LIVE OAK CITY COUNCIL AGENDA – FEBRUARY 7, 2024
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/88307211804
▪ Join by Phone:
1-669-900-6833 or 1-833-548-0282 (Toll Free)
Webinar ID: 883 0721 1804
• 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
FEBRUARY 7, 2024
6:00 PM
MEETING LOCATION
LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953
MEMBERS OF THE COUNCIL
ASHLEY HERNANDEZ, MAYOR
NANCY SANTANA, VICE MAYOR
JERAMY CHAPDELAINE, COUNCILMEMBER
LAKHVIR GHAG, COUNCILMEMBER
BOB WOTEN, COUNCILMEMBER
AARON PALMER,
CITY MANAGER
NICOLE ROSSER,
CITY ATTORNEY
1 LIVE OAK CITY COUNCIL AGENDA – FEBRUARY 7, 2024
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/88307211804
▪ 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: 883 0721 1804
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 – FEBRUARY 7, 2024
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE AND INVOCATION
CORRECTIONS AND/OR CHANGES TO THE AGENDA BY CITY MANAGER ONLY
PRESENTATIONS AND RECOGNITIONS
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 January 17, 2024, City Council Regular Meeting minutes. (Clarissa Menchaca, City Clerk)
2. City Council Meeting Minutes
Recommendation: Approve the January 24, 2024, City Council Special Meeting minutes. (Clarissa Menchaca, City Clerk)
BUSINESS ITEMS
3. Write-Off of Past Due Water and Sewer Accounts Collections Recommendation: Adopt resolution.
(James Ramsey, Finance Director)
4. Annual Audited Financial Statements – Year Ended June 30, 2023 Recommendation: Accept and file annual financial statements. (James Ramsey, Finance Director)
5. Budget Amendment
Recommendation: Adopt resolution.
(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
ADJOURNMENT
3 City of Live Oak
Report to City Council
Meeting Date: February 7, 2024
Title: City Council Meeting Minutes
Contact Information: Clarissa Menchaca, City Clerk
Recommendation: Approve the January 17, 2024, City Council Regular Meeting minutes.
Attachments:
Minutes
4 LIVE OAK CITY COUNCIL MINUTES – JANUARY 17, 2024
CALL TO ORDER
Meeting called to order by Vice Mayor Santana at Live Oak City Council Chambers, 9955 Live Oak Boulevard, Live Oak, CA at 6:01 pm.
MOTION: APPROVE MAYOR HERNANDEZ’S REMOTE APPEARANCE.
(MOTION: WOTEN; SECOND: GHAG)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, CHAPDELAINE, GHAG, AND VICE MAYOR SANTANA NOES: NONE
NOT VOTING: MAYOR HERNANDEZ
ROLL CALL
Present: Councilmembers Woten, Chapdelaine, Ghag, and Vice Mayor Santana Appeared via teleconference: Mayor Hernandez
PLEDGE OF ALLEGIANCE AND INVOCATION
Councilmember Ghag led the Pledge of Allegiance. Councilmember Woten 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
There were no presentations and/or recognitions.
PUBLIC COMMENT
Public Comment was opened and closed without any speakers.
LIVE OAK
CITY COUNCIL
MINUTES
JANUARY 17, 2024
6:00 PM
MEETING LOCATION
LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953
MEMBERS OF THE COUNCIL
ASHLEY HERNANDEZ, MAYOR
NANCY SANTANA, VICE MAYOR
JERAMY CHAPDELAINE, COUNCILMEMBER
LAKHVIR GHAG, COUNCILMEMBER
BOB WOTEN, COUNCILMEMBER
AARON PALMER,
CITY MANAGER
NICOLE ROSSER,
CITY ATTORNEY
5 LIVE OAK CITY COUNCIL MINUTES – JANUARY 17, 2024
CONSENT ITEMS
Consent Calendar is passed by one motion with exceptions and separate votes as noted.
MOTION: APPROVE THE CONSENT AGENDA.
(MOTION: GHAG; SECOND: SANTANA)
VOTE: MOTION PASSED UNANIMOUSLY
1. City Council Meeting Minutes
Clarissa Menchaca, City Clerk
Council action: December 20, 2023, City Council Regular Meeting minutes approved.
2. City Council Meeting Minutes
Clarissa Menchaca, City Clerk
Council action: December 22, 2023, City Council Special Meeting minutes approved.
3. City Projects Update
Luis Cibrian, Parks and Recreation Director
Council action: Received and filed.
BUSINESS ITEMS
4. Discussion of Proposed Sheriff’s Contract
Aaron Palmer, City Manager
Aaron Palmer, City Manager, introduced the item.
Mayor Hernandez provided a report for the Council.
Council action: No action was taken on this item.
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 There were no updates or announcements from the City Attorney or City Manager.
COUNCILMEMBER COMMENTS
Councilmember Ghag highlighted his attendance at the Sacramento Area Council of Governments Transportation Committee meeting and Sutter-Yuba Mosquito and Vector Control District Board meeting.
Councilmember Santana touched on the envelope sent to the Yuba County Elections Office containing fentanyl. 6 LIVE OAK CITY COUNCIL MINUTES – JANUARY 17, 2024
CLOSED SESSION
5. Public Employee Performance Evaluation Pursuant to California Government Code Section 54957:
City Manager
6. Conference with Labor Negotiators Pursuant to California Government Code Section 54957.6:
Unrepresented employee: City Manager
CLOSED SESSION REPORT
No reportable action anticipated; however, any reportable action will be reported out at the next regularly scheduled Council meeting.
ADJOURNMENT
Vice Mayor Santana adjourned the regular meeting at 7:52 pm, and Closed Session adjourned at 9:02 pm.
Ashley Hernandez, Mayor
ATTEST:
Clarissa Menchaca, City Clerk
7 City of Live Oak
Report to City Council
Meeting Date: February 7, 2024
Title: City Council Meeting Minutes
Contact Information: Clarissa Menchaca, City Clerk
Recommendation: Approve the January 24, 2024, City Council Special Meeting minutes.
Attachments:
Minutes
8 LIVE OAK CITY COUNCIL MINUTES – JANUARY 24, 2024
CALL TO ORDER
Meeting called to order by Mayor Hernandez at Live Oak City Council Chambers, 9955 Live Oak Boulevard, Live Oak, CA at 6:05 pm.
ROLL CALL
Present: Councilmembers Woten, Chapdelaine, Ghag, Vice Mayor Santana, and Mayor Hernandez
PLEDGE OF ALLEGIANCE AND INVOCATION
Mayor Hernandez led the Pledge of Allegiance. Vice Mayor Santana delivered the invocation.
PUBLIC COMMENT
Public Comment was opened and closed without any speakers.
CLOSED SESSION
1. Public Employee Performance Evaluation Pursuant to California Government Code Section 54957:
City Manager
2. Conference with Labor Negotiators Pursuant to California Government Code Section 54957.6:
Unrepresented employee: City Manager
CLOSED SESSION REPORT
No anticipated reportable action.
ADJOURNMENT
Mayor Hernandez adjourned the meeting at 6:08 pm. Closed Session adjourned at 7:16 pm.
LIVE OAK
CITY COUNCIL
SPECIAL MEETING MINUTES
JANUARY 24, 2024
6:00 PM
MEETING LOCATION
LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953
MEMBERS OF THE COUNCIL
ASHLEY HERNANDEZ, MAYOR
NANCY SANTANA, VICE MAYOR
JERAMY CHAPDELAINE, COUNCILMEMBER
LAKHVIR GHAG, COUNCILMEMBER
BOB WOTEN, COUNCILMEMBER
AARON PALMER,
CITY MANAGER
NICOLE ROSSER,
CITY ATTORNEY
9 LIVE OAK CITY COUNCIL MINUTES – JANUARY 24, 2024
Ashley Hernandez, Mayor
ATTEST:
Clarissa Menchaca, City Clerk
10 City of Live Oak
Report to City Council
Meeting Date: February 7, 2024
Title: Write-off of Past Due Water and Sewer Accounts Collections Contact Information: James Ramsey, Finance Director
Background: Periodically, the City will evaluate past due balances and determine that there is no recourse to collect on those amounts based on the number of days outstanding. The accounts on the attached listing have been outstanding for a significant period of time and as such, management is requesting that the amounts be written off and sent to collections. If not collected by next year, there is a possibility of that these may be collected next year via a lien on the property tax rolls. These amounts are outstanding from the period January to December 2023.
Fiscal Impacts: Total write-offs of $11,262.61 are split between water and sewer funds.
Recommendation: Adopt resolution.
Attachments:
Resolution
Exhibit A
11 Resolution No.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVE OAK AUTHORIZING PAST DUE ACCOUNT COLLECTION LOSS WRITE-OFF IN THE AMOUNT OF $11,262.61 WHEREAS, the City of Live Oak furnishes a water and sewer system for obtaining, conserving and disposing of water for public and private uses; and
WHEREAS, providing utility services for citizens includes the collection of monthly utility billings; and WHEREAS, the City of Live Oak makes every attempt to collect outstanding balances; and WHEREAS, Exhibit A provides a list of uncollectible accounts for the period ending December 31, 2022, and is made a part of this resolution.
NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Live Oak authorizes the Finance Director to write off as collection losses the accounts receivables listed on Exhibit A totaling $11,262.61.
PASSED AND ADOPTED this 7th day of February, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
APPROVED:
Ashley Hernandez, Mayor
ATTEST:
Clarissa Menchaca, City Clerk
12 Account Name Service Address Balance
02-0100-00 TERRY CARPENTER 10372 LARKIN ROAD 278.31
02-2420-01 YANNETH LOPEZ 2053 DONNA RAYE 235.99
03-0660-06 FRANCISCO ROMERO 2921 PENNINGTON ROAD 543.40 03-2890-01 KATIE FRY 2893 KOLA STREET 185.54
03-3000-04 SERGIO RIVERA 3008 KOLA STREET 114.41
03-3580-00 EDWARD J JR WARE 3025 FORSTNER COURT 607.59
04-0780-04 SUKHDEEP BASSI 9774 O STREET 532.23
04-4957-02 JAE SHIELDS 9397 COLLIER COURT 372.92
04-8443-01 MANUEL JACOBO/ YESSICA ROMERO 10132 ROSE AVENUE 469.14 02-2420-00 TARSEM PAMMA 2053 DONNA RAYE 146.51
03-2796-01 EVERETT WOODWARD 10146 TULIP AVENUE 78.28
04-0230-03 GLORIA QUIROZ 9890 BROADWAY 132.03
04-0780-05 ANTHONY KEENEY 9774 O STREET 451.07
04-0900-03 RYAN DEVENNY 2969 ELM STREET 835.46
04-1400-03 JAVIER/MAYTE CHAVEZ 9640 P STREET 219.56
04-4655-01 RONALD DEL BIANCO 9539 POPLAR WAY 496.16
04-6150-05 GEORGE ALLEN 9726 CANNON WAY 35.31
04-7610-09 ANGEL DELGADO 2810 DEANNE STREET 432.93
04-8876-02 LYNNE FOX 3416 APRICOT STREET 81.35
04-9613-01 BARRY HAMILTON 2730 IDA STREET 112.94
04-5763-02 JOE WOOTEN 9934 LUTHER ROAD 61.85
04-7980-01 RIGO LEPE 9794 DEREE ROAD 237.83
04-8040-03 JOHNY LUCATERO 9720 DEREE ROAD #A 114.41
02-0270-06 JOY/ANTHONY ALEXANDER, 10264 LARKIN ROAD 141.58 03-0980-03 DANIEL GRAY /AIREYAN BARNES 2620 NEVADA STREET 426.62 03-1250-01 ANGELA LEWIS 2911 GUM STREET 127.55
03-2800-08 BRIDGETTE FERNANDEZ 2960 KOLA STREET 29.65
03-2853-02 LINDA MIRELES 3065 KOLA STREET 402.27
03-2993-02 KAREN BERNEY 3218 HEATHER DRIVE 474.05
03-3670-04 TARA ZALME 3002 FORSTNER COURT 234.79
04-2270-11 YESSICA ORNELAS 9432 N STREET 407.52
04-3500-05 JOSE NATALIO SANDOVAL 2928 FIR STREET 217.05 04-3640-02 SARAH DUTRA 2624 FIR STREET 422.96
04-4655-02 CHAD PARAS 9539 POPLAR WAY 516.61
04-5590-02 MCKELLA WRIGHT 3314 ARBOR WAY 197.80
04-8050-05 AUSTIN LEAMER 9714 DEREE ROAD 602.60
04-8253-02 JOSE CANCHE 9751 RICHARD AVENUE 172.62
04-8402-05 MARIAH PIZANO 3463 MUSGRAVE AVENUE 113.72
TOTAL 11,262.61
13 City of Live Oak
Report to City Council
Meeting Date: February 7, 2024
Title: Annual Audited Financial Statements - Year Ended June 30, 2023 Contact Information: James Ramsey, Finance Director
Background: Background:
Each year the City of Live Oak issues an Annual Comprehensive Financial Report (ACFR) (attached), which was previously referred to as the Comprehensive Annual Financial Report (CAFR). 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, and 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, 2023. The Single Audit is currently underway and is expected to be issued by March 31, 2024.
Financial Highlights:
The City's net position as of June 30, 2023 was $84,245,893, which was a decrease of $1,734,214 as compared to last fiscal year. The net position includes items such as capital assets ($61,235,173), net pension liability ($2,146,875), and other long-term obligations such as bonds, notes, leases, and compensated absences ($5,850,038).
The City's General Fund ended with a fund balance of $3,122,701, of which $516 thousand was unassigned and available for spending. $2.6 million is committed for various reserves. The General Fund balance decreased by $837,593 due to expenditures greater than actual revenues received. Across 14 all governmental funds, fund balance ended at $6,156,957, a decrease of $416,000. The most significant decrease is recorded in General Fund.
The water fund's net position decreased by $1,005,508 from $9,622,183 to $8,616,675 primarily as a result of capital contributions recorded in the fund.
The sewer fund's net position decreased by $929,311 primarily due to a significant increase in the net pension liability as well as other operating expenditures (included depreciation), being greater than revenues.
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 clarified auditing standards. The letter identified the net pension liability and net other-postemployment benefits (OPEB) asset as significant estimates. These estimates are determined by actuaries in accordance with their applicable standards.
Finally, RAMS has identified fours items that were reported as observations to management as recommendations to internal controls. Management is in the process of revising policies and procedures to address these findings.
Fiscal Impacts: None.
Recommendation: Accept and file annual financial statements.
Attachments:
Annual Comprehensive Financial Report
GAGAS
GANN
Management Comment Letter
SAS 114
15 CITY OF LIVE OAK, STATE OF CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2023
PREPARED BY THE FINANCE DEPARTMENT
16 CITY OF LIVE OAK, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
PREPARED BY THE FINANCE DEPARTMENT
17 This page intentionally left blank.
18 City of Live Oak
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS
INTRODUCTORY SECTION (UNAUDITED) :
Transmittal Letter .................................................................................................................... i Organizational Chart ............................................................................................................. iv FINANCIAL SECTION:
Independent Auditors’ Report ................................................................................................ 1 Management Discussion and Analysis (Required Supplementary Information) .................... 5 Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................. 14 Statement of Activities .................................................................................................. 15 Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................ 17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .......................................................................................... 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................ 22 Statement of Net Position – Proprietary Funds ........................................................... 23 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ................................................................................................... 24 Statement of Cash Flows – Proprietary Funds ............................................................ 25 Notes to Basic Financial Statements ....................................................................................... 26 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED):
Budgetary Comparison Schedule by Department - General Fund .................................... 65 Budgetary Comparison Schedule – Program Income ....................................................... 66 Schedule of Proportionate Share of Net Pension Liability .................................................... 67 Schedule of Plan Contributions .......................................................................................... 69 Schedule of Changes in the Net OPEB Asset and Related Ratios .................................. 71 Schedule of OPEB Plan Contributions ............................................................................... 72 Notes to Required Supplementary Information ................................................................. 73 19 City of Live Oak
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS (continued)
FINANCIAL SECTION (continued):
SUPPLEMENTARY INFORMATION:
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................ 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................ 86 Budgetary Comparison Schedules:
Streets and Roads .................................................................................................. 94 Traffic Safety .................................................................................................................. 95 COPS ......................................................................................................................... 96 Sidewalk Improvement ........................................................................................... 97 Street Lighting ......................................................................................................... 98 Mello Roos CFD 92-1 .......................................................................................................... 99 Fire Benefit Assessment ....................................................................................... 100 Mello Roos CFD 2004-1 Fire ............................................................................ 101 Mello Roos CFD 2004-1 Police ............................................................................ 102 Mello Roos CFD 2004-1 Animal Services ........................................................... 103 Mello Roos CFD 2004-1 Street Lighting ............................................................... 104 Mello Roos CFD 2004-1 Parks/Recreation/Pool ................................................. 105 Mello Roos CFD 2004-1 Storm Drain .................................................................. 106 Parks and Recreation Impact Fees ....................................................................... 107 Community Center Impact Fees ............................................................................ 108 Public Works Impact Fees ...................................................................................... 109 General Government Impact Fees ........................................................................ 110 Police Impact Fees ................................................................................................. 111 Fire Impact Fees ..................................................................................................... 112 Signal Impact Fees ................................................................................................. 113 Flood Control Impact Fees ..................................................................................... 114 Storm Drain Connection Fees ................................................................................ 115 Transportation .................................................................................................. 116 ARPA ..................................................................................................................................... 117 Nonmajor Proprietary Funds:
Combining Statement of Net Position ........................................................................ 118 Combining Statement of Revenues, Expenditures and Changes in Net Position ..... 119 Combining Statement of Cash Flows ........................................................................ 120 20 City of Live Oak
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS (continued)
STATISTICAL SECTION:
Narrative Summary ............................................................................................................. 121 Financial Trend Information:
Net Position by Component – Last Ten Fiscal Years ................................................... 122 Changes in Net Position – Last Ten Fiscal years .............................................................. 123 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................. 125 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years .............. 126 Revenue Capacity Information:
Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years .......... 127 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years .............. 128 Principal Property Tax Payers – Current Year and Four Years Ago ................................ 129 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................... 130 Debt Capacity Information:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ...................................... 131 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .......................... 132 Direct and Overlapping Bonded Debt ................................................................................ 133 Computation of Legal Bonded Debt Margin ..................................................................... 134 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ............................... 135 Principal Employers – Current Year and Four Years Ago .............................................. 136 Operating Information:
Full-Time and Part-Time City Government Employees – Last Ten Fiscal Years .......... 137 Operating Indicators – Last Ten Fiscal Years ................................................................. 138 Capital Asset Statistics – Last Ten Fiscal Years ............................................................. 139 Sales Value History – Last Ten Years .............................................................................. 140 21 This page intentionally left blank
22 City Hall: 530-695-2112 Fax: 530-695-2595 9955 Live Oak Blvd., Live Oak, CA 95953 www.liveoakcity.org i
December 28, 2023
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, 2023. 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 prospectsfor 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, 2023.
This conclusion isthe most favorable kind and is presented asthe component of the financialsection of thisreport.
