Loyalton City Council
January 17, 2023

CITY OF LOYALTON
COUNTYOfS11:.RRA
605 SCHOOL STREET
P.O. BOX 128
LOYALTON, CALIFORNIA 96118
(530) 993-6750
c1tyofloyalton.org

OFFICE OF THE MAYOR

AGENDA FOR THE REGULAR MEETING OF THE

LOYALTON CITY COUNCIL
6:00 P.M. - CITY HALL AUDITORIUM
605 SCHOOL STREET
JANUARY 17TH, 2023
NEXT ORDINANCE #425
NEXT RESOLUTION NO. 1-2023

AGENDA & PACKET AVAILABLE ON CITY WEB SITE
cityofloyalton.org
Any person with a disability may submit a request for reasonable modification or accommodation to the above-described means for accessing and offering comment at the meeting to Kathy LeBlanc, City Clerk, at [ ofclerk-cityofloyalton @psln.com] who will swiftly resolve such request.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. APPROVAL OF AGENDA

5. ANNOUNCEMENTS

6. APPROVAL OF MINUTES
Regular Meeting December 201
\ 2022 (Attachment)

7. STAFF REPORTS

8. PUBLIC COMMENT
This is an opportunity for members of the public to address the Council on items which are not on the agenda. Please state your name for the record. Comments are limited to three minutes. Written comments should be submitted to the City Clerk 24 hours prior to the meeting to allow for distribution. Under Government Code Section 54954.2 - Brown Act, the Council cannot take action on any item not on the posted agenda

9. FIRE DEPARTMENT REPORT

10. FINANCIAL COMMITTEE REPORTS

1. Financial Committee Report/Update
• Approval ofReconciled Accounts for December 2022
(Attachment)
• Approval of Bill Sheet December 2022 (Attachment)
• Approval ofAudit 2021-2022
• Acknowledgment ofApproval of Fund Transfer from General 1956 to Enterprise Loan MM 0559 not to exceed $24,000.00 (Attachment)
• Acknowledgment of Approval of Fund Transfer from
Enterprise Loan MM 0559 to General 1956 not to exceed
$17,941.40 (Attachment)
• Acknowledgment ofApproval ofFund Transfer from General 1956 to Fire Department Reserve 7243 not to exceed
$2,043.76 ( Attachment)

11. PUBLIC WORKS COMMITTEE REPORTS/PARK AND RECREATION

12. OTHER COMMITTEE REPORTS

13. DISCUSSION AND POSSIBLE ACTION ITEMS

1. Discussion and Possible Action regarding Reaffirming our State of Emergency Water Distribution System.

2. Discussion and Possible Regarding Town Hall Meeting on Water Distribution System.

3. Discussion and Possible Action regarding designation ofReal Property Negotiator.

4. Discussion and Possible Action regarding Potential Sale ofSocial Hall. (Attachment)

5. Discussion and Possible Action regarding Prop 68 Community Center Project. (Attachment)

6. Discussion and Possible Action regarding 511 and 505 Main Street. (Attachment)

7. Discussion and Possible Action regarding Verizon Wireless Tower.

8. Approval ofBusiness License for Martin Snow Removal (Attachment)

14. AGENDA INPUT FOR UPCOMING MEETINGS

15. BOARD MEMBER CLOSING REMARKS

16. ADJOURNMENT
December 20th, 2022

REGULAR MEETING
The Regular meeting of the Loyalton City Council was called to order by Mayor S. Jackson on December 20th , 2022 at 6:00 p.m. Loyalton City Auditorium COUNCIL MEMBERS PRESENT Mayors. Jackson, D. Riede, J. Markum, J. Gerow

COUNCIL MEMBERS ABSENT

STAFF PRESENT
City Clerk- Kathy LeBlanc

GUESTS PRESENT
G. Nelson, B. Mertton, C. Johnson, L. Garza, J. Mitchell, P. DeMartini, L. Sequido, P. Gayner, D. Manas, G.

Price, L. Mcintosh

APPROVAL OF AGENDA
It was moved by J. Markum, seconded by D. Riede to approve the agenda as presented. Motion carried.

ANNOUNCEMENTS
None

CERTIFICATION OF ELECTION RESULTS
It was moved by J. Markum, seconded by J. Gerow to approve the election results for the General Election of 11-8-22. Motion carried.

