727 364,281 3,554 Charges to appropriations (outflows)
Capital outlay 230,000 230,000 - 230,000
Total charges to appropriations 230,000 230,000 - 230,000 Budgetary fund balance, June 30 $ 130,727 $ 130,727 $ 364,281 $ 233,554 Budgeted Amounts
177
121
City of Live Oak, California
Budgetary Comparison Schedule – Signal Impact Fees
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 207,144 $ 207,144 $ 207,144 $ - Resources (Inflows):

Licenses and permits 187,500 187,500 212,546 25,046
Use of money and property 600 600 (2,128) (2,728)
Amounts avaialble for appropriations 395,244 395,244 417,562 22,318 Charges to appropriations (outflows)
Capital outlay 295,000 295,000 - 295,000
Total charges to appropriations 295,000 295,000 - 295,000 Budgetary fund balance, June 30 $ 100,244 $ 100,244 $ 417,562 $ 317,318 Budgeted Amounts
178
122
City of Live Oak, California
Budgetary Comparison Schedule – Flood Control Impact Fees Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 2,091 $ 2,091 $ 2,091 $ - Resources (Inflows):

Use of money and property - - (10) (10)
Amounts avaialble for appropriations 2,091 2,091 2,081 (10) Charges to appropriations (outflows)
Capital outlay 2,000 2,000 - 2,000
Total charges to appropriations 2,000 2,000 - 2,000
Budgetary fund balance, June 30 $ 91 $ 91 $ 2,081 $ 1,990 Budgeted Amounts
179
123
City of Live Oak, California
Budgetary Comparison Schedule – Storm Drain Connection Fees Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 267,670 $ 267,670 $ 267,670 $ - Resources (Inflows):

Licenses and permits 239,610 239,610 235,855 (3,755)
Use of money and property 500 500 5,706 5,206
Amounts avaialble for appropriations 507,780 507,780 509,231 1,451 Charges to appropriations (outflows)
Capital outlay 100,000 100,000 - 100,000
Total charges to appropriations 100,000 100,000 - 100,000 Budgetary fund balance, June 30 $ 407,780 $ 407,780 $ 509,231 $ 101,451 Budgeted Amounts
180
124
City of Live Oak, California
Budgetary Comparison Schedule – 13-CDBG-8933 Skate Park Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ (430,713) $ (430,713) $ (430,713) $ - Resources (Inflows):

Intergovernmental 4,800,000 4,800,000 - (4,800,000)
Amounts avaialble for appropriations 4,369,287 4,369,287 (430,713) (4,800,000) Charges to appropriations (outflows)
Capital outlay 4,800,000 4,800,000 - 4,800,000
Total charges to appropriations 4,800,000 4,800,000 - 4,800,000 Budgetary fund balance, June 30 $ (430,713) $ (430,713) $ (430,713) $ - Budgeted Amounts
181
125
City of Live Oak, California
Budgetary Comparison Schedule – Transportation
Year Ended June 30, 2022
Variance with
Final Budget
Positive
Original Final Actuals (Negative)
Budgetary fund balance, July 1 $ 286,071 $ 286,071 $ 286,071 $ - Resources (Inflows):

Use of money and property 3,000 3,000 (1,272) (4,272)
Intergovernmental 390,000 390,000 - (390,000)
Amounts avaialble for appropriations 679,071 679,071 284,799 (394,272) Charges to appropriations (outflows)
Current:

Public ways and facilities 12,100 12,100 11,387 713
Engineering
Capital outlay 350,000 350,000 19,154 330,846
Total charges to appropriations 362,100 362,100 30,541 331,559 Budgetary fund balance, June 30 $ 316,971 $ 316,971 $ 254,258 $ (62,713) Budgeted Amounts
182
126
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183
127
Nonmajor Enterprise Funds
June 30, 2022
City of Live Oak, California
184
128
185
129
City of Live Oak, California
Nonmajor Enterprise Funds
Combining Statement of Net Position
June 30, 2022
Water Sewer
Connection Connection Total
Assets
Current:

Cash and cash equivalents $ 968,002 $ 1,255,158 $ 2,223,160 Receivables:

Accrued interest 979 1,273 2,252
Total current assets 968,981 1,256,431 2,225,412
Noncurrent:

Capital assets not being depreciated 449,000 - 449,000
Total noncurrent assets 449,000 - 449,000
Total assets 1,417,981 1,256,431 2,674,412
Net position
Net investment in capital assets 449,000 - 449,000
Unrestricted 968,981 1,256,431 2,225,412
Total net position $ 1,417,981 $ 1,256,431 $ 2,674,412
Business-type activities
186
130
City of Live Oak, California
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenditures and Changes in Net Position Year Ended June 30, 2022
Water Sewer
Connection Connection Total
Operating revenues
Sales and service charges $ 448,210 $ 482,350 $ 930,560 Total operating revenues 448,210 482,350 930,560
Operating income 448,210 482,350 930,560
Nonoperating revenues (expenses)
Use of money and property (4,894) (6,389) (11,283)
Total nonoperating
revenues (expenses) (4,894) (6,389) (11,283)
Changes in net position 443,316 475,961 919,277
Net position at beginning of year 974,665 780,470 1,755,135 Net position at end of year $ 1,417,981 $ 1,256,431 $ 2,674,412 Business-type activities
187
131
City of Live Oak, California
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 2022
Water Sewer
Connection Connection Total
Cash flows from operating activities:

Cash received from customers and users $ 448,210 $ 482,350 $ 930,560 Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (449,000) - (449,000) Cash flows from investing activities:

Interest on investments (5,430) (7,311) (12,741)
Net increase in cash and cash equivalents (6,220) 475,039 468,819 Cash and cash equivalents at beginning of year 974,222 780,119 1,754,341 Cash and cash equivalents at end of year $ 968,002 $ 1,255,158 $ 2,223,160 Reconciliation of operating income to cash flows
provided by (used for) operating activities:

Operating income $ 448,210 $ 482,350 $ 930,560
Net cash provided by operating activities $ 448,210 $ 482,350 $ 930,560 Business-type activities
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Statistical Section
June 30, 2022
City of Live Oak, California
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City of Live Oak, California
Statistical Section
Year Ended June 30, 2022
This part of the City of Rancho Cordova’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
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 and developer fees and contributions are the City’s most significant revenue sources.

1. Tax Revenue by Source

2. Assessed/Estimated Value of Taxable Property

3. Direct and Overlapping Sales Tax Rates

4. Taxable Sales by Category
Direct and overlapping Property Tax Rates

5. Principal Property Taxpayers

6. Property Tax Levies and Collections
Debt Capacity
These schedules present 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.