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 waste‐ water treatment facility.
23 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 forshipping produce, Live Oak isstill 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 41 new single‐family homes, with another 30 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, 2023 include the following:
Began rehabilitation work on Pennington Road.
Negotiated a new agreement with the represented employees. Began negotiations for public safety contracts.
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.
24 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. The City does not present a budget for the Capital Improvement Fund because they are long‐term in scope and are not adopted with the annual budget.
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 ACFR for the fiscal year ended June 30, 22022. 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 ACFR, 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 ACFR 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
25 CITY OF LIVE OAK ORGANIZATIONAL CHART
CITY MANAGER
Jim Goodwin
Finance Director/City
Treasurer
James W Ramsey,
Eide Bailly
Public Works
Director
Ron Walker
Management
Analyst
Parks and Recreation
Director
Luis Cibrian
Chief Building
Official
Vacant
Comm. Development
Director
Contract City Planner
Kevin Valente,
Raney Management
No CDD
Building
Inspector/Code
Enforcement Officer
I/II
Facilities and
Maintenance
Workers
I/II/III
Parks Maintenance
Worker
Financial Analyst-C Sr. Administrative
Assistant – Finance
City Engineering
Contract
Scott Rolls
Rolls Anderson Rolls
Parks Maintenance
Worker - Temp
Parks & Rec Clerk
Temp
Police Services
Contract
Lt. Rajinder Gill
Sutter County Sheriff
Fire Services
Contract
Battalion Chief
Richard Epperson
Sutter County Fire
Parks & Rec
Recreation Supervisor
Water Quality
Control Operator
Administrative Aide
Management Temp
Analyst
Administrative
Assistant – Finance
CITY COUNCIL
Bob Woten
Jeramy Chapdelaine
Lakhvir Ghag
Nancy Santana
Ashley Hernandez
.
City Clerk
Clarissa Menchaca
City Manager
Aaron Palmer
City Attorney
Nicole Delerio-Rosser
Contract
iv
26 735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Auditor’s Report
To the Honorable 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 (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements 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, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (GAS), 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.
27 -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 and GAS 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 sand GAS, 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.
28 -3-
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and those schedules as 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 the budgetary comparison 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 the budgetary comparison schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic 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.
29 -4-
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2023 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, 2023
30 This page intentionally left blank.
31 City of Live Oak
Management’s Discussion and Analysis
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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, 2023. 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 $84,245,893 as of June 30, 2023, a decrease of $1,734,214 from the prior year. The City’s governmental funds reported a combined fund balance of $6,156,957, a decrease of $446,410 from the prior year.
General Fund revenues of $3,814,834 were $110,854 higher than the prior year. General Fund expenditures of $4,652,427 represented an increase of $102,988 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.
32 City of Live Oak
Management’s Discussion and Analysis
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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 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 19 and 22 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 two types of funds: governmental and proprietary.
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.
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. 33 City of Live Oak
Management’s Discussion and Analysis
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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:
2023 2022 2023 2022 2023 2022
Current and other assets 28,795,769 $ 27,049,337 $ 5,221,911 $ 5,883,051 $ 34,017,680 $ 32,932,388 $ Capital assets, net 28,694,346 28,835,154 32,540,827 34,034,467 61,235,173 62,869,621 Total assets 57,490,115 55,884,491 37,762,738 39,917,518 95,252,853 95,802,009 Deferred outflows 692,475 260,658 404,441 267,693 1,096,916 528,351 Current and other liabilities 3,625,934 1,626,674 507,921 580,252 4,133,855 2,206,926 Non-current liabilities 1,474,683 802,488 6,247,368 6,211,807 7,722,051 7,014,295 Total liabilities 5,100,617 2,429,162 6,755,289 6,792,059 11,855,906 9,221,221 Deferred inflows 177,603 628,999 70,367 500,033 247,970 1,129,032 Net position:
Net investment in capital assets 28,451,964 28,551,024 26,933,171 28,172,308 55,385,135 56,723,332 Restricted 23,156,631 23,228,119 3,057,635 - 26,214,266 23,228,119 Unrestricted 1,295,775 1,307,845 1,350,717 4,720,811 2,646,492 6,028,656 Total Net Position 52,904,370 $ 53,086,988 $ 31,341,523 $ 32,893,119 $ 84,245,893 $ 85,980,107 $ Governmental Activities Business-type Activities Total
Net position represents the difference between the City’s resources and its obligations. At June 30, 2023, 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 $55.4 million at June 30, 2023. 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 deteriorated primarily due to increasing costs for salaries and benefits as well as increased supplies and maintenance costs.
34 City of Live Oak
Management’s Discussion and Analysis
-8-
Restricted net position for governmental activities of $23.1 million represents resources subject to external restrictions as to how they may be used. Unrestricted net position for governmental activities of $1.3 million represents amounts that may be used to meet the City’s ongoing obligations to its residents, businesses, customers, and creditors.
Following is a summary of changes in net position:
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues:
Charges for services 668,463 $ 947,739 $ 3,769,513 $ 4,166,245 $ 4,437,976 $ 5,113,984 $ Operating grants and contributions 364,224 1,143,071 - 123,864 364,224 1,266,935 Capital grants and contributions 478,664 57,965 - - 478,664 57,965 General revenues:
Property taxes 2,330,230 1,843,633 - - 2,330,230 1,843,633 Business privilege 598,071 520,544 - - 598,071 520,544
Public utility - 284,861 - - - 284,861
Franchise taxes 298,307 - - - 298,307 -
Transient occupancy taxes - 745,456 - - - 745,456
Motor vehicle in lieu 457,867 - - - 457,867 -
Other taxes 1,262,269 - - - 1,262,269 -
Unrestricted grants and contributions - 415,704 - - - 415,704 Use of money and property 347,278 358,364 70,369 (30,926) 417,647 327,438 Miscellaneous 20,847 306,961 - - 20,847 306,961
Total revenues 6,826,220 6,624,298 3,839,882 4,259,183 10,666,102 10,883,481 Expenses:
General government 970,176 931,014 - - 970,176 931,014
Public safety 2,970,288 2,517,012 - - 2,970,288 2,517,012 Public ways and facilities 583,760 1,243,057 - - 583,760 52,895 Culture and recreation 1,499,961 1,207,729 - - 1,499,961 1,207,729 Community development 975,406 52,895 - - 975,406 1,243,057 Interest on long term debt 9,247 31,899 - - 9,247 31,899 Water - - 1,927,586 1,770,843 1,927,586 1,770,843
Sewer - - 3,463,892 3,085,361 3,463,892 3,085,361
Total expenses 7,008,838 5,983,606 5,391,478 4,856,204 12,400,316 10,839,810 Excess - before transfers (182,618) 640,692 (1,551,596) (597,021) (1,734,214) 43,671 Transfers - - - - -
Change in net position (182,618) 640,692 (1,551,596) (597,021) (1,734,214) 43,671 Net Position, Beginning 53,086,988 52,446,296 32,893,119 33,490,140 85,980,107 85,936,436 Net Position, Ending 52,904,370 $ 53,086,988 $ 31,341,523 $ 32,893,119 $ 84,245,893 $ 85,980,107 $ Governmental Activities Business-type Activities Total
Governmental Activities:
The City’s governmental activities decreased the City’s net position by $182,618. Revenues, net of transfers, were $6.8 million which represented an increase of $201,922 or 3 percent, and expenses were $7.0 million which represented an increase of $1,025,232 or 17.1 percent.
Governmental activities highlights include the following:
Taxes provided $4.9 million or 7.2 percent of the total governmental activities revenue of the City. This amount is an increase of $1,136,546 mainly due to a significant distribution for motor vehicle in lieu – unrestricted, with an increase of $846,565 as compared to the prior year. Property taxes increased by $486,597 due to the recognition of special assessments of the Mello-Roos taxes that were not imposed in the prior year. 35 City of Live Oak
Management’s Discussion and Analysis
-9-
Charges for services, operating grants and capital grants provided $1.5 million or 22.1 percent of the total governmental-activities revenue of the City. This amount is a decrease of $637,424 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 $1,551,596. Revenues were $3.8 million. Business type activities highlights include the following:
Charges for services provided $3.8 million or 98.2 percent of the total business type activities revenue of the City. This is a decrease of approximately 9.5 percent from the prior year due to increased consumption. Transfers between the governmental activities and business-type activities were eliminated during year due to no more construction projects.
Expenses were $5.4 million, an increase of 11 percent primarily due to the recognition of a significant increase in the net pension liability due to the decrease of the discount rate from 7.15 percent to 6.90 percent recognized in the current year.
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, 2023 of $6,156,957. The General Fund decreased by $837,593 and all other Governmental Funds increased by $391,183. Within the governmental funds, the decrease in fund balance was primarily attributable to increased public safety costs for police and fire.
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 $3,814,834 in fiscal year 2022-23, which was a positive variance of $216,368 as compared to the final budget amount and an increase of $110,854 over last year.
The variance is primarily attributable to an increase in property tax and sales tax revenues that were remitted to the City. The Fund ended with a negative variance of $764,274 between the actual expenditures incurred and final budget amounts. The largest negative variance of $413,079 was in police services due rising personnel costs and increased patrol hours.
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. General Fund expenditures totaled $4,652,427 in fiscal year 2022-23, an increase of $102,988 over last year.
36 City of Live Oak
Management’s Discussion and Analysis
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At the end of fiscal year 2023, the fund balance for the City’s General Fund was $3,122,701 a decrease of $837,593 over last year. The fund balance in General Fund comprised of $6,514 in nonspendable fund balance, $2,599,487 committed fund balance and $516,700 unassigned fund balance. The nonspendable fund balanced decreased by $3,629, the committed fund balance remained flat, while the unassigned fund balance decreased $833,964.
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:
As of June 30, 2023
Original Final Actual
Budget Budget Amount
General government 901,638 $ 901,638 $ 741,180 $
Public safety 1,802,845 1,802,845 2,363,389
Public ways and facilities 31,000 31,000 73,385
Culture and recreation 774,074 774,074 1,008,866
Community development 192,675 192,675 299,154
Capital outlay 37,700 37,700 8,485
Debt service 148,221 148,221 157,968
$ 3,888,153 3,888,153 $ 4,652,427 $
Program Income
There were no changes made to the original budget during the current year. The Fund ended with a positive revenue variance of $84,685 primarily due to a grant reimbursement that was not considered at the time of budgeting. Program Income Fund revenues totaled $380,829 in fiscal year 2022-23, an increase of $136,904 due to loan payoffs. There were no Program Income Fund expenditures. At the end of fiscal year 2023 the Program Income Fund balance was $380,829 an increase of $84,685.
16-HOME-11532
There were no revenues or activities recorded in the 16-HOME-11532 Fund for fiscal year 2022-
23. 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. Total grant reimbursements were $478,664 due to the submissions of claims for ongoing projects.
Expenditures totaled $697,330 in fiscal year 2023. Expenditures are in capital outlay and primarily relate to capital improvements on Pennington Road.
37 City of Live Oak
Management’s Discussion and Analysis
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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 increased $116,031 compared to fiscal year 2022-23. In addition, operating expenses increased to $1,890,067, up $156,743 over the prior year. The primary driver for the increase in the current year is related to an allocation of a portion the net pension. As of June 30, 2023, the fund’s net position went from $9,622,183 in 2022 to $8,616,675 in 2023 representing a decrease of $1,005,508. The Fund's net investment in capital assets decreased by $376,273 due to depreciation, offset by payments on outstanding debt. The Fund reported a deficit in unrestricted net position in the amount of ($1,699,871) at the close of fiscal year 2023.
Due to the age of the water system infrastructure, significant investments will be required in future years to update water lines and equipment.
Sewer
The Sewer Fund is financed and operated in a manner similar to that of a private business. As of June 30, 2023, the Fund’s net position totaled $19,667,213 of which $16,616,625 remains invested in capital assets net of related debt. The fund's unrestricted net position was $3,050,588 at the close of fiscal year 2023. Overall, operating revenues remained fairly constant at $2,494,773 with an increase of $58,296 over the prior year. Operating expenses totaled $3,392,226 for the year, a 12.7 percent increase of $381,733 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 2023, the City had invested $61.2 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.
The financial statements summarize the City's accounting policies regarding capital assets in Note 1 Section I of the note disclosures.
38 City of Live Oak
Management’s Discussion and Analysis
-12-
As of June 30, 2023, the City’s capital assets consisted of:
2023 2022 2023 2022 2023 2022
Land 6,584,996 $ 6,584,996 $ 233,241 $ 233,241 $ 6,818,237 $ 6,818,237 $ Construction in progress 1,101,738 3,356,370 386,022 1,070,668 1,487,760 4,427,038 Right to use asset - equipment 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 4,981,010 4,830,684 1,680,365 1,597,191 6,661,375 6,427,875 Infrastructure 25,170,594 22,199,263 54,043,363 53,358,714 79,213,957 75,557,977 Less: Accumulated depreciation (16,750,209) (15,742,376) (23,863,319) (22,286,502) (40,613,528) (38,028,878) Total capital assets, net 28,694,346 $ 28,835,154 $ 32,540,827 $ 34,034,467 $ 61,235,173 $ 62,869,621 $ Governmental Activities Business-type Activities Total
At June 30, 2023, major construction in progress include the undergrounding of utility lines in the governmental activities and business-type activities.
Long-term Debt:
At June 30, 2022 and 2023 the City had $6.2 million and $5.8 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, 2023, the City’s debt consisted of:
2023 2022 2023 2022 2023 2022
Loan 52,883 $ 105,766 $ 4,030,408 $ 4,222,159 $ 4,083,291 $ 4,327,925 $ Financed purchase 171,108 252,264 - - 171,108 252,264
Lease liability 18,391 31,866 7,248 14,910 25,639 46,776 Certificates of participation - - 1,570,000 1,640,000 1,570,000 1,640,000 Total long-term liabilities 242,382 $ 389,896 $ 5,607,656 $ 5,877,069 $ 5,850,038 $ 6,266,965 $ Governmental Activities Business-type Activities Total
ECONOMIC FACTORS AND NEXT YEARS BUDGET
Assessed property values began increasing over the recent two years moving from $546.9 million in 2022 to $597.5 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 2022-23. 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.
39 City of Live Oak
Management’s Discussion and Analysis
-13-
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.
40 City of Live Oak
Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements. -14-
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:
Current:
Cash and investments $ 6,140,595 7,506,963 $ 13,647,558 $ Receivables:
Accounts, net 428,549 526,552 955,101
Notes and loans - 18,760,848 18,760,848
Leases - 56,003 56,003
Accrued interest 26,545 44,302 70,847
Internal balances (1,380,495) 1,380,495 -
Prepaid costs 2,139 6,924 9,063
Due from other governments - 427,469 427,469
Noncurrent:
Net OPEB asset 4,578 86,213 90,791
Capital assets not being depreciated 619,263 7,686,734 8,305,997 Capital assets, net of depreciation 31,921,564 21,007,612 52,929,176 Total Assets 37,762,738 57,490,115 95,252,853
Deferred Outflows of Resources:
Deferred pension related items 399,059 635,141 1,034,200 Deferred OPEB related items 5,382 57,334 62,716
Total Deferred Outflows of Resources 404,441 692,475 1,096,916 Liabilities:
Current:
Accounts payable 184,730 1,307,820 1,492,550
Due to other governments 66,453 66,453
Salaries and benefits payable 20,364 23,125 43,489
Accrued interest - 2,545 2,545
Deposits payable 6,303 192,932 199,235
Unearned revenue - 1,867,576 1,867,576
Compensated absences 26,590 14,799 41,389
Bonds, notes, and leases 269,934 150,684 420,618
Noncurrent:
Compensated absences 81,167 64,589 145,756
Bonds, notes, and leases 5,337,722 91,698 5,429,420
Net pension liability 828,479 1,318,396 2,146,875
Total Liabilities 6,755,289 5,100,617 11,855,906
Deferred Inflows of Resources:
Deferred pension related items 71,145 113,216 184,361
Deferred OPEB related items (778) 7,809 7,031
Lease related - 56,578 56,578
Total Deferred Inflows of Resources 70,367 177,603 247,970 Net Position:
Net investment in capital assets 26,933,171 28,451,964 55,385,135 Restricted for:
Public safety - 1,843,298 1,843,298
Public ways and facilities - 1,863,561 1,863,561
Community development - 18,730,833 18,730,833
Culture and recreation - 632,726 632,726
Capital projects 3,057,635 - 3,057,635
Net OPEB asset 86,213
Unrestricted 1,350,717 1,295,775 2,646,492
Total Net Position $ 31,341,523 52,904,370 $ 84,245,893 $ 41 City of Live Oak
Statement of Activities
Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -15-
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government $ 422,183 970,176 $ 7,477 $ - $
Public safety 2,754 2,970,288 145,426 -
Public ways and facilities 195,292 583,760 211,321 478,664 Culture and recreation 48,234 1,499,961 - -
Community development - 975,406 - -
Interest on long-term debt - 9,247 - -
Total Governmental Activities 668,463 7,008,838 364,224 478,664 Business-Type Activities:
Water 915,239 1,927,586 - -
Sewer 2,494,773 3,463,892 - -
Water Connection 160,335 - - -
Sewer Connection 199,166 - - -
Total Business-Type Activities 3,769,513 5,391,478 - -
Total Primary Government $ 4,437,976 12,400,316 $ 364,224 $ 478,664 $ General Revenues:
Taxes:
Property taxes
Business privilege
Franchise taxes
Motor vehicle in lieu
Other taxes
Use of money and property
Miscellaneous
Total General Revenues
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
42 -16-
Net (Expenses) Revenues
and Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
$ - (540,516) $ (540,516) $
- (2,822,108) (2,822,108)
- 301,517 301,517
- (1,451,727) (1,451,727)
- (975,406) (975,406)
- (9,247) (9,247)
- (5,497,487) (5,497,487)
(1,012,347) - (1,012,347)
(969,119) - (969,119)
160,335 - 160,335
199,166 - 199,166
(1,621,965) - (1,621,965)
(1,621,965) (5,497,487) (7,119,452)
2,330,230 - 2,330,230
598,071 - 598,071
- 298,307 298,307
- 457,867 457,867
1,262,269 - 1,262,269
70,369 347,278 417,647
- 20,847 20,847
70,369 5,314,869 5,385,238
(1,551,596) (182,618) (1,734,214)
32,893,119 53,086,988 85,980,107
$ 31,341,523 52,904,370 $ 84,245,893 $
43 This page intentionally left blank.
44 City of Live Oak
Balance Sheet
Governmental Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -17-
Program
General Income 16-HOME-11532
Assets:
Cash and investments $ 379,229 - $ - $
Receivables:
Accounts - 50,223 -
Accrued interest 1,600 12,264 -
Notes and loans 12,784,609 110,408 5,028,534
Leases - 56,003 -
Due from other funds - 3,622,486 -
Prepaid items - 6,514 -
Due from other governments - 165,172 -
Total Assets $ 13,165,438 4,023,070 $ 5,028,534 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - 579,220 $ - $
Due to other governments - 66,453 -
Salaries and benefits payable - 20,123 -
Deposits payable - 7,466 -
Due to other funds - - 2,028
Unearned revenues - - -
Total Liabilities - 673,262 2,028
Deferred Inflows of Resources:
Unavailable revenues - 170,529 -
Deferred loan payments 12,784,609 - 5,028,534
Lease related - 56,578 -
Total Deferred Inflows of Resources 12,784,609 227,107 5,028,534 Fund Balances:
Nonspendable - 6,514 -
Restricted 380,829 - -
Committed - 2,599,487 -
Unassigned - 516,700 (2,028)
Total Fund Balances 380,829 3,122,701 (2,028)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 13,165,438 4,023,070 $ 5,028,534 $ Special Revenue Funds
45 -18-
Capital
Projects Fund
Capital Other Total
Improvement Governmental Governmental
Project Funds Funds
$ 7,127,734 - $ 7,506,963 $
- 476,329 526,552
30,438 - 44,302
837,297 - 18,760,848
- - 56,003
- - 3,622,486
410 - 6,924
50,976 211,321 427,469
$ 8,046,855 687,650 $ 30,951,547 $
$ 67,912 660,688 $ 1,307,820 $
- - 66,453
3,002 - 23,125
185,466 - 192,932
1,773,274 466,689 2,241,991
1,867,576 - 1,867,576
3,897,230 1,127,377 5,699,897
5,825 211,321 387,675
837,297 - 18,650,440
- - 56,578
843,122 211,321 19,094,693
410 - 6,924
5,081,651 - 5,462,480
- - 2,599,487
(1,775,558) (651,048) (1,911,934)
3,306,503 (651,048) 6,156,957
$ 8,046,855 687,650 $ 30,951,547 $
46 This page intentionally left blank.
47 City of Live Oak
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements. -19-
Fund balances of governmental funds $ 6,156,957
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.