OATH OF OFFICE
City Clerk K. LeBlanc issued the oath of office to S. Jackson, G. Gerow, D. Gayner (City Clerk was sworn in by Mayor Jackson)

APPOINTMENT OF MAYOR AND VICE MAYOR

1. It was moved by D. Riede, seconded by J. Markum to appoint S. Jackson as Mayor. Motion unanimously carried.

2. It was moved by J. Markum, seconded by D. Riede to appoint J. Gerow as Vice-Mayor. Motion unanimously carried.

APPOINTMENT OF BOARDS AND COMMITTTEE'S
Mayor Jackson appointed the following:

LAFCO- D. Gayner, J. Markum, S. Jackson- Alternate (This is a four year term) LTC- D. Riede, J. Gerow, D. Gayner
SCORE- K. Leblanc, G. Morris- Alternate
SVGWMD-J. Gerow, J. Markum-Alternate
FINANCE- S. Jackson, J. Markum, J. Gerow -Alternate
PUBLIC WORKS- D. Riede-Streets and Parks, J. Gerow-Water/Sewer PERSONNELL- D. Riede, D. Gayner, J. Gerow-Alternate
TIMED ITEM: Music of Sierra Presentation
Lindsay Mcintosh of Music of Sierra presented the Council with a proposal to rent of lease the Old Church Building for the purpose of music education. After and brief question and answer session, It was moved by J. Markum, seconded by D. Riede to continue to move forward with Music of Sierra Program.

Motion unanimously carried.

APPROVAL OF MINUTES

1. It was moved by D. Riede, seconded by J. Gerow to approve the minutes of the Regular Meeting of November 15, 2022. Motion carried. ( D. Gayner abstained)

STAFF REPORTS/WRITTEN COMMUNICATIONS

1. City Clerk K. LeBlanc reminded the members ofthe Council to make sure that they take the Ethics Course.

2. It was approved by consensus of the Council to hire J. Fisher to be our IT Tech.

PUBLIC COMMENT
L. Sequido addressed the council on the Pool Building demo project. He stated it should begin after Christmas and take about 10 days to complete. He informed the council the Q&D has agreed to donate their time and equipment to the project.

B. Mertton inquired if they were licensed contractors.

FIRE DEPARTMENT REPORT
P. DeMartini represented the Fire Department with the following report: (1) 228 calls this year. (2) Major Fire on Holden Lane. (3) Letter of support from the Fire Department for City water system. (4) Fire Department Fund Transfers. (5) New engine to be delayed. (6) Pay off of engine.

Mayor Jackson reported that she called in K. Bennett to monitor the pressure in the lines due to the fire on Holden lane. She would like to have the Fire Department notify him in the future for any Major Fires.

She also inquired about clearing the fire hydrants.

FINANCIAL COMMITTEE REPORT/UPDATE
Mayor Jackson reported on the Finance Meeting met to discuss the current bills and budget. Mayor Jackson reported that we are receiving credit cards payment on the utility bills. Mayor Jackson reported on the Fire Department Reserve account. After discussion it was moved by J. Markum, seconded by J.

Gerow to transfer $20,000 from General account to the Fire Department reserve account. Motion unanimously carried. Councilmember Markum would like council approval for at least 2 dumpsters for the Pool demo project. It was moved by D. Gayner, seconded by J. Gerow to approve dumpsters for the project. Motion unanimously carried.

1. lt was moved by J. Markum, seconded by 0. Gayner to approve reconciled accounts for November 2022. Motion unanimously carried.

2. It was moved by J. Markum, seconded by D. Riede to approve the bill sheet for November 2022 not to exceed $405,353.11. Motion unanimously carried.

ACKNOWLEDGEMENT OF APPROVAL OF FUNDS TRANSFERS.

1. It was moved by J. Markum, seconded by J. Gerow to approve the fund transfer from WWTP Settlement (LAIF) to General Fund 1956 not to exceed $34,887.18. Motion unanimously carried.

2. It was moved by D. Riede, seconded by D. Gayner to approve fund transfer from General 1956 to Enterprise Loan MM 0559 not to exceed $30,000. Motion unanimously carried.

PUBLIC WORKS COMMITTEE REPORTS/PARK AND RECREATION

1. Vice-Mayor Gerow reported that some aerators are down due to ice and the cold weather, also J.

Lundy it down to one day a week.

2. Councilmember Riede would like to began the Annual Evaluation and Coaching for the employees

OTHER COMMITTEE REPORTS

1. Mayor Jackson and Councilmember D. Riede addressed snow plowing issues. After a brief discussion it was decided that Councilmember Riede will work with J. Morris on any clean up issues or complaints.

Any issues or complaints will come through City Hall and passed on to Councilmember Riede.