1. Computation of Direct and Overlapping Debt

2. Ratio of Outstanding Debt by Type

3. Computation of Legal Debt Margin
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City of Live Oak, California
Statistical Section
Year Ended June 30, 2022
Demographic and Economic Information
These schedules provide information on the demographic and economic environment in which the City conducts business.

1. Demographic and Economic Statistics

2. Principal Employers
Operating Information
These schedules provide information the City’s service infrastructure to assist the reader in understanding how the information in the City’s financial report relates to the services the City provides and the activities it performs.

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant years.
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City of Live Oak, California
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Govermental Activites
Net investment in capital assets $ 24,859,451 $ 25,177,065 $ 26,423,155 $ 27,103,387 $ 28,265,740 $ 28,377,393 $ 28,831,714 $ 28,129,068 $ 29,188,335 $ 18,759,749 Restricted 10,932,658 10,503,214 12,167,030 4,272,612 3,345,863 3,980,298 3,708,676 3,885,096 3,691,906 23,228,119 Unrestricted 4,487,549 4,737,305 4,485,329 4,280,849 5,445,053 6,722,869 17,008,977 20,932,421 19,566,055 11,099,120 Total governmental activities net position 40,279,658 40,417,584 43,075,514 35,656,848 37,056,656 39,080,560 49,549,367 52,946,585 52,446,296 53,086,988 Business-type Activities
Net investment in capital assets 32,253,055 31,055,100 29,831,525 28,599,846 28,727,091 28,647,690 28,082,900 28,405,269 29,355,009 28,172,308 Restricted 2,189,552 2,107,725 2,228,397 2,401,678 1,343,421 341,832 540,108 815,915 1,306,135 - Unrestricted 2,441,509 2,837,663 2,263,256 2,554,799 3,760,366 3,110,022 3,238,836 3,433,811 2,828,996 4,720,811 Total business-type activities net position 36,884,116 36,000,488 34,323,178 33,556,323 33,830,878 32,099,544 31,861,844 32,654,995 33,490,140 32,893,119 Primary Government
Net investment in capital assets 57,112,506 56,232,165 56,254,680 55,703,233 56,992,831 57,025,083 56,914,614 56,534,337 58,543,344 46,932,057 Restricted 13,122,210 12,610,939 14,395,427 6,674,290 4,689,284 4,322,130 4,248,784 4,701,011 4,998,041 23,228,119 Unrestricted 6,929,058 7,574,968 6,748,585 6,835,648 9,205,419 9,832,891 20,247,813 24,366,232 22,395,051 15,819,931 Total primary government net position $ 77,163,774 $ 76,418,072 $ 77,398,692 $ 69,213,171 $ 70,887,534 $ 71,180,104 $ 81,411,211 $ 85,601,580 $ 85,936,436 $ 85,980,107 195
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City of Live Oak, California
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Expenses Govermental Activities: General government $ 412,935 $ 399,590 $ 543,796 $ 519,223 $ 699,781 $ 990,032 $ 990,360 $ 893,380 $ 774,096 $ 931,014 Public safety 1,692,570 1,744,005 1,635,797 2,235,826 2,033,209 1,984,144 2,006,236 2,313,013 2,328,780 2,517,012 Public ways and facilities 775,399 1,178,326 1,418,607 1,196,682 2,031,089 1,579,362 966,937 1,053,622 1,827,022 52,895 Culture and recreation 503,341 496,495 544,100 609,869 833,110 926,952 1,071,086 1,197,655 1,187,739 1,207,729 Community development 589,673 517,636 620,114 2,474,188 2,060,694 1,828,608 429,642 4,815,355 537,626 1,243,057 Interest on long-term debt 4,160 3,348 3,748 2,584 520 5,952 25,222 21,932 16,884 31,899 Total Govermental Activities Expenese 3,978,078 4,339,400 4,766,162 7,038,372 7,658,403 7,315,050 5,489,483 10,294,957 6,672,147 5,983,606 Busines-type Activities: Water 1,342,609 1,381,185 1,404,692 1,275,640 1,306,471 1,300,029 1,335,960 1,313,223 1,596,824 1,770,843 Sewer 2,694,727 2,544,455 2,633,340 2,704,970 2,724,674 2,898,819 2,925,050 2,855,811 3,038,425 3,085,361 Total Business-type Activities Expenese 4,037,336 3,925,640 4,038,032 3,980,610 4,031,145 4,198,848 4,261,010 4,169,034 4,635,249 4,856,204 Total Primary Government Expenese $ 8,015,414 $ 8,265,040 $ 8,804,194 $ 11,018,982 $ 11,689,548 $ 11,513,898 $ 9,750,493 $ 14,463,991 $ 11,307,396 $ 10,839,810 Program Revenues Govermental Activities: Charges for services:

General government $ 76,244 $ 70,805 $ 76,876 $ 83,748 $ 366,660 $ 492,972 $ 427,673 $ 296,639 $ 392,632 $ 402,145 Public safety 388,263 378,725 408,070 398,570 4,057 2,728 4,230 6,582 4,781 6,607 Public ways and facilities 344,981 343,482 426,434 973,516 233,355 1,781,220 39,870 199,616 439,942 500,019 Culture and recreation 170,061 162,631 252,394 185,432 64,221 61,744 56,343 35,211 20,816 38,968 Community development 151,284 178,503 144,641 320,667 1,055,642 2,005,122 115,139 - - - Operating grants and contributions 1,385,431 1,004,975 1,977,712 2,793,371 1,857,982 277,728 1,146,628 9,988,595 1,399,265 1,143,071 Capital grants and contributions 564,161 402,859 2,152,350 1,690,492 1,295,923 100,745 100,156 28,210 38,118 57,965 Total Govermental Activities Program Revenues 3,080,425 2,541,980 5,438,477 6,445,796 4,877,840 4,722,259 1,890,039 10,554,853 2,295,554 2,148,775 Busines-type Activities:

Charges for services: Water 902,570 850,832 882,743 878,199 809,830 878,229 879,586 879,726 940,189 799,208 Sewer 2,181,809 2,179,286 2,241,249 2,291,083 2,243,244 2,265,104 2,289,788 2,328,299 2,378,415 2,436,477 Water Connections 15,270 68,930 109,333 121,653 428,682 448,210 Sewer Connections 9,053 - 89,628 144,228 508,232 482,350 Operating grants and contributions - - - - - - - - - 123,864 Capital grants and contributions 10,161,065 - - 23,000 1,027,513 864,919 - - - - Total Business-type Activities Program Revenues 13,245,444 3,030,118 3,123,992 3,192,282 4,104,910 4,077,182 3,368,335 3,473,906 4,255,518 4,290,109 Total Primary Government Program Revenues $ 16,325,869 $ 5,572,098 $ 8,562,469 $ 9,638,078 $ 8,982,750 $ 8,799,441 $ 5,258,374 $ 14,028,759 $ 6,551,072 $ 6,438,884 196
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City of Live Oak, California
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Net (Expense)/Revenues (1)
Govermental Activities $ (897,653) $ (1,797,420) $ 672,315 $ (592,576) $ (2,780,563) $ (2,592,791) $ (3,599,444) $ 259,896 $ (4,376,593) $ (3,834,831) Busines-type activities 9,208,108 (895,522) (914,040) (788,328) 73,765 (121,666) (892,675) (695,128) (379,731) (566,095) Total Primary Govermental Net Expense 8,310,455 (2,692,942) (241,725) (1,380,904) (2,706,798) (2,714,457) (4,492,119) (435,232) (4,756,324) (4,400,926) General Revenues and Other Changes in Net Position
Govermental Activities:

Taxes:

Property taxes 1,239,301 1,241,319 1,382,229 1,383,175 1,476,356 1,470,113 1,867,354 1,760,699 1,878,102 1,843,633 Sales and use taxes 262,905 294,102 263,086 297,481 325,380 358,667 427,506 399,002 371,363 520,544 Franchise taxes 136,868 139,766 155,071 166,356 - - 232,801 231,699 245,828 284,861 Property taxes 9,114 12,837 8,290 11,536 - - - - - -
Other taxes - - - - 716,398 750,153 1,058,557 1,269,351 1,619,334 745,456 Motor vehicle in lieu - unrestricted - - - - 328,139 337,283 429,421 415,704 Use of money and property - - - - 87,766 120,425 42,769 317,698 84,839 358,364 Grants and contributions - unrestricted 4,792 4,145 80,806 34,609 - - - - - - Interest and investment earnings 75,530 73,827 79,218 113,073 - - - - - - Miscellaneous 120,453 169,350 64,888 217,676 - - - - - - Other - - - - 541,664 322,717 265,241 238,755 458,167 306,961 Transfers (378,280) - - - 25,000 1,556,000 (577,087) (1,417,165) (1,210,750) - Special Item - - 447,830 - - - - - - -
Total Governmental Activities 1,470,683 1,935,346 2,481,418 2,223,906 3,172,564 4,578,075 3,645,280 3,137,322 3,876,304 4,475,523 Busines-type Activities:

Use of money and property - - - 28,460 50,063 77,888 71,114 - Interest and investment earnings 10,974 10,221 13,448 21,309 - - - - - - Miscellaneous 5,998 1,673 1,934 164 - - - - - -
Other - - 667 - - 4,126 (30,926)
Transfers - - - - (25,000) (1,556,000) 577,087 1,417,165 1,210,750 - Total Busines-Type Activities 16,972 11,894 15,382 21,473 4,127 (1,505,937) 654,975 1,488,279 1,214,876 (30,926) Total Primary Government 1,487,655 1,947,240 2,496,800 2,245,379 3,176,691 3,072,138 4,300,255 4,625,601 5,091,180 4,444,597 Change in Net Position
Govermental Activities 573,030 137,926 3,153,733 1,631,330 392,001 1,985,284 45,836 3,397,218 (500,289) 640,692 Busines-type activities 9,225,080 (883,628) (898,658) (766,855) 77,892 (1,627,603) (237,700) 793,151 835,145 (597,021) Total Primary Government $ 9,798,110 $ (745,702) $ 2,255,075 $ 864,475 $ 469,893 $ 357,681 $ (191,864) $ 4,190,369 $ 334,856 $ 43,671 Source: ACFR
Note: (1) Net expense is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program supports itself with its own fees and grants versus its reliance upon funding from taxes and general revenues. Numbers in parentheses are net expenses, indicating that expenses were greater than program revenues and therefore general revenues were needed to finance that function or program.
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City of Live Oak, California
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Revenues Taxes and assessment $ 2,863,851 $ 2,220,317 $ 2,352,464 $ 2,411,650 $ 2,518,134 $ 2,578,933 $ 3,586,218 $ 3,660,751 $ 4,114,627 $ 2,878,901 Licenses and permits 394,624 451,881 482,426 646,258 450,120 557,939 394,950 290,495 414,375 1,394,162 Fines and forfeitures 6,721 6,867 3,594 6,935 4,057 2,728 4,230 5,140 4,781 7,617 Use of money 78,359 73,827 79,218 113,073 87,766 120,425 259,955 238,755 84,839 44,486 Intergovernemtal 1,141,556 1,575,066 4,115,325 3,853,365 3,443,320 4,248,576 1,119,755 951,050 922,241 1,455,600 Charges for services 133,467 80,882 258,513 558,685 103,286 115,920 96,709 173,919 215,656 61,234 Other revenues 120,453 169,350 64,888 217,676 558,732 324,639 310,832 5,085,002 1,141,554 374,180 Total Revenues 4,739,031 4,578,190 7,356,428 7,807,642 7,165,415 7,949,160 5,772,649 10,405,112 6,898,073 6,216,180 Expenditures Current: General government 367,720 347,258 514,871 488,652 688,906 857,597 906,681 791,833 765,267 677,139 Public safety 1,602,027 1,670,167 1,585,506 2,148,112 1,914,124 1,867,994 1,883,345 2,141,889 2,183,544 2,372,891 Public ways and facilities 275,526 678,801 923,626 735,070 1,472,836 997,626 972,143 918,792 1,601,353 704,499 Culture and recreation 397,262 386,469 432,264 501,979 725,565 789,094 763,960 868,515 893,998 894,267 Community development 589,673 517,636 627,037 2,482,059 2,041,715 1,956,524 434,675 5,688,770 1,168,779 49,602 Debt service
Principal 12,000 13,000 66,342 67,461 68,581 54,146 123,414 125,933 128,540 144,525 Interest 4,160 3,348 3,748 2,584 520 5,952 25,222 21,932 16,884 33,065 Capital outlay 1,167,335 1,038,108 2,422,505 1,866,084 1,909,114 1,329,178 1,092,702 338,033 1,979,271 304,639 Total Expenditures 4,415,703 4,654,787 6,575,899 8,292,001 8,821,361 7,858,111 6,202,142 10,895,697 8,737,636 5,180,627 Excess of Revenues Over (under) Expenditures 323,328 (76,597) 780,529 (484,359) (1,655,946) 91,049 (429,493) (490,585) (1,839,563) 1,035,553 Other Financial Sources (Uses)
Issuance of debt - - 528,825 - Transfers in 1,123,115 993,112 5,033,468 615,014 1,470,949 2,491,184 442,810 74,435 100,955 611,000 Transfers out (1,501,395) (993,112) (5,033,468) (615,014) (1,445,949) (409,587) (442,810) (74,435) (100,955) (611,000) Capital Leases - - - - - 549,863 - - - - Total Other Financial Sources (Uses) (378,280) - 528,825 - 25,000 2,631,460 - - - - Special Item - Reinstatement of loan receivable - - 447,830 - (4,849) - - - Net Change in Fund Balances $ (54,952) $ (76,597) $ 1,757,184 $ (484,359) $ (1,635,795) $ 2,722,509 $ (429,493) $ (490,585) $ (1,839,563) $ 1,035,553 Debt Service as a Percentage of
Noncapital Expenditures 0.50% 0.45% 1.72% 1.10% 1.01% 0.93% 3.00% 1.42% 2.15% 3.62% 198
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City of Live Oak, California
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 General Fund
Nonspendable $ - $ - $ 451,274 $ 8,115 $ 10,661 $ 11,357 $ 15,268 $ 10,659 $ 29,319 $ 10,143 Committed 2,510,279 2,514,883 2,519,197 2,525,652 2,534,045 2,548,739 2,548,739 2,607,392 2,605,435 2,599,487 Unassigned 1,985,378 2,037,092 2,227,090 2,230,647 2,075,899 2,427,584 2,106,314 1,844,354 1,559,999 1,350,664 Total General Fund $ 4,495,657 $ 4,551,975 $ 5,197,561 $ 4,764,414 $ 4,620,605 $ 4,987,680 $ 4,670,321 $ 4,462,405 $ 4,194,753 $ 3,960,294 All Other Governmental Funds
Unreserved, reported in:

Nonspendable - $ - $ 484 $ 330 $ 4,712 $ 3,983 $ 4,559 $ 15,402 $ 7,094 $ - $ Restricted 10,923,658 10,503,214 11,975,628 4,272,282 3,345,863 3,874,348 3,708,676 3,741,774 3,691,906 4,868,280 Unassigned (deficit) (346,316) (49,787) (411,087) (1,270,688) (1,840,637) (538,556) (485,594) (716,124) (2,325,939) (2,225,207) Total All Other Governmental Funds $ 10,577,342 $ 10,453,427 $ 11,565,025 $ 3,001,924 $ 1,509,938 $ 3,339,775 $ 3,227,641 $ 3,041,052 $ 1,373,061 $ 2,643,073 199
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City of Live Oak, California
Changes in Fund Balances of Governmental Funds -
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Revenues Taxes and assessment $ 2,863,851 $ 2,220,317 $ 2,352,464 $ 2,411,650 $ 2,518,134 $ 2,578,933 $ 3,586,218 $ 3,660,751 $ 4,114,627 $ 2,878,901 Licenses and permits 394,624 451,881 482,426 646,258 450,120 557,939 394,950 290,495 414,375 1,394,162 Fines and forfeitures 6,721 6,867 3,594 6,935 4,057 2,728 4,230 5,140 4,781 7,617 Use of money 78,359 73,827 79,218 113,073 87,766 120,425 259,955 238,755 84,839 44,486 Intergovernemtal 1,141,556 1,575,066 4,115,325 3,853,365 3,443,320 4,248,576 1,119,755 951,050 922,241 1,455,600 Charges for services 133,467 80,882 258,513 558,685 103,286 115,920 96,709 173,919 215,656 61,234 Other revenues 120,453 169,350 64,888 217,676 558,732 324,639 310,832 5,085,002 1,141,554 374,180 Total Revenues 4,739,031 4,578,190 7,356,428 7,807,642 7,165,415 7,949,160 5,772,649 10,405,112 6,898,073 6,216,180 Expenditures
Current:

General government 367,720 347,258 514,871 488,652 688,906 857,597 906,681 791,833 765,267 677,139 Public safety 1,602,027 1,670,167 1,585,506 2,148,112 1,914,124 1,867,994 1,883,345 2,141,889 2,183,544 2,372,891 Public ways and facilities 275,526 678,801 923,626 735,070 1,472,836 997,626 972,143 918,792 1,601,353 704,499 Culture and recreation 397,262 386,469 432,264 501,979 725,565 789,094 763,960 868,515 893,998 894,267 Community development 589,673 517,636 627,037 2,482,059 2,041,715 1,956,524 434,675 5,688,770 1,168,779 49,602 Debt service Principal 12,000 13,000 66,342 67,461 68,581 54,146 123,414 125,933 128,540 144,525 Interest 4,160 3,348 3,748 2,584 520 5,952 25,222 21,932 16,884 33,065 Capital outlay 1,167,335 1,038,108 2,422,505 1,866,084 1,909,114 1,329,178 1,092,702 338,033 1,979,271 304,639 Total Expenditures 4,415,703 4,654,787 6,575,899 8,292,001 8,821,361 7,858,111 6,202,142 10,895,697 8,737,636 5,180,627 Excess of Revenues Over (under) Expenditures 323,328 (76,597) 780,529 (484,359) (1,655,946) 91,049 (429,493) (490,585) (1,839,563) 1,035,553 Other Financial Sources (Uses)
Issuance of debt - - 528,825 - Transfers in 1,123,115 993,112 5,033,468 615,014 1,470,949 2,491,184 442,810 74,435 100,955 611,000 Transfers out (1,501,395) (993,112) (5,033,468) (615,014) (1,445,949) (409,587) (442,810) (74,435) (100,955) (611,000) Capital Leases - - - - - 549,863 - - - - Total Other Financial Sources (Uses) (378,280) - 528,825 - 25,000 2,631,460 - - - - Special Item - Reinstatement of loan receivable - - 447,830 - (4,849) - - - Net Change in Fund Balances $ (54,952) $ (76,597) $ 1,757,184 $ (484,359) $ (1,635,795) $ 2,722,509 $ (429,493) $ (490,585) $ (1,839,563) $ 1,035,553 Debt Service as a Percentage of
Noncapital Expenditures 0.50% 0.45% 1.72% 1.10% 1.01% 0.93% 3.00% 1.42% 2.15% 3.62% 200
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City of Live Oak, California
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (Accrual Basis of Accounting)
Taxable
SBE Assessed % Direct
Fiscal Year Secured Unsecured Nonunitary Value Change Rate 2012/2013 $ 272,426,872 $ 5,096,684 $ 2,004 $ 277,525,560 -0.93% 1.000% 2013/2014 279,374,003 4,610,118 2,004 283,986,125 2.33% 1.000% 2014/2015 315,429,043 5,473,874 2,004 320,904,921 13.00% 1.000% 2015/2016 330,917,725 5,238,525 2,004 336,158,254 4.75% 1.000% 2016/2017 352,823,047 4,561,387 2,439 357,386,873 6.32% 1.000% 2017/2018 370,589,936 4,492,172 2,439 375,084,547 4.95% 1.000% 2018/2019 438,648,423 5,852,538 2,439 393,440,920 4.89% 1.140% 2019/2020 458,721,383 6,373,661 2,614 423,760,729 7.71% 1.140% 2020/2021 456,030,930 15,048,625 2,614 471,079,555 11.17% 1.150% 2021/2022 485,001,596 7,715,192 2,614 492,716,788 4.59% 1.150% In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property tax may be increased by an "inflation factor" (limited to a maximum increase 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 the taxable property and is subject to the limitations described above.