Capital assets, not depreciated/amortized 7,686,734
Capital assets, net of depreciation/amortization 21,007,612 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, notes, and leases (242,382)
Compensated absences (79,388)
Accrued interest (2,545)
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. 19,038,115
Pension and OPEB related items are not reported in the governmental fund 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 consist of:
Net OPEB asset 86,213
Deferred outflows related to OPEB 57,334
Deferred inflows related to OPEB (7,809)
Net pension liability (1,318,396)
Deferred outflows related to pension 635,141
Deferred inflows related to pension (113,216)
Net Position of Governmental Activities $ 52,904,370
Amounts reported for governmental activities in the statement of net position are different because:
48 City of Live Oak
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -20-
Program
General Income 16-HOME-11532
Revenues:
Taxes and assessments $ - 3,236,602 $ - $
Licenses and permits - 276,862 -
Fines and forfeitures - 1,251 -
Use of money and property 18,504 203,693 -
Intergovernmental 66,181 13,486 -
Charges for services - 69,617 -
Other revenue - 13,323 -
Total Revenues 84,685 3,814,834 -
Expenditures:
Current:
General government - 741,180 -
Public safety - 2,363,389 -
Public ways and facilities - 73,385 -
Culture and recreation - 1,008,866 -
Community development - 299,154 -
Capital outlay - 8,485 -
Debt service:
Principal - 147,514 -
Interest - 10,454 -
Total Expenditures - 4,652,427 -
Net Change in Fund Balances 84,685 (837,593) -
Fund Balances, Beginning of Year 296,144 3,960,294 (2,028) Fund Balances, End of Year $ 380,829 3,122,701 $ (2,028) $ Special Revenue Fund
49 -21-
Capital
Projects Fund
Capital Other Total
Improvement Governmental Governmental
Project Funds Funds
$ 1,034,834 - $ 4,271,436 $
352,774 - 629,636
2,754 - 4,005
58,898 - 281,095
498,264 478,664 1,056,595
9,783 - 79,400
145,426 - 158,749
2,102,733 478,664 6,480,916
125,000 - 866,180
440,629 - 2,804,018
497,097 - 570,482
173,207 - 1,182,073
145,396 - 444,550
196,240 697,330 902,055
- - 147,514
- - 10,454
1,577,569 697,330 6,927,326
525,164 (218,666) (446,410)
2,781,339 (432,382) 6,603,367
$ 3,306,503 (651,048) $ 6,156,957 $
50 City of Live Oak
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -22-
Net changes in fund balances - total governmental funds $ (446,410) 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 exceeds depreciation in the current period:
Capital outlay reported as expenditures, net of expensed items 867,025 Depreciation expense (1,007,833)
Revenues in the statement of activities that do not provide current financial resources and are not reported as revenues in the governmental funds. 345,304
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 long-term liabilities in the statement of net position. This is the amount by which proceeds exceeded repayments:
Repayment of debt principal 147,514
Accrued interest expense is not recorded in the governmental funds. The following amount is the change in accrued interest. 1,207 Expenses in the statement of activities that do not use current financial resources are not reported as expenditures in the funds.
Changes in compensated absences liability 5,707
Changes in net OPEB asset and related outflows/inflows 340 Changes in net pension liability and related outflows/inflows (95,472) Change in Net Position of Governmental Activities $ (182,618) Amounts reported for governmental activities in the statement of activities are different because:
51 City of Live Oak
Statement of Net Position
Proprietary Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -23-
Business-Type Activities - Enterprise Funds
Other
Enterprise
Water Sewer Funds Totals
Assets:
Current:
Cash and investments $ 3,093,746 - $ 3,046,849 $ 6,140,595 $ Receivables:
Accounts, net 336,126 92,423 - 428,549
Accrued interest 15,759 - 10,786 26,545
Prepaid costs 877 1,262 - 2,139
Due from other funds 70,447 - - 70,447
Total Current Assets 3,516,955 93,685 3,057,635 6,668,275 Noncurrent:
Net OPEB asset 2,289 2,289 - 4,578
Capital assets not being depreciated 586,556 32,707 - 619,263 Capital assets, net of accumulated depreciation 20,754,101 11,167,463 - 31,921,564 Total Noncurrent Assets 21,342,946 11,202,459 - 32,545,405 Total Assets 24,859,901 11,296,144 3,057,635 39,213,680 Deferred Outflows of Resources:
Deferred pension related items 229,053 170,006 - 399,059 Deferred OPEB related items 2,691 2,691 - 5,382
Total Deferred Outflows of Resources 231,744 172,697 - 404,441 Liabilities:
Current:
Accounts payable 102,832 81,898 - 184,730
Salaries and benefits payable 11,100 9,264 - 20,364
Deposits payable 4,650 1,653 - 6,303
Due to other funds - 1,450,942 - 1,450,942
Compensated absences 16,246 10,344 - 26,590
Bonds, notes and leases 226,801 43,133 - 269,934
Total Current Liabilities 361,629 1,597,234 - 1,958,863 Noncurrent:
Compensated absences 49,592 31,575 - 81,167
Bonds, notes and leases 840,491 4,497,231 - 5,337,722
Net pension liability 475,533 352,946 - 828,479
Total Noncurrent Liabilities 5,022,356 1,225,012 - 6,247,368 Total Liabilities 5,383,985 2,822,246 - 8,206,231
Deferred Inflows of Resources:
Deferred pension related items 40,836 30,309 - 71,145
Deferred OPEB related items (389) (389) - (778)
Total Deferred Inflows of Resources 40,447 29,920 - 70,367 Net Position:
Net investment in capital assets 16,616,625 10,316,546 - 26,933,171 Restricted for capital projects - - 3,057,635 3,057,635 Unrestricted 3,050,588 (1,699,871) - 1,350,717
Total Net Position $ 19,667,213 8,616,675 $ 3,057,635 $ 31,341,523 $ 52 City of Live Oak
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -24-
Business-Type Activities - Enterprise Funds
Other
Enterprise
Water Sewer Funds Totals
Operating Revenues:
Sales and service charges $ 2,494,773 915,239 $ 359,501 $ 3,769,513 $ Total Operating Revenues 2,494,773 915,239 359,501 3,769,513 Operating Expenses:
Salaries and benefits 834,445 679,565 - 1,514,010
Administration 103 35,003 - 35,106
Power 287,029 293,717 - 580,746
Insurance 147,502 55,037 - 202,539
Supplies 105,242 87,033 - 192,275
Repair and extension 378,818 45,695 - 424,513
Professional services 144,708 422,718 - 567,426
Depreciation expense 468,551 1,108,266 - 1,576,817
Other expense 108,103 80,758 - 188,861
Total Operating Expenses 3,392,226 1,890,067 - 5,282,293 Operating Income (Loss) (897,453) (974,828) 359,501 (1,512,780) Nonoperating Revenues (Expenses)
Interest revenue 39,808 6,839 23,722 70,369
Interest expense (71,666) (37,519) - (109,185)
Total Nonoperating Revenues (Expenses) (31,858) (30,680) 23,722 (38,816) Changes in Net Position (929,311) (1,005,508) 383,223 (1,551,596) Net Position, Beginning of Fiscal Year 20,596,524 9,622,183 2,674,412 32,893,119 Net Position, End of Fiscal Year $ 19,667,213 8,616,675 $ 3,057,635 $ 31,341,523 $ 53 City of Live Oak
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -25-
Business-Type Activities - Enterprise Funds
Other
Enterprise
Water Sewer Funds Totals
Cash flows from operating activities:
Cash received from customers and users $ 2,622,582 911,341 $ 359,501 $ 3,893,424 $ Cash paid to suppliers for goods and services (1,493,257) (733,592) - (2,226,849) Cash paid to employees for services (1,059,608) (739,766) - (1,799,374) Net cash provided by (used for) operating activities 69,717 (562,017) 359,501 (132,799) Cash flows from non-capital financing activities:
Cash borrowed and due to other funds (70,447) 684,975 - 614,528 Net cash provided by non-capital financing activities (70,447) 684,975 - 614,528 Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (34,730) (48,447) - (83,177) Transfer of construction in progress 449,000 (449,000) - Repayment of excess grant proceeds - - - -
Principal paid on capital debt (225,582) (43,831) - (269,413) Interest paid on capital debt (71,666) (37,519) - (109,185) Net cash provided (used) by capital and related
financing activities (780,978) (129,797) 449,000 (461,775) Cash flows from investing activities:
Interest received 28,151 6,839 15,188 50,178
Net increase (decrease) in cash and cash equivalents (753,557) - 823,689 70,132 Cash and cash equivalents at beginning of year 3,847,303 - 2,223,160 6,070,463 Cash and cash equivalents at end of year $ 3,093,746 - $ 3,046,849 $ 6,140,595 $ Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (897,453) (974,828) $ 359,501 $ (1,512,780) $ Adjustments to reconcile operating income (loss)
net cash provided by operating activities:
Depreciation 1,108,266 468,551 - 1,576,817
Changes in pension related items (217,546) (54,508) - (272,054) Changes in OPEB related items (17) (17) - (34)
(Increase) decrease in accounts receivable 127,809 (3,898) - 123,911 (Increase) decrease in prepaid costs 1,001 1,443 - 2,444 Increase (decrease) in accounts payable (46,447) 6,316 - (40,131) Increase (decrease) in salaries and benefits payable (12,619) (8,473) - (21,092) Increase (decrease) in deposits payable 1,704 600 - 2,304 Increase (decrease) in compensated absences 5,019 2,797 - 7,816 Total adjustments 967,170 412,811 - 1,379,981
Net cash provided (used) by operating activities $ 69,717 (562,017) $ 359,501 $ (132,799) $ Non-Cash Investing, Capital and Financing Activities: None None None None 54 This page intentionally left blank.
55 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐26-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Financial 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 the 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.
56 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐27-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) A) Financial Reporting Entity (continued)
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.
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. 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.
57 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐28-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B) Basis of Presentation (continued)
The fund financial statements provide information about the City’s funds, including blended component units. Funds are organized into major categories: governmental and proprietary.
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 fund is a special revenue fund used to account for revenues and expenditures related to HOME, CDBG and EDBG program income. Funding comes primarily from program income from federal grants.
The 16-HOME-11532 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 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. 58 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 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.
D) Non-Current 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.
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. 59 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 non-pooled 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.
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, 2023, the allowance for doubtful accounts was $18.
H) Prepaid Items
Payments made for services that will benefit periods beyond June 30, 2023, 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.
60 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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.
Capital assets used in operations are depreciated or amortized using the straight-line method over the assets estimated useful life in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:
Years
Equipment 3-25
Structures and improvements 5-50
Infrastructure 20-75
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.
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 place the lease asset into service. 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 amortization period varies from 3 to 5 years.
J) 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.
61 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) J) Property Tax (continued)
The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.
K) Interfund Transactions
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.
L) Unearned Revenue
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.
62 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) M) 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.
N) 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.
O) 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 a future period 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 a future period and so will not be recognized as an inflow of resources (revenue) until that time. The government has three 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.
63 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P) Estimates (continued)
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.
Q) Other Postemployment Benefits (OPEB)
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.
R) 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.”
Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $26,128,053 of restricted net position, of which $6,457,225 is restricted by enabling legislation.
64 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) R) Net Position (continued)
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.
S) 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, 2023, 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. 65 City of Live Oak
Notes to Financial Statements
June 30, 2023
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) S) Fund Balance (continued)
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.
2) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A) Deficit Fund Balance/Net Position
The following non-major special revenue funds had a deficit fund balance:
The 14-HOME-9274 Fund had a fund balance deficit of $3,945, which is expected to be eliminated in the future through grant reimbursements.
The Mello Roos CFD 2004-1 Street Lighting Fund had a fund balance deficit of $55,541, which is expected to be eliminated in the future through special assessment revenues.
The 13-CDBG-8933 Skate Park Fund had a fund balance deficit of $430,713, which is expected to be reimbursed by future grant reimbursements.
The CDBG PI Waiver Water Main Fund had a fund balance deficit of $246,000, which is expected to be eliminated in the future through grant reimbursements.
The State Grants fund had a fund balance deficit of $1,039,359, which is expected to be eliminated in the future through grant reimbursements.
66 City of Live Oak
Notes to Financial Statements
June 30, 2023
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3) CASH AND INVESTMENTS
A) Financial Statement Presentation
As of June 30, 2023, the City’s cash and investments are reported in the financial statements as follows:
Cash and investments in primary government
Governmental activities 7,506,963 $
Business-type activities 6,140,595
Total cash and investments in primary government 13,647,558 Total cash and investments 13,647,558 $
As of June 30, 2023, the City’s cash and investments consisted of the following:
Cash:
Cash on hand 1,020 $
Deposits with financial institutions 4,147,941
Total cash 4,148,961
Investments:
Certificate of deposit 31,000
Local Agency Investment Fund 8,886,566
Money market funds 581,031
Total investments 9,498,597
Total cash and investments 13,647,558 $
67 City of Live Oak
Notes to Financial Statements
June 30, 2023
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3) CASH AND INVESTMENTS (continued)
B) Cash
At year end, the carrying amount of the City’s cash deposits was $4,147,941 and the bank balance was $4,262,061. 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.
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 of Investment in Credit
Authorized Investment Type Maturity 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 (LAIF) N/A None $75 million None California Asset Management Program (CAMP) 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 three-tiered fair value hierarchy, as follows:
68 City of Live Oak
Notes to Financial Statements
June 30, 2023
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3) CASH AND INVESTMENTS (continued)
C) Investments (continued)
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs.
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.
At June 30, 2023, the City had the following recurring fair value measurements.
Level
Investment Type Fair Value 1 2 3
Certificate of Deposit 31,000 $ - $ 31,000 $ - $
Investments measured at amortized cost:
Money market mutual funds 581,031
Investments exempt from fair value hierarchy:
Local Agency Investment Fund (LAIF) 8,886,566
Total investments 9,498,597 $
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, 2023, the City had the following investments all of which had a maturity of 5 years or less:
12 Months
Investment Type or less Total
Certificate of deposit 31,000 $ 31,000 $
Local Agency Investment Fund (LAIF) 8,886,566 8,886,566 Money market mutual funds 581,031 581,031
Total investments 9,498,597 $ 9,498,597 $
69 City of Live Oak
Notes to Financial Statements
June 30, 2023
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3) CASH AND INVESTMENTS (continued)
C) Investments (continued)
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, 2023, 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 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, 2023, the City investments were mostly pooled with the State of California Local Agency Investment Fund which holds a diversified portfolio of high-quality investments.
D) 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, 2023, the City’s investment in LAIF valued at amortized cost was $8,886,566 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 $178.3 billion.
70 City of Live Oak
Notes to Financial Statements
June 30, 2023
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4) CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2023, was as follows:
Governmental Activities
Balance at Transfers/ Balance at
June 30, 2022 Adjustments Additions Retirements June 30, 2023 Capital assets not being depreciated
or amortized:
Land 6,584,996 $ - $ - $ - $ 6,584,996 $
Construction in progress 3,356,370 (2,955,030) 700,398 - 1,101,738 Total capital assets not being
depreciated or amortized 9,941,366 (2,955,030) 700,398 - 7,686,734 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 4,830,684 - 150,326 - 4,981,010
Infrastructure 22,199,263 2,971,331 - 25,170,594
Total capital assets being
depreciated and amortized 34,636,164 - 3,121,657 - 37,757,821 Less accumulated depreciation and
amortization for:
Right to use asset - equipment (13,545) - (13,545) - (27,090) Buildings and improvements (2,303,952) - (210,855) - (2,514,807) Equipment (3,640,246) 3,260 (251,708) - (3,888,694)
Infrastructure (9,784,633) (3,260) (531,725) - (10,319,618) Total accumulated depreciation
and amortization (15,742,376) - (1,007,833) - (16,750,209) Net capital assets being depreciated
and amortized 18,893,788 - 2,113,824 - 21,007,612
Governmental activities capital assets, net 28,835,154 $ (2,955,030) $ 2,814,222 $ - $ 28,694,346 $ 71 City of Live Oak
Notes to Financial Statements
June 30, 2023
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4) CAPITAL ASSETS (continued)
Business-Type Activities
Balance at Transfers/ Balance at
June 30, 2022 Adjustments Additions Retirements June 30, 2023 Capital assets not being depreciated
or amortized:
Land 233,241 $ - $ - $ - $ 233,241 $
Construction in progress 1,070,668 (684,646) - - 386,022 Total capital assets not being
depreciated or amortized 1,303,909 (684,646) - - 619,263 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 - 83,174 - 1,680,365
Infrastructure 53,358,714 - 684,649 - 54,043,363
Total capital assets being
depreciated and amortized 55,017,060 - 767,823 - 55,784,883 Less accumulated depreciation and
amortization for:
Right to use asset - equipment (7,692) - (7,690) - (15,382) Buildings and improvements (38,641) - - - (38,641)
Equipment (1,455,193) - (29,560) - (1,484,753)
Infrastructure (20,784,976) - (1,539,567) - (22,324,543) Total accumulated depreciation
and amortization (22,286,502) - (1,576,817) - (23,863,319) Net capital assets being depreciated
and amortized 32,730,558 - (808,994) - 31,921,564
Business-type activities capital assets, net 34,034,467 $ (684,646) $ (808,994) $ - $ 32,540,827 $ Depreciation
Depreciation expense was charged to governmental functions as follows:
General government 33,386 $
Public safety 145,532
Community development 527,051
Culture and recreation 299,908
Public ways and facilities 1,956
Total depreciation and amortization
- governmental activities 1,007,833 $
Water utility 468,551 $
Sewer utility 1,108,266
Total depreciation and amortization
- business-type activities 1,576,817 $
72 City of Live Oak
Notes to Financial Statements
June 30, 2023
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4) CAPITAL ASSETS (continued)
Construction in Progress
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 and roads:
Pennington Road project 890,438
Total streets and roads 890,438
Total governmental activities 1,101,738 $
Business-type activities:
Sewer enterprise:
P St. Lift Station 386,022 $
Total sewer enterprise 386,022
Total business-type activities 386,022 $
5) INTERFUND TRANSACTIONS
Due To/From Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds The following are due to and due from balances as of June 30, 2023:
Due from Other Funds Due to Other Funds Amount
General Fund Other Governmental Funds 1,773,274 $
General Fund Capital Improvement Project 466,689
General Fund 16-HOME-11532 2,028
General Fund Water 1,380,495
Sewer Water 70,447
$ 3,692,933
73 City of Live Oak
Notes to Financial Statements
June 30, 2023
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6) LOANS RECEIVABLE
At June 30, 2023, the City had the following loans receivable, including principal and accrued interest:
Governmental Activities
Loan Type Principal Interest Total
CDBG Housing Rehab 424,751 $ 120,092 $ 544,843 $
CDBG First Time Home Buyer 378,000 212,117 590,117
CDBG Public Improvements 680,800 - 680,800
EDBG Business Assistance 18,267 14 18,281
HOME Owner Occupied Rehab 1,445,336 148,235 1,593,571
HOME First Time Home Buyer 142,000 70,702 212,702
HOME Housing New Construction 12,000,000 1,986,445 13,986,445 HOME Program Income First Time Home Buyer 127,000 66,052 193,052 HOME Program Income Owner Occupied Rehab 55,483 17,845 73,328 City Loan First Time Home Buyer 75,000 35,926 110,926
Impact Fees Housing New Construction 667,349 89,434 756,783 Total $ 2,746,862 16,013,986 $ 18,760,848 $
A total of $18,760,848 was recorded as loans receivable at June 30, 2023. 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 $18,650,440 have been established in the Governmental Funds Balance Sheet for the housing and business loan principal and interest payments.