DISCUSSION AND POSSIBLE ACTION ITEMS

1. Mayor Jackson gave a brief update on the water distribution system, after a brief discussion It was moved by D. Riede, seconded by J. Gerow to reaffirm our State of Emergency Water Distribution System. Motion unanimously carried. (This item will be added to next agenda)

2. Mayor Jackson reported on the Town Hall Meeting for the water infrastucture. She is requesting letters of support from EPHC, SPJUSD and the Fire Department for obtaining grants. She also reported that she will be meeting with Farr West Engineering (DOWL) and Sierra County. The next meeting is set for January 5th, 2023. Mayor Jackson will continue to give updates. (This item will be added to the next agenda)

3. (a) G. Price-City Planner addressed the council via zoom on the Interpretation of the Zoning Code regarding Wireless Tower. After a brief discussion it was moved J. Markum, seconded by D. Gayner to adopt the Zoning Interpretation in accordance with Section 12.08.22, Subsection 1-10-B, of the Zoning Code, determine that the current zoning code allows wireless tower in all zone districts with a conditional use permit. Motion unanimously carried. (b) D. Manas from Epic Wireless (Verizon) via zoom joined the meeting. Mayor Jackson informed the council and community that the City is proposing to put the tower in the City Barn Yard at the corner of Lewis and Rail Road. After a discussion on what type of tower either a mono pole or mono pine, it was decided by council consensus to go for the mono pole.

4. After a brief discussion it was moved by D. Gayner, seconded by D. Riede to approve the review of the Conflict of Interest Code. Motion unanimously carried.

5. After a discussion it was moved by J. Markum, seconded by D. Gayner to adopt Resolution #8-2022 Adopting an Investment Policy. Roll Call- Mayor Jackson- Aye, J. Gerow-Aye, D. Riede-Aye, J. MarkumAye, D. Gayner-Aye. Motion unanimously carried.

6. After discussion it was decided by council consensus to have the Cemetery opened from 8:00 to 3:00 Monday- Friday. If the key is needed for the weekend there will be a $20.00 deposit fee and some form of identification.

7. After a discussion it was decided by council consensus to have J. Markum and D. Riede as alternate for the Alarm System.

IMPUT FOR UPCOMING MEETINGS

1. Reaffirm our State of Emergency Water Distribution System

2. Update on Town Hall Meeting

3. Past due utility bills

CLOSING REMARKS
Merry Christmas
Meeting Adjourned
APPROVED: ____________
Mayor Sarah Jackson
ATTEST:

Kathy LeBlanc, City Clerk
Acknowledgement of Approval, City of Loyalton
The City of Loyalton acknowledges approval of the below listed reconciled Plumas Bank Accounts
General Account (1956)
FEMA Flood Sav (0059)
F.D. Reserve (7243)
Enterprise-W&S (0559)
WWTP Settle. (4387)
PayPAL (CCard POAs).

LAI F Account (496)
($78,575.89)
($52,487.45)
($148,891.77)
($121,450.99)
($178,123.52)
($135.32)
($2,011,633.85)
Reconciled as of 12/31/2022
Reconciled as of 12/20/2022
Reconciled as of 12/31/2022
Reconciled as of 12/31/2022
Reconciled as of 12/31/2022
Reconciled as of 12/31/2022
Reconciled as of 12/31/2022
This authorization took place at the council meeting held on 01/17/23 and will be further reflected in the council minutes ofthis meeting.

Sarah Jackson, Mayor, Dated 01/17/23
Authorized Signature
Acknowledgement of Approval, City of Loyalton
The City of Loyalton acknowledges approval of the below listed Transfer(s) of Funds.

Transfer From Transfer To Date Amount
General Fund Enterprise Loan MM 0559 01/06/2023
Water 1,500.00
Sewer 4,500.00
General Fund Enterprise Loan MM 0559 01/13/2023
Water 1,500.00
Sewer 4,500.00
General Fund Enterprise Loan MM 0559 01/20/2023
Water 1,500.00
Sewer 4,500.00
General Fund Enterprise Loan MM 0559 01/27/2023
Water 1,500.00
Sewer 4,500.00
THIS TOTAL $24,000.00
This authorization took place at the council meeting held on 01/17/2023 and will be further reflected in the council minutes of this meeting.

Sarah Jackson, Mayor, Dated 01/17/2023
Authorized Signature
Acknowledgement of Approval, City of Loyalton
The City of Loyalton acknowledges approval of the below listed Transfer(s) of Funds.

Transfer From Transfer To Date Amount
Enterprise Loan MM 0559 General Fund (1956) 11/16/2022 $17,941.40 ($109,509.59 Balance remaining)
THIS TOTAL (To cover Farr West expenses) $17,941.40
This authorization took place at the council meeting held on 01/17/2023 and will be further reflected in the council minutes of this meeting.

Sarah Jackson, Mayor, Dated 01/17/2023
Authorized Signature
Acknowledgement of Approval, City of Loyalton
The City of Loyalton acknowledges approval of the below listed Transfer(s) of Funds.

Transfer From Transfer To Date Amount
General Account (1956) Fire Dept. Reserve (7243) 01/17/2023 $2,043.76 Additional funds deposited for the Caldor Fire. $1,857.97 for expenses, $185.79 admin TOTAL $2,043.76
This authorization took place at the council meeting held on 01/17/23 and will be further reflected in the council minutes of the meeting.
_________________ Sarah Jackson, Mayor, Dated 01/17/2023 Authorized Signature
10:47 AM City of Loyalton
01/10/23 Credit Card Detail
Accrual Basis December 2022
Type Date
BofA CC 2646.J. Evans
Bill 12/04/2022
Num
-- Adj Name
Bank of America
Memo
............