Source: Assessor's Office, County of Sutter
HDL Coren & Cone
Top 10 Property Taxpayers
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Property Tax Rates – All Overlapping Governments
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 City of Live Oak
General purpose 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Live Oak Unified School District 0.081 0.082 0.074 0.073 0.065 0.372 0.114 0.372 0.117 0.108 Yuba Community College District 0.025 0.027 0.025 0.025 0.026 0.073 0.030 0.073 0.031 0.036

1.106 1.110 1.099 1.098 1.091 1.445 1.144 1.445 1.148 1.144 Notes: (1) The above tax rates are applied per $100 of assessed valuation. (2) 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 for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of school district bonds. Source: Assessor's Office, County of Sutter HDL Coren & Cone
Property Tax Dollar Breakdown
Fiscal Year
202
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City of Live Oak, California
Principal Property Tax Payers -
Current Year and Ten Years Ago
Fiscal Year 2021/2022
Percent of
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
Corrections Corporation of America 7,657,049 $ 1.55%
Millenium Farms LLC 4,579,607 0.93%
9000 Larkin Road LLC 4,527,761 0.92%
COE Orchard Equipment Inc 4,227,361 0.86%
Rilco-Edwards LLC 3,397,500 0.69%
Sunsweet Dryers Et Al 3,001,491 0.61%
H and S Energy LLC 2,689,285 0.55%
Live Oak Apartments 2,512,239 0.51%
Jaswant S Saprai 2,333,135 0.47%
Slagle Rev 88 Trust Et Al 2,332,000 0.47%
$ 7.56% 37,257,428
Total City of Live Oak assessed property valuation Fiscal Year 2021/22 492,716,788 $ Fiscal Year 2012/13
Percent of
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
CCA Properties of America $ 6,576,015 2.37%
Tower Energy Group Corporation 3,417,655 1.23%
Auburn Manor Holding Corporation 3,343,250 1.20%
Sunsweet Dryers 2,521,553 0.91%
Jaswant S. Saprai 2,059,902 0.74%
L and R Gas and Food Inc 1,835,296 0.66%
Kashmir K. Gill 1,792,057 0.65%
KB Home Sacramento Inc 1,455,000 0.52%
Millennium Farms LLC 1,387,161 0.50%
Cavazos Family Rev 11 Trust Etal 1,272,000 0.46%
- $ 25,659,889 9.25%
Total City of Live Oak assessed property valuation Fiscal Year 2012/13 $ 277,525,560 Source: Assessor's Office, County of Sutter
HDL Coren & Cone
Top Ten Property Tax Payers
203
147
City of Live Oak, California
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections within the
Fiscal Year of the Levy Total Collections to Date
Taxes Levied Collections
for the Percent in Subsequent Percent
Fiscal Year Fiscal Year Amount of Levy Years Amount of Levy 2012/2013 $ 459,780 $ 459,780 100.00% - $ 459,780 100.00% 2013/2014 446,754 446,754 100.00% - 446,754 100.00%
2014/2015 519,978 519,978 100.00% - 519,978 100.00%
2015/2016 526,346 526,346 100.00% - 526,346 100.00%
2016/2017 592,035 592,035 100.00% - 592,035 100.00%
2017/2018 616,549 616,549 100.00% 6,672 623,221 100.00% 2018/2019 649,914 649,914 100.00% 8,119 658,033 100.00% 2019/2020 668,907 668,907 100.00% 8,278 668,907 100.00% 2020/2021 703,105 703,105 100.00% 8,093 703,105 100.00% 2021/2022 650,261 650,261 100.00% - 650,261 100.00%
Source: Auditor-Controller's Office, County of Sutter
Finance Department, City of Live Oak (GL).

Notes:

Auditor-Controller's Office, County of Sutter for Billed and Unpaid tax for Collection in Subsequent Yrs Taxes Levied for the FY is 100% of the Secured Property Taxes which can be found on the GL 10-4-0000-4101 204
148
City of Live Oak, California
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type Activities
Financed Certificates Financed Total Percentage Percentage Purchases of Purchases Primary of Person of Assessed Per Fiscal Year Loans & Leases (3) Total Loans Bonds Participation & Leases (3) Total Government Income (1) Value (2) Capita (1) 2012/2013 $ 58,000 $ - $ 58,000 $ 5,874,728 $ 55,000 $ 2,250,000 $ 309,641 $ 8,489,369 $ 8,547,369 5.81% 3.08% 1,025 2013/2014 45,000 - 45,000 5,689,373 27,000 2,190,000 245,690 8,152,063 8,197,063 5.30% 2.89% 969 2014/2015 507,483 - 507,483 5,512,294 - 2,130,000 180,453 7,822,747 8,330,230 5.71% 2.60% 981 2015/2016 440,022 - 440,022 5,333,446 - 2,060,000 113,903 7,507,349 7,947,371 5.33% 2.36% 935 2016/2017 371,441 371,441 5,152,808 - 1,990,000 46,015 7,188,823 7,560,264 5.04% 2.12% 859 2017/2018 317,295 549,863 867,158 4,970,364 - 1,920,000 - 6,890,364 7,757,522 4.51% 2.07% 883 2018/2019 264,413 479,331 743,744 4,786,095 - 1,850,000 - 6,636,095 7,379,839 4.70% 1.88% 841 2019/2020 211,530 406,281 617,811 4,599,983 - 1,780,000 - 6,379,983 6,997,794 4.39% 1.65% 785 2020/2021 158,648 330,623 489,271 4,412,011 - 1,710,000 - 6,122,011 6,611,282 4.06% 1.40% 711 2021/2022 105,766 284,130 389,896 4,222,159 - 1,640,000 14,910 5,862,159 6,252,055 3.91% 1.27% 673 (1) See Demographic and Economic Statistic schedule for personal income and population data. (2) See Assessed Value and Estimated Actual Value of Taxable Property schedule for property value data. (3) Formerly classified as "capital leases"
Source: City of Live Oak Annual Financial Reports
Finance Department, City of Live Oak (Long Term Debt Schedule) Governmental Activities
205
149
City of Live Oak, California
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded
Debt Outstanding
General Pension Percent of
Obligation Obligation Assessed Per
Fiscal Year Bonds Bonds Total Value Population Capita
2012/2013 $ 58,000 $ - $ 58,000 0.02% 8,341 7
2013/2014 45,000 - 45,000 0.02% 8,461 5
2014/2015 507,483 - 507,483 0.16% 8,488 60
2015/2016 440,022 - 440,022 0.13% 8,500 52
2016/2017 371,441 - 371,441 0.10% 8,800 42
2017/2018 317,295 - 317,295 0.08% 8,781 36
2018/2019 264,413 - 264,413 0.07% 8,771 30
2019/2020 211,530 - 211,530 0.05% 8,912 24
2020/2021 158,648 - 158,648 0.03% 9,300 17
2021/2022 105,766 - 105,766 0.02% 9,293 11 Source: Assessor's Office, County of Sutter Finance Department, City of Live Oak
Hdl Coren & Cone
206
150
City of Live Oak, California
Direct and Overlapping Bonded Debt
As of June 30, 2022
City Assessed Valuation $ 492,716,788
Adjusted Assessed Valuation $ 492,716,788
Estimated
Outstanding Share of
Percent Debt Overlapping
Applicable June 30, 2022 Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:

Live Oak Unified School District 47.894% $ 21,420,000 $ 10,258,895 Yuba Commuinty College District 1.333% 183,296,106 2,443,337 Sutter Butte Flood Control Agency Assessment District 4.671% 79,945,000 3,734,231

Total Overlapping Tax and Assessment Debt 284,661,106 16,436,463 OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Sutter County Board of Education Certificates of Participations 4.469% $ 4,630,000 206,915 Yuba Joint Community College General Fund Obligations 1.333% 12,614,951 168,157 Live Oak Unified School District Certificates of Participation 47.894% 3,375,215 1,616,525 Total Overlapping General Fund Obligation Debt 20,620,166 1,991,597 Total Overlapping Debt 305,281,272 18,428,060
CITY OF LIVE OAK DIRECT DEBT:

City of Yuba City Loan 100.000% 105,766 105,766
Leases and financed purchases 100.000% 284,130 284,130
Total Direct Debt 389,896 389,896
Total Combined Debt $ 305,671,168 $ 18,817,956
RATIOS TO 2020/2021 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 3.82%
RATIOS TO ADJUSTED ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 3.819%
Combined Direct Debt ($0,000,000) 0.000%
Combined Total Debt 3.819%
Note: Overlapping governments are those that coincide, at least in part, within the geographic boundaries of the City of Live Oak. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.

The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: Auditor-Controller's Office, County of Sutter
Yuba Community College
Live Oak Unified School District
Sutter-Butte Flood Control Agency
Finance Department, City of Live Oak
Munis Report
CalMuni
207
151
City of Live Oak, California
Computation of Legal Bonded Debt Margin
June 30, 2022
Secured Property Assessed Value, Net of Exempt Real Property $ 423,760,729 Bonded debt limit (3.75% of assessed value) (a) $ 15,891,027 Less debt subject to limit:

Total water certificates of participation at 06/30/22 (920,000) Total sewer certificates of participation at 06/30/22 (720,000) Total sewer revenue bonds at 06/30/22 - Legal debt margin $ 14,251,027 (a) California Government Code Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value at full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.

Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
Hdl Coren & Cone
Notes:

Certificate of participation can be found in long term debt 208
152
City of Live Oak, California
Demographic and Economic Statistics
Last Ten Fiscal Years
Per Capita
Personal Income Taxable Taxable Average
Calendar Total Assessed Property Unemployment
Year Population (in thousands) Per Capita Valuation Values Rate 2013 8,341 $ 147,192 $ 17,647 $ 277,525,560 $ 33,272 25.9% 2014 8,461 154,611 18,273 283,986,125 33,564 24.5%
2015 8,488 145,773 17,174 320,904,921 37,807 14.3%
2016 8,500 149,192 17,552 336,158,254 39,548 6.9%
2017 8,800 149,859 17,029 357,386,873 40,612 8.00%
2018 8,781 171,819 19,567 375,084,547 42,715 7.60%
2019 8,771 156,957 17,895 393,440,920 44,857 4.30%
2020 8,912 159,545 17,902 423,760,729 47,549 4.30%
2021 9,300 162,773 17,503 471,079,555 50,656 9.30%
2022 9,293 159,758 17,192 492,716,788 53,023 9.30%
Note: Data pertaining to personal income is not readily available, thus the City used taxable assessed values to calculate per capita taxable property values. Data pertaining to personal income for calendar year 2016, and 2017 is not readily avaible, thus the City provided an average using data froom the last three years
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.

3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.

Source:

Avenu Insights & Analytics
2016-17 and prior, previously published CAFR Report
Munis Report
209
153
City of Live Oak, California
Principal Employers
2022
2021-2022 Percent 2020-2021 Percent
Number of of Total Number of of Total
Employer Employees Employment Employees Employment
Live Oak Unified School District 256 6.56% 252 6.46%
Wilbur Packing CO Inc 142 3.64% 146 3.74%
River Valley Care Center 145 3.72% 139 3.56%
City of Live Oak 41 1.05% 27 0.69%
E-Center Head Start - Yuba-Sutter 22 0.56% 35 0.90%
Dollar General Market 17 0.44% 18 0.46%
Tower Supermarket 14 0.36% 13 0.33%
United States Post Office 13 0.33% 12 0.31%
Live Oak Pharmacy 6 0.15% 6 0.15%
Live Oak Medical Clinic 0.00%
Peach Tree Health (Formerly Live Oak Medical Clinic) 10 0.26% 10 0.26% Total 666 17.08% 658 16.87%
Total City Employment (1) 3900
Note:

Source: City of Live Oak
Avenu Insights & Analytics
(1) Employment Development Department, State of California Munis Report
210
154
City of Live Oak, California
Full-time and Part-time City Government Employers
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 City Clerk's Office 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Administration 1.00 1.00 1.00 1.00 - 1.00 1.00 - 1.00 1.00 Finance/Administrative Services 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Community Development 1.00 1.00 - - - - - - - - Public Works 9.00 9.00 5.00 7.00 10.00 7.00 7.00 8.00 7.00 10.00 Parks and Recreation 7.00 7.00 10.00 8.00 7.00 9.00 9.00 10.00 6.00 8.00 Building 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Total Full-Time Equivalent Employees 30.00 30.00 29.00 29.00 30.00 30.00 30.00 31.00 27.00 32.00 211
155
City of Live Oak, California
Operating Indicators
Last Ten Fiscal Years
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Business Licenses:

Annual Business License 140 286 135 129 137 132 119 121 130 140 One Time License 18 18 11 10 7 6 8 9 5 5
Environment and Utilities:

Gallons of wastewater treated per year (in millions) 258 223 225 218 380 251 384 393 300 310 Fire - Within City Limits
Fires per year 41 47 22 21 19 16 87 95 21 44
Emergency medical calls per year 603 509 236 738 682 678 977 699 832 921 Hazardous materials incidents per year 12 5 4 7 14 16 5 25 18 10 Non-emergency service calls per year 136 192 275 78 275 271 85 92 224 277 Fire - Outside City Limits Within County
Fires per year - - 47 42 36 19 45 86 56 46
Emergency medical calls per year - - 154 155 156 181 105 188 287 126 Hazardous materials incidents per year - - 4 12 9 8 1 10 18 5 Non-emergency service calls per year - - 99 112 104 113 65 32 192 88 Police 911 calls per year 845 1,401 1,432 1,965 1,998 1862 1491 1632 1809 2051 Cases investigated per year 826 930 563 616 696 744 1153 1074 752 1055 Arrests per year 186 202 92 123 121 124 213 192 224 185 Building Permits Building permits issued per year 110 147 200 279 241 210 313 279 276 284 New building and alteration valuation $ 1,892,973 $ 2,188,866 $ 6,525,489 $ 9,442,021 $ 9,442,021 $ 9,060,757 $ 23,059,905 $ 14,842,766 $ 21,625,800 $ 27,720,974 Note: According to Sutter County Sheriff staff, 911 calls information purged for years prior to FY 2007/2008. Data pertaining to fire within city limits, outside city limits, and new building & alteration valuation not readily available. Source: City of Live Oak, Finance/Building Dept's Sutter County Sheriff
Sutter County Fire
212
156
City of Live Oak, California
Capital Asset Statistics
Last Ten Fiscal Years
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Enviroment and Utilities
Miles of municipal sewer mains 24.9 24.9 24.9 25.6 25.6 25.6 25.6 25.6 25.6 25.6 Maximum daily capacity (gallons per day) 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 Miles of water mains 30.4 30.4 30.4 31.5 31.5 31.5 31.5 31.5 31.5 31.5 Water wells 4 4 4 4 4 5 5 6 6 6
Water storage tanks 1 1 1 1 1 1 1 1 1 1
Fire
Full-time staffed positions 4 4 4 4 6 6 6 6 6 6
Volunteer stations 1 1 1 1 1 1 1 3 3 3 Police
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles and motorcycles 10 10 10 10 10 10 10 10 12 12 Community Development Miles of municipal roadways 28.44 28.44 28.44 29.50 29.50 29.50 29.50 29.50 29.50 29.50 Park sites 8 8 8 8 8 8 8 8 8 8 Oak Tree
Memorial
Ball Fields
Skate Park
Date St Park
Pennington Ranch
Rec Trail
Soccer Park Source: City of Live Oak Public Works
Sutter County Fire Dept
Sutter County Sheriff Dept
213
157
City of Live Oak, California
Sales Value History -
Last Ten Fiscal Years (Unaudited)
Full Median
Calendar Value Average Median %
Year Sales Price Price Change
2013 91 $ 133,709 $ 138,000 6.15%
2014 100 155,175 159,000 15.22%
2015 97 181,232 190,000 19.50%
2016 96 186,047 196,000 3.16%
2017 89 211,315 213,000 8.67%
2018 86 220,087 223,250 4.81%
2019 83 241,880 245,000 9.74%
2020 94 276,314 283,000 1.84%
2021 81 348,543 350,000 1.84%
2022 53 370,368 370,000 4.23%
Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
Hdl Coren & Cone
214
City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Mid-Year Budget Adjustments for Fiscal Year (FY) 2022-23 Contact Information: James Ramsey, Finance Director
Background: See attached staff report.

Recommendation: Approve mid-year budget adjustments for FY 2022-23.

Attachments:

Staff Report
Resolution
215

January 18, 2022
TO: The Honorable Mayor and Members of the City Council FROM: Aaron Palmer, Interim City Manager
Joe Aguilar, Finance Director
SUBJECT: Budget Amendment
On a biannual basis, management goes back and revisits the budget within the context of actions taken by the City Council as well as operations that have changed. Management has identified the following adjustments in the General Fund that are required to be made based on various factors:

Actual Adopted Actuals
Expenditures Budget Thru 1-6-2023 Projected Budget
Dept # Department FY 2021-22 FY 2022-23 FY 2022-23 FY 2021-22 Adjustment 1000 City Council $ 86,058 $ 93,806 $ 38,660 $ 107,204 $ 4,224 1005 Administration 351,744 369,813 164,894 322,793 (47,020) 1010 Finance Services 215,654 196,162 113,264 172,792 (23,370) 1060 City Attorney 55,617 55,000 20,585 55,000 -
1065 Economic Development 16,595 10,783 13,812 10,783 - 1045 Fire Services 804,526 651,159 16,339 651,159 -
1050 Police Services 1,404,348 955,700 377,640 959,700 4,000 1055 Animal Control Services 164,891 103,262 50,198 103,262 - 1015 Community Development 296,841 181,892 149,559 309,749 54,675 1020 Building Inspection 171,229 250,945 123,679 320,147 59,202 1025 Engineering 39,726 31,000 8,659 33,150 2,150
1030 Parks Operations 571,010 275,944 236,457 321,860 7,421 1035 Recreation Services 278,208 340,132 212,155 338,371 3,093 1040 Pool Operations 122,289 102,393 90,637 44,856 1,987 1057 Community Center - - - - -
1032 Facility Maintenance 67,786 75,605 49,106 84,222 975 0000 Nondepartmental - 207,557 13,000 - -
Subtotals 4,646,522 3,901,153 1,678,644 3,835,048 67,337 Total General Fund Revenues 3,704,521 3,598,466 518,273 3,668,875 70,409 Revenues Over Expenditures $ (942,001) $ (302,687) $ (1,160,371) $ (166,173) $ 3,072 216
The most significant revenue estimates were as follows:
 Property tax was projected to be slightly lower than originally expected ($74,750) based on analysis performed by City’s consultant (HdL)
 Property Tax in Lieu of Vehicle Fees is expected to grow based on an above mentioned analysis ($89,600)
 Building permit fees expected to be lower than originally budgeted based on current activity ($85,000)
 Recology General Maintenance – City received an additional payment from Recology ($17,000).  Rents and royalties are expected to be higher than previous years ($95,320) The most significant changes are related to the departments as follows:
 City Council – update in City Council salaries starting January 1, 2023 based on Council action taken in June, 2023.
 Administration – reduce communications account due to the reallocation of costs to nondepartmental ($30,000), reduce processional services due to lower than expected election costs ($18,000).
 Finance – Reduce maintenance and service contracts due to the purchase of new software in the current year, maintenance cost was included in the initial purchase price ($33,750).  Police – increase communications costs due to actual results being higher than expected ($4,000).  Community development – increase in professional services for increased use of general planning services due to the increased work on the general plan and other planning issues ($45,000).  Building – increase in professional services for increased use of contractors for plan review services ($58,000) as a result of the resignation of the building official.  Parks – increase in salary costs due to increase payrates ($6,159).  Recreation – increase in salary costs due to increase payrates ($4,854).  Pool – increase in salary costs due to increase payrates ($1,787)  Non-departmental – increase due to a greater increase in insurance costs than originally expected ($13,000).