74 City of Live Oak
Notes to Financial Statements
June 30, 2023
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7) LONG-TERM LIABILITIES
Debt Service Requirements
The following is a summary of changes in long-term liabilities for the year ended June 30, 2023:
Amounts
Balance Balance Due Within
Type of Indebtedness June 30, 2022 Retirements June 30, 2023 One Year Governmental activities:
Direct borrowings:
City of Yuba City Loan 105,766 $ (52,883) $ 52,883 $ 52,883 $ Financed purchase: fire engine 252,264 (81,156) 171,108 84,054 Lease liability 31,866 (13,475) 18,391 13,747
Total governmental activities 389,896 $ (147,514) $ 242,382 $ 150,684 $ Business-type activities:
Direct borrowings and private placements:
State Department of Water
Resources revolving fund loan 4,222,159 $ (191,751) $ 4,030,408 $ 193,668 $ Certificates of participation 1,640,000 (70,000) 1,570,000 70,000 Lease liability 14,910 (7,662) 7,248 6,266
Total business-type activities 5,877,069 $ (269,413) $ 5,607,656 $ 269,934 $ 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, 2023, 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 2, 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, 2023 is $52,883. Debt service requirements for the loan are as follows:
Year Ended Loans
June 30, Principal Interest Total
2024 52,883 $ - $ 52,883 $
Total 52,883 $ - $ 52,883 $
75 City of Live Oak
Notes to Financial Statements
June 30, 2023
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7) LONG-TERM LIABILITIES (continued)
A. Governmental Activities (continued)
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. 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, 2023 is $171,108. Debt service requirements for the financing lease are as follows:
Year Ended Fire Engine
June 30, Principal Interest Total
2024 84,054 $ 6,109 $ 90,163 $
2025 87,054 3,108 90,162
Total 171,108 $ 9,217 $ 180,325 $
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, 2023 is $4,030,408. Debt service requirements are as follows:
Year Ended Loans
June 30, Principal Interest Total
2024 193,668 $ 40,304 $ 233,972 $
2025 195,605 38,367 233,972
2026 197,561 36,411 233,972
2027 199,537 34,436 233,973
2028 201,532 32,440 233,972
2029-2033 1,038,296 131,566 1,169,862
2034-2038 1,091,259 78,603 1,169,862
2039-2042 912,950 22,937 935,887
Total 4,030,408 $ 415,064 $ 4,445,472 $
76 City of Live Oak
Notes to Financial Statements
June 30, 2023
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7) LONG-TERM LIABILITIES (continued)
B. Business-Type Activities (continued)
The City issued the 2003 Certificates of Participation of 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 to the wastewater fund. Total outstanding as of June 30, 2023 is $690,000.
The City issued the 2005 Certificates of Participation of 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 to the water fund. Total outstanding as of June 30, 2023 is $880,000.
Debt service requirements are as follows:
Year Ended Certificates of Participation
June 30, Principal Interest Total
2024 70,000 $ 65,238 $ 135,238 $
2025 70,000 62,263 132,263
2026 70,000 59,288 129,288
2027 70,000 56,312 126,312
2028 70,000 53,337 123,337
2029-2033 350,000 222,063 572,063
2034-2038 350,000 147,687 497,687
2039-2043 350,000 73,313 423,313
2044-2045 170,000 9,138 179,138
Total 1,570,000 $ 748,639 $ 2,318,639 $
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 $56,003. Deferred inflows related to the lease was $56,578 as of June 30, 2023. Interest revenue recognized on the lease was $1,774 for the year ended June 30, 2023. Principal receipts of $56,577 were recognized during the fiscal year. The interest rate on the lease was 2.00% with final payment expected in September 2024.
77 City of Live Oak
Notes to Financial Statements
June 30, 2023
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8) LEASES (continued)
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:
Year Ended Governmental activities - Leases
June 30, Principal Interest Total
2024 13,747 $ 242 $ 13,989 $
2025 4,644 20 4,664
Total 18,391 $ 262 $ 18,653 $
Year Ended Business-type activities - Leases
June 30, Principal Interest Total
2024 6,266 $ 84 $ 6,350 $
2025 982 6 988
Total 7,248 $ 90 $ 7,338 $
9) COMPENSATED ABSENCES
A summary of the changes in compensated absences for the year ended June 30, 2023 is as follows:
Balance Balance Due in
June 30, 2022 Additions Reductions June 30, 2023 One Year Governmental activities 85,095 $ 53,163 $ (58,870) $ 79,388 $ 14,799 $ Business-type activities 99,941 68,839 (61,023) 107,757 26,590 Total compensated absences 185,036 $ 122,002 $ (119,893) $ 187,145 $ 41,389 $
78 City of Live Oak
Notes to Financial Statements
June 30, 2023
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10) FUND BALANCES
The fund balances for all major and non-major governmental funds as of June 30, 2023, were distributed as follows:
Capital Other
Program 16-HOME- Improvement Governmental
General Income 11532 Project Funds Total
Nonspendable:
Prepaid costs 6,514 $ - $ - $ - $ 410 $ 6,924 $
Subtotal 6,514 - - - 410 6,924
Restricted For:
Developer deposits - - - - 1,180 1,180
Street maintenance and
construction - - - - 647,502 647,502
Law enforcement services - - - - 269,000 269,000
Sidewalk improvement - - - - 18,292 18,292
Street lighting - - - - 96,357 96,357
Mello Roos - - - - 382,256 382,256
Impact fees - - - - 2,781,935 2,781,935
Storm drain connection fees - - - - 621,162 621,162
Community development - 380,829 - - 9,924 390,753
Transportation - - - - 254,043 254,043
Subtotal - 380,829 - - 5,081,651 5,462,480
Committed 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 - 516,700 (2,028) (651,048) (1,775,558) (1,911,934) Totals 3,122,701 $ 380,829 $ (2,028) $ (651,048) $ 3,306,503 $ 6,156,957 $ 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”.
79 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN
A) General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in two miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
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 5 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 Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.
80 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN (continued)
A) General Information about the Pension Plan (continued) The Plan’s provisions and benefits in effect at June 30, 2023 are summarized as follows:
PEPRA
Miscellaneous Miscellaneous
Rate Plan Rate Plan
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.0% or 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 55 62
Monthly benefits, as a % of eligible compensation 2% - 2.7% 2% Required employee contribution rates 7.960% 6.750%
Required normal employer contribution rates 14.030% 7.470% Required employer payment of unfunded liability $157,801 $3,058 Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are 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 CalPERS’ annual actuarial valuation process.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023 were $333,621. The actual employer payments of $309,687 made to CalPERS by the City during the measurement period ended June 30, 2022 differed from the City’s proportionate share of the employer’s contributions of $346,484 by $36,797, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
B) Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows. 81 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐52-
11) PENSION PLAN (continued)
B) Net Pension Liability (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:
Discount Rate
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1)
Post Retirement Benefit Increase
Entry Age Actuarial Cost Method
6.90%
Derived using CalPERS' membership data for all funds
The lesser of contract COLA or 2.30% until Purchasing
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
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, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
82 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN (continued)
B) Net Pension Liability (continued)
The expected real rates of return by asset class are as follows:
Asset Class
Assumed
Asset
Allocation
Real
Return1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
Change of Assumptions
Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. CalPERS also adjusted the inflation rate from 2.50% to 2.30%
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
83 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN (continued)
B) Net Pension Liability (continued)
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%.
Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes.
This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. 84 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s net pension liability over the measurement period.
Increase (Decrease)
Proportionate Share
of Total Pension
Liability
Proportionate Share of
Fiduciary Net Position
Proportionate Share
of Net Pension
Liability
Balance at: 6/30/2021 (VD) 7,979,848 $ 6,940,877 $ 1,038,971 $ Balance at: 6/30/2022 (MD) 8,826,633 6,679,758 2,146,875 Net Changes during 2021-22 846,785 $ (261,119) $ 1,107,904 $ The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the miscellaneous Plan as of the June 30, 2021 and 2022 measurement dates was as follows:
Proportionate Share - June 30, 2021 0.05472%
Proportionate Share - June 30, 2022 0.04588%
Change - Increase (Decrease) (0.00884%)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 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 (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:
Discount Rate - 1% Current Discount Rate Discount Rate +1% (5.9%) (6.90%) (7.90%)
$ 2,146,875 3,350,104 $ 1,156,916 $
85 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued) Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2021), the City’s net pension liability was $1,038,971. For the measurement period ending June 30, 2022 (the measurement date), the Local Government incurred a pension expense of $157,038.
As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
86 City of Live Oak
Notes to Financial Statements
June 30, 2023
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11) PENSION PLAN (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (continued)
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to
measurement date 333,621 $ - $
Changes in assumptions 219,992 -
Difference between expected and actual
experiences 43,113 28,876
Net difference between projected and actual
earnings on pension plan investments 393,250 -
Differences between actual contributions and the
proportionate share of contributions 44,224 26,852
Adjustment due to difference in proportions - 128,633
Total 1,034,200 $ 184,361 $
The amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $333,621 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Measurement Period Deferred
Ended June 30, Outflows/(Inflows)
2024 132,578 $
2025 97,938
2026 45,177
2027 240,525
$ 516,218
E. Payable to the Pension Plan
At June 30, 2023, the City reported a payable of $167,471 for the outstanding amount of contributions to the pension plan required for the year then ended. 87 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐58-
12) OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City contributes to California Public Employees Retirement System (CalPERS), an agent multiple-employer 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 $151 per month from the City. Payments cease at age 65 when the retiree is eligible for Medicare.
Employee’s 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 28
Inactive employees or beneficiaries currently receiving benefits 6 Inactive employees entitled to, but not yet receiving benefits 8 Total 42
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 $19,809 for the fiscal year, which will be recognized as an increase to the net OPEB asset.
Net OPEB Asset
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:
88 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐59-
12) OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Assumptions
Actuarial Valuation Date June 30, 2021
Contribution Policy City contributes full ADC
Discount Rate and Long-Term 6.25% at June 30, 2022
Expected Rate of Return 6.75% at June 30, 2021
on Assets Expected City contributions projected to keep sufficient plan assets to pay all benefits from
trust
General Inflation 2.50% annually
Mortality, Retirement, CalPERS 2000-2019 Experience Study Disability, Termination
Mortality Improvement Mortality projected fully generational with Scale MP-2021
Salary Increases Aggregate-2.75% annually
Merit-CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare - 6.5% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare (Non-Kaiser) - 5.65% for 2023,
decreasing to an ultimate rate of 3.75% in 2076
Medicare (Kaiser) - 4.6% for 2023, decreasing to
an ultimate rate of 3.75% in 2076
Healthcare participation 50% if active medical coverage for future retirees 0% if waived
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:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 49.00% 4.56%
Fixed Income 23.00% 1.56%
TIPS 5.00% -0.08%
Commodities 3.00% 1.22%
REITs 20.00% 4.06%
Total 100.00%
89 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐60-
12) OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
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
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position (Asset)
Balance at June 30, 2022
(measurement date 6/30/2021) 355,527 $ 554,508 $ (198,981) $ Changes recognized over the
measurement period:
Service cost 25,215 - 25,215
Interest cost 23,336 - 23,336
Contributions - employer - 14,711 (14,711)
Net investment income - (74,210) 74,210
Benefit payments (14,711) (14,711) -
Administrative expenses - (140) 140
Net Changes 33,840 (74,350) 108,190
Balance at June 30, 2023
(measurement date 06/30/2022) 389,367 $ 480,158 $ (90,791) $ 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, 2022:
Current
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Asset (43,486) $ (90,791) $ (129,811) $
90 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐61-
12) OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Sensitivity of the Net OPEB Asset to Changes in the Health Care Cost Trend Rate 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, 2022:
Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Asset (138,473) $ (90,791) $ (31,244) $
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, 2023, the City recognized OPEB expense of $19,435. As of fiscal year ended June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 19,809 $ - $ Net difference between projected and actual earnings on OPEB plan investments 38,823 -
Changes in assumptions 4,084 877
Differences between expected and actual experience - 6,154 Total 62,716 $ 7,031 $
The $19,809 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as an increase to the net OPEB asset during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:
Fiscal Year Deferred
Ended June 30, Outflows/(Inflows)
2024 6,285 $
2025 5,829
2026 3,123
2027 21,166
2028 (605)
Thereafter 78
$ 35,876
91 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐62-
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.
The City continues to carry commercial insurance for all other risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance in any of the past three fiscal years.
14) OTHER INFORMATION
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.
A) 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, 2023, 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.
92 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐63-
14) OTHER INFORMATION (continued)
A) Development Agreements (continued)
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.
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, 2023, the City recorded a liability of zero of sales tax due to the County of Sutter.
As of June 30, 2023, there are no financial effects upon the City stemming from the development arrangements with the County of Sutter other than the aforementioned amounts.
B) 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:
Principal Interest Total
Acquisition Note 293,000 $ 28,384 $ 321,384 $
Development Impact Fee Note (drainage) 94,349 9,140 103,489 Development Impact Fee Note (fire facilities) 280,000 51,910 331,910 Total 667,349 $ 89,434 $ 756,783 $
Loans
93 City of Live Oak
Notes to Financial Statements
June 30, 2023
‐64-
15) OTHER INFORMATION (continued)
B) Acquisition and Fee Deferral Loan Agreement Live Oak Pacific Associates (Kristen Court Apartments) (continued)
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.
C) 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, 2023, the City considers the $584,522 a contingent liability against the Water Connection and Sewer Connection Funds.
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95 City of Live Oak
Budgetary Comparison Schedule by Department
General Fund
Year Ended June 30, 2023
-65-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 3,960,294 3,960,294 $ 3,960,294 $ - $ Resources (Inflows):
Taxes and assessments 2,992,000 2,992,000 3,236,602 244,602 Licenses and permits 398,000 398,000 276,862 (121,138)
Fines and forfeitures 1,500 1,500 1,251 (249)
Use of money and property - - 203,693 203,693
Intergovernmental 11,000 11,000 13,486 2,486
Charges for services 37,560 37,560 69,617 32,057
Other revenue 158,406 158,406 13,323 (145,083)
Amounts Available for Appropriations 7,558,760 7,558,760 7,775,128 216,368 Charges to Appropriation (Outflow):
General government:
City Council 92,606 92,606 87,696 4,910
Administrative Services 363,313 363,313 360,032 3,281
Finance Services 196,162 196,162 270,146 (73,984)
City Attorney 55,000 55,000 45,114 9,886
Nondepartmental 194,557 194,557 (21,808) 216,365
Public safety:
Building Inspection 250,945 250,945 269,494 (18,549)
Police Services 955,700 955,700 1,368,779 (413,079)
Animal Control Services 48,000 48,000 66,030 (18,030)
Fire Services 548,200 548,200 659,086 (110,886)
Public ways and facilities:
Engineering 31,000 31,000 73,385 (42,385)
Culture and recreation:
Park Operations 255,944 255,944 441,101 (185,157)
Recreation Services 340,132 340,132 366,272 (26,140)
Pool Operations 102,393 102,393 95,285 7,108
Facility Maintenance 75,605 75,605 106,208 (30,603)
Community development:
Community Development 181,892 181,892 275,342 (93,450)
Economic Development 10,783 10,783 23,812 (13,029)
Capital outlay 37,700 37,700 8,485 29,215
Debt service:
Principal retirement 134,038 134,038 147,514 (13,476)
Interest and fiscal charges 14,183 14,183 10,454 3,729
Total Charges to Appropriations 3,888,153 3,888,153 4,652,427 (764,274) Budgetary Fund Balance, June 30 $ 3,670,607 3,670,607 $ 3,122,701 $ (547,906) $ 96 City of Live Oak
Budgetary Comparison Schedule
Program Income
Year Ended June 30, 2023
-66-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 296,144 296,144 $ 296,144 $ - $ Resources (Inflows):
Use of money and property - - 18,504 18,504
Intergovernmental - - 66,181 66,181
Amounts Available for Appropriations 296,144 296,144 380,829 84,685 Charges to Appropriation (Outflow):
Community development - - - -
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 296,144 296,144 $ 380,829 $ 84,685 $ 97 City of Live Oak
Cost Sharing Multiple Employer Benefit Plan
Schedule of Proportionate Share of the Pension Liability As of June 30, 2023
-67-
2015 2016 2017 2018
Miscellaneous Plan
Employer's Proportion of the Collective Net Pension Liability1 0.01965% 0.05069% 0.04705% 0.14629% Employer's Proportionate Share of the Collective
Net Pension Liability $ 1,390,791 1,222,792 $ 1,634,430 $ 1,824,719 $ Covered Payroll $ 961,817 1,126,901 $ 1,091,598 $ 1,108,151 $ Employer's Proportionate Share of the Collective Net Pension Liability as Percentage of Covered Payroll 108.51% 144.60% 149.73% 164.66% The Pension Plan's (PERF-C) Fiduciary Net Position
as a Percentage of the Total Pension Liability 79.82% 78.40% 74.06% 73.31% Notes to Schedule:
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
98 -68-
2019 2020 2021 2022 2023
0.04617% 0.45890% 0.04578% 0.05472% 0.04588%
$ 1,837,496 1,739,893 $ 1,931,204 $ 1,038,971 $ 2,146,875 $ $ 911,603 1,152,712 $ 1,330,269 $ 1,356,262 $ 1,524,173 $ 150.94% 201.57% 145.17% 76.61% 140.86%
75.26% 75.26% 75.10% 75.10% 75.68%
99 City of Live Oak
Cost Sharing Multiple Employer Benefit Plan
Schedule of Plan Contributions
As of June 30, 2023
-69-
2015 2016 2017 2018
Miscellaneous Plan
Actuarially Determined Contribution $ 219,352 212,735 $ 234,653 $ 246,864 $ Contribution in Relation to the Actuarially Determined Contribution (219,352) (212,735) (234,653) (246,864) Contribution Deficiency (Excess) $ - - $ - $ - $
Covered Payroll $ 1,091,598 961,817 $ 1,108,151 $ 1,152,712 $ Contributions as a Percentage of Covered-Employee Payroll 22.12% 20.09% 21.18% 21.42% * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.
Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, 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). In 2014, amounts reported were based on the 7.5 percent 100
-70-
2019 2020 2021 2022 2023
310,939 242,734 340,276 309,687 333,621
(310,939) (242,734) (340,276) (309,687) (333,621)
$ - - $ - $ - $ - $
$ 1,330,269 911,603 $ 1,356,262 $ 1,524,173 $ 1,569,898 $
26.63% 23.37% 25.09% 20.32% 21.25%
101
City of Live Oak
Schedule of Changes in the Net OPEB Asset and Related Ratios As of June 30, For the Last Ten Fiscal Years(1)
-71-
2018 2019 2020 2021 2022 2023
Total OPEB Liability
Service cost $ 24,215 23,510 $ 24,941 $ 16,849 $ 17,354 $ 25,215 $ Interest on the total OPEB liability 18,226 16,459 20,010 21,068 22,849 23,336 Actual and expected experience difference - - (4,689) - (4,393) - Changes in assumptions - - (1,549) - 5,118 -
Benefit payments (14,578) (14,428) (18,875) (10,991) (13,104) (14,711) Net change in total OPEB liability 27,863 25,541 19,838 26,926 27,824 33,840 Total OPEB liability - beginning 253,076 227,535 280,939 300,777 327,703 355,527 Total OPEB liability - ending (a) $ 280,939 253,076 $ 300,777 $ 327,703 $ 355,527 $ 389,367 $ Plan Fiduciary Net Position
Contribution - employer $ 14,578 14,428 $ 18,875 $ 10,991 $ 13,104 $ 14,711 $ Net investment income 29,243 35,119 24,440 14,852 119,584 (74,210) Benefit payments (14,578) (14,428) (18,875) (10,991) (13,104) (14,711) Administrative expense (682) (178) (85) (205) (165) (140) Net change in plan fiduciary net position 28,561 34,941 24,355 14,647 119,419 (74,350) Plan fiduciary net position - beginning 367,526 332,585 396,087 420,442 435,089 554,508 Plan fiduciary net position - ending (b) 396,087 367,526 420,442 435,089 554,508 480,158 Net OPEB (Asset) - ending (a) - (b) $ (115,148) (114,450) $ (119,665) $ (107,386) $ (198,981) $ (90,791) $ Plan fiduciary net position as a percentage
of the total OPEB liability 145.22% 140.99% 139.79% 132.77% 155.97% 123.32% Covered-employee payroll $ 1,200,174 1,011,920 $ 913,598 $ 1,330,269 $ 1,356,262 $ 1,474,266 $ Net OPEB asset as a percentage of
covered-employee payroll -11.31% -9.59% -13.10% -7.92% -14.67% -6.16% Notes to Schedule: None.
Changes in assumptions: None
*Fiscal year 2018 was the first year of implementation. Additional years will be presented as information becomes available. 102
City of Live Oak
Schedule of OPEB Contributions
As of June 30, For the Last Ten Fiscal Years(1)
-72-
2018 2019 2020 2021 2022 2023
Actuarially Determined Contribution $ 18,498 32,072 $ 19,094 $ 9,061 $ 14,711 $ 10,401 $ Contribution in Relation to the Actuarially Determined
Contributions (14,578) (18,875) (10,991) (13,104) (14,711) (19,809) Contribution Deficiency (Excess) $ (377) 17,494 $ 8,103 $ (4,043) $ - $ (9,408) $ Covered-employee payroll $ 913,598 1,200,174 $ 1,330,269 $ 1,356,262 $ 1,474,266 $ 1,614,199 $ Contributions as a percentage of covered-employee payroll 1.21% 2.07% 0.83% 0.97% 1.00% 1.23% Notes to Schedule:
Methods and assumptions used to determine contributions:
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level % of pay
Amortization Method Level % of pay
Amortization Period 16-year fixed period for 2022/23
Asset Valuation Method Market value
Discount Rate 6.25%
General Inflation 2.50%
Medical Trend
Mortality CalPERS 2000-2019 experience study
Mortality Improvement
*Fiscal year 2018 was the first year of implementation. Additional years will be presented as information becomes available.
Mortality projected fully generation with Scale MP-2021 Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 103
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2023
-73-
1) 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 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 (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, 2023, the following funds did not have annual appropriated budgets.
Capital Improvement Project (Major – Capital Projects Fund) 14-HOME-9274
Developer Deposits
Traffic Safety
State Grant Fund
13-CDBG-8933
11-HOME-7661
16-HOME-11532
16-HOME11380
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.
104
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2023
-74-
1) BUDGETARY BASIS OF ACCOUNTING (continued)
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 Improvements
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 (CFD) 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.
105
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2023
-75-
1) BUDGETARY BASIS OF ACCOUNTING (continued)
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.
Mello Roos CFD 2004-1 Fire
This fund is used to account for special assessment revenue received for the purposes of police 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.
106
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2023
-76-
1) BUDGETARY BASIS OF ACCOUNTING (continued)
Public Works Impact Fees
This fund is used to account for development impact fees received for the expansion and construction of public works/crop yard facilities and equipment.
General Government Impact Fees
This fund is used to account for development impact fees received for the 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 expansion and construction of public safety police facilities and equipment.
Fire Impact Fees
This fund is used to account for development impact fees received for the 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 expansion and construction of signals.
Flood Control Impact Fees
This fund is used to account for development impact fees received for the expansion and construction of storm drainage facilities.
Storm Drain Connection Fees
This fund is used to account for the 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.
107
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2023
-77-
1) BUDGETARY BASIS OF ACCOUNTING (continued)
16-HOME-11380
This fund is used to account for HOME grant funds used for the Owner-Occupied Rehab Loan Program.
CBDG 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 grants received by the City for various capital-related projects.
Transportation
This fund is used to account for monies received through the Transportation Development Act (TDA) tax and Surface Transportation Development Program (STP).
ARPA
This fund is used to account for revenues and expenditures related to Coronavirus State and Local Fiscal Recovery Funds (CSLFRF).
108
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-78-
Special Revenue Funds
Developer Streets and
14-HOME-9274 Deposits Roads Traffic Safety
Assets:
Cash and investments $ 185,874 - $ 652,280 $ 21,658 $
Receivables:
Accrued interest 772 - 2,691 89
Notes and loans - - - -
Prepaid items - - 410 -
Due from other governments - - 45,150 1,550
Total Assets $ 186,646 - $ 700,531 $ 23,297 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - - $ 49,617 $ - $
Salaries and benefits payable - - 3,002 -
Deposits payable 185,466 - - -
Due to other funds - 3,945 - -
Unearned revenues - - - -
Total Liabilities 185,466 3,945 52,619 -
Deferred Inflows of Resources:
Unavailable revenues - - - 1,550
Deferred loan payments - - - -
Total Deferred Inflows of Resources - - - 1,550
Fund Balances:
Nonspendable - - 410 -
Restricted 1,180 - 647,502 21,747
Unassigned - (3,945) - -
Total Fund Balances (Deficit) 1,180 (3,945) 647,912 21,747 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 186,646 - $ 700,531 $ 23,297 $ 109
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-79-
Special Revenue Funds
Sidewalk Street Mello Roos CFD
COPS Improvements Lighting 92-1
Assets:
Cash and investments $ 18,216 635,738 $ 99,822 $ 81,548 $ Receivables:
Accrued interest 76 2,635 366 535
Notes and loans - - - -
Prepaid items - - - -
Due from other governments - - 456 314
Total Assets $ 18,292 638,373 $ 100,644 $ 82,397 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - - $ 3,831 $ - $
Salaries and benefits payable - - - -
Deposits payable - - - -
Due to other funds - - - -
Unearned revenues - 395,318 - -
Total Liabilities - 395,318 3,831 -
Deferred Inflows of Resources:
Unavailable revenues - - 456 314
Deferred loan payments - - - -
Total Deferred Inflows of Resources - - 456 314
Fund Balances:
Nonspendable - - - -
Restricted 18,292 243,055 96,357 82,083
Unassigned - - - -
Total Fund Balances (Deficit) 18,292 243,055 96,357 82,083 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 18,292 638,373 $ 100,644 $ 82,397 $ 110
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-80-
Special Revenue Funds
Mello Roos CFD
Fire Benefit Mello Roos CFD Mello Roos CFD 2004-1 Animal Assessment 2004-1 Fire 2004-1 Police Services
Assets:
Cash and investments $ 32,972 3,371 $ 62,196 $ 3,613 $
Receivables:
Accrued interest 294 138 563 44
Notes and loans - - - -
Prepaid items - - - -
Due from other governments 501 792 1,354 78
Total Assets $ 33,767 4,301 $ 64,113 $ 3,735 $
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 501 792 1,354 78
Deferred loan payments - - - -
Total Deferred Inflows of Resources 501 792 1,354 78
Fund Balances:
Nonspendable - - - -
Restricted 33,266 3,509 62,759 3,657
Unassigned - - - -
Total Fund Balances (Deficit) 33,266 3,509 62,759 3,657 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 33,767 4,301 $ 64,113 $ 3,735 $ 111
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-81-
Special Revenue Funds
Mello Roos CFD 2004-1 Mello Roos CFD Parks &
2004-1 Street Parks/Recreation/ 2004-1 Storm Recreation Lighting Pool Drain Impact Fees
Assets:
Cash and investments $ 34,825 - $ 164,907 $ 606,015 $
Receivables:
Accrued interest 372 - 654 2,516
Notes and loans - - - -
Prepaid items - - - -
Due from other governments 619 81 81 -
Total Assets $ 35,816 81 $ 165,642 $ 608,531 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 221 2,284 $ 47 $ 11,400 $
Salaries and benefits payable - - - -
Deposits payable - - - -
Due to other funds - 53,257 - -
Unearned revenues - - - -
Total Liabilities 221 55,541 47 11,400
Deferred Inflows of Resources:
Unavailable revenues 618 81 81 -
Deferred loan payments - - - -
Total Deferred Inflows of Resources 618 81 81 -
Fund Balances:
Nonspendable - - - -
Restricted 34,977 - 165,514 597,131
Unassigned - (55,541) - -
Total Fund Balances (Deficit) 34,977 (55,541) 165,514 597,131 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 35,816 81 $ 165,642 $ 608,531 $ 112
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-82-
Special Revenue Funds
Community General
Center Impact Public Works Government Police Impact
Fees Impact Fees Impact Fees Fees
Assets:
Cash and investments $ 124,963 363,011 $ 531,355 $ 263,471 $ Receivables:
Accrued interest 519 1,507 2,206 1,094
Notes and loans - - - -
Prepaid items - - - -
Due from other governments - - - -
Total Assets $ 125,482 364,518 $ 533,561 $ 264,565 $
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:
Nonspendable - - - -
Restricted 125,482 364,518 533,561 264,565
Unassigned - - - -
Total Fund Balances (Deficit) 125,482 364,518 533,561 264,565 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 125,482 364,518 $ 533,561 $ 264,565 $ 113
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-83-
Special Revenue Funds
Fire Impact Signal Impact Flood Control Storm Drain
Fees Fees Impact Fees Connection Fees
Assets:
Cash and investments $ 484,624 402,566 $ 2,286 $ 618,659 $ Receivables:
Accrued interest 2,012 1,672 9 2,503
Notes and loans 315,591 - - 436,585
Prepaid items - - - -
Due from other governments - - - -
Total Assets $ 486,636 719,829 $ 2,295 $ 1,057,747 $
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 - 315,591 - 436,585
Total Deferred Inflows of Resources - 315,591 - 436,585 Fund Balances:
Nonspendable - - - -
Restricted 486,636 404,238 2,295 621,162
Unassigned - - - -
Total Fund Balances (Deficit) 486,636 404,238 2,295 621,162 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 486,636 719,829 $ 2,295 $ 1,057,747 $ 114
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-84-
Special Revenue Funds
13-CDBG-8933 CDBG PI Waiver
Skate Park 11-HOME-7661 16-HOME-11380 Water Main
Assets:
Cash and investments $ 6,772 - $ 3,139 $ - $
Receivables:
Accrued interest - - 13 -
Notes and loans - - 85,121 -
Prepaid items - - - -
Due from other governments - - - -
Total Assets $ 6,772 - $ 88,273 $ - $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - - $ - $ - $
Salaries and benefits payable - - - -
Deposits payable - - - -
Due to other funds - 430,713 - 246,000
Unearned revenues - - - -
Total Liabilities - 430,713 - 246,000
Deferred Inflows of Resources:
Unavailable revenues - - - -
Deferred loan payments - - 85,121 -
Total Deferred Inflows of Resources - - 85,121 -
Fund Balances:
Nonspendable - - - -
Restricted 6,772 - 3,152 -
Unassigned - (430,713) - (246,000)
Total Fund Balances (Deficit) 6,772 (430,713) 3,152 (246,000) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 6,772 - $ 88,273 $ - $
115
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-85-
Total
Governmental
State Grants Transportation ARPA Funds
Assets:
Cash and investments $ 253,502 - $ 1,470,351 $ 7,127,734 $ Receivables:
Accrued interest 1,053 - 6,105 30,438
Notes and loans - - - 837,297
Prepaid items - - - 410
Due from other governments - - - 50,976
Total Assets $ 254,555 - $ 1,476,456 $ 8,046,855 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 512 - $ - $ 67,912 $
Salaries and benefits payable - - - 3,002
Deposits payable - - - 185,466
Due to other funds - 1,039,359 - 1,773,274
Unearned revenues - - 1,472,258 1,867,576
Total Liabilities 512 1,039,359 1,472,258 3,897,230
Deferred Inflows of Resources:
Unavailable revenues - - - 5,825
Deferred loan payments - - - 837,297
Total Deferred Inflows of Resources - - - 843,122
Fund Balances:
Nonspendable - - - 410
Restricted 254,043 - 4,198 5,081,651
Unassigned - (1,039,359) - (1,775,558)
Total Fund Balances (Deficit) 254,043 (1,039,359) 4,198 3,306,503 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 254,555 - $ 1,476,456 $ 8,046,855 $ 116
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-86-
Special Revenue Funds
Developer Streets and
14-HOME-9274 Deposits Roads Traffic Safety
Revenues:
Taxes and assessments $ - - $ - $ - $
Licenses and permits - - - -
Fines and forfeitures - - - 2,754
Use of money and property (165) - 6,067 1,218
Intergovernmental - - 457,718 -
Charges for services - - 8,008 -
Other revenue - - - -
Total Revenues (165) - 471,793 3,972
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public ways and facilities - - 416,999 -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Total Expenditures - - 416,999 -
Net Change in Fund Balances (165) - 54,794 3,972
Fund Balances (Deficits), Beginning of Year 1,345 (3,945) 593,118 17,775 Fund Balances (Deficits), End of Year $ 1,180 (3,945) $ 647,912 $ 21,747 $ 117
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-87-
Special Revenue Funds
Sidewalk Street Mello Roos CFD
COPS Improvements Lighting 92-1
Revenues:
Taxes and assessments $ - - $ 53,319 $ 127,761 $
Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property 332 6,176 1,021 946
Intergovernmental - - - -
Charges for services - - 1,775 -
Other revenue - 145,426 - -
Total Revenues 332 151,602 56,115 128,707
Expenditures:
Current:
General government - - - -
Public safety - 4,679 - -
Public ways and facilities - - 47,724 -
Culture and recreation - - - -
Community development - - - 145,396
Capital outlay 140,747 - - -
Total Expenditures - 145,426 47,724 145,396
Net Change in Fund Balances 332 6,176 8,391 (16,689)
Fund Balances (Deficits), Beginning of Year 17,960 236,879 87,966 98,772 Fund Balances (Deficits), End of Year $ 18,292 243,055 $ 96,357 $ 82,083 $ 118
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-88-
Special Revenue Funds
Mello Roos CFD
Fire Benefit Mello Roos CFD Mello Roos CFD 2004-1 Animal Assessment 2004-1 Fire 2004-1 Police Services
Revenues:
Taxes and assessments $ 133,037 130,728 $ 360,789 $ 20,968 $ Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property 161 (101) (169) 287
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 133,198 130,627 360,620 21,255
Expenditures:
Current:
General government 125,000 - - -
Public safety - 109,800 305,150 21,000
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Total Expenditures 125,000 109,800 305,150 21,000
Net Change in Fund Balances 8,198 20,827 55,470 255
Fund Balances (Deficits), Beginning of Year 25,068 (17,318) 7,289 3,402 Fund Balances (Deficits), End of Year $ 33,266 3,509 $ 62,759 $ 3,657 $ 119
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-89-
Special Revenue Funds
Mello Roos CFD 2004-1 Mello Roos CFD Parks &
2004-1 Street Parks/Recreation/ 2004-1 Storm Recreation Lighting Pool Drain Impact Fees
Revenues:
Taxes and assessments $ 164,850 21,691 $ 21,691 $ - $
Licenses and permits - - - 75,222
Fines and forfeitures - - - -
Use of money and property 954 983 1,614 5,980
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 165,804 22,674 23,305 81,202
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public ways and facilities - 24,753 4,650 -
Culture and recreation 173,207 - - -
Community development - - - -
Capital outlay - - - 14,947
Total Expenditures 173,207 24,753 4,650 14,947
Net Change in Fund Balances (7,403) (2,079) 18,655 66,255 Fund Balances (Deficits), Beginning of Year 42,380 (53,462) 146,859 530,876 Fund Balances (Deficits), End of Year $ 34,977 (55,541) $ 165,514 $ 597,131 $ 120
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-90-
Special Revenue Funds
Community General
Center Impact Public Works Government Police Impact
Fees Impact Fees Impact Fees Fees
Revenues:
Taxes and assessments $ - - $ - $ - $
Licenses and permits 13,713 18,501 24,003 13,146
Fines and forfeitures - - - -
Use of money and property 1,723 3,794 5,699 2,433
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 15,436 22,295 29,702 15,579
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Total Expenditures - - - -
Net Change in Fund Balances 15,436 22,295 29,702 15,579 Fund Balances (Deficits), Beginning of Year 110,046 342,223 503,859 248,986 Fund Balances (Deficits), End of Year $ 125,482 364,518 $ 533,561 $ 264,565 $ 121