Class
Fire De.•.

Cir
- Split
Accounts Payable
Debit

72.91 Credit Balance
-72.91
Total BofA CC 2646-J. Evans 72,91 0.00 -72.91
BofA CC 4046-R. DeMartlni
Credit Card Ch.. 12/01/2022
Credit Card Ch... 12/04/2022
Credit 12/04/2022
Credit Card Ch... 12/20/2022
Credit Card Ch .•. 12/20/2022
Credit Card Ch, .. 12/20/2022
Credit Card Ch .. 12/29/2022
Bank ofAmerica
Bank ofAmerica
Whites Sierra St.. ,
Whites Sierra St...

Whites Sierra St...

Whites Sierra St. ..

Late Fee
Service Ch .. ·-·........ Command
Brush 12
Fire De...

Fire De .•.

X
X
Late Fee
Finance Charge
Accounts Payable
Fuel
Fuel
Fuel
Fuel

29.00 005

94.29 32.00

40.25 125.02

40.00 29.00

29.05 123,34
155,34
195,59
320,61
360.61
Total BofA CC 4046-R. DeMartini
BofA CC 6111· K LeBlanc
Credit Card Ch,.. 12/01/2022
Bill 12/04/2022
Credit Card Ch... 12/06/2022
Credit Card Ch ... 12/13/2022
Credit Card Ch.,. 12/25/2022
Credit Card Ch... 12/26/2022
Credit Card Ch•.. 12/26/2022
Credit Card Cr... 12/27/2022

12.2 ...
12/2 ...

Bank of America
Bank of America
Microsoft
Whites Sierra St.
tntuit Inc.

Amazon Prime
UserWay
UserWay
Late Fee Late Fee
General...

Payroll
ADACompl...

ADACompl, ..

X Late Fee
Accounts Payable
Office Expense
-SPLITSplit
Dues and Subscnptions
Dues and Subscriptions
Dues and Subscriptions
o.oo
1,963.74

49.00 360,61

39.00 12.50
323.28

10.00 16.08

49.00 360.61

39.00 -1,924.74
-1,912.24
-1,588,96
-1,578,96
-1,562,88
-1,513,88
-1,562.88
Total BofA CC 6111- K LeBlanc
TOTAL
2,012.74
2,085.65
449.86
810.47
-1,562.88
-1,275.18
Page1
3:14 PM City of Loyalton
01/09/23 Bills Paid
Cash Basis As of December 31, 2022
Type Date Num Name Memo Paid Amo••.

Enterprise Loan MM 0559
Total Enterprise Loan MM 0559
General Funds
General Checking 1956- NEW
Bill Pmt -Check 12/08/2022 AP Quick Books generated zero amount transaction ... 0.00 Paycheck 12/30/2022 Gayner, Dorie L VOID: 0.00
Paycheck 12/30/2022 Gerow, Jerry C VOID: 0.00
Paycheck 12/30/2022 Jackson, Sarah M VOID: 0.00
Paycheck 12/30/2022 Markum, Joy L VOID: 0.00
Paycheck 12/30/2022 Riede, Darlene F VOID: 0.00
Paycheck 12/30/2022 LeBlanc, Katherine L VOID: 0.00
Liability Check 12/06/2022 E-pay Employment Development D ... 69817369 PPE 12/03/22 QB Tracking# 157679 ... -337.92 Liability Check 12/06/2022 E-pay US Treasury-941 94-6000364 PPE 12/03/22 QB Tracking# 15768... -2,329.12 Liability Check 12/21/2022 E-pay Employment Development 0 ... 69817369 PPE 12/17/2022 QB Tracking #-500... -318.39 Liability Check 12/21/2022 E-pay US Treasury-941 94-6000364 PPE 12/17/2022 QB Tracking #-50... -2,245.68 Liability Check 12/28/2022 E-pay US Treasury-941 94-6000364 City Council Checks January 2023 ... -137.76 Liability Check 12/28/2022 E-pay Employment Development D... 69817369 City Council Checks January 2023 Q ... -5.55 Bill Pmt -Check 12/01/2022 7891 Darlene Riede December 2022 City Council -150.00 Bill Pmt -Check 12/01/2022 7892 Donald Yegge Retiree December 2022 Pension Payment -537.69 Bill Pmt -Check 12/01/2022 7893 Jerry Gerow December 2022 City Council -150.00 Bill Pmt -Check 12/01/2022 7894 John Cussins Retiree December 2022 Pension Payment -1 ,226.83 Bill Pmt -Check 12/01/2022 7895 Joy Markum December 2022 City Council -150.00 Bill Pmt -Check 12/01/2022 7896 Kathy LeBlanc December 2022 City Council -150.00 Bill Pmt -Check 12/01/2022 7897 Orville McGarity Retiree December 2022 Pension Payment -280.97 Bill Pmt -Check 12/01/2022 7898 Patsy Jardin Retiree December 2022 Pension Payment -2,000.79 Bill Pmt -Check 12/01/2022 7899 Sarah Jackson December 2022 City Council -150.00 Paycheck 12/08/2022 7901 Bennett, Kenneth E -2,109.41
Paycheck 12/08/2022 7902 LeBlanc, Katherine L -596.32
Paycheck 12/08/2022 7903 Lundy, Justus -1,238.97
Paycheck 12/08/2022 7904 Morris, Gina-Marie L -1 ,478.37 Paycheck 12/08/2022 7905 Morris, Raymond J -1 ,391 .30
Paycheck 12/08/2022 7906 Reeves, Jonathan -1,643.18
Bill Pmt-Check 12/15/2022 7907 AT&T Fire Landline BAN 9343 BAN 9391059343 -30.62 Bill Pmt -Check 12/15/2022 7908 AT&T Fire Pager BAN 54523 BAN 9391054523 -23.30

