Live Oak City Council
January 21, 2026

LIVE OAK CITY COUNCIL AGENDA – JANUARY 21, 2026

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 Only – No Public Participation:
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▪ Granicus livestream: https://liveoakca.granicus.com/ViewPublisher.php?view_id=1. ▪ Zoom livestream:
• Join by Electronic Device:
https://us02web.zoom.us/j/81940795078
• Join by Phone:
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• Public Comment: Members of the public can submit general public comments, as well as comment on specific agenda items in the following ways:
o Public Attendance: Members of the public who attend in person may make comments from the Council Chamber podium.

LIVE OAK

CITY COUNCIL

REGULAR MEETING AGENDA
JANUARY 21, 2026
6:00 PM

MEETING LOCATION

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

MEMBERS OF THE COUNCIL

JERAMY CHAPDELAINE, MAYOR

AARON PAMMA, VICE MAYOR

ASHLEY HERNANDEZ, COUNCILMEMBER

NANCY SANTANA, COUNCILMEMBER

BOB WOTEN, COUNCILMEMBER

BENJAMIN MOODY,

CITY MANAGER

NICOLE ROSSER,

CITY ATTORNEY
1 LIVE OAK CITY COUNCIL AGENDA – JANUARY 21, 2026

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 reflected in the meeting minutes. Please note that emailed comments will NOT be read aloud by staff during the meeting unless an approved accommodations request has been granted.
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 reflected in the meeting minutes. Please note that eComments will NOT be read aloud by staff during the meeting unless an approved accommodations request has been granted.
2 LIVE OAK CITY COUNCIL AGENDA – JANUARY 21, 2026

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE AND INVOCATION

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

PRESENTATIONS AND RECOGNITIONS
A. Holiday Home Lighting Contest Winner

PUBLIC COMMENT
Any person wishing to address the City Council on general jurisdictional matters or consent calendar items may do so at this time. If you are commenting on an agenda item, your comments will be heard at the time that item is scheduled for discussion. The City Council adopted a time limit of three minutes per person. The Brown Act does not allow for Council discussion of items not on the agenda. Councilmembers may only a) refer the matter to staff; b) ask for additional information; c) request a report back; or d) provide a limited factual response for items not listed on the agenda.

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

1. City Council Meeting Minutes
Recommendation: Approve the December 17, 2025, City Council Regular Meeting minutes. (Clarissa Menchaca, City Clerk)

2. Capital Acquisition – Used Tractor Purchase
Recommendation: 1) Approve and authorize the Finance Director to pay for the sole source purchase of an used tractor, and associated implements, meeting the specifications of a min. 70 HP tractor, in the amount of $70,000 with a 10% contingency, being in the City's best interest; and 2) Authorize the Finance Director to utilize funding sources based on the intended use and make associated budget modifications for the procurement.
(Luis Cibrian, Parks and Recreation Director)

3. Professional Services Agreement Amendment for Building Services Recommendation: 1) Authorize the City Manager to approve a professional services agreement amendment, with Miguel Campos, for Building Services, to extend the term of the agreement and increase the amount by $45,000 for the remainder of FY2025-26, with the finding that it is in the best interest of the City; and 2) Authorize the Finance Director to make a supplemental budget appropriation in the amount of $45,000 for professional services to establish funding for the remainder of the fiscal year.
(Benjamin Moody, City Manager)

BUSINESS ITEMS

4. Annual Audited Financial Statements – Year Ended June 30, 2025 Recommendation: Accept and File.
(Ethan Gutierrez, Finance Director)
3 LIVE OAK CITY COUNCIL AGENDA – JANUARY 21, 2026

5. Department Directors Employment Agreement
Recommendation: 1) Adopt a resolution to establish a standard Department Director Employment Agreement; and 2) Authorize the City Manager to negotiate salaries within Council defined limits as well as initial leave balances, accrual rates, and fringe benefits and to make occasional updates and changes to the agreement subject to City Attorney review where not to exceed Council established fiscal year budget limits.
(Jessica Mata, Management Analyst)

CLOSED SESSION

6. Significant Exposure to Litigation Pursuant to California Government Code Section 54956.9(b):

One case.

ITEMS REMOVED FROM THE CONSENT AGENDA FOR COUNCIL CONSIDERATION AND ACTION

UPDATES AND ANNOUNCEMENTS FROM THE CITY ATTORNEY AND CITY MANAGER

COUNCILMEMBER REPORTS / COMMENTS / REQUESTS

ADJOURNMENT
4 Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Luis Cibrian, Parks and Recreation
Subject: Holiday Home Lighting Contest Winner

CITY OF LIVE OAK

STAFF REPORT
Agenda Item A.
5 Background:

Recommendation:

Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Clarissa Menchaca, City Clerk
Subject: City Council Meeting Minutes
Submitted for approval are the December 17, 2025, City Council Regular Meeting minutes.

Approve the December 17, 2025, City Council Regular Meeting minutes.

CITY OF LIVE OAK

STAFF REPORT
Attachments:

Minutes
Agenda Item 1.
6 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 17, 2025

CALL TO ORDER
Meeting called to order by Mayor Chapdelaine at Live Oak City Council Chambers, 9955 Live Oak Boulevard, Live Oak, CA at 6:01 pm.

ROLL CALL

Present: Councilmembers Woten, Hernandez, Vice Mayor Pamma, and Mayor Chapdelaine

Absent: Councilmember Santana

PLEDGE OF ALLEGIANCE AND INVOCATION
Vice Mayor Pamma led the Pledge of Allegiance. Councilmember Hernandez delivered the invocation.

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

PRESENTATIONS AND RECOGNITIONS
There were no presentations and/or recognitions.

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

CITY COUNCIL ORGANIZATION FOR 2026

1. Election of Council Mayor
MOTION: NOMINATE JERAMY CHAPDELAINE AS MAYOR.
(MOTION: PAMMA; SECOND: HERNANDEZ)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, HERNANDEZ, VICE MAYOR PAMMA, AND MAYOR CHAPDELAINE NOES: NONE
ABSENT: COUNCILMEMBER SANTANA

LIVE OAK

CITY COUNCIL

MINUTES
DECEMBER 17, 2025
6:00 PM

MEETING LOCATION

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

MEMBERS OF THE COUNCIL

JERAMY CHAPDELAINE, MAYOR

AARON PAMMA, VICE MAYOR

ASHLEY HERNANDEZ, COUNCILMEMBER

NANCY SANTANA, COUNCILMEMBER

BOB WOTEN, COUNCILMEMBER

BENJAMIN MOODY,

CITY MANAGER

NICOLE ROSSER,

CITY ATTORNEY
7 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 17, 2025

2. Election of Council Vice Mayor
MOTION: NOMINATE AARON PAMMA AS VICE MAYOR.
(MOTION: WOTEN; SECOND: CHAPDELAINE)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, HERNANDEZ, VICE MAYOR PAMMA, AND MAYOR CHAPDELAINE NOES: NONE
ABSENT: COUNCILMEMBER SANTANA

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

MOTION: APPROVE THE CONSENT AGENDA.
(MOTION: PAMMA; SECOND: WOTEN)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, HERNANDEZ, VICE MAYOR PAMMA, AND MAYOR CHAPDELAINE NOES: NONE
ABSENT: COUNCILMEMBER SANTANA

3. City Council Meeting Minutes
Clarissa Menchaca, City Clerk
Council action: December 3, 2025, City Council Regular Meeting minutes approved.

4. Adoption of an Ordinance Amending Title 15 Chapter 15.01 of the City of Live Oak Municipal Code Updating References to the 2025 California Building Standards Code Benjamin Moody, City Manager
Council action: 1) Waived the second reading of the ordinance amending Title 15 Chapter 15.01 of the City of Live Oak Municipal Code updating references to the 2025 California Building Standards Code, with certain amendments, additions and deletions thereto, by title only; and 2) Ordinance No. 589 adopted.

5. Acceptance and Filing of State Required Annual Report for Fiscal Year 2025-26 for Community Facilities District No. 2004-1 of the City of Live Oak
Ethan Gutierrez, Finance Director
Council action: Accepted and Filed.
8 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 17, 2025

BUSINESS ITEMS

6. 2026 City Council Committee Assignments
Benjamin Moody, City Manager
Benjamin Moody, City Manager, provided a report for the Council.

Public Comment was opened and closed without any speakers.

MOTION: REVIEW AND CONFIRM THE 2026 CITY COUNCIL COMMITTEE ASSIGNMENTS, INCLUDING THE FOLLOWING CHANGES:

REGIONAL COMMITTEE ASSIGNMENTS:
 GOVERNMENT AFFAIRS COMMITTEE OF THE SUTTER YUBA HOMELESS CONSORTIUM:

COUNCILMEMBER HERNANDEZ APPOINTED AS REGULAR MEMBER AND VICE MAYOR PAMMA AS ALTERNATE MEMBER.
 SUTTER BUTTE FLOOD CONTROL AGENCY: MAYOR CHAPDELAINE APPOINTED AS REGULAR MEMBER AND VICE MAYOR PAMMA AS ALTERNATE MEMBER.
(MOTION: CHAPDELAINE; SECOND: HERNANDEZ)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, HERNANDEZ, VICE MAYOR PAMMA, AND MAYOR CHAPDELAINE NOES: NONE
ABSENT: COUNCILMEMBER SANTANA

7. Live Oak Little League License Agreement
Luis Cibrian, Parks and Recreation Director
Luis Cibrian, Parks and Recreation Director, provided a report for the Council.

Matt Smith, Live Oak Little League President, addressed the Council.

Public Comment was opened and closed without any speakers.

MOTION: 1) APPROVE THE LIVE OAK LITTLE LEAGUE TEN-YEAR LICENSE AGREEMENT; AND 2) AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY. (MOTION: PAMMA; SECOND: WOTEN)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, HERNANDEZ, VICE MAYOR PAMMA, AND MAYOR CHAPDELAINE NOES: NONE
ABSENT: COUNCILMEMBER SANTANA
9 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 17, 2025

8. Legal Services for Aqueous Film-Forming Foams Litigation Benjamin Moody, City Manager
Benjamin Moody, City Manager, provided a report for the Council.

Mike Stag, Stag Luizza, LLC, addressed questions from the Council.

Public Comment was opened and closed without any speakers.

MOTION: APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE A LEGAL SERVICES AGREEMENT, WITH

MINOR MODIFICATIONS SUBJECT TO CITY ATTORNEY APPROVAL, WITH STAG LIUZZA, LLC RELATED

TO THE AQUEOUS FILM-FORMING FOAMS PRODUCT LIABILITY LITIGATION, WITH THE FINDING THAT IT IS IN THE BEST INTEREST OF THE CITY.
(MOTION: CHAPDELAINE; SECOND: HERNANDEZ)
VOTE: MOTION PASSED 4-0-1
AYES: COUNCILMEMBERS WOTEN, HERNANDEZ, VICE MAYOR PAMMA, AND MAYOR CHAPDELAINE NOES: NONE
ABSENT: COUNCILMEMBER SANTANA

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

UPDATES AND ANNOUNCEMENTS FROM THE CITY ATTORNEY AND CITY MANAGER City Manager Benjamin Moody reported that staff are preparing for upcoming storms and the holiday period, including modifications to street sweeping schedules, additional on-call coverage, and updated phone greetings to clarify after-hours contact procedures. Mr. Moody highlighted the Santa on a Fire Engine event scheduled for tomorrow, December 18, at 6:00 p.m. He also reported meeting with Sutter County CAO Steve Smith to maintain positive interagency relationships and to discuss the City’s and County’s budget conditions. An update was provided on the Fire Citizens Initiative. Mr. Moody highlighted the Small Town Holiday Stroll and noted that the Christmas Light Decoration Contest is ongoing. Lastly, he announced that the next regular meeting will be canceled due to the holidays and reported positive progress downtown, with Sunny’s Market moving forward with plans for an event center.

COUNCILMEMBER COMMENTS
Councilmember Hernandez highlighted the Small Town Celebration held near Holly Grounds Coffee Shop.

Councilmember Woten highlighted the Small Town Holiday Stroll and expressed his appreciation for City staff.

Vice Mayor Pamma reported on his attendance at the Feather River Air Quality Management District meeting and the Small Town Holiday Stroll. He wished the Council, staff, and residents safe and happy holidays and thanked everyone who supported him during his first year in office. He stated his commitment to continuing to support the community and to do his best moving forward.

Mayor Chapdelaine thanked staff for their work on the Small Town Holiday Stroll and Santa on a Fire Engine events. He reported on his attendance at the SACOG Policy and Innovation Committee meeting and noted that the SACOG full board meeting would be held the following day. He wished residents and staff happy holidays and safe travels.
10 LIVE OAK CITY COUNCIL MINUTES – DECEMBER 17, 2025

ADJOURNMENT
Mayor Chapdelaine adjourned the meeting at 6:41 pm.

Jeramy Chapdelaine, Mayor
ATTEST:

Clarissa Menchaca, City Clerk
11 Purpose:

Background:

Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Luis Cibrian, Parks and Recreation
Subject: Capital Acquisition - Used Tractor Purchase
Summary: 1) Approve and authorize the Finance Director to pay for the sole source purchase of an used tractor, and associated implements, meeting the specifications of a min. 70 HP tractor, in the amount of $70,000 with a 10% contingency, being in the City's best interest; and 2) Authorize the Finance Director to utilize funding sources based on the intended use and make associated budget modifications for the procurement.

To purchase a used tractor that meets the City's needs and saves approximately $30,000 compared to a new.

The City of Live Oak has been desiring to purchase an additional tractor for the past few years to aid necessary maintenance activities. The City currently has a 2006 John Deere model 4320 compact utility tractor. This tractor was purchased by the City's Parks Department in 2006. This tractor has approximately 4,000 hours on it, where it can be undersized and unreliable at times because of mechanical issues and heavy use. This has caused issues in different departments and delayed projects. This is a serious concern because four different departments depend on this tractor to move daily biosolids, mowing, and loading various materials. The typical life expectancy of a tractor is about 4,000 hours with proper maintenance. The tractor has entered in its 20th year with the City. With maintenance needs increasing with age, and the downtime of aging equipment, there will be disruptions to City services, leading to delays and additional expenses. Ideally an additional tractor is purchased that is sized larger for the work needs, and the existing tractor is used primarily at the Corp Yard for conflicting and smaller, occasional uses to avoid scheduling issues and as backup equipment.

This item was previously presented to council in October at the time council acknowledged the need for a new tractor, but due to fiscal constraints, they directed staff to look at purchasing a used city tractor decrease the burden on the City's budget.

Based on the market, and timing in the year, staff believes it is the best time to move forward

CITY OF LIVE OAK

STAFF REPORT
Agenda Item 2.
12 Analysis:

Fiscal Impact:

Recommendation:
with the purchase to maximize savings for the City.

The City needs a heavy-duty tractor that can accommodate multiple City needs for landscaping, street maintenance, and hauling materials. To ensure continued efficiency and reliability of day-to-day operations, staff recommends that the City purchase a semi-used tractor. Staff desires a more powerful tractor and upgrading from our current 48 horsepower to 75 horsepower. Additionally the used tractor will likely offer four-wheel drive, something the existing tractor doesn't offer. This tractor purchase will offer improved fuel efficiency, meet current air quality requirements, have updated safety features, and compatibility with modern attachments, which can expand its versatility across departments.

Fiscal Impact, approximately $70,000. In the current fiscal year, the City budgeted $100,000 towards the purchase of a tractor. Through Council direction to look for cost saving options, staff recommends purchasing a slightly used tractor that meets the desired specifications through either equipment auctions, private sales, and/or through other available vendor options. Staff believes that savings of approximately $30,000 can be made. Funding was budgeted in Fund 12 Water - Account 5703 - Equipment, for the purchase of the tractor. Staff recommends authorizing the Finance Director to make necessary budget modifications to utilize funding sources based on the equipment's intended use and actual costs, including Sewer, Streets/Roads, Parks, and Water funding.

Sized, implements, lightly used to get the most value for the City's funds. 1) Approve and authorize the Finance Director to pay for the sole source purchase of an used tractor, and associated implements, meeting the specifications of a min. 70 HP tractor, in the amount of $70,000 with a 10% contingency, being in the City's best interest; and 2) Authorize the Finance Director to utilize funding sources based on the intended use and make associated budget modifications for the procurement.

Agenda Item 2.
13 Purpose:

Background:

Analysis:

Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Benjamin Moody, City Manager
Subject: Professional Services Agreement Amendment for Building Services
Summary: Recommendation: 1) Authorize the City Manager to approve a professional services agreement amendment, with Miguel
Campos, for Building Services, to extend the term of the agreement and increase the amount by $45,000 for the
remainder of FY2025-26, with the finding that it is in the best interest of the City; and 2) Authorize the Finance Director to make a supplemental budget appropriation in the amount of $45,000 for professional services to establish funding for the remainder of the fiscal year.

Fiscal Impact: $45,000 Fund 10 - Department 1015 Community Development.

To continue contract building service work, with Miguel Campos.

In October 2025, the City changed operations in the Community Development Department for building related services. The City changed from coordinating solely through a contract consultant, BPR Consulting Group Inc., to a hybrid system utilizing part-time staff for permit intake and coordination, with a consultant contract, utilizing Miguel Campos, for building plan check, inspection, and chief building official needs.

Staff believes this change has provided better customer service to the residents, and cost savings for the City.

To establish operations and provide time to confirm the necessary scope of work, an initial contract was set up with Miguel Campos Consulting in the amount of $25,000 for building related services. The City has paid $19,650 for his work through the end of December.

To continue the contract, staff recommends amending the contract to increase the amount by

CITY OF LIVE OAK

STAFF REPORT
Agenda Item 3.
14 Fiscal Impact:

Recommendation:
an additional $45,000, to fund services through the remainder of the Fiscal Year, and extend the term of the agreement from the current one-year term, to end by June 30, 2029.

Then annually, Council can consider and authorize funding through the annual budget process for ongoing professional services.

The current hybrid model for building services, on average, is costing the City approximately $2,500 per month for part-time staff, and $6,500 for consultant services, the past three-month total is approximately $9,000/month. Contracting for all building services, was costing the City approximately $18,500 per month, on average, for the six-month period prior to the change.

The savings is approximately $9,500 per month, $115,000 per year. Permit numbers have remained constant with an average of 17 permits per month, being issued, since February of last year.
1) Authorize the City Manager to approve a professional services agreement amendment, with Miguel Campos, for Building Services, to extend the term of the agreement and increase the amount by $45,000 for the remainder of FY2025-26, with the finding that it is in the best interest of the City; and 2) Authorize the Finance Director to make a supplemental budget appropriation in the amount of $45,000 for professional services to establish funding for the remainder of the fiscal year.

Attachments:

First Amendment to Agreement 2025-021 For Consultant Building Services Professional Services Agreement 2025-021
Agenda Item 3.
15 FIRST AMENDMENT TO AGREEMENT 25-021 AGREEMENT FOR PROFESSIONAL

SERVICES FOR CONSULTANT BUILDING SERVICES
This First Amendment to Agreement for Consultant Services (the “First Amendment”) is made and entered into this 22nd day of January, 2026 by and between THE CITY OF LIVE OAK, a municipal corporation (hereinafter referred to as “City”) and Miguel Campos (hereinafter referred to as “Consultant”).

RECITALS
WHEREAS, on October 20, 2025, City and Consultant entered into that certain agreement entitled “Agreement for Professional Services” (“Agreement”) to provide contract and related services; and
WHEREAS, City and Consultant now desire to enter into a “First Amendment” to extend the term of the Agreement and increase the total compensation amount.

AGREEMENT
NOW, THEREFORE, for the considerations hereinafter set forth, the parties hereby amend the Agreement as follows:

1. Section 2 of the Agreement, “Time of Performance.”, is hereby amended to read as follows:

Time of Performance. The services shall commence upon execution of the Agreement and shall continue for a period not to exceed an additional three years, or until terminated as set forth in Section 5 (Termination) of this Agreement. Consultant to complete all services by June 30, 2029.

2. Section 3 of the Agreement, “Compensation – Building Inspection”, the first sentence is hereby amended to read as follows:

Compensation – Building Services. Compensation is to be paid to Consultant is to be in accordance with Exhibit “A”, which is attached hereto and incorporated herein by reference and not to exceed $70,000 per fiscal year of this agreement term.

3. Agreement in Effect. Except as amended by this First Amendment, the Agreement shall remain in full force and effect.

4. Counterpart Signatures. This First Amendment may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. 16 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF LIVE OAK
By: Date:

Benjamin K. Moody, City Manager

Approved As To Form
By: Date:

Nicole Delerio-Rosser, City Attorney

CONSULTANT

By: Miguel Campos Date:

17 Contract Cover Page
Contract Title:

Other Party:

Description:

Contact:

Contract No:

Meeting Date:

Item #:

Authority:
 Council
 Resolution
 City Manager
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 Purpose:

Background:

Analysis:

Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Ethan Gutierrez, Finance
Subject: Annual Audited Financial Statements - Year Ended June 30, 2025
Summary: Recommendation: Accept and File.