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-91-
Special Revenue Funds
Fire Impact Signal Impact Flood Control Storm Drain
Fees Fees Impact Fees Connection Fees
Revenues:
Taxes and assessments $ - - $ - $ - $
Licenses and permits 64,932 36,393 - 106,864
Fines and forfeitures - - - -
Use of money and property 4,142 3,564 214 5,067
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 69,074 39,957 214 111,931
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Total Expenditures - - - -
Net Change in Fund Balances 69,074 39,957 214.00 111,931 Fund Balances (Deficits), Beginning of Year 417,562 364,281 2,081 509,231 Fund Balances (Deficits), End of Year $ 486,636 404,238 $ 2,295 $ 621,162 $ 122
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-92-
Special Revenue Funds
13-CDBG-8933 CDBG PI Waiver
Skate Park 11-HOME-7661 16-HOME-11380 Water Main
Revenues:
Taxes and assessments $ - - $ - $ - $
Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property (5) - 9 -
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues (5) - 9 -
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Total Expenditures - - - -
Net Change in Fund Balances (5) - 9 -
Fund Balances (Deficits), Beginning of Year 6,777 (430,713) 3,143 (246,000) Fund Balances (Deficits), End of Year $ 6,772 (430,713) $ 3,152 $ (246,000) $ 123
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2023
-93-
Total
Governmental
State Grants Transportation ARPA Funds
Revenues:
Taxes and assessments $ - - $ - $ 1,034,834 $
Licenses and permits - - - 352,774
Fines and forfeitures - - - 2,754
Use of money and property 2,756 - 4,198 58,898
Intergovernmental - - 40,546 498,264
Charges for services - - - 9,783
Other revenue - - - 145,426
Total Revenues 2,756 - 44,744 2,102,733
Expenditures:
Current:
General government - - - 125,000
Public safety - - - 440,629
Public ways and facilities 2,971 - - 497,097
Culture and recreation - - - 173,207
Community development - - - 145,396
Capital outlay - - 40,546 196,240
Total Expenditures 2,971 - 40,546 1,577,569
Net Change in Fund Balances (215) - 4,198 525,164
Fund Balances (Deficits), Beginning of Year 254,258 (1,039,359) - 2,781,339 Fund Balances (Deficits), End of Year $ 254,043 (1,039,359) $ 4,198 $ 3,306,503 $ 124
City of Live Oak
Budgetary Comparison Schedule
Street and Roads
Year Ended June 30, 2023
-94-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 593,118 593,118 $ 593,118 $ - $ Resources (Inflows):
Use of money and property 1,000 1,000 6,067 5,067
Intergovernmental 1,274,000 1,274,000 457,718 (816,282) Charges for services 6,000 6,000 8,008 2,008
Amounts Available for Appropriations 1,874,118 1,874,118 1,064,911 (809,207) Charges to Appropriation (Outflow):
Public ways and facilities 321,583 321,583 416,999 (95,416) Capital outlay 1,216,500 1,216,500 - 1,216,500
Total Charges to Appropriations 1,538,083 1,538,083 416,999 1,121,084 Budgetary Fund Balance, June 30 $ 336,035 336,035 $ 647,912 $ 311,877 $ 125
City of Live Oak
Budgetary Comparison Schedule
Traffic Safety
Year Ended June 30, 2023
-95-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 17,775 17,775 $ 17,775 $ - $ Resources (Inflows):
Fines and forfeitures - - 2,754 2,754
Use of money and property - - 1,218 1,218
Intergovernmental 3,500 3,500 - (3,500)
Amounts Available for Appropriations 21,275 21,275 21,747 472 Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 21,275 21,275 $ 21,747 $ 472 $ 126
City of Live Oak
Budgetary Comparison Schedule
COPS
Year Ended June 30, 2023
-96-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 236,879 236,879 $ 236,879 $ - $ Resources (Inflows):
Use of money and property - - 6,176 6,176
Other revenue 150,000 150,000 145,426 (4,574)
Amounts Available for Appropriations 386,879 386,879 388,481 1,602 Charges to Appropriation (Outflow):
Public safety - - 4,679 (4,679)
Capital outlay 50,000 50,000 140,747 (90,747)
Total Charges to Appropriations 50,000 50,000 145,426 (95,426) Budgetary Fund Balance, June 30 $ 336,879 336,879 $ 243,055 $ (93,824) $ 127
City of Live Oak
Budgetary Comparison Schedule
Sidewalk Improvement
Year Ended June 30, 2023
-97-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 17,960 17,960 $ 17,960 $ - $ Resources (Inflows):
Use of money and property - - 332 332
Amounts Available for Appropriations 17,960 17,960 18,292 332 Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 17,960 17,960 $ 18,292 $ 332 $ 128
City of Live Oak
Budgetary Comparison Schedule
Street Lighting
Year Ended June 30, 2023
-98-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 87,966 87,966 $ 87,966 $ - $ Resources (Inflows):
Taxes and assessments 54,464 54,464 53,319 (1,145)
Use of money and property - - 1,021 1,021
Charges for services - - 1,775 1,775
Amounts Available for Appropriations 142,430 142,430 144,081 1,651 Charges to Appropriation (Outflow):
Public ways and facilities 63,800 63,800 47,724 16,076
Total Charges to Appropriations 63,800 63,800 47,724 16,076 Budgetary Fund Balance, June 30 $ 78,630 78,630 $ 96,357 $ 17,727 $ 129
City of Live Oak
Budgetary Comparison Schedule
Mello Roos 92-1
Year Ended June 30, 2023
-99-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 98,772 98,772 $ 98,772 $ - $ Resources (Inflows):
Taxes and assessments 129,739 129,739 127,761 (1,978)
Use of money and property - - 946 946
Amounts Available for Appropriations 228,511 228,511 227,479 (1,032) Charges to Appropriation (Outflow):
Community development 151,100 151,100 145,396 5,704
Total Charges to Appropriations 151,100 151,100 145,396 5,704 Budgetary Fund Balance, June 30 $ 77,411 77,411 $ 82,083 $ 4,672 $ 130
City of Live Oak
Budgetary Comparison Schedule
Fire Benefits Assessment
Year Ended June 30, 2023
-100-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (17,318) (17,318) $ (17,318) $ - $ Resources (Inflows):
Taxes and assessments 131,680 131,680 130,728 (952)
Use of money and property - - (101) (101)
Amounts Available for Appropriations 114,362 114,362 113,309 (1,053) Charges to Appropriation (Outflow):
Public safety 114,200 114,200 109,800 4,400
Total Charges to Appropriations 114,200 114,200 109,800 4,400 Budgetary Fund Balance, June 30 $ 162 162 $ 3,509 $ 3,347 $ 131
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Fire
Year Ended June 30, 2023
-101-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 25,068 25,068 $ 25,068 $ - $ Resources (Inflows):
Taxes and assessments 114,855 114,855 133,037 18,182
Use of money and property - - 161 161
Amounts Available for Appropriations 139,923 139,923 158,266 18,343 Charges to Appropriation (Outflow):
General government 128,200 128,200 125,000 3,200
Total Charges to Appropriations 128,200 128,200 125,000 3,200 Budgetary Fund Balance, June 30 $ 11,723 11,723 $ 33,266 $ 21,543 $ 132
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Police
Year Ended June 30, 2023
-102-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 7,289 7,289 $ 7,289 $ - $ Resources (Inflows):
Taxes and assessments 311,482 311,482 360,789 49,307
Use of money and property - - (169) (169)
Amounts Available for Appropriations 318,771 318,771 367,909 49,138 Charges to Appropriation (Outflow):
Public safety 317,500 317,500 305,150 12,350
Total Charges to Appropriations 317,500 317,500 305,150 12,350 Budgetary Fund Balance, June 30 $ 1,271 1,271 $ 62,759 $ 61,488 $ 133
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Animal Services
Year Ended June 30, 2023
-103-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 3,402 3,402 $ 3,402 $ - $ Resources (Inflows):
Taxes and assessments 18,103 18,103 20,968 2,865
Use of money and property - - 287 287
Amounts Available for Appropriations 21,505 21,505 24,657 3,152 Charges to Appropriation (Outflow):
Public safety 21,500 21,500 21,000 500
Total Charges to Appropriations 21,500 21,500 21,000 500 Budgetary Fund Balance, June 30 $ 5 5 $ 3,657 $ 3,652 $ 134
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Street Lighting
Year Ended June 30, 2023
-104-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (53,462) (53,462) $ (53,462) $ - $ Resources (Inflows):
Taxes and assessments 18,726 18,726 21,691 2,965
Use of money and property - - 983 983
Amounts Available for Appropriations (34,736) (34,736) (30,788) 3,948 Charges to Appropriation (Outflow):
Public ways and facilities 26,000 26,000 24,753 1,247
Total Charges to Appropriations 26,000 26,000 24,753 1,247 Budgetary Fund Balance (Deficit), June 30 $ (60,736) (60,736) $ (55,541) $ 5,195 $ 135
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Park/Recreation/Pool
Year Ended June 30, 2023
-105-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 42,380 42,380 $ 42,380 $ - $ Resources (Inflows):
Taxes and assessments 143,459 143,459 164,850 21,391
Use of money and property - - 954 954
Amounts Available for Appropriations 185,839 185,839 208,184 22,345 Charges to Appropriation (Outflow):
Culture and recreation 181,300 181,300 173,207 8,093
Total Charges to Appropriations 181,300 181,300 173,207 8,093 Budgetary Fund Balance, June 30 $ 4,539 4,539 $ 34,977 $ 30,438 $ 136
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Storm Drain
Year Ended June 30, 2023
-106-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 146,859 146,859 $ 146,859 $ - $ Resources (Inflows):
Taxes and assessments 18,876 18,876 21,691 2,815
Use of money and property - - 1,614 1,614
Amounts Available for Appropriations 165,735 165,735 170,164 4,429 Charges to Appropriation (Outflow):
Public ways and facilities 5,700 5,700 4,650 1,050
Total Charges to Appropriations 5,700 5,700 4,650 1,050 Budgetary Fund Balance, June 30 $ 160,035 160,035 $ 165,514 $ 5,479 $ 137
City of Live Oak
Budgetary Comparison Schedule
Parks & Recreation Impact Fees
Year Ended June 30, 2023
-107-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 530,876 530,876 $ 530,876 $ - $ Resources (Inflows):
Licenses and permits 114,114 114,114 75,222 (38,892)
Use of money and property - - 5,980 5,980
Amounts Available for Appropriations 644,990 644,990 612,078 (32,912) Charges to Appropriation (Outflow):
Capital outlay 27,000 27,000 14,947 12,053
Total Charges to Appropriations 27,000 27,000 14,947 12,053 Budgetary Fund Balance, June 30 $ 617,990 617,990 $ 597,131 $ (20,859) $ 138
City of Live Oak
Budgetary Comparison Schedule
Community Center Impact Fees
Year Ended June 30, 2023
-108-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 342,223 342,223 $ 342,223 $ - $ Resources (Inflows):
Licenses and permits 37,002 37,002 18,501 (18,501)
Use of money and property - - 3,794 3,794
Amounts Available for Appropriations 379,225 379,225 364,518 (14,707) Charges to Appropriation (Outflow):
Capital outlay 35,000 35,000 - 35,000
Total Charges to Appropriations 35,000 35,000 - 35,000
Budgetary Fund Balance, June 30 $ 344,225 344,225 $ 364,518 $ 20,293 $ 139
City of Live Oak
Budgetary Comparison Schedule
Public Works Impact Fees
Year Ended June 30, 2023
-109-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 110,046 110,046 $ 110,046 $ - $ Resources (Inflows):
Licenses and permits 27,426 27,426 13,713 (13,713)
Use of money and property - - 1,723 1,723
Amounts Available for Appropriations 137,472 137,472 125,482 (11,990) Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 137,472 137,472 $ 125,482 $ (11,990) $ 140
City of Live Oak
Budgetary Comparison Schedule
General Government Impact Fees
Year Ended June 30, 2023
-110-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 503,859 503,859 $ 503,859 $ - $ Resources (Inflows):
Licenses and permits 48,006 48,006 24,003 (24,003)
Use of money and property - - 5,699 5,699
Amounts Available for Appropriations 551,865 551,865 533,561 (18,304) Charges to Appropriation (Outflow):
Capital outlay 35,000 35,000 - 35,000
Total Charges to Appropriations 35,000 35,000 - 35,000
Budgetary Fund Balance, June 30 $ 516,865 516,865 $ 533,561 $ 16,696 $ 141
City of Live Oak
Budgetary Comparison Schedule
Police Impact Fees
Year Ended June 30, 2023
-111-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 248,986 248,986 $ 248,986 $ - $ Resources (Inflows):
Licenses and permits 26,300 26,300 13,146 (13,154)
Use of money and property 200 200 2,433 2,233
Amounts Available for Appropriations 275,486 275,486 264,565 (10,921) Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 275,486 275,486 $ 264,565 $ (10,921) $ 142
City of Live Oak
Budgetary Comparison Schedule
Fire Impact Fees
Year Ended June 30, 2023
-112-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 364,281 364,281 $ 364,281 $ - $ Resources (Inflows):
Licenses and permits 55,230 55,230 36,393 (18,837)
Use of money and property - - 3,564 3,564
Amounts Available for Appropriations 419,511 419,511 404,238 (15,273) Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 419,511 419,511 $ 404,238 $ (15,273) $ 143
City of Live Oak
Budgetary Comparison Schedule
Signal Impact Fees
Year Ended June 30, 2023
-113-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 161,205 161,205 $ 417,562 $ 256,357.00 $ Resources (Inflows):
Charges for services 126,000 126,000 64,932 (61,068)
Use of money and property - - 4,142 4,142
Amounts Available for Appropriations 287,205 287,205 486,636 199,431 Charges to Appropriation (Outflow):
Capital outlay 290,000 290,000 290,000
Total Charges to Appropriations 290,000 290,000 - 290,000 Budgetary Fund Balance, June 30 $ (2,795) (2,795) $ 486,636 $ 489,431 $ 144
City of Live Oak
Budgetary Comparison Schedule
Flood Control Impact Fees
Year Ended June 30, 2023
-114-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 2,081 2,081 $ 2,081 $ - $ Use of money and property - - 214 214
Amounts Available for Appropriations 2,081 2,081 2,295 214 Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 2,081 2,081 $ 2,295 $ 214 $ 145
City of Live Oak
Budgetary Comparison Schedule
Storm Drain Connection Fees
Year Ended June 30, 2023
-115-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 38,559 38,559 $ 509,231 $ 470,672 $ Resources (Inflows):
Licenses and permits 177,000 177,000 106,864 (70,136)
Use of money and property - - 5,067 5,067
Amounts Available for Appropriations 215,559 215,559 621,162 405,603 Charges to Appropriation (Outflow):
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 215,559 215,559 $ 621,162 $ 405,603 $ 146
City of Live Oak
Budgetary Comparison Schedule
Transportation
Year Ended June 30, 2023
-116-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (430,713) (430,713) $ 254,258 $ 684,971 $ Resources (Inflows):
Use of money and property - - 2,756 2,756
Intergovernmental 390,000 390,000 - (390,000)
Amounts Available for Appropriations (40,713) (40,713) 257,014 297,727 Charges to Appropriation (Outflow):
Public ways and facilities 5,400 5,400 2,971 2,429
Capital outlay 42,000 42,000 - 42,000
Total Charges to Appropriations 47,400 47,400 2,971 44,429 Budgetary Fund Balance, June 30 $ (88,113) (88,113) $ 254,043 $ 342,156 $ 147
City of Live Oak
Budgetary Comparison Schedule
ARPA
Year Ended June 30, 2023
-117-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (430,713) (430,713) $ - $ 430,713 Resources (Inflows):
Use of money and property - - 4,198 4,198
Intergovernmental 1,100,000 1,100,000 40,546 (1,059,454) Amounts Available for Appropriations 669,287 669,287 44,744 (624,543) Charges to Appropriation (Outflow):
Capital outlay 1,100,000 1,100,000 40,546 1,059,454
Total Charges to Appropriations 1,100,000 1,100,000 40,546 1,059,454 Budgetary Fund Balance, June 30 $ (430,713) (430,713) $ 4,198 $ 434,911 $ 148
City of Live Oak
Combining Statement of Net Position
Non-Major Proprietary Funds
June 30, 2023
-118-
Business-Type Activities - Proprietary Funds
Water Sewer
Connection Connections Total
Assets:
Current:
Cash and investments $ 1,461,449 1,585,400 $ 3,046,849 $ Receivables:
Accrued interest 6,068 4,718 10,786
Total Current Assets 1,467,517 1,590,118 3,057,635
Total Assets 1,467,517 1,590,118 3,057,635
Liabilities:
Total Liabilities - - -
Net Position:
Restricted for capital projects 1,467,517 1,590,118 3,057,635 Total Net Position $ 1,467,517 1,590,118 $ 3,057,635 $
149
City of Live Oak
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Non-Major Proprietary Funds
Year Ended June 30, 2023
-119-
Business-Type Activities - Proprietary Funds
Water Sewer
Connection Connections Total
Operating Revenues:
Sales and service charges $ 199,166 160,335 $ 359,501 $ Total Operating Revenues 199,166 160,335 359,501
Operating Income 199,166 160,335 359,501
Nonoperating Revenues:
Interest revenue 11,920 11,802 23,722
Total Nonoperating Revenues 11,920 11,802 23,722
Changes in Net Position 211,086 172,137 383,223
Net Position:
Beginning of Fiscal Year 1,256,431 1,417,981 2,674,412
End of Fiscal Year $ 1,467,517 1,590,118 $ 3,057,635 $
150
City of Live Oak
Combining Statement of Cash Flows
Non-Major Proprietary Funds
Year Ended June 30, 2023
-120-
Business-Type Activities - Proprietary Funds
Water Sewer
Connection Connections Total
Cash flows from operating activities:
Cash received from customers and users $ 199,166 160,335 $ 359,501 $ Cash flows from capital and related financing activities:
Transfer of construction in progress - 449,000 449,000
Cash flows from investing activities:
Interest on investments 7,125 8,063 15,188
Net increase in cash and cash equivalents 206,291 617,398 823,689 Cash and cash equivalents at beginning of year 1,255,158 968,002 2,223,160 Cash and cash equivalents at end of year $ 1,461,449 1,585,400 $ 3,046,849 $ Reconciliation of operating income to cash flows
provided by (used for) operating activities:
Operating income $ 199,166 160,335 $ 359,501 $
Net cash provided by operating activities $ 199,166 160,335 $ 359,501 $ 151
City of Live Oak
Statistical Section
For the Fiscal Year Ended June 30, 2023
-121-
This part of the City's ACFR 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.
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.
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source, property taxes.