7910
7915
7920
7925
7930
7935
7940
3:14 PM City of Loyalton
01/09/23 Bills Paid
Cash Basis As of December 31, 2022
Type Date Num Name Memo Paid Amo...

Bill Pmt -Check 12/15/2022 7909 AT&T Sewer BAN 54522 10/12/22-11/11/22 Sewer BAN 54522 -45.23 Bill Pmt -Check 12/15/2022 Bank of America 5472064000010235 -1,081.48 Bill Pmt -Check 12/15/2022 7911 Ca. State Water Resources ... -28, 140.00 Bill Pmt -Check 12/15/2022 7912 Clark Pest Control of Stockto... Pest Control -100.00 Bill Pmt-Check 12/15/2022 7913 CTL Forest Management, Inc. -1,350.00 Bill Pmt -Check 12/15/2022 7914 DOWL / Farr West Engineeri... 09/24/22 - 10/28/22 Emergency Water Line Repair -17,516.78 Bill Pmt -Check 12/15/2022 High Sierra Gas LLC -3,965.68 Bill Pmt -Check 12/15/2022 7916 lntermountain Disposal, Inc. -168.66 Bill Pmt -Check 12/15/2022 7917 Ken Morgan SCADA -2,233.47 Bill Pmt -Check 12/15/2022 7918 Liberty Utilities -6,010.63 Bill Pmt -Check 12/15/2022 7919 Pitney Bowes Inc Purchase ... 8000-9000-0953-9911 -176.00 Bill Pmt -Check 12/15/2022 Pitney Bowes Lease 09/30/22 - 12/29/22 -164.55 Bill Pmt -Check 12/15/2022 7921 Plumas-Sierra Telecomm. -218.00 Bill Pmt -Check 12/15/2022 7922 Plumas Sierra Rural Electric -7,184.69 Bill Pmt -Check 12/15/2022 7923 Porter Simon Professional S ... 92132-13200M -725.00 Bill Pmt -Check 12/15/2022 7924 Sierra County Auditor -2,500.00 Bill Pmt -Check 12/15/2022 Sierra County Clerk-Recorder Consolidation of the C.O.L. Election w/ the State ... -554.02 Bill Pmt -Check 12/15/2022 7926 Sierra Valley Home Center 1100 -344.83 Bill Pmt -Check 12/15/2022 7927 Silver State Analytical Labor. .. -487.00 Bill Pmt -Check 12/15/2022 7928 State Water Resources Cont... Operator-In-Training Application for Wastewater ... -95.00 Bill Pmt -Check 12/15/2022 7929 Thatcher Company 39500 -1,252.97 Bill Pmt -Check 12/15/2022 Verizon Wireless 370745244-000001 -38.01 Bill Pmt -Check 12/15/2022 7931 Xerox Corporation 951429299 -320.47 Paycheck 12/22/2022 7932 Bennett, Kenneth E -2,076.00
Paycheck 12/22/2022 7933 LeBlanc, Katherine L -626.94
Paycheck 12/22/2022 7934 Lundy, Justus -940.87
Paycheck 12/22/2022 Morris, Gina-Marie L -1,535.76
Paycheck 12/22/2022 7936 Morris, Raymond J -1,179.81
Paycheck 12/22/2022 7937 Reeves, Jonathan -1,691.35
Check 12/27/2022 7938 lntermountain Disposal, Inc. -1,090.13 Bill Pmt -Check 12/27/2022 7939 Bank of America 5472064000010235 -2,036.65 Check 12/27/2022 lntermountain Disposal, Inc. -1,090.13 Check 12/27/2022 7941 Auditorium Rental Refund of Cancelled Auditorium Rental 12/17 /20 ... -65.00 Bill Pmt -Check 12/28/2022 7946 Postmaster Water Sewer Billing -145.20 Check 12/28/2022 7947 lntermountain Disposal, Inc. -1,090.13 -
Page2
3:14 PM City of Loyalton
01/09/23 Bills Paid
Cash Basis As of December 31, 2022
Type Date Num Name Memo Paid Amo ...