Fiscal Impact: No direct fiscal impact associated with accepting and filing.

Accept and file the Annual Audited Financials for FY2024-25.

Each year the City of Live Oak issues an Annual Comprehensive Financial Report (ACFR).

The ACFR summarizes the financial transactions of a local government for the year in accordance with the generally accepted accounting standards as promulgated by Governmental Accounting Standards Board (GASB).

In conjunction with the produced ACFR, an annual audit is performed as required by the loan covenants on the water and sewer systems, as well as the 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 produce an ACFR and perform the audit in accordance with generally accepted auditing standards and Government Auditing Standards. The audit was conducted remotely. RAMS has issued an unmodified opinion on the financials and internal controls that was dated on December 15, 2025. Also, RAMS conducts the Single Audit, in accordance with federal guidelines, which represents a separate audit on our federally awarded funds. This is currently underway and is expected to be issued no later than March 31, 2026.

Attached is the ACFR in its entirety. The following contains some financial highlights:

CITY OF LIVE OAK

STAFF REPORT
Agenda Item 4.
35 Fiscal Impact:

Recommendation:

Within the government-wide financial statements, City as a whole, the City's net position as of June 30, 2025 was $79,390,287, which was a decrease of $1,741,872 as compared to last fiscal year. For context, net position is not cash on hand for day-to-day operations. Net position is made up of three different categories which includes net investment in capital assets, restricted funds, and unrestricted funds. Net investment in capital assets represent the value of long-term assets like infrastructure, buildings, and equipment less any outstanding debt of which is $53,227,692 or 67% of the total net position. Please note that this category does not constitute spendable balances as these types of assets cannot be liquidated to provide resources for debt service or ongoing operations. Restricted funds represent funds subject to external restrictions on how they may be used like impact fees, streets and roads, grants, etc., of which is $29,843,431. Unrestricted funds represent the funds that may be used to meet the ongoing obligation to residents, businesses, customers, and creditors of which is ($3,680,836). A negative unrestricted position represents a deficit in resources that can be freely used.

The City's General Fund ended with a fund balance of $1,644,632, of which $1,613,974 was assigned as committed. The City currently has several reserves identified for various items such as capital projects and OPEB funding that it can currently utilize. The General Fund balance decreased by $665,633 due to expenditures being greater than actual revenues received. Across all governmental funds, fund balance ended at $3,141,983, a decrease of $1,858,808. While the most significant decrease is recorded in the Other Governmental Funds; it should be notated that the City transferred $850,000 of American Rescue Plan Act (ARPA) funds to the General Fund during the fiscal year.

The water fund's net position decreased by $1,334,296 from $7,039,387 to $5,705,091 primarily because of capital contributions recorded in the fund. The comprehensive water rate study, and approved water rate increases that went into effect at the beginning of Fiscal year 2025-26 will slowly alleviate the water fund and provide its ability to be self-sustainable; however, this will be continually monitored. The sewer fund's net position decreased by $1,169,194 primarily due to operating expenditures, which includes depreciation in the amount of $1,134,159, being greater than revenues.

Additionally, the ACFR was submitted to the Government's Finance Officers Association (GFOA) excellence in financial reporting award program. The financial reporting award consists of adherence to high standards of transparency, full disclosure, readability, organization, GAAP, and legal requirements. The award does not represent merit related to the financial health of the City.

Lastly, RAMS has issued their board communication letter in accordance with the clarified auditing standards. The letter identified the pension liability and net other-postemployment benefits (OPEB) asset as significant estimates. These estimates are determined by actuaries in accordance with their applicable standards. RAMS did not identify any significant deficiencies or material weaknesses in internal controls in financial reporting.

No direct fiscal impact of accepting and filing. However, the reports contain a fiscal component relevant to the overall general financial health of the City and further notice of the ongoing structural deficits that need resolving.

Agenda Item 4.
36 Accept and File.

Attachments:

Exhibit A - Annual Comprehensive Financial Report
Exhibit B - GANN
Exhibit C - Management Comment Letter
Exhibit D - SAS 114
Agenda Item 4.
37 CITY OF LIVE OAK, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2025

PREPARED BY THE FINANCE DEPARTMENT

38 This page intentionally left blank.
39 CITY OF LIVE OAK, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025

PREPARED BY THE FINANCE DEPARTMENT
40 This page intentionally left blank.
41 City of Live Oak
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025

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) .................... 4 Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position ............................................................................................. 12 Statement of Activities .................................................................................................. 13 Fund Financial Statements:

Balance Sheet – Governmental Funds ........................................................................ 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................... 17 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .......................................................................................... 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................ 20 Statement of Fund Net Position – Proprietary Funds .................................................. 21 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ................................................................................................... 22 Statement of Cash Flows – Proprietary Funds ............................................................ 23 Notes to Basic Financial Statements ................................................................................. 24 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED):

Budgetary Comparison Schedule by Department - General Fund .................................... 64 Budgetary Comparison Schedule – Program Income ....................................................... 65 Budgetary Comparison Schedule – ARPA .............................................................................. 66 Schedule of Proportionate Share of Net Pension Liability .................................................... 67 Schedule of Pension Plan Contributions ............................................................................ 69 Schedule of Changes in the Net OPEB Asset and Related Ratios .................................. 70 Schedule of OPEB Contributions ....................................................................................... 71 Notes to Required Supplementary Information ................................................................. 72 42 City of Live Oak
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
TABLE OF CONTENTS (continued)
FINANCIAL SECTION (continued):

SUPPLEMENTARY INFORMATION:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................ 77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................ 85 Budgetary Comparison Schedules:

Streets and Roads .................................................................................................. 93 Traffic Safety .................................................................................................................. 94 COPS ......................................................................................................................... 95 Sidewalk Improvement ........................................................................................... 96 Street Lighting ......................................................................................................... 97 Mello Roos CFD 92-1 .......................................................................................................... 98 Fire Benefit Assessment ......................................................................................... 99 Mello Roos CFD 2004-1 Fire ............................................................................ 100 Mello Roos CFD 2004-1 Police ............................................................................ 101 Mello Roos CFD 2004-1 Animal Services ........................................................... 102 Mello Roos CFD 2004-1 Street Lighting ............................................................... 103 Mello Roos CFD 2004-1 Parks/Recreation/Pool ................................................. 104 Mello Roos CFD 2004-1 Storm Drain .................................................................. 105 Parks and Recreation Impact Fees ....................................................................... 106 Community Center Impact Fees ............................................................................ 107 Public Works Impact Fees ...................................................................................... 108 General Government Impact Fees ........................................................................ 109 Police Impact Fees ................................................................................................. 110 Fire Impact Fees ..................................................................................................... 111 Signal Impact Fees ................................................................................................. 112 Flood Control Impact Fees ..................................................................................... 113 Storm Drain Connection Fees ................................................................................ 114 Transportation .................................................................................................. 115 Nonmajor Proprietary Funds:

Combining Statement of Net Position ........................................................................ 116 Combining Statement of Revenues, Expenditures and Changes in Net Position ..... 117 Combining Statement of Cash Flows ........................................................................ 118 43 City of Live Oak
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
TABLE OF CONTENTS (continued)
STATISTICAL SECTION:

Narrative Summary ............................................................................................................. 119 Financial Trend Information:

Net Position by Component – Last Ten Fiscal Years ................................................... 120 Changes in Net Position – Last Ten Fiscal years .............................................................. 121 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................. 123 Changes in Fund Balance - Governmental Funds – Last Ten Fiscal Years ................. 124 Revenue Capacity Information:

Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years .......... 125 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years .............. 126 Principal Property Tax Payers – Current Year and Nine Years Ago ................................ 127 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................... 128 Debt Capacity Information:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ...................................... 129 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .......................... 130 Direct and Overlapping Bonded Debt ................................................................................ 131 Computation of Legal Bonded Debt Margin ..................................................................... 132 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years ............................... 133 Principal Employers – Current Year and Prior Year ...................................................... 134 Operating Information:

Full-Time and Part-Time City Government Employees – Last Ten Fiscal Years .......... 135 Operating Indicators – Last Ten Fiscal Years ................................................................. 136 Capital Asset Statistics – Last Ten Fiscal Years ............................................................. 137 Sales Value History – Last Ten Years .............................................................................. 138 44 This page intentionally left blank
45 City Hall: 530-695-2112 Fax: 530-695-2595 9955 Live Oak Blvd., Live Oak, CA 95953 www.liveoakcity.org i
December 15, 2025
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, 2025. Although addressed to the City’s governing body and its citizens, the ACFR is intended also to provide relevant financial information to creditors, investors, and other interested parties. This transmittal letter provides a summary of City of Live Oak finances, services, achievements and economic prospects for readers without a technical background. Those wishing a more detailed discussion of the City’s financial results should refer to Management’s Discussion and Analysis (MD&A) contained in the Financial Section of the ACFR.

Management takes sole responsibility 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, 2025.

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

REPORTING ENTITY
The City of Live Oak is a growing, rural community located on the Highway 99 corridor 60 miles north of Sacramento at the north end of Sutter County. Incorporated in 1947 and named for the oak forest that once dominated the landscape, Live Oak is rooted strongly in agriculture, surrounded on all sides by bountiful agriculture production including peaches, nuts, rice, and other crops. Live Oak has grown to a population of 9,553 residents and comprises of 3.1 square miles.

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

The City provides a full range of municipal services, including police and fire protection, street and park maintenance, community development, building inspection, code enforcement, recreation programs, finance, grants and general administration. The City also operates a municipal pool, water treatment plant and a wastewater treatment facility. 46 City Hall: 530-695-2112 Fax: 530-695-2595 9955 Live Oak Blvd., Live Oak, CA 95953 www.liveoakcity.org ii
At one time a major hub for shipping produce, Live Oak is still linked to transportation with both the Union Pacific Railroad tracks and Highway 99 running north and south through the community. The world’s smallest mountain range, the Sutter Buttes, is seven miles west of the city providing magnificent views of this natural attraction. The Feather River flows quietly less than two miles to the east.

The Live Oak City Council is responding to recent growth by undertaking an effort to adopt a new 2030 General Plan, new zoning ordinances, building design guidelines, water/sewer/storm drain master plans and a streetscape design master plans 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 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 provide 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, 2025 include the following:
 Completed the Pennington Overlay capital project.
 Conducted a comprehensive water rate study and approved rate adjustments to ensure the sustainability of the water fund.
 Authorized the electric power community choice aggregations program.

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.
47 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 has had structural budgetary deficits over the past two years due to significant increases in fire and police contract costs. The City is currently reviewing options to address this shortage by increasing future revenues and decreasing unnecessary expenditures.

ACKNOWLEDGEMENTS
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
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51 Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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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, 2025, 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 referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
52 -2-
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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

In performing an audit in accordance with GAAS sand Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information, 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying 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.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2025 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 the City’s 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 15, 2025
55 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, 2025. 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 $79,390,287 as of June 30, 2025, a decrease of $1,741,872 from the prior year.  The City’s governmental funds reported a combined fund balance of $3,141,983, a decrease of $1,858,808 from the prior year.
 General Fund revenues of $4,028,859 were $181,040 higher than the prior year.  General Fund expenditures of $5,865,382 represented an increase of $957,500 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.

56 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 of the City’s assets and deferred outflows of resources over liabilities and deferred inflows of resources 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 17 and 20 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.

57 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 each major special revenue fund 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:
2025 2024 2025 2024 2025 2024
Current and other assets 26,884,549 $ 27,666,863 $ 3,241,257 $ 4,399,763 $ 30,125,806 $ 32,066,626 $ Capital assets, net 28,945,745 28,701,911 29,560,875 31,012,127 58,506,620 59,714,038 Total assets 55,830,294 56,368,774 32,802,132 35,411,890 88,632,426 91,780,664 Deferred outflows 434,379 518,135 460,013 610,364 894,392 1,128,499 Current and other liabilities 1,682,301 3,281,659 612,862 612,914 2,295,163 3,894,573 Non-current liabilities 1,299,605 1,198,030 6,179,631 6,497,868 7,479,236 7,695,898 Total liabilities 2,981,906 4,479,689 6,792,493 7,110,782 9,774,399 11,590,471 Deferred inflows 334,835 118,197 27,297 68,336 362,132 186,533 Net position:

Net investment in capital assets 28,808,967 28,485,414 24,418,725 25,623,365 53,227,692 54,108,779 Restricted 26,557,074 22,283,141 3,286,357 3,182,844 29,843,431 25,465,985 Unrestricted (2,418,109) 1,520,468 (1,262,727) 36,927 (3,680,836) 1,557,395 Total Net Position 52,947,932 $ 52,289,023 $ 26,442,355 $ 28,843,136 $ 79,390,287 $ 81,132,159 $ Governmental Activities Business-type Activities Total
Net position represents the difference between the City’s resources and its obligations. At June 30, 2025, the largest portion of the City’s total net position, 67 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 $53.2 million at June 30, 2025. 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 slightly decreased due to both operating results and additional spending on public safety contracts.

Restricted net position of $29.8 million represents resources subject to external restrictions as to how they may be used. Unrestricted net position of ($3.7) million represents amounts that may be used to meet the City’s ongoing obligations to its residents, businesses, customers, and creditors. A negative unrestricted net position represents a deficit in resources that can be freely used.

58 City of Live Oak
Management’s Discussion and Analysis
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Following is a summary of changes in net position:
2025 2024 2025 2024 2025 2024
Revenues:

Program revenues:

Charges for services 633,621 $ 731,369 $ 3,560,268 $ 3,468,377 $ 4,193,889 $ 4,199,746 $ Operating grants and contributions 3,450,739 349,611 - - 3,450,739 349,611 Capital grants and contributions 134,998 434,956 - - 134,998 434,956 General revenues:

Property taxes 2,643,447 2,480,350 - - 2,643,447 2,480,350 Business privilege 569,323 567,519 - - 569,323 567,519
Franchise taxes 312,355 303,031 - - 312,355 303,031
Motor vehicle in lieu 551,432 514,915 - - 551,432 514,915 Other taxes 1,106,983 1,086,312 - - 1,106,983 1,086,312 Use of money and property 392,005 458,498 149,106 179,064 541,111 637,562 Miscellaneous 187,634 17,362 - - 187,634 17,362
Total revenues 9,982,537 6,943,923 3,709,374 3,647,441 13,691,911 10,591,364 Expenses:

General government 1,505,629 1,103,062 - - 1,505,629 1,103,062 Public safety 4,358,414 2,871,404 - - 4,358,414 2,871,404 Public ways and facilities 794,262 1,008,210 - - 794,262 1,008,210 Culture and recreation 1,751,336 1,519,986 - - 1,751,336 1,519,986 Community development 1,036,952 1,050,284 - - 1,036,952 1,050,284 Interest on long term debt 2,035 6,324 - - 2,035 6,324
Water - - 2,316,357 2,524,661 2,316,357 2,524,661
Sewer - - 3,668,798 3,621,167 3,668,798 3,621,167
Total expenses 9,448,628 7,559,270 5,985,155 6,145,828 15,433,783 13,705,098 Excess - before transfers 533,909 (615,347) (2,275,781) (2,498,387) (1,741,872) (3,113,734) Transfers 125,000 - (125,000) - - -
Change in net position 658,909 (615,347) (2,400,781) (2,498,387) (1,741,872) (3,113,734) Net Position, Beginning 52,289,023 52,904,370 28,843,136 31,341,523 81,132,159 84,245,893 Net Position, Ending 52,947,932 $ 52,289,023 $ 26,442,355 $ 28,843,136 $ 79,390,287 $ 81,132,159 $ Governmental Activities Business-type Activities Total
Governmental Activities:

The City’s governmental activities increased the City’s net position by $658,909. Revenues, net of transfers, were $9.9 million which represented an increase of $3,083,614 or 43.7 percent, and expenses were $9.5 million which represented an increase of $1,944,306 or 25.7 percent.

Governmental activities highlights include the following:

Taxes provided $5.2 million or 52 percent of the total governmental activities revenue of the City. This amount is an increase of $231,413. Property taxes increased by $163,097 or 6.6 percent.

Charges for services, operating grants and capital grants provided $4.2 million or 42 percent of the total governmental-activities revenue of the City. This is increased compared to 22 percent in the prior year due to the final use of ARPA funds and grant reimbursements. 59 City of Live Oak
Management’s Discussion and Analysis
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Business-Type Activities
Business-type activities decreased the City’s net position by $2,400,781. Revenues were $3.7 million. Business-type activities highlights include the following:

Charges for services provided $3.5 million or 96 percent of the total business type activities revenue of the City. This is consistent with prior year revenues. Transfers between the governmental activities and business-type activities were for the future purchase of a vacuum truck.

Expenses were $6.1 million, which is steady with prior year expenses.

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, 2025 of $3,141,983. The General Fund decreased by $665,633 and all other Governmental Funds decreased by $1,241,245. Within the governmental funds, the decrease in fund balance was primarily attributable to increased general government and public safety expenditures.

Analysis of Major Governmental Funds
General Fund
General Fund revenues totaled $4,208,859 in fiscal year 2024-25, which was a negative variance of $920,251 as compared to the final budget amount and an increase of $181,040 over last year.

The variance is primarily attributable to not realizing other revenues in the amount of $856,817, as well as a decrease in taxes and assessments, licenses and permits, and intergovernmental revenues. The fund ended with a positive variance of $550,093 between the actual expenditures incurred and final budget amounts. The largest positive variance of $855,364 was in fire services due to budgeting a significant increase compared to the prior year, offset by increased general government expenditures.

The primary revenue increases, as compared to the prior year, were in property taxes in the amount of $176,548. The increase in property taxes is due to elevated property values during the fiscal year. General Fund expenditures totaled $5,865,382 in fiscal year 2024-25, an increase of $957,500 over last year. The increase in expenditures can be attributed to an increase in general government expenditures, and public safety.

At the end of fiscal year 2025, the fund balance for the City’s General Fund was $1,644,632 a decrease of $665,633 over last year. The fund balance in General Fund comprised of $30,658 in nonspendable fund balance and $1,613,974 committed fund balance.

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:

60 City of Live Oak
Management’s Discussion and Analysis
-10-
As of June 30, 2025
Original Final Actual
Budget Budget Amount
General government 798,743 $ 1,011,391 $ 1,247,226 $
Public safety 2,539,273 3,626,850 2,865,917
Public ways and facilities 26,500 26,500 78,923
Culture and recreation 1,112,929 1,297,811 1,190,155
Community development 321,468 286,619 278,930
Capital outlay 17,700 79,250 97,969
Debt service 87,054 87,054 106,262
$ 6,415,475 4,903,667 $ 5,865,382 $
Program Income
The fund ended with a positive revenue variance of $19,529 primarily due to interest earnings and loan payments. Program Income Fund revenues totaled $19,529 in fiscal year 2024-25, an increase of $2,415, and there were no reported expenditures. At the end of fiscal year 2025 the Program Income Fund balance was $396,473.
16-HOME-11532
There were no revenues or activities recorded in the 16-HOME-11532 Fund for fiscal year 2024-

25. 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 $34,688 compared to the prior year. In addition, operating expenses increased to $2,282,253, down $206,666 over the prior year. The primary driver for the decrease in the current year is related to a decrease in salaries and benefits. As of June 30, 2025, the fund’s net position went from $7,039,387 in 2024 to $5,705,091 in 2025 representing a decrease of $1,334,296. The Fund's net investment in capital assets decreased by $439,909 due to depreciation, offset by payments on outstanding debt. The Fund reported a deficit in unrestricted net position in the amount of ($3,777,727) at the close of fiscal year 2025. Due to the age of the water system infrastructure, significant investments will be required in future years to update water lines and equipment. The City invested in a comprehensive water rate study, and approved water rate increases that went into effect at the beginning of fiscal year 2026. 61 City of Live Oak
Management’s Discussion and Analysis
-11-
Sewer
The Sewer Fund is financed and operated in a manner similar to that of a private business. As of June 30, 2025, the Fund’s net position totaled $17,466,647 of which $14,943,777 remains invested in capital assets net of related debt. The fund's unrestricted net position was $2,515,000 at the close of fiscal year 2025. Overall, operating revenues remained consistent at $2,552,385 with an increase of $57,203 over the prior year. Operating expenses totaled $3,603,615 for the year, a 1.4 percent increase of $50,844 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 2025, the City had invested $58.5 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.