The Water Fund is expected to require an increase in appropriations by $31,702 for the following purposes:
 $17,496 for increased City Council salary costs and the hiring of additional maintenance worker that was previously authorized but not budgeted.
 $10,406 in increased insurance costs
 $500 for additional office supplies
 $3,300 for additional repair and maintenance expenses The Sewer Fund is expected to require an increase in appropriations by $105,390 for the following purposes:
 $75,383 for increased City Council salary costs and the hiring of additional maintenance worker that was previously authorized but not budgeted.
 $30,007 in increased insurance costs
The Streets and Road Fund is expected to have the following changes in the budget amounts:
217
 Revenues are expected to increase by $316,690 due to additional allocations of gas tax revenues made by the State of California State Controller’s Office.

No other budget adjustments are expected to be made. The following is the summary of expected revenues and expenditures, including total resources available.

Projected
Audited Projected Resources Projected Estimated
Fund Fund Balance Revenues Available Spending Fund Balance # Fund Name 6/30/2022 FY2022-23 FY2022-23 FY2022-23 6/30/2022 10 General Fund $ 3,960,294 $ 3,668,875 $ 7,863,628 $ 3,835,048 $ 4,028,580 Special Revenue Funds
14 Streets - Gas Tax 593,118 1,597,690 2,105,501 1,539,475 566,026 15 TDA Transportation Tax 254,258 390,000 676,071 47,400 628,671 16 Traffic Safety 17,775 3,500 15,104 - 15,104
17 COPS 236,879 150,000 389,996 50,000 339,996
18 Sidewalk Improvement 17,960 - 18,049 - 18,049
20 Street Lighting 87,966 54,464 187,656 63,800 123,856 21 CFD 92-1 Mello Roos 98,772 129,739 233,859 151,100 82,759 22 Fire Assessment (17,318) 131,680 112,190 114,200 (2,010) 23 Fire CFD 2004-1 25,068 114,855 142,559 128,200 14,359 24 Police CFD 2004-1 7,289 311,482 339,315 317,500 21,815 25 Animal Control CFD 2004-1 3,402 18,103 21,975 21,500 475 26 Street Lighting CFD 2004-1 (53,462) 18,726 (10,950) 26,000 (36,950) 27 Rec/Pool CFD 2004-1 42,380 143,459 200,561 181,300 19,261 28 Drainage CFD 2004-1 146,859 18,876 171,939 5,700 166,239 30 Parks AB1600 530,876 114,114 446,418 27,000 419,418
31 Community Ctr AB1600 342,223 37,002 324,603 35,000 289,603 32 Gov't Serv PW AB1600 110,046 27,426 96,197 - 96,197
33 Gen Gov't AB1600 503,859 48,506 482,114 35,000 447,114 34 Police AB1600 248,986 26,500 236,636 - 236,636
35 Fire AB1600 364,281 55,230 310,297 - 310,297
36 Roads/Signals AB1600 417,562 126,000 333,144 290,000 43,144 39 Flood Control AB1600 2,081 - 2,091 - 2,091
52 Drainage Connection Fees 509,231 177,000 444,670 - 444,670 90 CDBG HR Program Income 296,144 35,000 392,841 3,000 389,841 92 HOME Housing Grants (2,028) 35,000 33,006 - 33,006
58 ARPA Funding - 1,100,000 1,100,000 1,100,000 -
Estimated Resources Projected Estimated
Fund Cash Balance Revenues Available Spending Cash Balance # Fund Name FY2021-22 FY2021-22 FY2021-22 6/30/2022
Enterprise Funds
12 Water Enterprise* (765,967) 920,000 572,859 1,644,260 (1,071,401) 13 Sewer Enterprise* 3,847,303 5,090,000 9,482,133 6,859,380 2,622,753 50 Water Connection Fees 968,002 345,000 1,319,665 - 1,319,665 51 Sewer Connection Fees 1,255,158 408,000 1,188,471 550,000 638,471 $ 14,048,997 $ 15,296,227 $ 29,232,598 $ 17,024,863 $ 12,252,477 * Fund Balance amounts shown for Water and Sewer Enterprise Funds represent cash held by that fund. 218
1 Resolution No.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVE OAK, COUNTY OF SUTTER, STATE OF CALIFORNIA, AMENDING THE CITY FISCAL YEAR 2022-23 ANNUAL BUDGET
WHEREAS, the City Manager has prepared and submitted to the City Council a proposed budget for the 2022-23 fiscal year, starting July 1, 2022; and
WHEREAS, the City Council as the legislative body of the City has received and modified this proposed budget and budget policies; and
WHEREAS, the City Council has determined that it is necessary for the efficient management of the City that certain sums of revenue of the City be appropriated to the various departments, offices, agencies and activities of the City; and
WHEREAS, the City Council approved the fiscal year 2022-23 annual budget on May 18, 2022.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Live Oak as follows:

Section1. A certain document on file being marked and designated “City of Live Oak – Annual Budget and Budget Policies – Fiscal Year 2022-23 said document as prepared by the City Manager, amended by the City Council, is hereby adopted for the Fiscal Year, commencing July 1, 2022.

Section 2. The following sums of money are hereby appropriated from the revenue of the City of Live Oak for activities of the City, including transfers and capital projects during the 2022-23 fiscal year.

General Fund $ 3,835,048
All Other Funds 13,189,815
Total Budget $17,024,863
219
PASSED AND ADOPTED by the City Council of the City of Live Oak this 18th day of January, 2023, by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:

APPROVED:

Bob Woten, Mayor
ATTEST:

Clarissa Menchaca, City Clerk
220
City of Live Oak
Report to City Council
Meeting Date: January 18, 2023
Title: Conference with Labor Negotiators Pursuant to California Government Code Section 54957.6:

Agency Designated Representatives: Aaron Palmer, City Manager Employee Organization: Public Employees Union Local #1 (AFSME) 221

Live Oak City CouncilJanuary 18, 2023

Live Oak City Council
January 18, 2023