Total General Checking 1956- NEW -106,922.61
General Contingency Saving 0322
Total General Contingency Saving 0322
Total General Funds -106,922.61
Designated Funds
WWTP Settlement MM 4321
Total WWTP Settlement MM 4321
WWTP Construction 1990
Total WWTP Construction 1990
FEMA Flood Savings 0059
Total FEMA Flood Savings 0059
Total Designated Funds
TOTAL -106,922.61
Pagel
01/10/23
11:44 am City of Loyalton
Unpaid Bills Detail
As of February 16, 2023
Type Date Num Due Date Aging Open Balance
AT&T Fire Landllne BAN 9343
Bill 12/12/2022 00001... 01/11/2023 36 30 90
Total AT&T Fire Landline BAN 9343 30 90
AT&T Fire Pager BAN 54523
Bill 12/1212022 00001 ... 01/11/2023 36 24.04
Total AT&T Fire Pager BAN 54523 24 04
AT&T Sewer BAN 54522
Bi 12/12/2022 00001 ... 01/11/2023 36 47.14
Total AT&T Sewer BAN 54522 47.14
Bank of America
Credit 12/04/2022 -94.29
Total Bank ofAmerica -94.29
Bastian Engineering
Bill 01(02/2023 23-01-... 01/02/2023 45 378.75
Total Bastian Engineering 378.75
Ca. Stale Waler Resources Control Board
Bill 12/21/2022 SM-10 ... 03/21/2023 1,096.52
Total Ca Stale Waler Resources Control Board 1,096.52
Cashman Equipment Company
Bill 12/31/2022 SVCG ... 12/31/2022 47 14.41
Total Cashman Equipment Company 14.41
CTL Forest Management, Inc.

Bill 01/05/2023 C1605 ... 02/04/2023 12 4,657.50
Total CTL Forest Management. Inc. 4,657.50
DOWL / Farr West Engineering
Bill 12/12/2022
Bill 01106/2023
R4442 ....

R4442 ....
01/11/2023
02/05/2023
36 11
2,377 50
567 25
Total DOWL/ Farr West Engineering 2,944 75
Farr Construction Corporation
Bill 11/30/2022 22-037 ... 12/30/2022 48 14,996.65
Total Farr Construction Corporation 14,996.65
Federal Licensing, Inc.

Bill 12/29/2022 WPWL... 12/17/2022 61 175.00
Total Federal Licensing, Inc. 175.00
Gary Price
Bill 01/04/2023 PSS-V... 02/03/2023 13 2,730.00
Total Gary Price 2,730.00
High Sierra Gas LLC
Bill
Bill
Bill
Bill
Bill
Bill
11/16/2022
11/16/2022
11/16/2022
12/13/2022
12/19/2022
12/19/2022
U0014 ...

U0014 ..

U0014 ...

U0325 ..

U0015 ...

U0015 ...
12/16/2022
12/16/2022
12/16/2022
01/12/2023
01/18/2023
01/18/2023
62 62
62 35
29 29
414.19
614.38
544.92
528.66
700.37
4,540.60
Total High Sierra Gas LLC 7,343.12
lntermounlaln Disposal, Inc.

Bill 12/25/2022 74592 01/24/2023 23 168.66
Total lnterrnountain Disposal, Inc. 168.66
Larry Bain, CPA
Bill 12/1212022 2022 A ... 12/12/2022 66 15,990.00
Total Larry Bain, CPA 15,990.00
Liberty Ulllltles
Bill
Bill
12/23/2022
12/27/2022
88504 .
88502 ...
01/07/2023
01/11/2023
40 36
1,774.02

44.81

11:44AM City of Loyalton
01110/23 Unpaid Bills Detail
As of February 16, 2023
Type Date Num Due Date Aging Open Balance
Bill
Bill
Bill
Bill
Bill
Bill
Bill
Bill
12/2712022
12/27/2022
12/27/2022
12/27/2022
12/27/2022
12/27/2022
12/2712022
12/27/2022
88549••.
88502...
88502.•.
88544.
88547. .
88501
88502..
88552...
01/26/2023
01/26/2023
01/2612023
01/2612023
01/2612023
01/2612023
01/2612023
01/26/2023
21 21
21 21
21 21
21 21

20.99 339.88
103.08
256.63
2,578.21
133.06
147.09
646.89
Total Liberty Utilities 6,044.66
Office Depot Business Credit
Bill 12/12/2022 0111112023 36 334.40
Total Office Depot Business Credit 334.40
Plumas-Sierra Terecomm.