As of June 30, 2025, the City’s capital assets consisted of:
2025 2024 2025 2024 2025 2024
Land 6,584,996 $ 6,584,996 $ 233,241 $ 233,241 $ 6,818,237 $ 6,818,237 $ Construction in progress 788,468 2,003,428 491,506 386,022 1,279,974 2,389,450 Right to use asset - equipment 31,579 45,150 31,579 22,514 63,158 67,664 Buildings and improvements 7,691,826 7,691,826 77,857 78,158 7,769,683 7,769,984 Equipment 5,422,229 4,966,897 1,750,433 1,723,036 7,172,662 6,689,933 Infrastructure 27,277,584 25,170,594 54,043,363 54,043,363 81,320,947 79,213,957 Less: Accumulated depreciation (18,850,937) (17,760,980) (27,067,104) (25,474,207) (45,918,041) (43,235,187) Total capital assets, net 28,945,745 $ 28,701,911 $ 29,560,875 $ 31,012,127 $ 58,506,620 $ 59,714,038 $ Governmental Activities Business-type Activities Total
At June 30, 2025, major construction in progress include Pennington West project, and a solar project. Completed projects during fiscal year 2025 include a dog park and Pennington Overlay.

62 City of Live Oak
Management’s Discussion and Analysis
-12-
Long-term Debt:

At June 30, 2024 and 2025 the City had $5.6 million and $5.3 million respectively in long-term debt outstanding. The City made all scheduled repayments on existing debt on time. Additional detailed information about the City’s total long-term liabilities is presented in Note 7 to the financial statements.

As of June 30, 2025, the City’s debt consisted of:
2025 2024 2025 2024 2025 2024
Loan 107,760 $ 124,799 $ 3,670,392 $ 3,872,844 $ 3,778,152 $ 3,997,643 $ Financed purchase - 87,054 - - - 87,054
Lease liability 29,018 4,644 29,018 982 58,036 5,626
Certificates of participation - - 1,427,000 1,500,000 1,427,000 1,500,000 Total long-term liabilities 136,778 $ 216,497 $ 5,126,410 $ 5,373,826 $ 5,263,188 $ 5,590,323 $ Governmental Activities Business-type Activities Total

ECONOMIC FACTORS AND NEXT YEARS BUDGET
Assessed property values began increasing over the recent two years moving from $589.3 million in 2024 to $654.6 million in 2025. 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 2024-25. 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.

During the fiscal year, the City undertook a comprehensive water rate study that is applicable from July 1, 2025 - June 30, 2030. The City Council approved a significant water rate increase effective July 1, 2025, and will continue to evaluate the financial condition of the Water Fund to determine the needs for future water rate adjustments.

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.
63 City of Live Oak
Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -13-
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:

Current:

Cash and investments $ 3,306,220 3,918,436 $ 7,224,656 $ Receivables:

Accounts, net 404,445 44,930 449,375
Notes and loans - 19,466,909 19,466,909
Leases - 257,101 257,101
Accrued interest 28,378 37,704 66,082
Internal balances (541,443) 541,443 -
Prepaid items 27,917 30,697 58,614
Due from other governments - 2,418,829 2,418,829
Noncurrent:

Net OPEB asset 15,740 168,500 184,240
Capital assets not being depreciated/amortized 724,747 7,373,464 8,098,211 Capital assets, net of depreciation/amortization 28,836,128 21,572,281 50,408,409 Total Assets 32,802,132 55,830,294 88,632,426
Deferred Outflows of Resources:

Deferred pension related items 460,013 400,060 860,073
Deferred OPEB related items - 34,319 34,319
Total Deferred Outflows of Resources 460,013 434,379 894,392 Liabilities:

Current:

Accounts payable 291,202 875,217 1,166,419
Due to other governments - 51,515 51,515
Salaries and benefits payable 15,894 34,818 50,712
Deposits payable 6,949 201,805 208,754
Unearned revenue - 480,226 480,226
Compensated absences 17,679 14,026 31,705
Bonds, notes, and leases 281,138 24,694 305,832
Noncurrent:

Compensated absences 70,569 88,440 159,009
Bonds, notes, and leases 4,845,272 112,084 4,957,356
Net pension liability 1,263,790 1,099,081 2,362,871
Total Liabilities 6,792,493 2,981,906 9,774,399
Deferred Inflows of Resources:

Deferred pension related items 22,841 19,864 42,705
Deferred OPEB related items 4,456 61,145 65,601
Lease related - 253,826 253,826
Total Deferred Inflows of Resources 27,297 334,835 362,132 Net Position:

Net investment in capital assets 24,418,725 28,808,967 53,227,692 Restricted for:

Public safety - 294,068 294,068
Public ways and facilities - 1,397,354 1,397,354
Community development - 24,697,152 24,697,152
Capital projects 3,270,617 - 3,270,617
Net OPEB asset 15,740 168,500 184,240
Unrestricted (1,262,727) (2,418,109) (3,680,836)
Total Net Position $ 26,442,355 52,947,932 $ 79,390,287 $ 64 City of Live Oak
Statement of Activities
Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -14-
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:

Governmental Activities:

General government $ 536,930 1,505,629 $ 812,227 $ - $
Public safety 13,956 4,358,414 491,617 -
Public ways and facilities 16,447 794,262 2,146,895 134,998 Culture and recreation 66,288 1,751,336 - -
Community development - 1,036,952 - -
Interest on long-term debt - 2,035 - -
Total Governmental Activities 633,621 9,448,628 3,450,739 134,998 Business-Type Activities:

Water 982,061 2,316,357 - -
Sewer 2,552,385 3,668,798 - -
Water Connection 11,734 - - -
Sewer Connection 14,088 - - -
Total Business-Type Activities 3,560,268 5,985,155 - -
Total Primary Government $ 4,193,889 15,433,783 $ 3,450,739 $ 134,998 $ General Revenues:

Taxes:

Property taxes
Business privilege
Franchise taxes
Motor vehicle in lieu
Other taxes
Use of money and property
Miscellaneous
Transfers
Total General Revenues
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
65 -15-
Net (Expenses) Revenues
and Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
$ - (156,472) $ (156,472) $
- (3,852,841) (3,852,841)
- 1,504,078 1,504,078
- (1,685,048) (1,685,048)
- (1,036,952) (1,036,952)
- (2,035) (2,035)
- (5,229,270) (5,229,270)
(1,334,296) - (1,334,296)
(1,116,413) - (1,116,413)
11,734 - 11,734
14,088 - 14,088
(2,424,887) - (2,424,887)
(2,424,887) (5,229,270) (7,654,157)
2,643,447 - 2,643,447
569,323 - 569,323
- 312,355 312,355
- 551,432 551,432
1,106,983 - 1,106,983
149,106 392,005 541,111
- 187,634 187,634
(125,000) 125,000 -
24,106 5,888,179 5,912,285
(2,400,781) 658,909 (1,741,872)
28,843,136 52,289,023 81,132,159
$ 26,442,355 52,947,932 $ 79,390,287 $
66 City of Live Oak
Balance Sheet
Governmental Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -16-
Program
General Income 16-HOME-11532
Assets:

Cash and investments $ - 125,000 $ - $
Receivables:

Accounts - 44,930 -
Notes and loans 13,188,881 114,914 5,298,904
Accrued interest 1,813 8,639 -
Leases - 257,101 -
Due from other funds 394,779 2,150,765 -
Advances to other funds - - -
Prepaid items - 30,658 -
Due from other governments - 219,775 -
Total Assets $ 13,585,473 2,951,782 $ 5,298,904 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 119 783,771 $ - $
Due to other governments - 51,515 -
Salaries and benefits payable - 32,359 -
Deposits payable - 7,910 -
Due to other funds - - 2,028
Unearned revenues - - -
Total Liabilities 119 875,555 2,028
Deferred Inflows of Resources:

Unavailable revenues - 177,769 -
Deferred loan payments 13,188,881 - 5,298,904
Lease related - 253,826 -
Total Deferred Inflows of Resources 13,188,881 431,595 5,298,904 Fund Balances:

Nonspendable - 30,658 -
Restricted 396,473 - -
Committed - 1,613,974 -
Unassigned - - (2,028)
Total Fund Balances 396,473 1,644,632 (2,028)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 13,585,473 2,951,782 $ 5,298,904 $ Special Revenue Funds
67 -17-
Special
Revenue Funds
ARPA Other Total
(formerly Governmental Governmental
nonmajor) Funds Funds
$ 3,793,436 - $ 3,918,436 $
- - 44,930
864,210 - 19,466,909
22,120 5,132 37,704
- - 257,101
379,893 281,622 3,207,059
541,443 - 541,443
39 - 30,697
2,199,054 - 2,418,829
$ 7,800,195 286,754 $ 29,923,108 $
$ 59,032 32,295 $ 875,217 $
- - 51,515
2,459 - 34,818
193,895 - 201,805
3,205,031 - 3,207,059
300,140 180,086 480,226
3,760,557 212,381 4,850,640
2,146,895 - 2,324,664
864,210 - 19,351,995
- - 253,826
3,011,105 - 21,930,485
39 - 30,697
4,241,069 74,373 4,711,915
- - 1,613,974
(3,212,575) - (3,214,603)
1,028,533 74,373 3,141,983
$ 7,800,195 286,754 $ 29,923,108 $
68 This page intentionally left blank.
69 City of Live Oak
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -18-
Fund balances of governmental funds $ 3,141,983
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.

Capital assets, not depreciated/amortized 7,373,464
Capital assets, net of depreciation/amortization 21,572,281 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 (136,778)
Compensated absences (102,466)
Some other assets are not financial resources and therefore, are not reported in the governmental funds. Unavailable revenue and deferred loan payments are shown in the governmental statement, because they will not be available as a current financial resource. Since this revenue is earned, it is recognized in the government-wide statements. 21,676,659
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 168,500
Deferred outflows related to OPEB 34,319
Deferred inflows related to OPEB (61,145)
Net pension liability (1,099,081)
Deferred outflows related to pension 400,060
Deferred inflows related to pension (19,864)
Net Position of Governmental Activities $ 52,947,932
Amounts reported for governmental activities in the statement of net position are different because:
70 City of Live Oak
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -19-
Program
General Income 16-HOME-11532
Revenues:

Taxes and assessments $ - 3,484,394 $ - $
Licenses and permits - 216,126 -
Fines and forfeitures - 813 -
Use of money and property 9,346 218,177 -
Intergovernmental 10,183 16,691 -
Charges for services - 90,875 -
Other revenue - 181,783 -
Total Revenues 19,529 4,208,859 -
Expenditures:

Current:

General government - 1,247,226 -
Public safety - 2,865,917 -
Public ways and facilities - 78,923 -
Culture and recreation - 1,190,155 -
Community development - 278,930 -
Capital outlay - 97,969 -
Debt service:

Principal - 103,033 -
Interest - 3,229 -
Total Expenditures - 5,865,382 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 19,529 (1,656,523) -
Other Financing Sources (Uses):

Transfers in - 975,100 -
Transfers out - - -
Proceeds from debt issuance - 15,790 -
Total Other Financing Sources (Uses) - 990,890 -
Net Change in Fund Balances 19,529 (665,633) -
Fund Balances (Deficits), Previously Reported 376,944 2,310,265 (2,028) Adjustment - Change from Nonmajor to Major - - -
Fund Balances (Deficits), Beginning of Year, as restated 376,944 2,310,265 (2,028) Fund Balances (Deficits), End of Year $ 396,473 1,644,632 $ (2,028) $ Special Revenue Funds
71 -20-
Special
Revenue Funds
ARPA Other Total
(formerly Governmental Governmental
nonmajor) Funds Funds
$ 1,086,870 - $ 4,571,264 $
20,262 - 236,388
13,957 - 14,770
125,757 28,543 381,823
671,028 990,407 1,688,309
4,891 - 95,766
492,202 - 673,985
2,414,967 1,018,950 7,662,305
194,825 - 1,442,051
1,307,618 - 4,173,535
735,771 - 814,694
194,868 - 1,385,023
138,128 - 417,058
1,092,325 140,409 1,330,703
8,265 - 111,298
101 - 3,330
3,671,901 140,409 9,677,692
(1,256,934) 878,541 (2,015,387)
- - 975,100
(100) (850,000) (850,100)
15,789 - 31,579
15,689 (850,000) 156,579
(1,241,245) 28,541 (1,858,808)
2,315,610 - 5,000,791
(45,832) 45,832 -
2,269,778 45,832 5,000,791
$ 1,028,533 74,373 $ 3,141,983 $
72 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, 2025
The accompanying notes are an integral part of these financial statements. -21-
Net changes in fund balances - total governmental funds $ (1,858,808) 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 1,378,941 Depreciation expense (1,135,107)
Revenues in the statement of activities that do not provide current financial resources and are not reported as revenues in the governmental funds. 2,320,232
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 111,298
Proceeds from debt issuance (31,579)
Accrued interest expense is not recorded in the governmental funds. The following amount is the change in accrued interest. 1,295 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 (36,161)
Changes in net OPEB asset and related outflows/inflows 10,780 Changes in net pension liability and related outflows/inflows (101,982) Change in Net Position of Governmental Activities $ 658,909 Amounts reported for governmental activities in the statement of activities are different because:
73 City of Live Oak
Statement of Fund Net Position
Proprietary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -22-
Business-Type Activities - Enterprise Funds
Other
Enterprise
Water Sewer Funds Totals
Assets:

Current:

Cash and investments $ 2,714,921 - $ 591,299 $ 3,306,220 $ Receivables:

Accounts 299,335 105,110 - 404,445
Accrued interest 13,649 - 14,729 28,378
Prepaid items 14,055 13,862 - 27,917
Due from other funds - - 37,200 37,200
Total Current Assets 3,041,960 118,972 643,228 3,804,160 Noncurrent:

Net OPEB asset 7,870 7,870 - 15,740
Advance to other funds - - 2,627,389 2,627,389
Capital assets not being depreciated/amortized 692,040 32,707 - 724,747 Capital assets, net of depreciation/amortization 18,571,508 10,264,620 - 28,836,128 Total Noncurrent Assets 19,271,418 10,305,197 2,627,389 32,204,004 Total Assets 22,313,378 10,424,169 3,270,617 36,008,164 Deferred Outflows of Resources:

Deferred pension related items 174,181 285,832 - 460,013 Total Deferred Outflows of Resources 174,181 285,832 - 460,013 Liabilities:

Current:

Accounts payable 161,275 129,927 - 291,202
Salaries and benefits payable 8,120 7,774 - 15,894
Deposits payable 5,197 1,752 - 6,949
Due to other funds - 37,200 - 37,200
Compensated absences 9,018 8,661 - 17,679
Bonds, notes and leases 238,085 43,053 - 281,138
Total Current Liabilities 421,695 228,367 - 650,062
Noncurrent:

Advance from other funds 3,168,832 - - 3,168,832
Compensated absences 35,998 34,571 - 70,569
Bonds, notes and leases 771,456 4,073,816 - 4,845,272
Net pension liability 478,526 785,264 - 1,263,790
Total Noncurrent Liabilities 4,588,340 4,760,123 - 9,348,463 Total Liabilities 5,010,035 4,988,490 - 9,998,525
Deferred Inflows of Resources:

Deferred pension related items 8,649 14,192 - 22,841
Deferred OPEB related items 2,228 2,228 - 4,456
Total Deferred Inflows of Resources 10,877 16,420 - 27,297 Net Position:

Net investment in capital assets 14,943,777 9,474,948 - 24,418,725 Restricted for capital projects - - 3,270,617 3,270,617 Restricted for OPEB asset 7,870 7,870 - 15,740
Unrestricted (deficit) 2,515,000 (3,777,727) - (1,262,727) Total Net Position $ 17,466,647 5,705,091 $ 3,270,617 $ 26,442,355 $ 74 City of Live Oak
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -23-
Business-Type Activities - Enterprise Funds
Other
Enterprise
Water Sewer Funds Totals
Operating Revenues:

Sales and service charges $ 2,552,385 982,061 $ 25,822 $ 3,560,268 $ Total Operating Revenues 2,552,385 982,061 25,822 3,560,268 Operating Expenses:

Salaries and benefits 913,823 792,000 - 1,705,823
Administration 55,078 41,677 - 96,755
Power 380,580 376,063 - 756,643
Insurance 244,629 88,959 - 333,588
Supplies 75,959 115,486 - 191,445
Repair and extension 330,428 90,646 - 421,074
Professional services 236,959 292,512 - 529,471
Depreciation expense 481,278 1,134,159 - 1,615,437
Other expense 176,447 59,185 - 235,632
Total Operating Expenses 3,603,615 2,282,253 - 5,885,868 Operating Income (Loss) (1,051,230) (1,300,192) 25,822 (2,325,600) Nonoperating Revenues (Expenses)
Interest revenue 72,219 - 76,887 149,106
Interest expense (65,183) (34,104) - (99,287)
Total Nonoperating Revenues (Expenses) 7,036 (34,104) 76,887 49,819 Income (Loss) Before Transfers and
Capital Contributions (1,044,194) (1,334,296) 102,709 (2,275,781) Transfers out (125,000) - - (125,000)
Changes in Net Position (1,169,194) (1,334,296) 102,709 (2,400,781) Net Position, Beginning of Year 18,635,841 7,039,387 3,167,908 28,843,136 Net Position, End of Year $ 17,466,647 5,705,091 $ 3,270,617 $ 26,442,355 $ 75 City of Live Oak
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -24-
Business-Type Activities - Enterprise Funds
Other
Enterprise
Water Sewer Funds Totals
Cash flows from operating activities:

Cash received from customers and users $ 2,549,574 981,449 $ 25,822 $ 3,556,845 $ Cash paid to suppliers for goods and services (1,557,787) (1,003,351) - (2,561,138) Cash paid to employees for services (895,240) (773,649) - (1,668,889) Net cash provided by (used for) operating activities 96,547 (795,551) 25,822 (673,182) Cash flows from non-capital financing activities:

Cash transfers out (125,000) - - (125,000)
Advances received from (paid to) other funds - 3,168,832 (2,664,589) 504,243 Cash paid to other funds - (2,297,406) - (2,297,406)
Net cash provided by non-capital financing activities (125,000) 871,426 (2,664,589) (1,918,163) Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (132,881) - - (132,881) Principal paid on capital debt (237,224) (41,771) - (278,995) Interest paid on capital debt (64,908) (34,104) - (99,012) Net cash provided (used) by capital and related
financing activities (435,013) (75,875) - (510,888)
Cash flows from investing activities:

Interest received 77,802 - 80,979 158,781
Net increase (decrease) in cash and cash equivalents (385,664) - (2,557,788) (2,943,452) Cash and cash equivalents at beginning of year 3,100,585 - 3,149,087 6,249,672 Cash and cash equivalents at end of year $ 2,714,921 - $ 591,299 $ 3,306,220 $ Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) $ (1,051,230) (1,300,192) $ 25,822 $ (2,325,600) $ Adjustments to reconcile operating income (loss)
net cash provided by operating activities:

Depreciation 1,134,159 481,278 - 1,615,437
Changes in pension related items 12,780 14,683 - 27,463 Changes in OPEB related items (508) (508) - (1,016)
(Increase) decrease in accounts receivable (2,811) (612) - (3,423) (Increase) decrease in prepaid items 2,963 (194) - 2,769 Increase (decrease) in accounts payable (4,836) 6,031 - 1,195 Increase (decrease) in salaries and benefits payable (4,016) (4,381) - (8,397) Increase (decrease) in deposits payable (281) (213) - (494) Increase (decrease) in compensated absences 10,327 8,557 - 18,884 Total adjustments 1,147,777 504,641 - 1,652,418
Net cash provided (used) by operating activities $ 96,547 (795,551) $ 25,822 $ (673,182) $ Non-Cash Investing, Capital and Financing Activities:

Lease acquisition 15,789 $ 15,790 $ None None
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77 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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.

78 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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.
79 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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 ARPA fund is used to account for revenues and expenditures related to Coronavirus State and Local Fiscal Recovery Funds (CSLFRF).

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.

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.
80 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C) Basis of Accounting and Measurement Focus (continued) 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.

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.

81 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F) Investments (continued)
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. The City reported no allowance for doubtful accounts balance as of June 30, 2025.

H) Prepaid Items
Payments made for services that will benefit periods beyond June 30, 2025, are recorded as prepaid items under both the accrual and modified accrual basis of accounting. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. The City records both prepaid costs for expenditures/expenses paid for services that will benefit future periods and prepaid insurance for the net investment in a joint powers self-insurance agency.

I) Capital Assets
Capital assets, including public domain (infrastructure such as roads, bridges, sidewalks, sewer and similar items) are defined by the City as assets with a cost greater than $5,000 ($10,000 for enterprise funds) for assets other than infrastructure and $75,000 for infrastructure and an estimated useful life of more than two years. Capital assets are recorded at historical cost or estimated historical cost if actual historical cost is unavailable. Contributed capital assets are recorded at their acquisition value at the date of donation. 82 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I) Capital Assets (continued)
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.

The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.

83 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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.

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, and determined to be more likely than not to be liquidated or used in the future 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.
84 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 four types of items which qualify for reporting in this category. One item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for receivables that have not been received within the period of availability. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item relates to lease receivables and is recognized in both the Statement of Net Position and the Balance Sheet.

Amounts related to receivables are recognized as revenues in a straight-line method over the life of the receivable. The third and fourth items relate to inflows from changes in the net pension liability and net OPEB asset and are reportable on the Statement of Net Position.

P) Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

85 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 $29,843,431 of restricted net position, of which $6,320,718 is restricted by enabling legislation.

Net Position Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted net position are available, it is considered that restricted resources are used first, followed by the unrestricted resources.

86 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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, 2025, 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.

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.
87 City of Live Oak
Notes to Financial Statements
June 30, 2025
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) T) Implementation of New Pronouncement
For the year ended June 30, 2025, the financial statements include the adoption of GASB Statement No. 101 – Compensated Absences. This Statement provides a unified approach for recognizing and measuring all types of compensated absences, such as vacation and sick leave. The related disclosures required by this standard are included in Note 9.

The City also adopted GASB Statement No. 102, Certain Risk Disclosures. This statement requires governments to evaluate whether any events related to significant concentrations or constraints have occurred, are occurring or likely to occur within 12 months of issuing the financial statements. As part of this evaluation, the City reviewed potential risks and did not identify any events or conditions that meet this criteria for disclosure. 2) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A) Deficit Fund Balance/Net Position
The 16-HOME-11532 Fund had a fund balance deficit of $2,028, which is expected to be eliminated in the future through grant reimbursements.

The following non-major governmental funds had a deficit fund balance:

The 14-HOME-9274 Fund had a fund balance deficit of $3,945, the Mello Roos CFD 2004- 1 Street Lighting Fund had a fund balance deficit of $67,475 the 13-CDBG-8933 Skate Park Fund had a fund balance deficit of $430,713, the CDBG PI Waiver Water Main Fund had a fund balance deficit of $246,000, the State Grants fund had a fund balance deficit of $1,039,179, and the Capital Improvement Project Fund had a fund balance deficit of $1,424,993, all of which are expected to be eliminated in the future through grant reimbursements.

B) Expenditures in Excess Over Appropriations
Nonmajor funds with expenditures in excess over appropriations as of June 30, 2025 were as follows:

Fund Final Budget Actual Variance
Nonmajor Funds:

Streets and Roads 656,494 $ 705,674 $ (49,180) $
Mello Roos CFD 92-1 66,200 138,128 (71,928)
Mello Roos CFD 2004-1 Fire 188,200 194,825 (6,625)
Mello Roos CFD 2004-1 Police 505,500 509,068 (3,568)
Mello Roos CFD 2004-1 Street Lighting 28,000 29,648 (1,648) Fire Impact Fees 345,500 348,383 (2,883)
88 City of Live Oak
Notes to Financial Statements
June 30, 2025
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3) CASH AND INVESTMENTS
A) Financial Statement Presentation
As of June 30, 2025, the City’s cash and investments are reported in the financial statements as follows:

Cash and investments in primary government
Governmental activities 3,918,436 $
Business-type activities 3,306,220
Total cash and investments in primary government 7,224,656 $ As of June 30, 2025, the City’s cash and investments consisted of the following:

Cash:

Cash on hand 1,020 $
Deposits with financial institutions 1,153,847
Total cash 1,154,867
Investments:

Certificate of deposit 31,000
Local Agency Investment Fund 5,423,016
Money market mutual funds 615,773
Total investments 6,069,789
Total cash and investments 7,224,656 $

89 City of Live Oak
Notes to Financial Statements
June 30, 2025
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3) CASH AND INVESTMENTS (continued)
B) Cash
At year end, the carrying amount of the City’s cash deposits was $1,153,847 and the bank balance was $1,040,122. 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:
90 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025, the City had the following recurring fair value measurements.

Investment Type Fair Value Level 1 Level 2 Level 3
Certificate of deposit 31,000 $ - $ 31,000 $ - $
Investments measured at amortized cost:

Money market mutual funds 615,773
Investments exempt from fair value hierarchy:

Local Agency Investment Fund (LAIF) 5,423,016
Total investments 6,069,789 $
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, 2025, 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) 5,423,016 5,423,016 Money market mutual funds 615,773 615,773
Total investments 6,069,789 $ 6,069,789 $

91 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025, 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, 2025, 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, 2025, the City’s investment in LAIF valued at amortized cost was $5,423,016 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 $178.0 billion.

92 City of Live Oak
Notes to Financial Statements
June 30, 2025
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4) CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2025, was as follows:

Governmental Activities
Balance at Balance at
June 30, 2024 Additions Retirements Transfers June 30, 2025 Capital assets not being depreciated
or amortized:

Land 6,584,996 $ - $ - $ - $ 6,584,996 $
Construction in progress 2,003,428 586,547 - (1,801,507) 788,468 Total capital assets not being
depreciated or amortized 8,588,424 586,547 - (1,801,507) 7,373,464 Capital assets being depreciated and
amortized:

Right to use asset - equipment 45,150 31,579 (45,150) - 31,579 Buildings and improvements 7,691,826 - - - 7,691,826
Equipment 4,966,897 455,332 - - 5,422,229
Infrastructure 25,170,594 305,483 - 1,801,507 27,277,584 Total capital assets being
depreciated and amortized 37,874,467 792,394 (45,150) 1,801,507 40,423,218 Less accumulated depreciation and
amortization for:

Right to use asset - equipment (40,635) (7,147) 45,150 - (2,632) Buildings and improvements (2,733,348) (237,008) - - (2,970,356) Equipment (4,082,553) (300,798) - - (4,383,351)
Infrastructure (10,904,444) (590,154) - - (11,494,598)
Total accumulated depreciation
and amortization (17,760,980) (1,135,107) 45,150 - (18,850,937) Net capital assets being depreciated
and amortized 20,113,487 (342,713) - 1,801,507 21,572,281 Governmental activities capital assets, net 28,701,911 $ 243,834 $ - $ - $ 28,945,745 $ Depreciation and amortization expense was charged to governmental functions as follows:

General government 26,989 $
Public safety 184,879
Community development 612,991
Culture and recreation 308,292
Public ways and facilities 1,956
Total depreciation and amortization
- governmental activities 1,135,107 $

93 City of Live Oak
Notes to Financial Statements
June 30, 2025
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4) CAPITAL ASSETS (continued)
Business-Type Activities
Balance at Balance at
June 30, 2024 Additions Retirements June 30, 2025
Capital assets not being depreciated
or amortized:

Land 233,241 $ - $ - $ 233,241 $
Construction in progress 386,022 105,484 - 491,506
Total capital assets not being
depreciated or amortized 619,263 105,484 - 724,747
Capital assets being depreciated and
amortized:

Right to use asset - equipment 22,514 31,579 (22,514) 31,579 Buildings and improvements 78,158 - (301) 77,857
Equipment 1,723,036 27,397 - 1,750,433
Infrastructure 54,043,363 - - 54,043,363
Total capital assets being
depreciated and amortized 55,867,071 58,976 (22,815) 55,903,232 Less accumulated depreciation and
amortization for:

Right to use asset - equipment (21,560) (3,586) 22,514 (2,632) Buildings and improvements (41,934) (7,843) 26 (49,751) Equipment (1,532,909) (50,896) - (1,583,805)
Infrastructure (23,877,804) (1,553,112) - (25,430,916)
Total accumulated depreciation
and amortization (25,474,207) (1,615,437) 22,540 (27,067,104) Net capital assets being depreciated
and amortized 30,392,864 (1,556,461) (275) 28,836,128
Business-type activities capital assets, net 31,012,127 $ (1,450,977) $ (275) $ 29,560,875 $ Depreciation and amortization expense was charged as follows:

Water utility 481,278 $
Sewer utility 1,134,159
Total depreciation and amortization
- business-type activities 1,615,437 $

94 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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 577,168
Total streets and roads 577,168
Total governmental activities 788,468 $
Business-type activities:

Sewer enterprise:

P St. Lift Station 386,022 $
Solar project 105,484
Total sewer enterprise 491,506
Total business-type activities 491,506 $
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, 2025:

Due From 16-HOME-11532
Other
Governmental
Funds Water Total
General Fund 2,028 $ 2,148,737 $ - $ 2,150,765 $
Program Income - 394,779 - 394,779
ARPA - 281,622 - 281,622
Other Governmental Funds - 379,893 - 379,893
Other Enterprise Funds - - 37,200 37,200
Total 2,028 $ 3,205,031 $ 37,200 $ 3,244,259 $
Due To
95 City of Live Oak
Notes to Financial Statements
June 30, 2025
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5) INTERFUND TRANSACTIONS (continued)
Transfers
The City had the following transfers during the fiscal year ending June 30, 2025:

Transfers In Transfers Out Amount
General Fund ARPA 850,000 $
General Fund Other Governmental Funds 100
General Fund Sewer 125,000
$ 975,100
Amounts transferred from the ARPA fund and Other Governmental Funds to the General Fund are to cover the negative impacts from COVID to help cover safety costs. Amounts transferred from the Sewer Fund are for the pooling of resources for capital equipment purchased to be used by both the Streets Department and the Sewer Department. 6) LOANS RECEIVABLE
At June 30, 2025, the City had the following loans receivable, including principal and accrued interest:

Governmental Activities
Loan Type Principal Interest Total
CDBG Housing Rehab 422,208 $ 128,462 $ 550,670 $
CDBG First Time Home Buyer 378,000 232,218 610,218
CDBG Public Improvements 680,800 - 680,800
EDBG Business Assistance 11,490 1 11,491
HOME Owner Occupied Rehab 1,445,337 156,952 1,602,289
HOME First Time Home Buyer 142,000 77,101 219,101
HOME Housing New Construction 12,000,000 2,623,181 14,623,181 HOME Program Income First Time Home Buyer 127,000 72,861 199,861 HOME Program Income Owner Occupied Rehab 55,483 19,812 75,295 City Loan First Time Home Buyer 75,000 39,914 114,914
Impact Fees Housing New Construction 667,349 111,740 779,089 Total $ 3,462,242 16,004,667 $ 19,466,909 $
A total of $19,466,909 was recorded as loans receivable at June 30, 2025. 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 $19,351,995 have been established in the Governmental Funds Balance Sheet for the housing and business loan principal and interest payments. 96 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025:

Amounts
Balance Balance Due Within
Type of Indebtedness June 30, 2024 Additions Retirements June 30, 2025 One Year Governmental activities:

Direct borrowings:

Financed purchase: fire engine 87,054 $ - $ (87,054) $ - $ - $ PG&E loan 124,799 - (17,039) 107,760 18,587
Lease liability 4,644 31,579 (7,205) 29,018 6,107
Total governmental activities 216,497 $ 31,579 $ (111,298) $ 136,778 $ 24,694 $ Business-type activities:

Direct borrowings and private placements:

State Department of Water
Resources revolving fund loan 3,836,740 $ - $ (195,605) $ 3,641,135 $ 197,561 $ Certificates of participation 1,500,000 - (73,000) 1,427,000 70,000 PG&E loan 36,104 - (6,847) 29,257 7,470
Lease liability 982 31,579 (3,543) 29,018 6,107
Total business-type activities 5,373,826 $ 31,579 $ (278,995) $ 5,126,410 $ 281,138 $ 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, 2025, are as follows:

A. Governmental Activities
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. This loan was paid in full as of June 30, 2025.

97 City of Live Oak
Notes to Financial Statements
June 30, 2025
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7) LONG-TERM LIABILITIES (continued)
A. Governmental Activities (continued)
The City entered into a PG&E energy efficiency loan on October 18, 2023 to convert lighting to LED at multiple City-owned locations. The change to LED lighting will help reduce energy bills and improve efficiency. Amounts are paid back based on the savings realized and as such, payments are variable from month-to-month. Debt service requirements for the loan are as follows:

PG&E Loan
Year Ended
June 30,
Governmental
Activities
Business-Type
Activities Total
2026 18,587 $ 7,470 $ 26,057 $
2027 18,587 7,470 26,057
2028 18,587 7,470 26,057
2029 18,587 6,847 25,434
2030 17,673 - 17,673
2031-2032 15,739 - 15,739
Total 107,760 $ 29,257 $ 137,017 $
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, 2025 is $3,641,135. Debt service requirements are as follows:

Year Ended Loans
June 30, Principal Interest Total
2026 197,561 $ 36,411 $ 233,972 $
2027 199,537 34,436 233,973
2028 201,532 32,440 233,972
2029 203,547 30,425 233,972
2030 205,583 28,390 233,973
2031-2035 1,059,165 110,696 1,169,861
2035-2040 1,113,193 56,668 1,169,861
2041-2042 461,017 6,927 467,944
Total 3,641,135 $ 336,393 $ 3,977,528 $

98 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025 is $627,000.

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, 2046. 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, 2025 is $800,000. Debt service requirements are as follows:

Year Ended Certificates of Participation
June 30, Principal Interest Total
2026 70,000 $ 59,288 $ 129,288 $
2027 70,000 56,312 126,312
2028 70,000 53,338 123,338
2029 70,000 50,363 120,363
2030 70,000 47,387 117,387
2031-2035 350,000 192,313 542,313
2035-2040 350,000 117,937 467,937
2041-2045 350,000 43,562 393,562
2046 27,000 638 27,638
Total 1,427,000 $ 621,138 $ 2,048,138 $
8) LEASES
A. Lease receivables
The City accrued a receivable for a lease agreement for a City building. The balance of receivable related to the lease agreement was $257,101 as of June 30, 2025. Interest revenue recognized on the lease was $3,702 and principal receipts of $41,518 were recognized for the year ended June 30, 2025. The balance of deferred inflows of resources related to leases at June 30, 2025 is $253,826.

99 City of Live Oak
Notes to Financial Statements
June 30, 2025
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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 2030. 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 Lease Liability - Governmental
June 30, Principal Interest Total
2026 6,107 $ 525 $ 6,632 $
2027 6,230 402 6,632
2028 6,356 276 6,632
2029 6,484 148 6,632
2030 3,841 26 3,867
Total 29,018 $ 1,377 $ 30,395 $
Year Ended Lease Liability - Business-Type
June 30, Principal Interest Total
2026 6,107 $ 525 $ 6,632 $
2027 6,230 402 6,632
2028 6,356 276 6,632
2029 6,484 148 6,632
2030 3,841 26 3,867
Total 29,018 $ 1,377 $ 30,395 $
9) COMPENSATED ABSENCES
A summary of the changes in compensated absences for the year ended June 30, 2025 is as follows:

Balance Balance Due in
June 30, 2024 Net Change June 30, 2025 One Year
Governmental activities 66,305 $ 36,161 $ 102,466 $ 14,026 $ Business-type activities 69,364 18,884 88,248 17,679
Total compensated absences 135,669 $ 55,045 $ 190,714 $ 31,705 $

100
City of Live Oak
Notes to Financial Statements
June 30, 2025
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10) FUND BALANCES
The fund balances for all major and non-major governmental funds as of June 30, 2025, were distributed as follows:

Other
Program 16-HOME- Governmental
General Income 11532 ARPA Funds Total
Nonspendable:

Prepaid items 30,658 $ - $ - $ - $ 39 $ 30,697 $
Subtotal 30,658 - - - 39 30,697
Restricted for:

Developer deposits - - - - 2,759 2,759
Street maintenance and
construction - - - - 337,761 337,761
Law enforcement services - - - 74,373 219,695 294,068
Sidewalk improvement - - - - 19,273 19,273
Street lighting - - - - 104,605 104,605
Mello Roos - - - - 233,917 233,917
Impact fees - - - - 2,377,194 2,377,194
Storm drain connection fees - - - - 674,858 674,858
Community development - 396,473 - - 10,150 406,623
Transportation - - - - 260,857 260,857
Subtotal - 396,473 - 74,373 4,241,069 4,711,915
Committed to:

General reserve 520,175 - - - - 520,175
City/County major fire 27,192 - - - - 27,192
Equipment replacement 111,110 - - - - 111,110
Info technology 110,930 - - - - 110,930
PERS retirement 343,184 - - - - 343,184
Health insurance 295,700 - - - - 295,700
OPEB 197,960 - - - - 197,960
Capital facilities 7,723 - - - - 7,723
Subtotal 1,613,974 - - - - 1,613,974
Unassigned - - (2,028) - (3,212,575) (3,214,603)
Totals 1,644,632 $ 396,473 $ (2,028) $ 74,373 $ 1,028,533 $ 3,141,983 $ 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”.
101
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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.

102
City of Live Oak
Notes to Financial Statements
June 30, 2025
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11) PENSION PLAN (continued)
A) General Information about the Pension Plan (continued) The Plan’s provisions and benefits in effect as of June 30, 2025 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% 7.750%
Required normal employer contribution rates 16.090% 7.960% Required employer payment of unfunded liability $217,158 $5,599 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, 2025 were $378,655.

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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows. 103
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method
Asset Valuation Method Fair 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 Acturial Cost Method

6.90%
Derived using CalPERS' membership data for all funds
The lesser of contract COLA or 2.30% until Purchasing
Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report 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 shortterm 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.

104
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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 2021-22 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

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.

105
City of Live Oak
Notes to Financial Statements
June 30, 2025
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11) PENSION PLAN (continued)
B) Net Pension Liability (continued)
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.

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: 6/30/2023 9,653,735 $ 7,270,011 $ 2,383,724 $ Balance at: 6/30/2024 10,613,531 8,250,660 2,362,871
Net Changes during 2023-24 959,796 $ 980,649 $ (20,853) $ 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, 2023 and 2024 measurement dates was as follows:

Proportionate Share - June 30, 2023 0.04767%
Proportionate Share - June 30, 2024 0.04885%
Change - Increase (Decrease) 0.00118%

106
City of Live Oak
Notes to Financial Statements
June 30, 2025
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability 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% (5.90%) (6.90%) (7.90%)
$ 2,362,871 3,689,351 $ 1,309,082 $
Amortization of Deferred Outflows and Deferred Inflows of Resources 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

107
City of Live Oak
Notes to Financial Statements
June 30, 2025
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11) PENSION PLAN (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s net pension liability was $2,383,724. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $508,567.

As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to 378,655 $ - $
measurement date
Changes in assumptions 60,731 -
Difference between expected and actual
experiences 204,292 7,971
Net difference between projected and actual
earnings on pension plan investments 136,028 -
Differences between actual contributions and the
proportionate share of contributions 38,249 6,962
Adjustment due to difference in proportions 42,118 27,772 Total 860,073 $ 42,705 $
The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $378,655 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)
2025 139,481 $
2026 332,509
2027 13,338
2028 (46,615)
Total 438,713.00 $

108
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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 $158 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, 2024 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 5 Inactive employees entitled to, but not yet receiving benefits 5 Total 38
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 $25,528 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, 2024 and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:

109
City of Live Oak
Notes to Financial Statements
June 30, 2025
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12) OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Assumptions
Actuarial Valuation Date June 30, 2023
Contribution Policy City contributes full ADC
Discount Rate and Long-Term 6.25% at June 30, 2024
Expected Rate of Return 6.25% at June 30, 2023
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 -7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser) - 6.90% for 2026,
decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 5.65% for 2026, decreasing to
an ultimate rate of 3.45% 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%

110
City of Live Oak
Notes to Financial Statements
June 30, 2025
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12) OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Discount Rate
The discount rate used to measure the total OPEB liability(asset) 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 (asset).

Changes in the Net OPEB Asset
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position (Asset)
Balance at June 30, 2024
(measurement date 6/30/2023) 343,985 $ 510,847 $ (166,862) $ Changes recognized over the
measurement period:

Service cost 30,002 - 30,002
Interest cost 22,633 - 22,633
Actual vs. expected experience - - -
Assumption charges - - -
Contributions - employer - 14,182 (14,182)
Net investment income - 55,997 (55,997)
Benefit payments (23,712) (23,712) -
Administrative expenses - (166) 166
Net Changes 28,923 46,301 (17,378)
Balance at June 30, 2025
(measurement date 06/30/2024) 372,908 $ 557,148 $ (184,240) $ 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, 2024:

Current
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Asset (139,942) $ (184,240) $ (221,160) $

111
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2024:

Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Asset (230,791) $ (184,240) $ (126,376) $
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, 2025, the City recognized OPEB expense of $13,732. As of fiscal year ended June 30, 2025, 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 25,528 $ - $ Net difference between projected and actual earnings on OPEB plan investments 5,741 -
Changes in assumptions 3,050 11,654
Differences between expected and actual experience - 53,947 Total 34,319 $ 65,601 $
The $25,528 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as an increase to the net OPEB asset in the upcoming fiscal year. 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)
2026 (9,858) $
2027 8,185
2028 (13,588)
2029 (12,880)
2030 (7,928)
Thereafter (20,741)
Total (56,810)

112
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025, 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.

113
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025, the City recorded a liability of zero of sales tax due to the County of Sutter.