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 in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. 152
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153
City of Live Oak
Net Position by Component Last Ten Fiscal Years (full accrual basis of accounting) -122-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Govermental Activites
Net investment in capital assets 25,177,065 $ 26,423,155 $ 27,103,387 $ 28,265,740 $ 28,377,393 $ 28,831,714 $ 28,129,068 $ 29,188,335 $ 28,551,024 $ 28,451,964 $ Restricted 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 23,156,631 Unrestricted 4,737,305 4,485,329 4,280,849 5,445,053 6,722,869 17,008,977 20,932,421 19,566,055 1,307,845 1,295,775 Total governmental activities net position 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 $ 52,904,370 $ Business-type Activities
Net investment in capital assets 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 $ 26,933,171 $ Restricted 2,107,725 2,228,397 2,401,678 1,343,421 341,832 540,108 815,915 1,306,135 3,057,635 Unrestricted 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 1,350,717 Total business-type activities net position 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 $ 31,341,523 $ Primary Government
Net investment in capital assets 56,232,165 $ 56,254,680 $ 55,703,233 $ 56,992,831 $ 57,025,083 $ 56,914,614 $ 56,534,337 $ 58,543,344 $ 56,723,332 $ 55,385,135 $ Restricted 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 26,214,266 Unrestricted 7,574,968 6,748,585 6,835,648 9,205,419 9,832,891 20,247,813 24,366,232 22,395,051 6,028,656 2,646,492 Total primary government net position 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 $ 84,245,893 $ 154
City of Live Oak
Changes in Net Position Last Ten Fiscal Years (full accrual basis of accounting) -123-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 ExpensesGovermental Activities:
General government 399,590 $ 543,796 $ 519,223 $ 699,781 $ 990,032 $ 990,360 $ 893,380 $ 774,096 $ 931,014 $ 970,176 $ Public safety 1,635,797 1,744,005 2,235,826 2,033,209 1,984,144 2,006,236 2,313,013 2,328,780 2,517,012 2,970,288 Public ways and facilities 1,178,326 1,418,607 1,196,682 2,031,089 1,579,362 966,937 1,053,622 1,827,022 1,243,057 583,760 Culture and recreation 544,100 496,495 609,869 833,110 926,952 1,071,086 1,197,655 1,187,739 1,207,729 1,499,961 Community development 620,114 517,636 2,474,188 2,060,694 1,828,608 429,642 4,815,355 537,626 52,895 975,406Interest on long-term debt 3,748 3,348 2,584 520 5,952 25,222 21,932 16,884 31,899 9,247 Total Govermental Activities Expenese 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 7,008,838 Busines-type Activities:
Water 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 1,927,586 Sewer 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 3,463,892 Total Business-type Activities Expenese 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 5,391,478 Total Primary Government Expenese 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 $ 12,400,316 $ Program RevenuesGovermental Activities:
Charges for services:
General government 70,805 $ 76,876 $ 83,748 $ 366,660 $ 492,972 $ 427,673 $ 296,639 $ 392,632 $ 402,145 $ 422,183 $ Public safety 408,070 378,725 398,570 4,057 2,728 4,230 6,582 4,781 6,607 2,754 Public ways and facilities 343,482 426,434 973,516 233,355 1,781,220 39,870 199,616 439,942 500,019 195,292 Culture and recreation 252,394 162,631 185,432 64,221 61,744 56,343 35,211 20,816 38,968 48,234 Community development 144,641 178,503 320,667 1,055,642 2,005,122 115,139 - - - - Operating grants and contributions 1,004,975 1,977,712 2,793,371 1,857,982 277,728 1,146,628 9,988,595 1,399,265 1,143,071 364,224 Capital grants and contributions 402,859 2,152,350 1,690,492 1,295,923 100,745 100,156 28,210 38,118 57,965 478,664 Total Govermental Activities Program Revenues 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 1,511,351 Busines-type Activities:
Charges for services:
Water 850,832 882,743 878,199 809,830 878,229 879,586 879,726 940,189 799,208 915,239 Sewer 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 2,494,773 Water Connections 68,930 15,270 109,333 121,653 428,682 448,210 160,335 Sewer Connections - 9,053 89,628 144,228 508,232 482,350 199,166 Operating grants and contributions - - - - - - - - 123,864 - Capital grants and contributions - - 23,000 1,027,513 864,919 - - - - - Total Business-type Activities Program Revenues 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 3,769,513 Total Primary Government Program Revenues 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 $ 5,280,864 $ Source: ACFRStatement of Activities
155
City of Live Oak
Changes in Net Position Last Ten Fiscal Years (full accrual basis of accounting) -124-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Net (Expense)/Revenues (1)
Govermental Activities (1,797,420) $ 672,315 $ (592,576) $ (2,780,563) $ (2,592,791) $ (3,599,444) $ 259,896 $ (4,376,593) $ (3,834,831) $ (5,497,487) $ Busines-type activities (895,522) (914,040) (788,328) 73,765 (121,666) (892,675) (695,128) (379,731) (566,095) (1,621,965) Total Primary Govermental Net Expense (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) (7,119,452) General Revenues and Other Changes in Net PositionGovermental Activities:
Taxes:
Property taxes 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 2,330,230 Sales and use taxes 294,102 263,086 297,481 325,380 358,667 427,506 399,002 371,363 520,544 598,071 Franchise taxes 139,766 155,071 166,356 - - 232,801 231,699 245,828 284,861 298,307 Property taxes 12,837 8,290 11,536 - -
Other taxes - - - 716,398 750,153 1,058,557 1,269,351 1,619,334 739,612 1,262,269 Motor vehicle in lieu - unrestricted - - - - 328,139 337,283 429,421 415,704 457,867 Use of money and property - - - 87,766 120,425 42,769 317,698 84,839 358,363 347,278 Grants and contributions - unrestricted 4,145 80,806 34,609 - - Interest and investment earnings 73,827 79,218 113,073 - - Miscellaneous 169,350 64,888 217,676 - -
Other - - - 541,664 322,717 265,241 238,755 458,167 306,961 20,847 Transfers - - - 25,000 1,556,000 (577,087) (1,417,165) (1,210,750) - - Special Item - 447,830 - - -
Extraordinary gain - - - - -
Total Governmental Activities 1,935,346 2,481,418 2,223,906 3,172,564 4,578,075 3,645,280 3,137,322 3,876,304 4,469,678 5,314,869 Busines-type Activities:
Use of money and property 50,063 28,460 77,888 71,114 70,369 Interest and investment earnings 10,221 13,448 21,309 - - Miscellaneous 1,673 1,934 164 - -
Other 4,126 667 (30,925)
Transfers - - - (25,000) (1,556,000) 577,087 1,417,165 1,210,750 - - Total Busines-Type Activities 11,894 15,382 21,473 4,127 (1,505,937) 654,975 1,488,279 1,214,876 (30,925) 70,369 Total Primary Government 1,947,240 $ 2,496,800 $ 2,245,379 $ 3,176,691 $ 3,072,138 $ 4,300,255 $ 4,625,601 $ 5,091,180 $ 4,438,753 $ 5,385,238 $ Change in Net Position
Govermental Activities 137,926 3,153,733 1,631,330 392,001 1,985,284 45,836 3,397,218 (500,289) 634,847 (182,618) Busines-type activities (883,628) (898,658) (766,855) 77,892 (1,627,603) (237,700) 793,151 835,145 (597,020) (1,551,596) Total Primary Government (745,702) $ 2,255,075 $ 864,475 $ 469,893 $ 357,681 $ (191,864) $ 4,190,369 $ 334,856 $ 37,827 $ (1,734,214) $ Source: ACFRNote: (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. 156
City of Live Oak
Fund Balance - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) -125-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 General Fund
Nonspendable - $ 451,274 $ 8,115 $ 10,661 $ 11,357 $ 15,268 $ 10,659 $ 29,319 $ 10,143 $ 6,514 $ Committed 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 2,599,487 Unassigned 2,037,092 2,227,090 2,230,647 2,075,899 2,427,584 2,106,314 1,844,354 1,559,999 1,350,664 516,700 Total General Fund 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 $ 3,122,701 $ All Other Governmental Funds
Nonspendable - $ 484 $ 330 $ 4,712 $ 3,983 $ 4,559 $ 15,402 $ 7,094 $ - $ 410 $ Restricted 10,503,214 11,975,628 4,272,282 3,345,863 3,874,348 3,708,676 3,741,774 3,691,906 2,643,073 5,462,480 Unassigned (49,787) (411,087) (1,270,688) (1,840,637) (538,556) (485,594) (716,124) (2,325,939) - (2,428,634) Total All Other Governmental Funds 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 $ 3,034,256 $ Source: ACFRNote: The City implemented GASB 54 for fiscal year June 30, 2011 under which fund balances are reported as nonspendable, restricted, committed, assigned and unassigned as compared to reserved and unreserved. 157
City of Live Oak
Changes in Fund Balance - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) -126-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Revenues
Taxes and assessment 2,220,317 $ 2,352,464 $ 2,411,650 $ 2,518,134 $ 2,578,933 $ 3,586,218 $ 3,660,751 $ 4,114,627 $ 2,878,237 $ 4,271,436 $ Licenses and permits 451,881 482,426 646,258 450,120 557,939 394,950 290,495 414,375 1,394,162 629,636Fines and forfeitures 6,867 3,594 6,935 4,057 2,728 4,230 5,140 4,781 7,617 4,005Use of money 73,827 79,218 113,073 87,766 120,425 259,955 238,755 84,839 45,150 281,095Intergovernemtal 1,575,066 4,115,325 3,853,365 3,443,320 4,248,576 1,119,755 951,050 922,241 1,455,599 1,056,595Charges for services 80,882 258,513 558,685 103,286 115,920 96,709 173,919 215,656 61,234 79,400Other revenues 169,350 64,888 217,676 558,732 324,639 310,832 5,085,002 1,141,554 374,180 158,749 Total Revenues 4,578,190 7,356,428 7,807,642 7,165,415 7,949,160 5,772,649 10,405,112 6,898,073 6,216,179 6,480,916 Expenditures
Current:
General government 347,258 514,871 488,652 688,906 857,597 906,681 791,833 765,267 677,139 866,180 Public safety 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 2,804,018Public ways and facilities 678,801 923,626 735,070 1,472,836 997,626 972,143 918,792 1,601,353 704,499 570,482Culture and recreation 386,469 432,264 501,979 725,565 789,094 763,960 868,515 893,998 894,267 1,182,073Community development 517,636 627,037 2,482,059 2,041,715 1,956,524 434,675 5,688,770 1,168,779 49,602 444,550 Debt service
Principal 13,000 66,342 67,461 68,581 54,146 123,414 125,933 128,540 144,525 147,514Interest 3,348 3,748 2,584 520 5,952 25,222 21,932 16,884 33,065 10,454 Capital outlay 1,038,108 2,422,505 1,866,084 1,909,114 1,329,178 1,092,702 338,033 1,979,271 304,638 902,055 Total Expenditures 4,654,787 6,575,899 8,292,001 8,821,361 7,858,111 6,202,142 10,895,697 8,737,636 5,180,626 6,927,326Excess of Revenues Over (under) Expenditures (76,597) 780,529 (484,359) (1,655,946) 91,049 (429,493) (490,585) (1,839,563) 1,035,553 (446,410) Other Financial Sources (Uses)
Issuance of debt - 528,825 -Transfers in 993,112 5,033,468 615,014 1,470,949 2,491,184 442,810 74,435 100,955 611,000 -Transfers out (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) - 528,825 - 25,000 2,631,460 - - - - - Special Item - Reinstatement of loan receivable - 447,830 - (4,849) - - - - - -Extraordinary gain - - - - - - - - - - Net Change in Fund Balances (76,597) $ 1,757,184 $ (484,359) $ (1,635,795) $ 2,722,509 $ (429,493) $ (490,585) $ (1,839,563) $ 1,035,553 $ (446,410) $ Debt Service as a Percentage of
Noncapital Expenditures 0.45% 1.72% 1.10% 1.01% 0.93% 3.00% 1.42% 2.20% 3.78% 2.69% 158
City of Live Oak
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
-127-
Taxable
SBE Assessed % Direct
Fiscal Year Secured Unsecured Nonunitary Value Change Rate 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 501,722,808 7,710,226 2,614 454,529,296 7.26% 1.150% 2021/2022 530,921,669 8,159,845 2,614 484,011,255 6.49% 1.150% 2022/2023 586,612,743 8,766,503 2,614 538,189,510 11.19% 1.132%
Source: Assessor's Office, County of Sutter
HDL Coren & Cone
Top 10 Property Taxpayers
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. 159
City of Live Oak
Property Tax Rates – All Overlapping Governments Last Ten Fiscal Years -128-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 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 Property tax in lieu of vehicle license fees - - - - Debt service - - - -
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 0.082 0.074 0.073 0.065 0.372 0.114 0.372 0.117 0.108 0.100 Yuba Community College District 0.027 0.025 0.025 0.026 0.073 0.030 0.073 0.031 0.036 0.032 Special Districts - - - - - - - - - -
1.099 1.110 1.098 1.091 1.445 1.144 1.445 1.148 1.144 1.132 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 & ConeProperty Tax Dollar Breakdown
Fiscal Year
160
City of Live Oak
Principal Property Tax Payers
Current Year and Ten Years Ago
-129-
Fiscal Year 2022/2023
Percent of
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
Corrections Corporation of America 7,808,296 $ 1.45%
Millenium Farms LLC 4,614,062 0.86%
9000 Larkin Road LLC 4,618,257 0.86%
COE Orchard Equipment Inc 4,145,042 0.77%
Rilco-Edwards LLC 3,465,470 0.64%
Gill Kashmir K Etal 3,442,395 0.64%
Singh Ranjit & Raninder 3,424,096 0.64%
H&S Energy LLC 2,725,459 0.51%
Live Oak Apts 2,561,295 0.48%
Slagle Rev 88 Tr Et 2,460,000 0.46%
$ 7.30% 39,264,372
Total City of Live Oak assessed property valuation Fiscal Year 2022/23 538,189,510 $ 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%
-
$ 9.25% 25,659,889
Total City of Live Oak assessed property valuation Fiscal Year 2012/13 277,525,560 $ Note:
Source: Assessor's Office, County of Sutter
HDL Coren & Cone
Top Ten Property Tax Payers
Data pertaining to fiscal year 2009/2008 and prior is not available, the lastest prior year available is fiscal year 2011/2012
161
City of Live Oak
Property Tax Levies and Collections
Last Ten Fiscal Years
-130-
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%
2022/2023 972,675 972,675 100.00% 972,675 100.00%
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 162
City of Live Oak
Ratios of Outstanding Debt by Type Last Ten Fiscal Years -131-
Business-Type Activities
Leases and Certificates Total Percentage Percentage
Financed of Capital Primary of Person of Assessed Per
Fiscal Year Loans Purchases Total Loans Bonds Participation Leases 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% 1.45% 711 2021/2022 105,766 252,264 358,030 4,222,159 - 1,640,000 - 5,862,159 6,220,189 3.89% 1.29% 660 2022/2023 52,883 189,499 242,382 4,030,408 - 1,570,000 7,248 5,607,656 5,850,038 3.64% 1.09% 625 (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. n/a - information is not availableSource: City of Live Oak Annual Financial Reports Finance Department, City of Live Oak (Long Term Debt Schedule) Governmental Activities
163
City of Live Oak
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
-132-
General Bonded
Debt Outstanding
General Percent of
Obligation Assessed Per
Fiscal Year 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% 9,428 11
2022/2023 52,883 52,883 0.01% 9,364 6
Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
Hdl Coren & Cone
164
City of Live Oak
Direct and Overlapping Bonded Debt
As of June 30, 2023
-133-
City Assessed Valuation 546,483,427 $
-
Adjusted Assessed Valuation 546,483,427 $
Estimated
Outstanding Share of
Percent Debt Overlapping
Applicable June 30, 2023 Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:
Live Oak Unified School District 47.867% 20,975,000 $ 10,040,103 $ Yuba Commuinty College District 1.374% 176,936,106 2,431,102 Sutter Butte Flood Control Agency Assessment District 4.868% 77,900,000 3,792,172
Total Overlapping Tax and Assessment Debt 16,263,377 275,811,106 DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Sutter County Board of Education Certificates of Participations 4.648% 5,975,000 $ 277,718 Yuba Joint Community College General Fund Obligations 1.374% 10,973,482 150,776 Live Oak Unified School District Certificates of Participation 47.867% 6,278,193 3,005,183 City of Yuba City Loan 100.000% 105,766 105,766
Financed purchase 100.000% 252,264 252,264
Lease liability 100.000% 31,866 31,866
Total Direct and Overlapping General Fund Obligation Debt 3,823,573 23,616,571 Total Overlapping Debt 20,086,950 299,427,677
Total Combined Debt $ 20,086,950 299,427,677 $
RATIOS TO 2022/2023 ASSESSED VALUATION:
Total Overlapping Tax and Assessment Debt 3.68%
RATIOS TO ADJUSTED ASSESSED VALUATION:
Total Overlapping Tax and Assessment Debt 3.676%
Combined Direct Debt ($0,000,000) 0.000%
Combined Total Debt 3.676%
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
165
City of Live Oak
Computation of Legal Bonded Debt Margin
June 30, 2023
-134-
Secured Property Assessed Value, Net of Exempt Real Property 538,189,510 $ Bonded debt limit (3.75% of assessed value) (a) 20,182,107 $ Less debt subject to limit:
Total water certificates of participation at 06/30/23 (880,000) Total sewer certificates of participation at 06/30/23 (690,000) Total sewer revenue bonds at 06/30/23 -
Legal debt margin $ 18,612,107
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 (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. 166
City of Live Oak
Demographic and Economic Statistics
Last Ten Fiscal Years
-135-
Per Capita
Personal Income Taxable Taxable Average
Calendar Total Assessed Property Unemployment
Year Population (in thousands) Per Capita Valuation Values Rate 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 17,503 454,529,296 48,877 9.30%
2022 9,428 159,758 16,945 484,011,255 51,338 9.30%
2023 9,364 160,692 17,161 538,189,510 57,474 4.90%
Secured Property Assessed Value, Net of Exempt Real Property Bonded debt limit (3.75% of ass
Less debt subject to limit:
Legal debt margin
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 (a) California Government Code S
change in basing assessed
shown as 3.75% is one-fourth
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 available, thus the City provided an average using data from the last three years.