Bill 12/30/2022
Bill 12/30/2022
37225
66807
01/2912023
01129/2023
18 18
109.00
109,00
Total Plumas-Sierra Telecomm. 218.00
Plumas Sierra Rural Electric
Bill 12/3012022
Bill 12/30/2022
2941
17386
01129/2023
01129/2023
18 18
92 90

6.132 60
T olal Plumas Sierra Rural Electric 6 225 50
S.C.O.R.E.

Bill
Bill
12/23/2022
01/01/2023
Loy7-2 .

LOYW .
01122/2023
01/3112023
25 16
5,307.42
6 319.64
Total S.C.O R.E 11,627.06
Sierra County Auditor
Bill 02/01/2023 03/03/2023 1,250.00
Total Sierra County Auditor 1,250.00
Sierra Valley Groundwater Mgmt. District
Bill 12/26/2022 2203 01/25/2023 22 400.00
Total Sierra Valley Groundwater Mgml District 400.00
Sierra Valley Home Center
Bill 12/05/2022
Bill 11/28/2022
Bill 12/03/2022
Bill 12/1512022
211769
209764
209632
210895
12/10/2022
12/10/2022
12/10/2022
01/10/2023
68 68
68 37
109.98
11 79
71 80
3 74
Total SierraValley Home Center 197 31
Sliver State Analytical Laboratories, Inc
Bill 12/09/2022
Bill 12/23/2022
Bill 12/28/2022
Bill 12/28/2022
Bill 12/29/2022
RN293
RN294..

RN294..

RN294,.

RN294..
01/0812023
01122/2023
01/27/2023
01127/2023
01128/2023
39 25
20 20
19 84 00
600.00

70.00 70.00
232.00
Total Silver State Analytical Laboratories, Inc 1,056.00 Verizon Wireless
Bill 12/1812022 99232... 0 1117/2023 30 38.01
Total Verizon Wireless 38.01
Western Nevada Supply
Credit 07101/2022 CM187.. -311.61
Total Western Nevada Supply -311.61
Xerox Corporation
Bill 12/01/2022 01768.. 12/31/2022 47 286.13
Total Xerox Corporation 286 13
TOTAL 77,868.61
3:09 PM City of Loyalton
01109/23 Balance Sheet
Accrual Basis As of January 9, 2023
ASSETS
Current Assets
Checklng/Savlngs
PayPal - Credit Card Payments
Enterprise Loan MM 0559
General Funds
General Checking 1956• NEW
Total General Funds
Designated Funds
WWTP Settlement (LAIF)
WWTP Settlement MM 4387 (New)
Fire Dept. Reserve 7243
FEMA Flood Savings 0059
Total Designated Funds
Cash Drawer
Total Checking/Savings
Accounts Receivable
Other Current Assets
Total Current Assets
Fixed Assets
Fixed Assets
Total Fixed Assets

TOTAL ASSETS

LIABILITIES &EQUITY
Llabllltles
Current Llabllltles
Accounts Payable
Credit Cards
Other Current Llabllltles
Total Current Llabllltles
Long Term Llabllltles
Sierra Co 18/19 Audlt Payable
Community Leasing Partners
Bonds Payable
Total Long Term Llabllltles
Total Llabllltles
Equity

TOTAL LIABILITIES & EQUITY
Jan 9, 23
502.57
127,450 99
63,785.45
63,785.45
2,011,633.85
178,123.52
148,891.77
52,482.88
2,391.132,02
400.00
2,583,271 .03
4,527.94
1,192,863.89
3,780,662 86
9,162,777.24
9,162,777.24
12,943,440.10
75,672.61
1,466.52
1,090,874.21
1,168,013.34
19,936.58
43,465.35
4,528,429.00
4,591,830.93
5,759,844.27
7, 183,595.83
12,943,440.10

City of Loyalton
General
Statement of Revenues, Expenditures, and Changes in Fund Balance July 1, 2022 through January 09, 2023
07/01/22 -
01/09123 Budget
33 13.474 45 000
0 176
31 210
5 940
Revenues
Donations
Property Taxes
License & Fee Revenues
ADA Fee
Sales & Use
Business License
Total License & Fee Revenues
LEAP Grant Revenue
Charges for Current Services
Building Permits
Copies & Faxes
Cemetery
Rent Income
Total Charges for Current Services
Interest Income
Miscellaneous Revenue
S.C.O.R.E.