As of June 30, 2025, 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 $ 49,060 $ 342,060 $
Development Impact Fee Note (drainage) 94,349 15,797 110,146 Development Impact Fee Note (fire facilities) 280,000 46,883 326,883 Total 667,349 $ 111,740 $ 779,089 $
Loans

114
City of Live Oak
Notes to Financial Statements
June 30, 2025
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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, 2025, the City considers the $584,522 a contingent liability against the Water Connection and Sewer Connection Funds.
16) CHANGE IN REPORTING ENTITY
During the fiscal year ended June 30, 2025, the City’s ARPA Fund met the requirements to be reported as a major fund. This resulted to changes to beginning fund balances as follows:

ARPA
Other
Governmental
Funds
Fund balance, beginning of year, as previously reported - $ 2,315,610 $ Adjustment - change from nonmajor to major fund 45,832 (45,832) Fund balance, beginning of year, as restated 45,832 $ 2,269,778 $ 115
City of Live Oak
Budgetary Comparison Schedule by Department
General Fund
Year Ended June 30, 2025
-64-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 2,310,265 2,310,265 $ 2,310,265 $ - $ Resources (Inflows):

Taxes and assessments 3,570,627 3,582,431 3,484,394 (98,037) Licenses and permits 202,000 248,100 216,126 (31,974)
Fines and forfeitures 1,000 1,000 813 (187)
Use of money and property 115,500 115,500 218,177 102,677 Intergovernmental 1,100 78,129 16,691 (61,438)
Charges for services 64,900 65,350 90,875 25,525
Other revenue 1,018,400 1,038,600 181,783 (856,817)
Proceeds from debt issuance - - 15,790 15,790
Transfers in - - 975,100 975,100
Amounts Available for Appropriations 7,439,375 7,283,792 7,510,014 70,639 Charges to Appropriation (Outflow):

General government:

City Council 119,219 135,826 136,972 (1,146)
Administrative Services 393,121 378,266 477,081 (98,815) Finance Services 231,403 259,799 322,675 (62,876)
City Attorney 55,000 55,000 75,811 (20,811)
Nondepartmental 182,500 234,687 - (52,187)
Public safety:

Building Inspection 216,373 114,225 171,642 (57,417)
Police Services 1,710,900 1,700,625 1,705,141 (4,516)
Animal Control Services 42,000 42,000 74,498 (32,498)
Fire Services 570,000 1,770,000 914,636 855,364
Public ways and facilities:

Engineering 26,500 26,500 78,923 (52,423)
Culture and recreation:

Park Operations 514,347 507,845 507,865 (20)
Recreation Services 372,046 485,650 407,297 78,353
Pool Operations 94,103 114,007 89,931 24,076
Facility Maintenance 132,433 190,309 185,062 5,247
Community development:

Community Development 302,468 279,625 273,049 6,576
Economic Development 19,000 6,994 5,881 1,113
Capital outlay 17,700 79,250 97,969 (18,719)
Debt service:

Principal retirement 87,054 87,054 103,033 (15,979)
Interest and fiscal charges - - 3,229 (3,229)
Total Charges to Appropriations 6,415,475 4,903,667 5,865,382 550,093 Budgetary Fund Balance, June 30 $ 1,023,900 2,380,125 $ 1,644,632 $ 620,732 $ 116
City of Live Oak
Budgetary Comparison Schedule
Program Income
Year Ended June 30, 2025
-65-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 376,944 376,944 $ 376,944 $ - $ Resources (Inflows):

Use of money and property 2,500 1,000 9,346 6,846
Intergovernmental 35,000 7,200 10,183 2,983
Amounts Available for Appropriations 386,644 412,944 396,473 9,829 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 386,644 412,944 $ 396,473 $ 9,829 $ 117
City of Live Oak
Budgetary Comparison Schedule
ARPA
Year Ended June 30, 2025
-66-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 45,832 45,832 $ 45,832 $ - Resources (Inflows):

Use of money and property 18,000 19,000 28,543 10,543
Intergovernmental - - 990,407 990,407
Amounts Available for Appropriations 63,832 64,832 1,064,782 1,000,950 Charges to Appropriation (Outflow):

Capital outlay 298,200 - 140,409 157,791
Transfer out 850,000 850,000 850,000 -
Total Charges to Appropriations 1,148,200 850,000 990,409 157,791 Budgetary Fund Balance, June 30 $ (1,084,368) (785,168) $ 74,373 $ 1,158,741 $ 118
City of Live Oak
Cost Sharing Multiple Employer Benefit Plan
Schedule of Proportionate Share of the Pension Liability Last Ten Years
-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. 119
-68-
2020 2021 2022 2023 2024 2025

0.45890% 0.04578% 0.05472% 0.04588% 0.04767% 0.04885%
$ 1,931,204 1,837,496 $ 1,038,971 $ 2,146,875 $ 2,383,724 $ 2,362,871 $ $ 1,330,269 911,603 $ 1,356,262 $ 1,524,173 $ 1,569,898 $ 1,754,725 $ 201.57% 145.17% 76.61% 140.86% 151.84% 134.66%

75.26% 75.10% 88.29% 76.68% 76.21% 78.08%
120
City of Live Oak
Cost Sharing Multiple Employer Benefit Plan Schedule of Pension Plan Contributions Last Ten Years -69-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Miscellaneous Plan
Actuarially Determined Contribution $ 234,653 219,352 $ 246,864 $ 242,734 $ 310,939 $ 340,276 $ 309,687 $ 333,621 $ 346,021 $ 378,655 $ Contribution in Relation to the Actuarially Determined Contribution (234,653) (219,352) (246,864) (242,734) (310,939) (340,276) (309,687) (333,621) (346,021) (378,655) Contribution Deficiency (Excess) $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered Payroll $ 1,108,151 1,091,598 $ 1,152,712 $ 911,603 $ 1,330,269 $ 1,356,262 $ 1,524,173 $ 1,569,898 $ 1,754,725 $ 1,855,169 $ Contributions as a Percentage of Covered Payroll 20.09% 21.18% 21.42% 26.63% 23.37% 25.09% 20.32% 21.25% 19.72% 20.41%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 changedin 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 actuarialvaluation. 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 notutilize 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. Thesechanges 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 CalPERSExperience 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, therewere 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 administrativeexpense). In 2014, amounts reported were based on the 7.5 percent discount rate. 121
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* -70-
2018 2019 2020 2021 2022 2023 2024 2025
Total OPEB LiabilityService cost $ 24,215 23,510 $ 24,941 $ 16,849 $ 17,354 $ 25,215 $ 25,908 $ 30,002 $ Interest on the total OPEB liability 18,226 16,459 20,010 21,068 22,849 23,336 25,335 22,633 Actual and expected experience difference - - (4,689) - (4,393) - (62,779) - Changes in assumptions - - (1,549) - 5,118 - (14,037) - Benefit payments (14,578) (14,428) (18,875) (10,991) (13,104) (14,711) (19,809) (23,712) Net change in total OPEB liability 27,863 25,541 19,838 26,926 27,824 33,840 (45,382) 28,923 Total OPEB liability - beginning 253,076 227,535 280,939 300,777 327,703 355,527 389,367 343,985 Total OPEB liability - ending (a) 280,939 253,076 300,777 327,703 355,527 389,367 343,985 372,908 Plan Fiduciary Net PositionContribution - employer 14,578 14,428 18,875 10,991 13,104 14,711 19,809 14,182 Net investment income 29,243 35,119 24,440 14,852 119,584 (74,210) 30,828 55,997 Benefit payments (14,578) (14,428) (18,875) (10,991) (13,104) (14,711) (19,809) (23,712) Administrative expense (682) (178) (85) (205) (165) (140) (139) (166) Net change in plan fiduciary net position 28,561 34,941 24,355 14,647 119,419 (74,350) 30,689 46,301 Plan fiduciary net position - beginning 367,526 332,585 396,087 420,442 435,089 554,508 480,158 510,847 Plan fiduciary net position - ending (b) 396,087 367,526 420,442 435,089 554,508 480,158 510,847 557,148 Net OPEB (Asset) - ending (a) - (b) $ (115,148) (114,450) $ (119,665) $ (107,386) $ (198,981) $ (90,791) $ (166,862) $ (184,240) $ Plan fiduciary net position as a percentage of the total OPEB liability 145.22% 140.99% 139.79% 132.77% 155.97% 123.32% 148.51% 149.41% Covered-employee payroll $ 1,200,174 1,011,920 $ 913,598 $ 1,330,269 $ 1,356,262 $ 1,474,266 $ 1,614,199 $ 2,272,844 $ Net OPEB asset as a percentage of
covered-employee payroll -11.31% -9.59% -13.10% -7.92% -14.67% -6.16% -10.34% -8.11% 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. 122
City of Live Oak
Schedule of OPEB Contributions As of June 30, For the Last Ten Fiscal Years* -71-
2018 2019 2020 2021 2022 2023 2024 2025
Actuarially Determined Contribution $ 18,498 32,072 $ 19,094 $ 9,061 $ 14,711 $ 10,401 $ 10,707 $ 18,601 $ Contribution in Relation to the Actuarially Determined
Contributions (14,578) (18,875) (10,991) (13,104) (14,711) (19,809) (14,182) (25,528) Contribution Deficiency (Excess) $ (377) 17,494 $ 8,103 $ (4,043) $ - $ (9,408) $ (3,475) $ (6,927) $ Covered-employee payroll $ 913,598 1,200,174 $ 1,330,269 $ 1,356,262 $ 1,474,266 $ 1,614,199 $ 2,272,844 $ 2,216,423 $ Contributions as a percentage of covered-employee payroll 1.21% 2.07% 0.83% 0.97% 1.00% 1.23% 0.62% 1.15%Notes to Schedule:Methods and assumptions used to determine contributions:Valuation Date June 30, 2023Actuarial Cost Method Entry Age Normal, Level % of payAmortization Method Level % of payAmortization Period 15-year fixed period for 2024/25Asset Valuation Method Market valueDiscount Rate 6.25%General Inflation 2.50%Medical TrendMortality CalPERS 2000-2019 experience studyMortality 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-2021Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076Medicare (non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076 123
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2025
-72-
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, 2025, the following funds did not have annual appropriated budgets.
14-HOME-9274
Developer Deposits
13-CDBG-8933
11-HOME-7661
16-HOME-11532
16-HOME11380
CDBG PI Waiver Water Main
State Grant Fund
Capital Improvement Project
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.

124
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2025
-73-
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.

125
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2025
-74-
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 fire protection services.

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

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

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

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

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

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

Community Center Impact Fees
This fund is used to account for development impact fees received for the purposes of expansion and construction of community centers.
126
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2025
-75-
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.

127
City of Live Oak
Notes to Required Supplementary Information
Year Ended June 30, 2025
-76-
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).

Capital Improvement Project
This fund is used to account for revenues and expenditures for capital projects. 128
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129
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-77-
Special Revenue Funds
Developer Streets and
14-HOME-9274 Deposits Roads Traffic Safety
Assets:

Cash and investments $ 195,768 - $ 338,400 $ 49,831 $
Receivables:

Accrued interest 886 - 1,697 223
Notes and loans - - - -
Due from other funds - - - -
Advance to other funds - - - -
Prepaid items - - 39 -
Due from other governments - - 45,328 1,081
Total Assets $ 196,654 - $ 385,464 $ 51,135 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ - - $ 45,205 $ - $
Salaries and benefits payable - - 2,459 -
Deposits payable 193,895 - - -
Due to other funds - 3,945 - -
Unearned revenues - - - -
Total Liabilities 193,895 3,945 47,664 -
Deferred Inflows of Resources:

Unavailable revenues - - - -
Deferred loan payments - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:

Nonspendable - - 39 -
Restricted 2,759 - 337,761 51,135
Unassigned - (3,945) - -
Total Fund Balances (Deficit) 2,759 (3,945) 337,800 51,135 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 196,654 - $ 385,464 $ 51,135 $ 130
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-78-
Special Revenue Funds
Sidewalk Street Mello Roos CFD
COPS Improvements Lighting 92-1
Assets:

Cash and investments $ 19,186 294,855 $ 107,532 $ - $
Receivables:

Accrued interest 87 2,401 482 95
Notes and loans - - - -
Due from other funds - 171,499 - -
Advance to other funds - - - -
Prepaid items - - - -
Due from other governments - - 608 920
Total Assets $ 19,273 468,755 $ 108,622 $ 1,015 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ - 55 $ 4,017 $ - $
Salaries and benefits payable - - - -
Deposits payable - - - -
Due to other funds - - - -
Unearned revenues - 300,140 - -
Total Liabilities - 300,195 4,017 -
Deferred Inflows of Resources:

Unavailable revenues - - - -
Deferred loan payments - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:

Nonspendable - - - -
Restricted 19,273 168,560 104,605 1,015
Unassigned - - - -
Total Fund Balances (Deficit) 19,273 168,560 104,605 1,015 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 19,273 468,755 $ 108,622 $ 1,015 $ 131
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-79-
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 $ - - $ - $ 2,261 $
Receivables:

Accrued interest - - - -
Notes and loans - - - -
Due from other funds - - - -
Advance to other funds - - - -
Prepaid items - - - -
Due from other governments 419 1,950 1,134 65
Total Assets $ 419 1,950 $ 1,134 $ 2,326 $
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 419 1,950 1,134 2,326
Unassigned - - - -
Total Fund Balances (Deficit) 419 1,950 1,134 2,326
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 419 1,950 $ 1,134 $ 2,326 $ 132
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-80-
Special Revenue Funds
Mello Roos CFD
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 $ 20,865 - $ - $ 580,974 $
Receivables:

Accrued interest 14 - 923 2,628
Notes and loans - - - -
Due from other funds - - 208,394 -
Advances to other funds - - - -
Prepaid items - - - -
Due from other governments 518 68 68 -
Total Assets $ 21,397 68 $ 209,385 $ 583,602 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 1,702 2,488 $ 57 $ - $
Salaries and benefits payable - - - -
Deposits payable - - - -
Due to other funds - 65,325 - -
Unearned revenues - - - -
Total Liabilities 1,702 67,813 57 -
Deferred Inflows of Resources:

Unavailable revenues - - - -
Deferred loan payments - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:

Nonspendable - - - -
Restricted 19,695 - 209,328 583,602
Unassigned - (67,745) - -
Total Fund Balances (Deficit) 19,695 (67,745) 209,328 583,602 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 21,397 68 $ 209,385 $ 583,602 $ 133
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-81-
Special Revenue Funds
Community General
Center Impact Public Works Government Police Impact
Fees Impact Fees Impact Fees Fees
Assets:

Cash and investments $ 132,670 383,229 $ 561,486 $ 94,716 $ Receivables:

Accrued interest 600 1,734 2,540 811
Notes and loans - - - -
Due from other funds - - - -
Advance to other funds - - - -
Prepaid items - - - -
Due from other governments - - - -
Total Assets $ 133,270 384,963 $ 564,026 $ 95,527 $
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 133,270 384,963 564,026 95,527
Unassigned - - - -
Total Fund Balances (Deficit) 133,270 384,963 564,026 95,527 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 133,270 384,963 $ 564,026 $ 95,527 $ 134
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-82-
Special Revenue Funds
Fire Impact Signal Impact Flood Control Storm Drain
Fees Fees Impact Fees Connection Fees
Assets:

Cash and investments $ 533,669 75,015 $ 2,408 $ 130,378 $ Receivables:

Accrued interest 2,414 339 11 3,037
Notes and loans 326,883 - - 452,206
Due from other funds - - - -
Advance to other funds - - - 541,443
Prepaid items - - - -
Due from other governments - - - -
Total Assets $ 536,083 402,237 $ 2,419 $ 1,127,064 $
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 - 326,883 - 452,206
Total Deferred Inflows of Resources - 326,883 - 452,206 Fund Balances:

Nonspendable - - - -
Restricted 536,083 75,354 2,419 674,858
Unassigned - - - -
Total Fund Balances (Deficit) 536,083 75,354 2,419 674,858 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 536,083 402,237 $ 2,419 $ 1,127,064 $ 135
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-83-
Special Revenue Funds
13-CDBG-8933 CDBG PI Waiver
Skate Park 11-HOME-7661 16-HOME-11380 Water Main
Assets:

Cash and investments $ 6,829 - $ 3,306 $ - $
Receivables:

Accrued interest - - 15 -
Notes and loans - - 85,121 -
Due from other funds - - - -
Advance to other funds - - - -
Prepaid items - - - -
Due from other governments - - - -
Total Assets $ 6,829 - $ 88,442 $ - $
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 6,829 - 3,321 -
Unassigned - (430,713) - (246,000)
Total Fund Balances (Deficit) 6,829 (430,713) 3,321 (246,000) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 6,829 - $ 88,442 $ - $
136
City of Live Oak
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-84-
Special Revenue Funds
Capital
Projects Fund
Capital Total
Improvement Governmental
State Grants Transportation Project Funds
Assets:

Cash and investments $ 260,058 - $ - $ 3,793,436 $
Receivables:

Accrued interest 1,183 - - 22,120
Notes and loans - - - 864,210
Due from other funds - - - 379,893
Advance to other funds - - - 541,443
Prepaid items - - - 39
Due from other governments 1,705,338 - 441,557 2,199,054 Total Assets $ 1,966,579 - $ 441,557 $ 7,800,195 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 384 - $ 5,124 $ 59,032 $
Salaries and benefits payable - - - 2,459
Deposits payable - - - 193,895
Due to other funds - 1,039,179 1,419,869 3,205,031
Unearned revenues - - - 300,140
Total Liabilities 384 1,039,179 1,424,993 3,760,557
Deferred Inflows of Resources:

Unavailable revenues 1,705,338 - 441,557 2,146,895
Deferred loan payments - - - 864,210
Total Deferred Inflows of Resources 1,705,338.00 - 441,557 3,011,105 Fund Balances:

Nonspendable - - - 39
Restricted 260,857 - - 4,241,069
Unassigned - (1,039,179) (1,424,993) (3,212,575)
Total Fund Balances (Deficit) 260,857 (1,039,179) (1,424,993) 1,028,533 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 1,966,579 - $ 441,557 $ 7,800,195 $ 137
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-85-
Special Revenue Funds
Developer Streets and
14-HOME-9274 Deposits Roads Traffic Safety
Revenues:

Taxes and assessments $ - - $ - $ - $
Licenses and permits - - - -
Fines and forfeitures - - - 13,957
Use of money and property 463 - 6,747 1,002
Intergovernmental - - 536,030 -
Charges for services - - 4,004 -
Other revenue - - 405 -
Total Revenues 463 - 547,186 14,959
Expenditures:

Current:

General government - - - -
Public safety - - - -
Public ways and facilities - - 632,334 -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - 64,974 -
Debt service:

Principal - - 8,265 -
Interest - - 101 -
Total Expenditures - - 705,674 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 463 (158,488) 14,959
Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - 15,789 -
Total Other Financing Sources (Uses) - - 15,789 -
Net Change in Fund Balances 463 - (142,699) 14,959
Fund Balances (Deficits), Previously Reported 2,296 (3,945) 480,499 36,176 Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 2,296 (3,945) 480,499 36,176 Fund Balances (Deficits), End of Year $ 2,759 (3,945) $ 337,800 $ 51,135 $ 138
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-86-
Special Revenue Funds
Sidewalk Street Mello Roos CFD
COPS Improvements Lighting 92-1
Revenues:

Taxes and assessments $ - - $ 53,255 $ 118,783 $
Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property 455 14,941 2,408 528
Intergovernmental - - - -
Charges for services - - 887 -
Other revenue - 491,617 - -
Total Revenues 455 506,558 56,550 119,311
Expenditures:

Current:

General government - - - -
Public safety - 435,273 - -
Public ways and facilities - - 61,515 -
Culture and recreation - - - -
Community development - - - 138,128
Capital outlay 91,345 - - -
Debt service:

Principal - - - -
Interest - - - -
Total Expenditures - 526,618 61,515 138,128
Excess (Deficiency) of Revenues
Over (Under) Expenditures (20,060) 455 (4,965) (18,817) Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 455 (20,060) (4,965) (18,817) Fund Balances (Deficits), Previously Reported 18,818 188,620 109,570 19,832 Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 18,818 188,620 109,570 19,832 Fund Balances (Deficits), End of Year $ 19,273 168,560 $ 104,605 $ 1,015 $ 139
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-87-
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 $ 143,931 132,596 $ 390,336 $ 22,685 $ Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property 395 194 909 42
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 144,326 132,790 391,245 22,727
Expenditures:

Current:

General government 194,825 - - -
Public safety - 154,337 509,068 25,500
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest - - - -
Total Expenditures 194,825 154,337 509,068 25,500
Excess (Deficiency) of Revenues
Over (Under) Expenditures (21,547) (50,499) (117,823) (2,773) Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (50,499) (21,547) (117,823) (2,773) Fund Balances (Deficits), Previously Reported 50,918 23,497 118,957 5,099 Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 50,918 23,497 118,957 5,099 Fund Balances (Deficits), End of Year $ 419 1,950 $ 1,134 $ 2,326 $ 140
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-88-
Special Revenue Funds
Mello Roos CFD
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 $ 178,350 23,467 $ 23,467 $ - $
Licenses and permits - - - 3,725
Fines and forfeitures - - - -
Use of money and property 326 - 4,615 13,866
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 178,676 23,467 28,082 17,591
Expenditures:

Current:

General government - - - -
Public safety - - - -
Public ways and facilities - 29,648 8,291 -
Culture and recreation 194,868 - - -
Community development - - - -
Capital outlay - - - 9,300
Debt service:

Principal - - - -
Interest - - - -
Total Expenditures 194,868 29,648 8,291 9,300
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,181) (16,192) 19,791 8,291 Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (16,192) (6,181) 19,791 8,291 Fund Balances (Deficits), Previously Reported 35,887 (61,564) 189,537 575,311 Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 35,887 (61,564) 189,537 575,311 Fund Balances (Deficits), End of Year $ 19,695 (67,745) $ 209,328 $ 583,602 $ 141
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-89-
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 765 881 1,338 733
Fines and forfeitures - - - -
Use of money and property 3,133 9,063 13,274 5,784
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 3,898 9,944 14,612 6,517
Expenditures:

Current:

General government - - - -
Public safety - - - 183,440
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest - - - -
Total Expenditures - - - 183,440
Excess (Deficiency) of Revenues
Over (Under) Expenditures 9,944 3,898 14,612 (176,923)
Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 3,898 9,944 14,612 (176,923) Fund Balances (Deficits), Previously Reported 129,372 375,019 549,414 272,450 Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 129,372 375,019 549,414 272,450 Fund Balances (Deficits), End of Year $ 133,270 384,963 $ 564,026 $ 95,527 $ 142
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-90-
Special Revenue Funds
Fire Impact Signal Impact Flood Control Storm Drain
Fees Fees Impact Fees Connection Fees
Revenues:

Taxes and assessments $ - - $ - $ - $
Licenses and permits 6,842 2,029 - 3,949
Fines and forfeitures - - - -
Use of money and property 12,527 5,093 57 23,642
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 19,369 7,122 57 27,591
Expenditures:

Current:

General government - - - -
Public safety - - - -
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay 348,383 - - -
Debt service:

Principal - - - -
Interest - - - -
Total Expenditures - 348,383 - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures (341,261) 19,369 57 27,591
Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 19,369 (341,261) 57.00 27,591 Fund Balances (Deficits), Previously Reported 516,714 416,615 2,362 647,267 Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 516,714 416,615 2,362 647,267 Fund Balances (Deficits), End of Year $ 536,083 75,354 $ 2,419 $ 674,858 $ 143
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-91-
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 16 - 79 -
Intergovernmental - - - -
Charges for services - - - -
Other revenue - - - -
Total Revenues 16 - 79 -
Expenditures:

Current:

General government - - - -
Public safety - - - -
Public ways and facilities - - - -
Culture and recreation - - - -
Community development - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 16 79 -
Other Financing Sources (Uses)
Transfers out - - - -
Proceeds from debt issuance - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 16 - 79 -
Fund Balances (Deficits), Previously Reported 6,813 (430,713) 3,242 (246,000) Adjustment - Change from Major to Nonmajor - - - -
Fund Balances (Deficits), Beginning of Year 6,813 (430,713) 3,242 (246,000) Fund Balances (Deficits), End of Year $ 6,829 (430,713) $ 3,321 $ (246,000) $ 144
City of Live Oak
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-92-
Special Revenue Funds
Capital
Projects Fund
Capital Total
ARPA Improvement Governmental
State Grants Transportation (formerly nonmajor) Project Funds Revenues:

Taxes and assessments $ - - $ - $ 1,086,870 $
Licenses and permits - - - 20,262
Fines and forfeitures - - - 13,957
Use of money and property 6,198 - - 125,757
Intergovernmental - - 134,998 671,028
Charges for services - - - 4,891
Other revenue - 180 - 492,202
Total Revenues 6,198 180 134,998 2,414,967
Expenditures:

Current:

General government - - - 194,825
Public safety - - - 1,307,618
Public ways and facilities 3,983 - - 735,771
Culture and recreation - - - 194,868
Community development - - - 138,128
Capital outlay - - 578,323 1,092,325
Debt service:

Principal - - - 8,265
Interest - - - 101
Total Expenditures 3,983 - 578,323 3,671,901
Excess (Deficiency) of Revenues
Over (Under) Expenditures 180 2,215 (443,325) (1,256,934) Other Financing Sources (Uses)
Transfers out (100) - - (100)
Proceeds from debt issuance - - - 15,789
Total Other Financing Sources (Uses) (100) - - 15,689
Net Change in Fund Balances 2,115 180 (443,325) (1,241,245) Fund Balances (Deficits), Previously Reported 258,742 (1,039,359) 45,832 (981,668) 2,315,610 Adjustment - Change from Major to Nonmajor - - (45,832) (45,832) Fund Balances (Deficits), Beginning of Year 258,742 (1,039,359) - (981,668) 2,269,778 Fund Balances (Deficits), End of Year $ 260,857 (1,039,179) $ - $ (1,424,993) $ 1,028,533 $ 145
City of Live Oak
Budgetary Comparison Schedule
Street and Roads
Year Ended June 30, 2025
-93-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 480,499 480,499 $ 480,499 $ - $ Resources (Inflows):

Use of money and property - 7,662 6,747 6,747
Intergovernmental 502,456 504,368 536,030 31,662
Charges for services 4,805 4,100 4,004 (96)
Other revenues - - 405 405
Proceeds from debt issuance - - 15,789 15,789
Amounts Available for Appropriations 988,967 995,422 1,043,474 54,507 Charges to Appropriation (Outflow):

Public ways and facilities 541,758 533,994 632,334 (98,340) Capital outlay 122,500 122,500 64,974 57,526
Debt service - principal - - 8,265 (8,265)
Debt service - interest - - 101 (101)
Total Charges to Appropriations 656,494 664,258 705,674 (49,180) Budgetary Fund Balance, June 30 $ 332,473 331,164 $ 337,800 $ 5,327 $ 146
City of Live Oak
Budgetary Comparison Schedule
Traffic Safety
Year Ended June 30, 2025
-94-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 36,176 36,176 $ 36,176 $ - $ Resources (Inflows):

Fines and forfeitures 7,444 - 13,957 6,513
Use of money and property 500 1,500 1,002 502
Intergovernmental - 2,500 - -
Amounts Available for Appropriations 44,120 40,176 51,135 7,015 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 44,120 40,176 $ 51,135 $ 7,015 $ 147
City of Live Oak
Budgetary Comparison Schedule
COPS
Year Ended June 30, 2025
-95-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 188,620 188,620 $ 188,620 $ - $ Resources (Inflows):

Use of money and property 9,000 9,000 14,941 5,941
Other revenue 200,000 200,000 491,617 291,617
Amounts Available for Appropriations 397,620 397,620 695,178 297,558 Charges to Appropriation (Outflow):

Public safety 435,500 400,500 435,273 227
Capital outlay 95,000 92,500 91,345 1,155
Total Charges to Appropriations 528,000 495,500 526,618 1,382 Budgetary Fund Balance, June 30 $ (130,380) (97,880) $ 168,560 $ 298,940 $ 148
City of Live Oak
Budgetary Comparison Schedule
Sidewalk Improvement
Year Ended June 30, 2025
-96-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 18,818 18,818 $ 18,818 $ - $ Resources (Inflows):

Use of money and property 500 500 455 (45)
Amounts Available for Appropriations 19,318 19,318 19,273 (45) Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 19,318 19,318 $ 19,273 $ (45) $ 149
City of Live Oak
Budgetary Comparison Schedule
Street Lighting
Year Ended June 30, 2025
-97-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 109,570 109,570 $ 109,570 $ - $ Resources (Inflows):

Taxes and assessments 54,464 - 53,255 (1,209)
Use of money and property 1,200 1,114 2,408 1,208
Charges for services - - 887 887
Amounts Available for Appropriations 165,234 110,684 166,120 886 Charges to Appropriation (Outflow):

Public ways and facilities 63,800 63,800 61,515 2,285
Total Charges to Appropriations 63,800 63,800 61,515 2,285 Budgetary Fund Balance, June 30 $ 101,434 46,884 $ 104,605 $ 3,171 $ 150
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFO 92-1
Year Ended June 30, 2025
-98-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 19,832 19,832 $ 19,832 $ - $ Resources (Inflows):

Taxes and assessments 120,355 - 118,783 (1,572)
Use of money and property 200 - 528 328
Amounts Available for Appropriations 140,387 19,832 139,143 (1,244) Charges to Appropriation (Outflow):

Community development 66,200 63,700 138,128 (71,928)
Total Charges to Appropriations 66,200 63,700 138,128 (71,928) Budgetary Fund Balance, June 30 $ 74,187 (43,868) $ 1,015 $ (73,172) $ 151
City of Live Oak
Budgetary Comparison Schedule
Fire Benefit Assessment
Year Ended June 30, 2025
-99-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 23,497 23,497 $ 23,497 $ - $ Resources (Inflows):

Taxes and assessments 134,650 - 132,596 (2,054)
Use of money and property 150 - 194 44
Amounts Available for Appropriations 158,297 23,497 156,287 (2,010) Charges to Appropriation (Outflow):

Public safety 154,400 154,400 154,337 63
Total Charges to Appropriations 154,400 154,400 154,337 63 Budgetary Fund Balance, June 30 $ 3,897 (130,903) $ 1,950 $ (1,947) $ 152
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Fire
Year Ended June 30, 2025
-100-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 50,918 50,918 $ 50,918 $ - $ Resources (Inflows):

Taxes and assessments 138,822 137,021 143,931 5,109
Use of money and property 500 500 395 (105)
Amounts Available for Appropriations 190,240 188,439 195,244 5,004 Charges to Appropriation (Outflow):

General government 188,200 203,200 194,825 (6,625)
Total Charges to Appropriations 188,200 203,200 194,825 (6,625) Budgetary Fund Balance, June 30 $ 2,040 (14,761) $ 419 $ (1,621) $ 153
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Police
Year Ended June 30, 2025
-101-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 118,957 118,957 $ 118,957 $ - $ Resources (Inflows):

Taxes and assessments 385,610 380,608 390,336 4,726
Use of money and property 1,000 - 909 (91)
Amounts Available for Appropriations 505,567 499,565 510,202 4,635 Charges to Appropriation (Outflow):

Public safety 505,500 525,500 509,068 (3,568)
Total Charges to Appropriations 505,500 525,500 509,068 (3,568) Budgetary Fund Balance, June 30 $ 67 (25,935) $ 1,134 $ 1,067 $ 154
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Animal Services
Year Ended June 30, 2025
-102-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 5,099 5,099 $ 5,099 $ - $ Resources (Inflows):

Taxes and assessments 23,137 22,837 22,685 (452)
Use of money and property 50 - 42 (8)
Amounts Available for Appropriations 28,286 27,936 27,826 (460) Charges to Appropriation (Outflow):

Public safety 25,500 25,500 25,500 -
Total Charges to Appropriations 25,500 25,500 25,500 -
Budgetary Fund Balance, June 30 $ 2,786 2,436 $ 2,326 $ (460) $ 155
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Street Lighting
Year Ended June 30, 2025
-103-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (61,564) (61,564) $ (61,564) $ - $ Resources (Inflows):

Taxes and assessments 23,137 22,837 23,467 330
Use of money and property 100 - - (100)
Amounts Available for Appropriations (38,327) (38,727) (38,097) 230 Charges to Appropriation (Outflow):

Public ways and facilities 28,000 28,000 29,648 (1,648) Total Charges to Appropriations 28,000 28,000 29,648 (1,648) Budgetary Fund Balance (Deficit), June 30 $ (66,327) (66,727) $ (67,745) $ (1,418) $ 156
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Park/Recreation/Pool
Year Ended June 30, 2025
-104-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 35,887 35,887 $ 35,887 $ - $ Resources (Inflows):

Taxes and assessments 177,381 175,080 178,350 969
Use of money and property 450 424 326 (124)
Amounts Available for Appropriations 213,718 211,391 214,563 845 Charges to Appropriation (Outflow):

Culture and recreation 195,200 193,800 194,868 332
Total Charges to Appropriations 195,200 193,800 194,868 332 Budgetary Fund Balance, June 30 $ 18,518 17,591 $ 19,695 $ 1,177 $ 157
City of Live Oak
Budgetary Comparison Schedule
Mello Roos CFD 2004-1 Storm Drain
Year Ended June 30, 2025
-105-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 189,537 189,537 $ 189,537 $ - $ Resources (Inflows):

Taxes and assessments 23,137 22,837 23,467 330
Use of money and property 2,400 2,140 4,615 2,215
Amounts Available for Appropriations 215,074 214,514 217,619 2,545 Charges to Appropriation (Outflow):

Public ways and facilities 12,000 7,500 8,291 3,709
Total Charges to Appropriations 12,000 7,500 8,291 3,709 Budgetary Fund Balance, June 30 $ 203,074 207,014 $ 209,328 $ 6,254 $ 158
City of Live Oak
Budgetary Comparison Schedule
Parks & Recreation Impact Fees
Year Ended June 30, 2025
-106-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 575,311 575,311 $ 575,311 $ - $ Resources (Inflows):

Licenses and permits 3,582 - 3,725 143
Use of money and property 7,750 7,723 13,866 6,116
Amounts Available for Appropriations 586,643 583,034 592,902 6,259 Charges to Appropriation (Outflow):

Capital outlay 94,000 94,000 9,300 84,700
Total Charges to Appropriations 94,000 94,000 9,300 84,700 Budgetary Fund Balance, June 30 $ 492,643 489,034 $ 583,602 $ 90,959 $ 159
City of Live Oak
Budgetary Comparison Schedule
Community Center Impact Fees
Year Ended June 30, 2025
-107-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 375,019 375,019 $ 375,019 $ - $ Resources (Inflows):

Licenses and permits 881 - 881 -
Use of money and property 4,750 4,734 9,063 4,313
Amounts Available for Appropriations 380,650 379,753 384,963 4,313 Charges to Appropriation (Outflow):

Capital outlay - - - -
Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 380,650 379,753 $ 384,963 $ 4,313 $ 160
City of Live Oak
Budgetary Comparison Schedule
Public Works Impact Fees
Year Ended June 30, 2025
-108-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 129,372 129,372 $ 129,372 $ - $ Resources (Inflows):

Licenses and permits 653 - 765 112
Use of money and property 1,650 1,630 3,133 1,483
Amounts Available for Appropriations 131,675 131,002 133,270 1,595 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 131,675 131,002 $ 133,270 $ 1,595 $ 161
City of Live Oak
Budgetary Comparison Schedule
General Government Impact Fees
Year Ended June 30, 2025
-109-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 549,414 549,414 $ 549,414 $ - $ Resources (Inflows):

Licenses and permits 1,143 - 1,338 195
Use of money and property 7,000 6,929 13,274 6,274
Amounts Available for Appropriations 557,557 556,343 564,026 6,469 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 557,557 556,343 $ 564,026 $ 6,469 $ 162
City of Live Oak
Budgetary Comparison Schedule
Police Impact Fees
Year Ended June 30, 2025
-110-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 272,450 272,450 $ 272,450 $ - $ Resources (Inflows):

Licenses and permits 626 - 733 107
Use of money and property 3,500 3,436 5,784 2,284
Amounts Available for Appropriations 276,576 275,886 278,967 2,391 Charges to Appropriation (Outflow):

Public safety 230,000 230,000 183,440 46,560
Total Charges to Appropriations 230,000 230,000 183,440 46,560 Budgetary Fund Balance, June 30 $ 46,576 45,886 $ 95,527 $ 48,951 $ 163
City of Live Oak
Budgetary Comparison Schedule
Fire Impact Fees
Year Ended June 30, 2025
-111-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 416,615 416,615 $ 416,615 $ - $ Resources (Inflows):

Licenses and permits 1,733 - 2,029 296
Use of money and property 5,000 5,249 5,093 93
Amounts Available for Appropriations 423,348 421,864 423,737 389 Charges to Appropriation (Outflow):

Capital outlay 345,500 60,000 348,383 (2,883)
Total Charges to Appropriations 345,500 60,000 348,383 (2,883) Budgetary Fund Balance, June 30 $ 77,848 361,864 $ 75,354 $ (2,494) $ 164
City of Live Oak
Budgetary Comparison Schedule
Signal Impact Fees
Year Ended June 30, 2025
-112-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 161,205 161,205 $ 516,714 $ 355,509 $ Resources (Inflows):

Licenses and permits 3,092 - 6,842 3,750
Use of money and property 6,600 6,319 12,527 5,927
Amounts Available for Appropriations 170,897 167,524 536,083 365,186 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 170,897 167,524 $ 536,083 $ 365,186 $ 165
City of Live Oak
Budgetary Comparison Schedule
Flood Control Impact Fees
Year Ended June 30, 2025
-113-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 2,362 2,362 $ 2,362 $ - $ Resources/Inflows 30 225 57 27
Amounts Available for Appropriations 2,392 2,587 2,419 27 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 2,392 2,587 $ 2,419 $ 27 $ 166
City of Live Oak
Budgetary Comparison Schedule
Storm Drain Connection Fees
Year Ended June 30, 2025
-114-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 38,559 38,559 $ 647,267 $ 608,708 $ Resources (Inflows):

Licenses and permits 3,949 - 3,949 -
Use of money and property 22,000 15,617 23,642 1,642
Amounts Available for Appropriations 64,508 54,176 674,858 610,350 Charges to Appropriation (Outflow):

Total Charges to Appropriations - - - -
Budgetary Fund Balance, June 30 $ 64,508 54,176 $ 674,858 $ 610,350 $ 167
City of Live Oak
Budgetary Comparison Schedule
Transportation
Year Ended June 30, 2025
-115-
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (430,713) (430,713) $ 258,742 $ 689,455 $ Resources (Inflows):

Use of money and property 3,275 3,275 6,198 2,923
Intergovernmental - - - -
Amounts Available for Appropriations (427,438) (427,438) 264,940 692,378 Charges to Appropriation (Outflow):

Public ways and facilities 5,700 5,800 3,983 1,717
Transfer out 100 100 100 -
Total Charges to Appropriations 5,800 5,900 4,083 1,717 Budgetary Fund Balance, June 30 $ (433,238) (433,338) $ 260,857 $ 694,095 $ 168
City of Live Oak
Combining Statement of Net Position
Non-Major Proprietary Funds
June 30, 2025
-116-
Business-Type Activities - Proprietary Funds
Water Sewer
Connection Connections Total
Assets:

Current:

Cash and investments $ 302,661 288,638 $ 591,299 $
Receivables:

Accrued interest 7,093 7,636 14,729
Due from other funds - 37,200 37,200
Total Current Assets 309,754 333,474 643,228
Noncurrent:

Advance to other funds 1,362,141 1,265,248 2,627,389
Total Noncurrent Assets 1,265,248 1,362,141 2,627,389
Total Assets 1,575,002 1,695,615 3,270,617
Liabilities:

Total Liabilities - - -
Net Position:

Restricted for capital projects 1,575,002 1,695,615 3,270,617 Total Net Position $ 1,575,002 1,695,615 $ 3,270,617 $
169
City of Live Oak
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Non-Major Proprietary Funds
Year Ended June 30, 2025
-117-
Business-Type Activities - Proprietary Funds
Water Sewer
Connection Connections Total
Operating Revenues:

Sales and service charges $ 14,088 11,734 $ 25,822 $
Total Operating Revenues 14,088 11,734 25,822
Operating Income 14,088 11,734 25,822
Nonoperating Revenues:

Interest revenue 37,017 39,870 76,887
Total Nonoperating Revenues 37,017 39,870 76,887
Changes in Net Position 51,105 51,604 102,709
Net Position:

Beginning of Fiscal Year 1,523,897 1,644,011 3,167,908
End of Fiscal Year $ 1,575,002 1,695,615 $ 3,270,617 $
170
City of Live Oak
Combining Statement of Cash Flows
Non-Major Proprietary Funds
Year Ended June 30, 2025
-118-
Business-Type Activities - Proprietary Funds
Water Sewer
Connection Connections Total
Cash flows from operating activities:

Cash received from customers and users $ 14,088 11,734 $ 25,822 $ Cash flows from noncapital financing activities:

Advances paid to other funds (1,265,248) (1,399,341) (2,664,589) Cash flows from investing activities:

Interest on investments 38,971 42,008 80,979
Net decrease in cash and cash equivalents (1,212,189) (1,345,599) (2,557,788) Cash and cash equivalents at beginning of year 1,514,850 1,634,237 3,149,087 Cash and cash equivalents at end of year $ 302,661 288,638 $ 591,299 $ Reconciliation of operating income to cash flows
provided by (used for) operating activities:

Operating income $ 14,088 11,734 $ 25,822 $
Net cash provided by operating activities $ 14,088 11,734 $ 25,822 $ 171
City of Live Oak
Statistical Section
For the Fiscal Year Ended June 30, 2025
-119-
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. 172
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173
City of Live Oak
Net Position by Component Last Ten Fiscal Years (full accrual basis of accounting) -120-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Govermental Activites
Net investment in capital assets 27,103,387 $ 28,265,740 $ 28,377,393 $ 28,831,714 $ 28,129,068 $ 29,188,335 $ 28,551,024 $ 28,451,964 $ 28,485,414 $ 28,808,967 $ Restricted 4,272,612 3,345,863 3,980,298 3,708,676 3,885,096 3,691,906 23,228,119 659,753 22,282,141 26,557,074 Unrestricted (deficit) 4,280,849 5,445,053 6,722,869 17,008,977 20,932,421 19,566,055 1,307,845 23,792,653 1,520,468 (2,418,109) Total governmental activities net position 35,656,848 37,056,656 39,080,560 49,549,367 52,946,585 52,446,296 53,086,988 52,904,370 52,288,023 52,947,932 Business-type Activities
Net investment in capital assets 28,599,846 28,727,091 28,647,690 28,082,900 28,405,269 29,355,009 28,172,308 26,933,171 25,623,365 24,418,725 Restricted 2,401,678 1,343,421 341,832 540,108 815,915 1,306,135 3,057,635 3,182,844 3,286,357 Unrestricted (deficit) 2,554,799 3,760,366 3,110,022 3,238,836 3,433,811 2,828,996 4,720,811 1,350,717 36,927 (1,262,727) Total business-type activities net position 33,556,323 33,830,878 32,099,544 31,861,844 32,654,995 33,490,140 32,893,119 31,341,523 28,843,136 26,442,355 Primary Government
Net investment in capital assets 55,703,233 56,992,831 57,025,083 56,914,614 56,534,337 58,543,344 56,723,332 55,385,135 54,108,779 53,227,692 Restricted 6,674,290 4,689,284 4,322,130 4,248,784 4,701,011 4,998,041 23,228,119 3,717,388 25,464,985 29,843,431 Unrestricted (deficit) 6,835,648 9,205,419 9,832,891 20,247,813 24,366,232 22,395,051 6,028,656 25,143,370 1,557,395 (3,680,836) Total primary government net position 69,213,171 $ 70,887,534 $ 71,180,104 $ 81,411,211 $ 85,601,580 $ 85,936,436 $ 85,980,107 $ 84,245,893 $ 81,131,159 $ 79,390,287 $ Source: ACFR
174
City of Live Oak
Changes in Net Position Last Ten Fiscal Years (full accrual basis of accounting) -121-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 ExpensesGovermental Activities:

General government 519,223 $ 699,781 $ 990,032 $ 990,360 $ 893,380 $ 774,096 $ 931,014 $ 970,176 $ 1,103,062 $ 1,505,629 $ Public safety 2,235,826 2,033,209 1,984,144 2,006,236 2,313,013 2,328,780 2,517,012 2,970,288 2,871,404 4,358,414Public ways and facilities 1,196,682 2,031,089 1,579,362 966,937 1,053,622 1,827,022 1,243,057 583,760 1,008,210 794,262Culture and recreation 609,869 833,110 926,952 1,071,086 1,197,655 1,187,739 1,207,729 1,499,961 1,519,986 1,751,336Community development 2,474,188 2,060,694 1,828,608 429,642 4,815,355 537,626 52,895 975,406 1,050,284 1,036,952Interest on long-term debt 2,584 520 5,952 25,222 21,932 16,884 31,899 9,247 6,324 2,035 Total Govermental Activities Expenese 7,038,372 7,658,403 7,315,050 5,489,483 10,294,957 6,672,147 5,983,606 7,008,838 7,559,270 9,448,628 Busines-type Activities:

Water 1,275,640 1,306,471 1,300,029 1,335,960 1,313,223 1,596,824 1,770,843 1,927,586 2,524,661 2,316,357 Sewer 2,704,970 2,724,674 2,898,819 2,925,050 2,855,811 3,038,425 3,085,361 3,463,892 3,621,167 3,668,798 Total Business-type Activities Expenese 3,980,610 4,031,145 4,198,848 4,261,010 4,169,034 4,635,249 4,856,204 5,391,478 6,145,828 5,985,155 Total Primary Government Expenese 11,018,982 $ 11,689,548 $ 11,513,898 $ 9,750,493 $ 14,463,991 $ 11,307,396 $ 10,839,810 $ 12,400,316 $ 13,705,098 15,433,783 Program RevenuesGovermental Activities:

Charges for services:

General government 83,748 $ 366,660 $ 492,972 $ 427,673 $ 296,639 $ 392,632 $ 402,145 $ 422,183 $ 626,575 536,930 Public safety 398,570 4,057 2,728 4,230 6,582 4,781 6,607 2,754 13,674 13,956 Public ways and facilities 973,516 233,355 1,781,220 39,870 199,616 439,942 500,019 195,292 28,079 16,447 Culture and recreation 185,432 64,221 61,744 56,343 35,211 20,816 38,968 48,234 63,041 66,288 Community development 320,667 1,055,642 2,005,122 115,139 - - - - - - Operating grants and contributions 2,793,371 1,857,982 277,728 1,146,628 9,988,595 1,399,265 1,143,071 364,224 348,611 3,450,739Capital grants and contributions 1,690,492 1,295,923 100,745 100,156 28,210 38,118 57,965 478,664 434,956 134,998 Total Govermental Activities Program Revenues 6,445,796 4,877,840 4,722,259 1,890,039 10,554,853 2,295,554 2,148,775 1,511,351 1,514,936 4,219,358 Busines-type Activities:

Charges for services:

Water 878,199 809,830 878,229 879,586 879,726 940,189 799,208 915,239 947,373 982,061Sewer 2,291,083 2,243,244 2,265,104 2,289,788 2,328,299 2,378,415 2,436,477 2,494,773 2,495,182 2,552,385Water Connections - 15,270 68,930 109,333 121,653 428,682 448,210 160,335 11,734 11,734Sewer Connections - 9,053 - 89,628 144,228 508,232 482,350 199,166 14,088 14,088 Capital grants and contributions 23,000 1,027,513 864,919 - - - - - - - Total Business-type Activities Program Revenues 3,192,282 4,104,910 4,077,182 3,368,335 3,473,906 4,255,518 4,290,109 3,769,513 3,468,377 3,560,268 Total Primary Government Program Revenues 9,638,078 $ 8,982,750 $ 8,799,441 $ 5,258,374 $ 14,028,759 $ 6,551,072 $ 6,438,884 $ 5,280,864 $ 4,983,313 $ 7,779,626 $ Source: ACFRStatement of Activities
175
City of Live Oak
Changes in Net Position (continued) Last Ten Fiscal Years (full accrual basis of accounting) -122-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Net (Expense)/Revenues (1)
Govermental Activities (592,576) $ (2,780,563) $ (2,592,791) $ (3,599,444) $ 259,896 $ (4,376,593) $ (3,834,831) $ (5,497,487) $ (6,044,334) $ (5,229,270) $ Busines-type activities (788,328) 73,765 (121,666) (892,675) (695,128) (379,731) (566,095) (1,621,965) (2,677,451) (2,424,887) Total Primary Govermental Net Expense (1,380,904) (2,706,798) (2,714,457) (4,492,119) (435,232) (4,756,324) (4,400,926) (7,119,452) (8,721,785) (7,654,157) General Revenues and Other Changes in Net PositionGovermental Activities:

Taxes:

Property taxes 1,383,175 1,476,356 1,470,113 1,867,354 1,760,699 1,878,102 1,843,633 2,330,230 2,480,350 2,643,447 Sales and use taxes 297,481 325,380 358,667 427,506 399,002 371,363 520,544 598,071 567,519 569,323Franchise taxes 166,356 - - 232,801 231,699 245,828 284,861 298,307 303,031 312,355Property taxes 11,536 - - - - - - - - -Motor vehicle in lieu - unrestricted - - - 328,139 337,283 429,421 415,704 457,867 514,915 551,432 Other taxes - 716,398 750,153 1,058,557 1,269,351 1,619,334 739,612 1,262,269 1,086,312 1,106,983 Use of money and property - 87,766 120,425 42,769 317,698 84,839 358,363 347,278 458,498 392,005Grants and contributions - unrestricted 34,609 - - - - - - - - -Interest and investment earnings 113,073 - - - - - - - - -Miscellaneous 217,676 - - - - - - - - 187,634Other - 541,664 322,717 265,241 238,755 458,167 306,961 20,847 17,362 -Transfers - 25,000 1,556,000 (577,087) (1,417,165) (1,210,750) - - - 125,000Special Item - - - - - - - - - - Total Governmental Activities 2,223,906 3,172,564 4,578,075 3,645,280 3,137,322 3,876,304 4,469,678 5,314,869 5,427,987 5,888,179 Busines-type Activities:

Use of money and property - 28,460 50,063 77,888 71,114 - - 70,369 179,064 149,106 Interest and investment earnings 21,309 - - - - - - - - -Miscellaneous 164 - - - - - - - - -Other - 667 - - - 4,126 (30,925) - - -Transfers - (25,000) (1,556,000) 577,087 1,417,165 1,210,750 - - - (125,000) Total Busines-Type Activities 21,473 4,127 (1,505,937) 654,975 1,488,279 1,214,876 (30,925) 70,369 179,064 24,106Total Primary Government 2,245,379 $ 3,176,691 $ 3,072,138 $ 4,300,255 $ 4,625,601 $ 5,091,180 $ 4,438,753 $ 5,385,238 $ 5,607,051 $ 5,912,285 $ Change in Net Position
Govermental Activities 1,631,330 392,001 1,985,284 45,836 3,397,218 (500,289) 634,847 (182,618) (616,347) 658,909Busines-type activities (766,855) 77,892 (1,627,603) (237,700) 793,151 835,145 (597,020) (1,551,596) (2,498,387) (2,400,781) Total Primary Government 864,475 $ 469,893 $ 357,681 $ (191,864) $ 4,190,369 $ 334,856 $ 37,827 $ (1,734,214) $ (3,114,734) $ (1,741,872) $ 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. 176
City of Live Oak
Fund Balance - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) -123-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 General Fund
Nonspendable 8,115 $ 10,661 $ 11,357 $ 15,268 $ 10,659 $ 29,319 $ 10,143 $ 6,514 $ 33,005 $ 30,658 $ Committed 2,525,652 2,534,045 2,548,739 2,548,739 2,607,392 2,605,435 2,599,487 2,599,487 2,277,260 1,613,974Unassigned 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 4,764,414 $ 4,620,605 $ 4,987,680 $ 4,670,321 $ 4,462,405 $ 4,194,753 $ 3,960,294 $ 3,122,701 $ 2,310,265 1,644,632 All Other Governmental Funds
Nonspendable 330 $ 4,712 $ 3,983 $ 4,559 $ 15,402 $ 7,094 $ - $ 410 $ - $ 39 $ Restricted 4,272,282 3,345,863 3,874,348 3,708,676 3,741,774 3,691,906 2,643,073 5,462,480 376,944 4,711,915Unassigned (1,270,688) (1,840,637) (538,556) (485,594) (716,124) (2,325,939) - (2,428,634) - (3,214,603) Total All Other Governmental Funds 3,001,924 $ 1,509,938 $ 3,339,775 $ 3,227,641 $ 3,041,052 $ 1,373,061 $ 2,643,073 $ 3,034,256 $ 376,944 $ 1,497,351 $ Source: ACFR
177
City of Live Oak
Changes in Fund Balance - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) -124-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Revenues
Taxes and assessment 2,411,650 $ 2,518,134 $ 2,578,933 $ 3,586,218 $ 3,660,751 $ 4,114,627 $ 2,878,237 $ 4,271,436 $ 4,388,683 $ 4,571,264 $ Licenses and permits 646,258 450,120 557,939 394,950 290,495 414,375 1,394,162 629,636 326,237 236,388 Fines and forfeitures 6,935 4,057 2,728 4,230 5,140 4,781 7,617 4,005 14,603 14,770 Use of money and property 113,073 87,766 120,425 259,955 238,755 84,839 45,150 281,095 452,466 381,823 Intergovernemtal 3,853,365 3,443,320 4,248,576 1,119,755 951,050 922,241 1,455,599 1,056,595 1,336,478 1,688,309 Charges for services 558,685 103,286 115,920 96,709 173,919 215,656 61,234 79,400 94,866 95,766 Other revenues 217,676 558,732 324,639 310,832 5,085,002 1,141,554 374,180 158,749 12,278 673,985 Total Revenues 7,807,642 7,165,415 7,949,160 5,772,649 10,405,112 6,898,073 6,216,179 6,480,916 6,625,611 7,662,305 Expenditures
Current:

General government 488,652 688,906 857,597 906,681 791,833 765,267 677,139 866,180 1,126,437 1,442,051 Public safety 2,148,112 1,914,124 1,867,994 1,883,345 2,141,889 2,183,544 2,372,891 2,804,018 2,724,371 4,173,535 Public ways and facilities 735,070 1,472,836 997,626 972,143 918,792 1,601,353 704,499 570,482 758,696 814,694 Culture and recreation 501,979 725,565 789,094 763,960 868,515 893,998 894,267 1,182,073 1,295,536 1,385,023 Capital outlay 1,866,084 1,909,114 1,329,178 1,092,702 338,033 1,979,271 304,638 902,055 1,373,385 417,058 Community development 2,482,059 2,041,715 1,956,524 434,675 5,688,770 1,168,779 49,602 444,550 469,893 1,330,703 Debt service
Principal 67,461 68,581 54,146 123,414 125,933 128,540 144,525 147,514 156,644 111,298 Interest 2,584 520 5,952 25,222 21,932 16,884 33,065 10,454 7,574 3,330 Total Expenditures 8,292,001 8,821,361 7,858,111 6,202,142 10,895,697 8,737,636 5,180,626 6,927,326 7,912,536 9,677,692 Excess of Revenues Over (under) Expenditures (484,359) (1,655,946) 91,049 (429,493) (490,585) (1,839,563) 1,035,553 (446,410) (1,286,925) (2,015,387) Other Financial Sources (Uses)
Proceeds from debt issuance - - - - - - - - 130,759 31,579 Transfers in 615,014 1,470,949 2,491,184 442,810 74,435 100,955 611,000 - - 975,100 Transfers out (615,014) (1,445,949) (409,587) (442,810) (74,435) (100,955) (611,000) - - (850,100) Capital Leases - - 549,863 - - - - - - -
Total Other Financial Sources (Uses) - 25,000 2,631,460 - - - - - 130,759 156,579 Special Item - Reinstatement of loan receivable - (4,849) - - - - - - - - Extraordinary gain - - - - - - - - - -
Net Change in Fund Balances (484,359) $ (1,635,795) $ 2,722,509 $ (429,493) $ (490,585) $ (1,839,563) $ 1,035,553 $ (446,410) $ (1,156,166) $ (1,858,808) $ Debt Service as a Percentage of
Noncapital Expenditures 1.10% 1.01% 0.93% 3.00% 1.42% 2.20% 3.78% 2.69% 2.58% 1.25% 178
City of Live Oak
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
-125-
Taxable
SBE Assessed % Direct
Fiscal Year Secured Unsecured Nonunitary Value Change Rate 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% 2023/2024 638,005,857 8,148,780 2,614 589,260,087 9.49% 1.131% 2024/2025 650,238,946 3,944,354 6,534 645,190,627 9.49% 1.240%

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. 179
City of Live Oak
Property Tax Rates – All Overlapping Governments Last Ten Fiscal Years -126-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024-2025 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 0.073 0.065 0.372 0.114 0.372 0.117 0.108 0.100 0.099 0.098 Yuba Community College District 0.025 0.026 0.073 0.030 0.073 0.031 0.036 0.032 0.031 0.027 Special Districts - - - - - - - -

1.091 1.098 1.445 1.144 1.445 1.148 1.144 1.132 1.131 1.124 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
180
City of Live Oak
Principal Property Tax Payers
Current Year and Nine Years Ago
-127-
Fiscal Year 2024/2025
Percent of
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
9000 Larkin Road LLC $26,894,340 4.56%
Live Oak Pacific Associates III 11,021,100 1.87%
Millenium Farms LLC 5,016,414 0.85%
Corrections Corporation of America 3,892,627 0.66%
Rilco-Edwards LLC 3,605,472 0.61%
Kashmir K Gill Et Al 3,576,547 0.61%
Sunsweet Dryers 3,534,524 0.60%
Jaswant S Saprai 2,949,120 0.50%
Salgle Rev 88 Trust Et Al 2,870,400 0.49%
H And S Energy LLC 2,865,395 0.49%
$66,225,939 11.24%
Total City of Live Oak assessed property valuation Fiscal Year 2024/25 645,978,732 $ Fiscal Year 2015/2016
Percent of
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
CCA Properties of America 6,872,628 $ 2.04%
9000 Larkin Road 4,077,844 1.21%
Tower Energy Group Corporation 3,459,330 1.03%
Millennium Farms LLC 3,267,368 0.97%
Rilco-Edwards LLC 3,059,940 0.91%
Jaswant S. Saprai 2,416,558 0.72%
Sunsweer Dryers Etal 2,349,477 0.70%
KB Home Sacramento Inc 2,134,000 0.63%
Slagle Rev 88 Trust Etal 2,120,500 0.63%
Kashmir K Gill 1,816,092 0.54%
$ 9.39% 31,573,737
Total City of Live Oak assessed property valuation Fiscal Year 2015/16 336,158,254 $ Source: Assessor's Office, County of Sutter
HDL Coren & Cone - Preliminary FY 2024-2025 Report
Top Ten Property Tax Payers
181
City of Live Oak
Property Tax Levies and Collections
Last Ten Fiscal Years
-128-
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 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%
2023/2024 1,047,592 1,047,592 100.00% - 1,047,592 100.00% 2024/2025 1,091,223 1,091,223 100.00% 1,091,223 100.00% 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 182
City of Live Oak
Ratios of Outstanding Debt by Type Last Ten Fiscal Years -129-
Business-Type Activities
Leases and Certificates Total Percentage Percentage
Financed of Lease Primary of Person of Assessed Per
Fiscal Year Loans Purchases Total Loans Bonds Participation Liabilities Total Government Income (1) Value (2) Capita (1) 2015/2016 440,022 $ - $ 440,022 $ 5,333,446 $ - $ 2,060,000 $ 113,903 $ 7,507,349 $ 7,947,371 $ #DIV/0! 2.36% 935 2016/2017 371,441 - 371,441 5,152,808 - 1,990,000 46,015 7,188,823 7,560,264 #DIV/0! 2.12% 859 2017/2018 317,295 549,863 867,158 4,970,364 - 1,920,000 - 6,890,364 7,757,522 #DIV/0! 2.07% 883 2018/2019 264,413 479,331 743,744 4,786,095 - 1,850,000 - 6,636,095 7,379,839 #DIV/0! 1.88% 841 2019/2020 211,530 406,281 617,811 4,599,983 - 1,780,000 - 6,379,983 6,997,794 #DIV/0! 1.65% 785 2020/2021 158,648 330,623 489,271 4,412,011 - 1,710,000 - 6,122,011 6,611,282 #DIV/0! 1.45% 711 2021/2022 105,766 252,264 358,030 4,222,159 - 1,640,000 - 5,862,159 6,220,189 #DIV/0! 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 #DIV/0! 1.09% 620 2023/2024 124,799 91,698 216,497 3,872,844 - 1,500,000 982 5,373,826 5,590,323 3.52% 0.96% 600 2024/2025 100,142 - 100,142 3,671,014 - 1,430,000 - 5,101,014 5,201,156 3.24% 0.81% 544 (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: ACFR City of Live Oak Annual Financial Reports Finance Department, City of Live Oak (Long Term Debt Schedule) Governmental Activities
183
City of Live Oak
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
-130-
General Bonded
Debt Outstanding
General Percent of
Obligation Assessed Per
Fiscal Year Bonds Total Value Population Capita
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% 9,443 6
2023/2024 124,799 124,800 0.02% 9,436 13
2024/2025 100,142 100,142 0.02% 9,553 10
Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
Hdl Coren & Cone
184
City of Live Oak
Direct and Overlapping Bonded Debt
As of June 30, 2025
-131-
City Assessed Valuation 654,564,479 $
-
Adjusted Assessed Valuation 654,564,479 $

Estimated
Outstanding Share of
Percent Debt Overlapping
Applicable June 30, 2025 Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:

Live Oak Unified School District 49.564% 19,860,000 $ 9,843,410 $ Yuba Commuinty College District 1.448% 164,161,106 2,377,053 Sutter Butte Flood Control Agency Assessment District 5.213% 73,500,000 3,831,555

Total Overlapping Tax and Assessment Debt 16,052,018 257,521,106 OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Sutter County Certificates of Participation 4.892% 5,165,000 $ 252,672 Sutter County Board of Education Certificates of Participations 4.892% 18,040,000 882,517 Yuba Joint Community College General Fund Obligations 1.448% 7,383,952 106,920 Live Oak Unified School District Certificates of Participation 49.564% 5,562,912 2,757,202 City of Live Oak General Fund Obligations 100.000% - -
Total Overlapping General Fund Obligation Debt 3,999,311 36,151,864 Total Overlapping Debt 20,051,329 293,672,970
City Direct Debt $ - -
Total Combined Debt $ 20,051,329 293,672,970 $
RATIOS TO 2023/2024 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 3.06%
RATIOS TO ADJUSTED ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 2.450%
Combined Direct Debt 0.000%
Combined Total Debt 3.060%
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
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. 185
City of Live Oak
Computation of Legal Bonded Debt Margin
June 30, 2025
-132-
Secured Property Assessed Value, Net of Exempt Real Property 645,190,627 $ Bonded debt limit (3.75% of assessed value) (a) 24,194,649 $ Less debt subject to limit:

Total water certificates of participation at 06/30/25 (760,000) Total sewer certificates of participation at 06/30/25 (600,000) Legal debt margin $ 22,834,649
Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
HDL Coren & Cone - Preliminary FY 2024-2025 Report
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. 186
City of Live Oak
Demographic and Economic Statistics
Last Ten Calendar Years
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Per Capita
Personal Income Taxable Taxable Average
Calendar Total Assessed Property Unemployment
Year Population (in thousands) Per Capita Valuation Values Rate 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 9,443 160,692 17,017 538,189,510 56,993 4.90%
2024 9,436 161,075 17,071 589,260,087 62,451 5.70%
2025 9,553 160,508 16,802 654,564,479 68,519 6.10%
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.