Total water certificates of participation at 06/30/23
Total sewer certificates of participation at 06/30/23
Total sewer revenue bonds at 06/30/23
167
City of Live Oak
Principal Employers
2023
-136-
2022-2023 Percent 2021-2022 Percent
Number of of Total Number of of Total
Employer Employees Employment Employees Employment
Live Oak Unified School District 259 6.32% 256 6.56%
River Valley Care Center 156 3.80% 145 3.72%
Wilbur Packing CO Inc 85 2.07% 142 3.64%
E-Center Head Start - Yuba-Sutter 25 0.61% 22 0.56%
City of Live Oak 23 0.56% 41 1.05%
Live Oak Pharmacy 23 0.56% 6 0.15%
Dollar General Market 18 0.44% 17 0.44%
Chevron Tower Supermarket 17 0.41% 14 0.36%
United States Post Office 12 0.29% 13 0.33%
Peach Tree Health (Formerly Live Oak Medical Clinic) 10 0.24% 10 0.26% Tower Supermarket 0.00% 14 0.36%
Total 628 15.32% 680 17.44%
Total City Employment (1) 4100
Note:
Source: City of Live Oak
Avenu Insights & Analytics
(1) Employment Development Department, State of California Munis Report
168
City of Live Oak
Full-Time and Part-Time City Government Employees Last Ten Fiscal Years -137-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 - - - - - - - - -
Public Works 9.00 5.00 7.00 10.00 7.00 7.00 8.00 7.00 10.00 10.00 Parks and Recreation 7.00 10.00 8.00 7.00 9.00 9.00 10.00 6.00 8.00 8.00 Building 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Total Full-Time Equivalent Employees 30.00 29.00 29.00 30.00 30.00 30.00 31.00 27.00 32.00 32.00 Source: Finance Department, City of Live Oak
169
City of Live Oak
Operating Indicators Last Ten Fiscal Years
-138-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Business Licenses: Annual Business License 286 135 129 137 132 119 121 130 140 133 One Time License 18 11 10 7 6 8 9 5 5 5
Environment and Utilities: Gallons of wastewater treated per year (in millions) 223 225 218 380 251 384 393 300 310 274 Fire - Within City Limits Fires per year 47 22 21 19 16 87 95 21 44 * Emergency medical calls per year 509 236 738 682 678 977 699 832 921 * Hazardous materials incidents per year 5 4 7 14 16 5 25 18 10 * Non-emergency service calls per year 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 1,401 1,432 1,965 1,998 1862 1491 1632 1809 2051 2099 Cases investigated per year 930 563 616 696 744 1153 1074 752 1055 817 Arrests per year 202 92 123 121 124 213 192 224 185 182 Building Permits Building permits issued per year 147 200 279 241 210 313 279 276 284 349 New building and alteration valuation 2,188,866 $ 6,525,489 $ 9,442,021 $ 9,442,021 $ 9,060,757 $ 23,059,905 $ 14,842,766 $ 21,625,800 $ 27,270,794 $ 14,110,722 $ Source: City of Live Oak, Finance/Building Dept's Sutter County Sheriff Sutter County FireNote: * This information is not available at the time of issuing this report. 170
City of Live Oak
Capital Asset Statistics Last Ten Fiscal Years
-139-
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Enviroment and Utilities Miles of municipal sewer mains 24.9 24.9 25.6 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 31.5 31.5 31.5 31.5 31.5 31.5 31.5 31.5 Water wells 4 4 4 4 5 5 6 6 7 7 Water storage tanks 1 1 1 1 1 1 1 1 1 1
Fire Full-time staffed positions 4 4 4 6 6 66666 Volunteer stations 1 1 1 1 1 13333Police Stations 1 1 1 1 1 11111 Vehicles and motorcycles 10 10 10 10 10 10 10 12 12 12Community Development Miles of municipal roadways 28.44 28.44 29.50 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 171
City of Live Oak
Sales Value History
Last Ten Fiscal Years
-140-
Full Median
Calendar Value Average Median %
Year Sales Price Price Change
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%
2023 54 351,583 364,500 1.89%
Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
Hdl Coren & Cone
172
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173
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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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 28, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing 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.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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, 2023
175
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
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, 2023. 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 Agreed-upon 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.
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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.
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, 2023. 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, 2023
177
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City of Live Oak
APPROPRIATIONS LIMIT COMPUTATION
2022 – 2023
Per capita personal income change 7.55%
Population change: 2.21%
City population growth
CPI change converted to a ratio 1.0755
Population change converted to a ratio 1.0221
Calculation of growth factor 1.0993
2021 - 2022 Limit 5,811,756 $
2022 - 2023 Limit
($5,811,756 x 1.0755 x 1.0221) 6,388,681 $
178
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
December 28, 2023
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, 2023, 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, 2023 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.
We recommend the City have journal entries be prepared and approved by separate individuals.
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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.
Observation 4:
During our internal control testing, we identified various instances where invoice batch reports and payroll registers were not approved by the City Manager, which was contrary to the process dictated to us by City personnel.
We recommend the City identify a secondary staff to approve such reports in the absence or unavailability of the City Manager, to prevent and detect potential fraudulent payments.
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
180
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
- 1 -
December 28, 2023
To the Honorable City Council
City of 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, 2023, and have issued our report thereon dated December 28,2023. 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 May 2, 2023, 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.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
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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: Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue.
Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.
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. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
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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.
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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, 2023.
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, whether financial or nonfinancial, included in 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.
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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, 2023
185
December 28, 2023
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, 2023, 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, 2023:
Financial Statements
We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated May 2, 2023, 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. 186
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.
187
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. 188
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.
189
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.
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191
City of Live Oak
Report to City Council
Meeting Date: February 7, 2024
Title: Budget Amendment
Contact Information: James Ramsey, Finance Director
Background: 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: See Addendum 1.
The most significant revenue estimates were as follows:
General Fund
* Investment income is projected to be significantly higher than original due to an increase in returns at LAIF ($140,700).
* Additional grant proceeds were received in the amount of $205,900. * An increase of variance use permit fees ($43,900)
* An increase in property tax in lieu of vehicle fees ($32,600) * Amounts are offset by projected decreases in plan review fees ($35,000) and sales and excise taxes ($137,000).
Water / Sewer Funds
* Removal of interest earnings from the Water Fund due to no cash in that fund.
* Drop in sewer revenues due to write-offs.
Special Revenue Funds
* Gas tax collections are lower than originally expected ($184,256). * Transportation development act revenues are slightly up ($9,300).
The most significant changes are related to the departments as follows:
* City Council - Primary increase is the cost of health insurance not allocated to other funds ($23,819).
* Administration - slight increase in salaries and benefits based on MOU negotiations in August ($25,621). Also includes an increase in postage ($7,000) and travel ($6,000).
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* Finance - Predominate increase in CalPERS unfunded liability payment ($31,000). This was offset by a decrease of professional services ($24,000). * Fire - projected decrease in costs for fire services in the amount of $60,900 based on current payments - to - date. Assumption that they will remain consistent throughout the rest of the fiscal year.
* Police - projected decrease in costs for police services in the amount of $307,000 based on current payments - to - date. Assumption that they will remain consistent throughout the rest of the fiscal year. Also includes an increase of $75,000 for a police study.
* Community Development - increases predominately in salaries and benefits due to increases in compensation ($39,824).
* Building - decrease in salaries and benefits as there is no one who is being charged to that department ($401,012). This was offset by an increase in professional services for increased use of contractors for plan review services ($60,000).
* Engineering - slight increase in professional services ($45,000). * Parks - increase in salary costs due to increase payrates ($46,868), offset by the reallocation of worker's compensation insurance to non-departmental ($14,663).
* Recreation - increase in salary costs due to increase payrates ($69,566).
Additional increases in programs and capital outlay ($30,000). * 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 appropriation for the following purposes:
* $32,081 for increased salary costs.
* $182,000 increase for repairs and maintenance costs.
* $51,000 increase for utilities.
* $65,000 increase for insurance.
The Sewer Fund is expected to require an increase in appropriations for the following purposes:
* $147,975 for increased salary costs.
* $85,0000 increase in utilities.
* $135,000 decrease in professional services.
* $59,000 increase for insurance.
ARPA fund had an increase in appropriations of $145,000 approved in December, 2023.
No other significant budget adjustments are expected to be made. The following is the summary of expected revenues and expenditures, including total resources available: See Addendum 2.
Recommendation: Adopt resolution.
Attachments:
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Addendum 1
Addendum 2
Resolution
Salary Schedule Non Represented
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Addendum 1
195
Adopted Adjusted Amendment
Actual Actual Budget Budget Amount
Dept # Department FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 Revenues Water 953,122 879,733 1,001,350 970,100 (31,250) Expenses Water 1,302,118 1,908,891 1,731,367 2,042,500 311,133 Revenues Sewer 2,416,829 2,534,581 5,120,000 5,087,400 (32,600) Expenses Sewer 3,085,360 3,463,892 8,829,558 8,983,529 153,971 Revenues Water Connection Fees 443,316 172,137 101,500 101,500 - Expenses Water Connection Fees - - - - -
Revenues Sewer Connetion Fees 475,961 211,086 119,000 134,100 15,100 Expenses Sewer Connetion Fees - - 550,000 550,000 -
14 Streets - Gas Tax 324,628 416,999 785,692 975,400 204,708 15 TDA Transportation Tax 30,541 2,971 1,104,300 1,105,300 1,000 17 COPS 4,676 145,426 220,000 170,500 (49,500)
21 CFD 92-1 Mello Roos 93,906 54,000 195,078 198,078 3,000 24 Police CFD 2004-1 21,288 305,150 363,500 365,500 2,000 27 Rec/Pool CFD 2004-1 14,863 173,207 176,700 178,800 2,100 30 Parks AB1600 27,925 14,947 130,000 157,000 27,000
58 ARPA Funding 619,136 - 1,045,000 1,190,000 145,000
14 Streets - Gas Tax 409,936 471,793 509,456 324,900 (184,556) 16 Traffic Safety 6,171 3,972 4,000 13,300 9,300
52 Drainage Connection Fees 241,562 111,930 50,500 58,200 7,700 Special Revenue Funds - Revenues
Special Revenue Funds - Expenditures
Enterprise Funds
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Addendum 2
Projected
Audited Audited Projected Resources Projected Estimated Fund Fund Balance Fund Balance Revenues Available Spending Fund Balance # Fund Name 6/30/2022 6/30/2023 FY2023-24 FY2023-24 FY2023-24 6/30/2023 10 General Fund $ 3,960,294 $ 3,122,701 $ 5,204,600 $ 8,327,301 $ 5,098,335 $ 3,228,966 Special Revenue Funds
14 Streets - Gas Tax 593,118 647,912 324,900 972,812 975,400 (2,588) 15 TDA Transportation Tax 254,258 254,043 400,000 654,043 1,105,300 (451,257) 16 Traffic Safety 17,775 21,747 13,300 35,047 - 35,047
17 COPS 236,879 243,055 155,000 398,055 170,500 227,555 18 Sidewalk Improvement 17,960 18,392 500 18,892 - 18,892 20 Street Lighting 87,966 96,357 55,164 151,521 63,800 87,721 21 CFD 92-1 Mello Roos 98,772 82,083 131,675 213,758 198,078 15,680 22 Fire Assessment (17,318) 3,509 134,700 138,209 119,400 18,809 23 Fire CFD 2004-1 25,068 33,266 131,705 164,971 128,200 36,771 24 Police CFD 2004-1 7,289 62,759 365,147 427,906 365,500 62,406 25 Animal Control CFD 2004-1 3,402 3,657 22,409 26,066 21,500 4,566 26 Street Lighting CFD 2004-1 (53,462) (55,541) 23,709 (31,832) 26,000 (57,832) 27 Rec/Pool CFD 2004-1 42,380 34,977 169,368 204,345 178,800 25,545 28 Drainage CFD 2004-1 146,859 165,514 23,209 188,723 - 188,723 30 Parks AB1600 530,876 597,131 55,000 652,131 157,000 495,131 31 Community Ctr AB1600 342,223 364,518 30,000 394,518 - 394,518 32 Gov't Serv PW AB1600 110,046 125,482 24,000 149,482 - 149,482 33 Gen Gov't AB1600 503,859 533,561 30,000 563,561 - 563,561 34 Police AB1600 248,986 264,565 21,000 285,565 - 285,565 35 Fire AB1600 364,281 404,238 49,000 453,238 60,000 393,238 36 Roads/Signals AB1600 417,562 486,636 79,500 566,136 290,000 276,136 39 Flood Control AB1600 2,081 2,295 225 2,520 - 2,520
52 Drainage Connection Fees 509,231 621,162 58,200 679,362 - 679,362 90 CDBG HR Program Income 296,144 380,829 36,000 416,829 3,000 413,829 92 HOME Housing Grants (2,028) (2,028) - (2,028) - (2,028) 58 ARPA Funding - 4,198 1,190,000 1,194,198 1,190,000 4,198 Audited Audited Projected Resources Projected Estimated Fund Cash Balance Cash Balance Revenues Available Spending Cash Balance # Fund Name 6/30/2022 6/30/2023 FY2023-24 FY2023-24 FY2023-24 6/30/2023 Enterprise Funds
12 Water Enterprise* (765,967) (1,450,942) 970,100 (480,842) 2,042,500 (2,523,342) 13 Sewer Enterprise* 3,847,303 3,093,746 5,087,400 8,181,146 8,983,529 (802,383) 50 Water Connection Fees 968,002 1,585,400 101,500 1,686,900 - 1,686,900 51 Sewer Connection Fees 1,255,158 1,461,449 134,100 1,595,549 550,000 1,045,549 $ 14,048,997 $ 13,206,671 $ 15,021,411 $ 28,228,082 $ 21,726,842 $ 6,546,347 * Fund Balance amounts shown for Water and Sewer Enterprise Funds represent cash held by that fund. 197
1 Resolution No.
RESOLUTION OF THE CITY OF LIVE OAK, COUNTY OF SUTTER, STATE OF CALIFORNIA, AMENDING THE CITY FISCAL YEAR 2023-24 ANNUAL BUDGET
WHEREAS, the City Manager has prepared and submitted to the City Council a proposed budget for the 2023-24 fiscal year, starting July 1, 2023; 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 2023-24 annual budget on June 28, 2023.
NOW, THEREFORE, BE IT RESOLVED by 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 2023-24 said document as prepared by the City Manager, amended by the City Council, is hereby adopted for the Fiscal Year, commencing July 1, 2023.
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 2023-24 fiscal year.
General Fund $ 5,098,335
All Other Funds 16,628,507
Total Budget $21,726,842
PASSED AND ADOPTED by the City Council of the City of Live Oak this 7th day of February, 2024, by the following vote:
AYES:
NOES:
ABSENT:
NOT VOTING: APPROVED:
Ashley Hernandez, Mayor
ATTEST:
Clarissa Menchaca, City Clerk
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City of Live Oak
Salary Control Points AS of 7/01/2023
Pay for
Performance
Classification Point A Point B Point C Point D Point E Point F City Manager Yr. - - - - - - 165,484.80
determined by City Council approved
contract Mo. - - - - - - 13,790.40
Hr. - - - - - - 79.560
City Clerk Yr. 67,600.00 77,740.00 89,401.00 - - - 102,811.15 Mo. 5,633.33 6,478.33 7,450.08 - - - 8,567.60
Hr. 32.500 37.375 42.981 - - - 49.430
Finance Director/Asistant City Manager Yr. 96,196.54 110,626.02 127,219.92 - - - 146,302.90 Mo. 8,016.38 9,218.84 10,601.66 - - - 12,191.92
Hr. 46.249 53.186 61.163 - - - 70.338
Executive Assistant to City Manager Yr. 51,469.64 59,190.08 68,068.60 - - - 78,278.89 Mo. 4,289.13 4,932.51 5,672.39 - - - 6,523.25
Hr. 24.745 28.457 32.726 - - - 37.634
Community Development Director Yr. 73,884.79 84,967.51 97,712.64 - - - 112,369.53 Mo. 6,157.07 7,080.64 8,142.72 - - - 9,364.12
Hr. 35.522 40.849 46.977 - - - 54.023
Building Official Yr. 65,381.43 75,188.67 86,466.97 - - - 99,437.02 Mo. 5,448.45 6,265.72 7,205.59 - - - 8,286.42
Hr. 31.433 36.149 41.571 - - - 47.806
Public Works Director Yr. 80,903.85 93,039.42 106,995.35 - - - 123,044.63 Mo. 6,742.00 7,753.29 8,916.29 - - - 10,253.75
Hr. 38.897 44.730 51.441 - - - 59.156
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Financial Services Supervisor Yr. 83,264.24 87,646.56 92,259.54 - - - 106,045.45 Mo. 6,938.68 7,303.88 7,688.30 - - - 8,837.12
Hr. 40.031 42.138 44.356 - - - 50.983
Chief Plant Operator Yr. 88,337.64 92,986.75 97,881.39 103,033.05 108,455.47 114,162.45 Mo. 7,361.47 7,748.90 8,156.79 8,586.08 9,037.95 9,513.54 Hr. 42.470 44.706 47.058 49.535 52.142 54.886
Parks & Recreation Director Yr. 73,884.79 84,967.51 97,712.64 - - - 112,369.53 Mo. 6,157.07 7,080.64 8,142.72 - - - 9,364.13
Hr. 35.522 40.849 46.977 - - - 54.023
Management Analyst Yr. 64,142.61 73,764.00 84,828.59 - - - 97,552.88 Mo. 5,345.23 6,147.00 7,069.05 - - - 8,129.41
Hr. 30.838 35.463 40.783 - - - 46.901
Recreation Leader I Yr. - - - - - -
Mo. - - - - - -
Hr. 15.496 16.312 17.17 18.074 19.025 19.976
Recreation Leader II Yr. - - - - - -
Mo. - - - - - -
Hr. 16.312 17.17 18.074 19.025 19.976 20.975
Administrative Aide Yr. - - - - - -
Mo. - - - - - -
Hr. 13.000 13.650 14.333 15.049 15.802 -
Temp. Maintenance Worker Yr. - - - - - -
1,000 hrs. Seasonal Mo. - - - - - -
Hr. 15.496 16.312 17.17 18.074 19.025 19.976
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Aquatics Supervisor Yr. - - - - - -
Mo. - - - - - -
Hr. 17.868 18.761 19.699 20.684 21.718 22.804
Head Lifeguard Yr. - - - - - -
Mo. - - - - - -
Hr. 16.207 17.017 17.868 18.761 19.699 20.684
Lifeguard Yr. - - - - - -
Mo. - - - - - -
Hr. 15.802 16.592 17.422 18.293 19.208 20.168
City Planner Yr. 50,364.85 57,919.57 66,607.50 - - - 76,598.61 Mo. 4,197.07 4,826.63 5,550.63 - - - 6,383.21
Hr. 24.214 27.846 32.023 - - - 36.827
Assistant City Planner Yr. 37,263.80 42,853.37 49,281.37 - - - 56,673.58 Mo. 3,105.32 3,571.12 4,106.79 - - - 4,722.79
Hr. 17.915 20.603 23.693 - - - 27.246
Principal Engineer Yr. 56,693.37 65,197.38 74,976.98 - - - 86,223.54 Mo. 4,724.46 5,433.12 6,248.08 - - - 7,185.30
Hr. 27.256 31.345 36.047 - - - 41.454
Associate Engineer Yr. 51,535.53 59,265.85 68,155.75 - - - 78,379.10 Mo. 4,294.63 4,938.82 5,679.65 - - - 6,531.59
Hr. 24.777 28.493 32.768 - - - 37.682
Intern Yr. - - -
Mo. 1,500.00 - 4,000.00
Hr. - - -
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City Council Yr. - - -
Mo. 656.37 - -
Hr. - - -
202