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

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

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

Source:

Avenu Insights & Analytics
2016-17 and prior, previously published CAFR Report
Munis Report
Note: Data pertaining to personal income is not readily available, thus the City used taxable assessed values to calculate per capita taxable property values. Data pertaining to personal income for calendar year 2016, and 2017 is not readily avaible, thus the City provided an average using data from the last three years. 187
City of Live Oak
Principal Employers
Current Year and Prior Year
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2024-2025 Percent 2023-2024 Percent
Number of of Total Number of of Total
Employer Employees Employment Employees Employment
Live Oak Unified School District 273 6.66% 256 6.24%
River Valley Care Center 100 2.44% 160 3.90%
Dollar General Market 26 0.63% 24 0.59%
Peach Tree Health (Formerly Live Oak Medical Clinic) 23 0.56% 21 0.51% City of Live Oak 23 0.56% 23 0.56%
E-Center Head Start - Yuba-Sutter 22 0.54% 25 0.61%
Chevron Tower Supermarket 16 0.39% 16 0.39%
United States Post Office 11 0.27% 12 0.29%
Live Oak Pharmacy 6 0.15% 6 0.15%
Gold County Bank 4 0.10%
Total 504 12.29% 543 13.24%
Total City Employment (1) 4100
Note:

Source: City of Live Oak
Avenu Insights & Analytics
(1) Employment Development Department, State of California Munis Report
188
City of Live Oak
Full-Time and Part-Time City Government Employees Last Ten Fiscal Years -135-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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 City Clerk's Office 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Administration 1.00 - 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 Finance/Administrative Services 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Community Development - - - - - - - - 1.00 1.00
Public Works 7.00 10.00 7.00 7.00 8.00 7.00 10.00 10.00 10.00 10.00 Parks and Recreation 8.00 7.00 9.00 9.00 10.00 6.00 8.00 8.00 10.00 8.00 Building 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 Total Full-Time Equivalent Employees 29.00 30.00 30.00 30.00 31.00 27.00 32.00 32.00 33.00 32.00 Source: Finance Department, City of Live OakEmail sent 10/4/19** There is an Interim Public Works Director until the full time position is filled. 189
City of Live Oak
Operating Indicators Last Ten Fiscal Years
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2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Business Licenses: Annual Business License 129 137 132 119 121 130 140 133 129 126 One Time License 10 7 6 8 9 5 5 5 66
Environment and Utilities: Gallons of wastewater treated per year (in millions) 218 380 251 384 393 300 310 274 274 274Fire - Within City Limits Fires per year 21 19 16 87 95 21 44 43 29 51 Emergency medical calls per year 738 682 678 977 699 832 921 904 845 1008 Hazardous materials incidents per year 7 14 16 5 25 18 10 28 13 8 Non-emergency service calls per year 78 275 271 85 92 224 277 320 278 328 Fire - Outside City Limits Within County Fires per year 42 36 19 45 86 56 46 26 27 22 Emergency medical calls per year 155 156 181 105 188 287 126 139 287 212 Hazardous materials incidents per year 12 9 8 1 10 18 5 4 15 2 Non-emergency service calls per year 112 104 113 65 32 192 88 109 134 25 Police 911 calls per year 1,965 1,998 1862 1491 1632 1809 2051 2099 2508 2479 Cases investigated per year 616 696 744 1153 1074 752 1055 817 1478 1291 Arrests per year 123 121 124 213 192 224 185 182 252 268 Building Permits Building permits issued per year 279 241 210 313 279 276 284 349 252 254 New building and alteration valuation 9,442,021 $ 9,442,021 $ 9,060,757 $ 23,059,905 $ 14,842,766 $ 21,625,800 $ 27,270,794 $ 14,110,722 $ 6,104,869 $ 6,565,137 $ Source: City of Live Oak, Finance/Building Dept's Sutter County Sheriff Sutter County Fire 190
City of Live Oak
Capital Asset Statistics Last Ten Fiscal Years
-137-
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Enviroment and Utilities Miles of municipal sewer mains 25.6 25.6 25.6 25.6 25.6 25.6 25.6 25.6 25.6 28.9 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 31.5 31.5 31.5 31.5 31.5 31.5 31.5 31.5 31.5 33.5 Water wells 4 4 5 5 6 6 7 7 5 5 Water storage tanks 1 1 1 1 1 1 1 1 1 1
Fire Full-time staffed positions 4 6 6 6 6 6 6 6 6 6
Volunteer stations 1 1 1 1 3 3 3 3 13 13
Police Stations 1 1 1 1 1 1 1 1 1 1
Vehicles and motorcycles 10 10 10 10 10 12 12 12 10 13
Community Development Miles of municipal roadways 29.50 29.50 29.50 29.50 29.50 29.50 29.50 29.50 29.50 31.90 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
191
City of Live Oak
Sales Value History
Last Ten Fiscal Years
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Full Median
Calendar Value Average Median %
Year Sales Price Price Change
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%
2024 48 362,354 382,500 -0.65%
2025 *Information unavailable at time of report
Source: Assessor's Office, County of Sutter
Finance Department, City of Live Oak
HDL Coren & Cone - Preliminary FY 2024-2025 Report
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CERTIFIED PUBLIC ACCOUNTANTS
-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, 2025.

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.

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. 194
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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, 2025. 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 15, 2025
195
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City of Live Oak

APPROPRIATIONS LIMIT WORKSHEET
2024 – 2025
Per capita personal income change 3.62%
Population change:

City population growth 2.33%
CPI change converted to a ratio 1.0362
Population change converted to a ratio 1.0233
Calculation of growth factor 1.0603
2023 - 2024 Limit 6,761,748 $
2024 - 2025 Limit
($6,761,748 x 1.0362 x 1.0233) 7,169,775 $ *
*allow for rounding
196
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-1-

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Live Oak, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), 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 entity), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated December 15, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’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. 197
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

San Bernardino, California
December 15, 2025
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Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-1-
December 15, 2025
To the Honorable City Council
City of Live Oak, California
We have audited the financial statements of the City of Live Oak (the entity) as of and for the year ended June 30, 2025, and have issued our report thereon dated December 15, 2025. 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 April 2, 2025, 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 the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity 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.

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

We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:

Prior to the issuance of the entity’s financial statements, another partner or manager, independent of the engagement, will review the financial statements. 199
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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 Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. “The City adopted GASB Statement No. 101, Compensated Absences, and GASB Statement No. 102, Certain Risk Disclosures” or “There have been no initial selection of accounting policies or their application” during 2025. 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 and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the entity’s financial statements are:

Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports 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 basic financial statements taken as a whole and in relation to the applicable opinion units.

Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are 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 basic financial statements taken as a whole and in relation to the applicable opinion units.

200
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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 entity’s financial statements relate to:

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

The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions.

Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. No material misstatements were identified as a result of our audit procedures.

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 entity’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 15, 2025.

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, the entity utilized the services of Eide Bailly for consulting services related to the fiscal yearend closing process.

201
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Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, 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 entity’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 entity’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards, we have:

Read the transmittal letter and statistical section (or “other information”) and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. Our opinion(s) on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon
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.

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

Very truly yours,
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Purpose:

Background:

Analysis:

Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Jessica Mata, Human Resources
Subject: Department Directors Employment Agreement
Summary: Recommendation: 1) Adopt a resolution to establish a standard Department Director Employment Agreement; and 2) Authorize the City Manager to negotiate salaries within Council defined limits as well as initial leave balances, accrual rates, and fringe benefits and to make occasional updates and changes to the agreement subject to City Attorney review where not to exceed Council established fiscal year budget limits.

Fiscal Impact: There is no direct fiscal impact associated with creating a standard Employment Agreement. Any costs related to the authorization of the City Manager negotiating fringe benefits are expected to be covered within the current budget.

To establish a standard Employment Agreement for Department Directors and to authorize the City Manager the ability to negotiate specific terms during the hiring process.

The City does not have a standard Employment Agreement for Department Directors.

Historically, employment agreements for these positions have been created independent of each other, which has led to inconsistencies in employment terms.

Applicants who are interested in Director roles may come from other government agencies where they have accumulated long-term employment benefits, or have previously negotiated other benefits that might not be offered by the City of Live Oak. It's important to be flexible when negotiating certain benefits on a case-by-case basis, this allows the City to acknowledge the candidate's experience and remain competitive during the recruitment process.

The implementation of a standard Employment Agreement for Department Directors addresses the need for consistency with key terms of employment across all director positions.

CITY OF LIVE OAK

STAFF REPORT
Agenda Item 5.
209
Fiscal Impact:

Recommendation:

This will formalize the procedures for hiring Department Directors and will clarify the terms of negotiable benefits during the hiring process. Standardizing the agreement will have an impact on the existing Parks and Recreation Director, matching terms with the new agreement.

Authorizing the City Manager to negotiate certain benefits provides flexibility in addressing candidates' needs and prior employment experience within Council approved budget limits.

There is no direct fiscal impact associated with creating a standard Employment Agreement.

Any costs related to the authorization of the City Manager negotiating fringe benefits are expected to be covered within the current budget.
1) Adopt a resolution to establish a standard Department Director Employment Agreement; and 2) Authorize the City Manager to negotiate salaries within Council defined limits as well as initial
leave balances, accrual rates, and fringe benefits and to make occasional updates and changes
to the agreement subject to City Attorney review where not to exceed Council established fiscal
year budget limits.

Attachments:

Resolution - Employment Agreement
Exhibit A - Department Director Employment Agreement
Agenda Item 5.
210
1 Resolution No.

RESOLUTION ESTABLISHING A STANDARD DEPARTMENT DIRECTOR EMPLOYMENT AGREEMENT AND AUTHORIZING

THE CITY MANAGER TO NEGOTIATE SALARIES WITHIN COUNCIL DEFINED LIMITS AS WELL AS INITIAL LEAVE BALANCES,

ACCRUAL RATES, AND FRINGE BENEFITS AND TO MAKE OCCASIONAL UPDATES AND CHANGES TO THE AGREEMENT SUBJECT TO CITY ATTORNEY REVIEW WHERE NOT TO EXCEED COUNCIL ESTABLISHED FISCAL YEAR BUDGET LIMITS.

WHEREAS, the City of Live Oak hires Department Directors to provide leadership, direction, and oversight for all departmental functions ensuring they align with the policies set by the City Manager and the City Council; and WHEREAS, the City of Live Oak has not previously adopted a standard Employment Agreement for Department Directors; and
WHEREAS, different agreements have been used in the past causing inconsistencies in terms; and WHEREAS, establishing a standard Employment Agreement will provide a clear and consistent hiring process; and WHEREAS, candidates for the Department Director positions may have different experience, compensation, leave balances, and fringe benefits from long-term employment with other agencies which require reasonable flexibility during the hiring process; and
WHEREAS, the City Council has reviewed and desires to approve the standard Department Director Employment Agreement attached as Exhibit “A”.

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

SECTION 1: The City Council adopts the standard Employment Agreement attached as Exhibit “A”.

SECTION 2: The City Council authorizes the City Manager to negotiate salaries, initial leave balances, accrual rates, and fringe benefits for Department Directors within Council defined limits.

SECTION 3: The City Council authorizes the City Manager to occasionally make updates and changes to the agreement subject to City Attorney review and where not to exceed Council established fiscal year budget.

PASSED AND ADOPTED by the City Council of the City of Live Oak on this 21st day of January, 2026, by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:

APPROVED:

Jeramy Chapdelaine, Mayor
ATTEST:

Clarissa Menchaca, City Clerk
211

CITY OF LIVE OAK
AND

EMPLOYEE NAME

EMPLOYMENT AGREEMENT
For the position of Director of Department Name
This agreement is made and entered into this XX day of Month Year, between the City of Live Oak, a municipal corporation, hereinafter referred to as "CITY" and Employee Name, hereinafter referred to as " EMPLOYEE ".

WITNESSETH
WHEREAS, CITY desires to employ the services of Employee as CITY Director of Department Name; and
WHEREAS, CITY agrees to employ the services of Employee as the Director of Department Name to perform the functions and duties as specified in the CITY classification specification and to perform other legally permissible and proper duties and functions of the CITY from time to time as may be assigned by CITY; and
WHEREAS, Employee shall, by this agreement, become an "at-will" employee of the CITY, and may be terminated with or without cause by the City Manager.

NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES AND

COVENANTS HEREINAFTER CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS:

1. Term:

The EMPLOYEE acknowledges he/she serves in the position of Director of Department Name at the discretion of the City Manager. The term of this agreement shall be ongoing and remain in full force, unless terminated by either party for any reason, at any time, in writing, with an effective date for such termination, (see "Resignation and Termination"), or the Agreement is replaced or amended by mutual agreement of both parties in the future.

2. Duties:

EMPLOYEE agrees to perform any and all duties outlined in the City’s Municipal Code as may be from time to time amended, and such other permissible and proper duties and functions as the City Manager may from time-to-time assign, including but not limited to areas of service for which he/she is otherwise qualified and certificated.

EMPLOYEE shall devote his/her full energy, skill, ability and productive time to the performance of his duties. EMPLOYEE shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, which is actually or 212
potentially in conflict with, inimical to, or which interferes with the performance of his/her duties. Further, EMPLOYEE shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, in excess of FIVE THOUSAND DOLLARS ($5,000.00) per year without the express permission of the City Manager.

3. Salary:

The CITY agrees to pay Director of Department Name for services rendered, as provided herein, an annual salary of $$$ effective MONTH XX, Year, and payable in bi-weekly payroll periods and pro-rated for partial bi-weekly hours worked.

The salary stated in this contract shall not be deemed to be a fixed amount and may be increased at the discretion of the City Manager within the parameters established in the salary schedule adopted by the City Council for the position of Director of Department Name. The City Manager shall review and evaluate the performance of EMPLOYEE at least once every year. City Manager shall provide Employee with an evaluation of performance and goals with an adequate opportunity to be discussed.

4. Benefits:
(a) Vacation, Sick Leave, and Holiday accruals and use shall be the same as provided in the Local 1 Union MOU with the City, as is currently in effect and as periodically updated and adopted by Council. Employee will begin employment with a bank of Amount of hours (xx) hours of Vacation time and will accrue additional Vacation time at the xx-year employee accrual rate (then increase, based on Employee’s years in public service with the City of Live Oak). Employee will be granted Amount of hours (xx) hours of Administrative Leave on Month XX, Year and each July 1
st thereafter.

Administrative Leave will not be carried over past June 30th of each year. In June of each year, Employee may annually make an irrevocable election to cash out a maximum of 40 hours of Administrative Leave. The election shall be made on the form provided by the City for this purpose. The hours selected will be cashed out every June 30th, and to be paid to the Employee in the following month of July. Any remaining Administrative Leave balance will not be carried over or paid.
(b) The Employee shall be entitled to participate in the current health/dental/vision insurance offered by City pursuant to the Local 1 Union MOU as is currently in effect and as periodically updated and adopted by Council. (c) Employee shall receive all other leaves (bereavement, family and medical, jury duty, military, etc.) as other general employees, as set forth in the Local 1 Union MOU with the City as is currently in effect and as periodically updated and adopted by Council.
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(d) Employee shall receive the same legal holidays as other general employees, as set forth in the Local 1 Union MOU with the City as is currently in effect and as periodically updated and adopted by Council.
(e) Employee may voluntarily pay into a deferred compensation as is offered to other management employees.
(f) All retirement terms shall be in accordance with state law and as set forth in the Local 1 Union MOU with the City as is currently in effect and as periodically updated and adopted by Council.
(g) Training and certification expenses, as well as membership dues to necessary professional organizations shall be budgeted by the City Council based upon availability of funds. City Manager will support Employee’s attendance at such annual training conferences as are approved and budgeted by the City Council. (h) City shall not at any time during this Agreement reduce salary, compensation or other benefits provided to Employee, except as to the degree of such reduction across-the-board for all employees of City.
(i) City shall pay Employee one hundred dollars ($100.00) per month for a technology allowance.
(j) City shall pay Employee five hundred dollars ($500.00) per month for a car allowance in lieu of mileage within a fifty-mile radius of Live Oak, subject to the conditions outlined in the City’s Personnel Rules and Regulations for mileage and car allowance. Allowance is to adjust with inflation, to the nearest whole dollar, with the Consumer Price Index for All Urban Consumers, U.S.

City Average biennially beginning July 1, 2027

5. Hours of Work:

Employee is generally expected to be working during the City’s regular business hours. It is recognized that the Employee must devote a great deal of time outside the normal office hours on business for the Employer, and to that end Employee shall be allowed to establish an appropriate work schedule or occasionally adjust an established work schedule, subject to the approval of the City Manager.

6. Resignation and Termination:

Employee is requested to give CITY at least 30 days advance written notice of termination of this agreement by Employee. Employee may be terminated at any time, without cause.

Notwithstanding City's absolute right to terminate Employee without cause, Employee may be terminated at anytime for cause. Cause shall be for any "improper conduct" as defined in 214
the Personnel Rules and Regulations of the City of Live Oak. Employee shall not be entitled to severance pay if EMPLOYEE is terminated for cause.

7. Termination of Employment and Severance:

In the event the CITY terminates EMPLOYEE’S employment without cause, The CITY shall pay EMPLOYEE severance in a sum equal to three (3) months base salary and the continuation of all medical, vision, and dental benefits (collectively “severance”) for that period of time.

Prior to payment by the CITY of any severance, and as an express condition to receiving such severance shall sign and deliver to the CITY a waiver fully releasing the CITY (including its employees, officers and agents) from any and all claims by the EMPLOYEE.

If EMPLOYEE is terminated for cause, the CITY shall not owe any severance under this agreement. The determination of whether there is cause for termination may include, but shall not be limited to the following:
 Knowingly violating administrative policies and procedures;  Failure to properly perform assigned duties;
 Theft of City property;
 Conviction of a felony, or conviction of a misdemeanor relating to employee’s fitness to perform assigned duties;
 Unauthorized absence from employment
 Reporting for work, or being at work, under the influence of or in possession of alcohol or non-prescribed controlled substances;
 Improper use of City funds;
 Unauthorized use of City property;
 Any act of moral turpitude or dishonesty; and
 Other failure of good behavior either during or outside of employment such that the employee’s conduct causes discredit to the City.

12. Other Terms and Conditions of Employment:

The City Manager shall fix any other terms and conditions of employment, as it may determine from time to time, provided such terms and conditions are not inconsistent with or in conflict with the provisions of the Agreement, or any other law.

13. Abuse of Position:

Pursuant to California Government Code Section 53243.2, regardless of the term of this contract, if the contract is terminated, any cash settlement related to the termination that Employee may receive from CITY shall be fully reimbursed to CITY if EMPLOYEE is convicted of a crime involving the abuse of this position. 215

14. General Provisions
(a) This agreement shall be binding upon and inure to the benefit of the successors, assigns, heirs at law and personal representative of Employee.
(b) If any provisions, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed sever able, shall not be affected, and shall remain in full force and IN WITNESS WHEREOF, the City of Live Oak has caused this Agreement to be signed and executed on its behalf by its City Manager and duly attested by its City Clerk, and the Employee has signed and executed this Agreement, both in duplicate, the day and year first above written.

City of Live Oak
Date: _____________________ Date: _____________________ _________________________ _________________________
By: Employee Name By: Benjamin K. Moody
City Manager
ATTEST:
_________________________
Clarissa Menchaca, City Clerk
APPROVED AS TO FORM:
_________________________
Nicole Delerio-Rosser, City Attorney
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Date: January 21, 2026
To: Honorable Mayor & Members of the City Council
From: Nicole Rosser, City Attorney
Subject: Significant Exposure to Litigation Pursuant to California Government Code Section 54956.9(b):

One case.

CITY OF LIVE OAK

STAFF REPORT
Agenda Item 6.
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