Other Income
Total Miscellaneous Revenue
Total Revenues
Expenditures
Late Fees & Finance Charges
Repairs & Maintenance
Building Repairs
Utilities
Security
Internet • Broadband
Propane
Electric
Garbage Disposal
Total Utilities
Equipment Repair & Maintenance
Solid Waste Benefit Assessment
Salaries and Wages
Employee Benefits
Services and Supplies
Postage
Advertising
Automobile Expense • Fuel
Bank Service Charges
$ Over Budget % of Budget
33 -31 526
1000¾

0.0%
-42,674
18 851

46.66%
1 391.79%
-3,004
-199
-250
-7,699
-11 152
24 33.24%

60.22%

0.0%

43.1%

44.93%
100.0%
5 301
1 264
6,565
-59 880
100.0%
100.0%
100.0%

59.18%
84 -4,810
-6 135
100 0%
3 .8%

1.06%
-2 365
-330
-3 419
-16 433
-5 515
84 23%

34.07%

50.0%
68 5%
55 53%
-392
86 254
11 47.77%
100 0%
131 72%
114 43%

37.326
20,310
1 496
301
0 7.301
9,098
24 5,301

1.264
6 565 0

86.829
84 190
65 72
327

6.651

1.896
3 689
12,635
170
3 419
35 731
6,885
358
86 1,054
86 80 000

1.459
4 500
500
250
15 000

20.250
0 0
0 146,709
0 5 000
6 .200
15 000
500

6.838
52 164

12.400
750
0 800
75 Draft
City of Loyalton
General
Statement of Revenues, Expenditures, and Changes in Fund Balance July 1, 2022 through January 09, 2023
07/01/22 -
01/09/23 Budget
Contracted Services
Building Permits 1 304
Housing Element 3 115
FEMA 100
Professional Fees 2 831
Auditing Expense 6.446
Consulting 2 730
Accounting & Financial 2,135
Law Enforcement 7 500
Council Expense 4,500
Total Contracted Services 30,661 45 000
Dues and Subscriptions 220 120
Insurance
Auto lnsurrance 742
Workers Comp. 1,685
Liability Insurance 2,108
Property Insurance 15 979
Travel for SCORE 356
Insurance • Other 764
Total Insurance 21 ,634 25 000
Office Expense 2 016 3,000
Operating Supplies 403 500
Telephone 169 400
Travel 57 300
Total Services and Supplies 56,743 75,945
Total Expenditures 115,923 174 047
Excess (deficit) of revenues over expenditures
before other financing sources (uses) -29,094 -27 338
Other Financing Sources (Uses)
Sale of Assets 1,500 0
Operating Transfers In 0 12,400
Operating Transfers Out -10,000 -10 000
Total Other Financing Sources {Uses) -8 500 2,400
Net Change In Fund Balances $ (37,594) $ (24,938)
$ Over Budget % of Budget
-14,339
100
68 14%
182 92%
-3.367
-984
-97
-231
-244
-19 202
-58, 124
8653%
67 21%
80 64%
42 16%
18 83%

74.72%

66.6%
-1 ,756 106 42%
1 500
-12.400
0 -10 900
100.0%

0.0%
100.0%
-354.17%
Draft
City of Loyalton
Streets Highways
Statement of Revenues, Expenditures, and Changes in Fund Balance July 1, 2022 through January 09, 2023
FEMA• Streets and
Flood of SNOW Highways•
2017 REMOVAL Other Total Streets and Highways
07/01/22 • 07/01/22 - 07/01122 • 07/01/22 - $ Over ¾of
01/09/23 01/09/23 01/09/23 01/09/23 Budget Budget Budget Revenues
Road Maintenance & Rehab 0 0 6,669 6 669 15 000 -8.33t 44.46% VLF Swap 0 0 17 266 17 266 31 000 -t 3 734 55.7%
Highway Users Tax 0 0 10 737 10 737 20,000 -9 263 S3.69¾ Total Revenues 0 0 34 672 34.672 66000 -31 328 52.53%
Expenditures
Tools & Equipment 0 0 0 0 2 250 -2 250 00%
Repairs & Maintenance 0 0 0 0 10 000 -10,000 00%
Utilities: Electric 0 0 12 278 12 278 25 000 -12.722 4911 % Equipment Repair & Maintenance 0 0 0 0 5 000 -5 000 00% Solid Waste Benefit Assessment 0 0 265 265 531 -265 50.0% Total Salaries and Wages 1,846 265 2 206 4 318 8 800 .4 482 4907% Services and Supplies
Automobile Expense: Fuel 0 117 404 521 1 500 -979 34 74% Contracted Services
Professional Fees 0 6 008 0 6 008
Auditing Expense 0 0 3,098 3.098
Contracted Services - Other 0 0 0 0
Total Contracted Services 0 6.008 3.098 9 106 8,000 1,106 113 82% Equipment Rental 174 0 0 174 0 174 100 0%
Insurance 0 0 3649 3 649 4,000 -351 91 24%
Office Expense 0 0 33 33 200 -167 16 45%
Operating Supplies 975 0 0 975 719 256 135.59%
Total Services and Supplies 1,149 6125 7,184 14,458 14,419 39 100 27% Total Expenditures 2 995 6 390 21.934 31 319 66 000 -34.681 47.45% Excess (deficit) of revenues over expenditures
before other financing sources (uses) -2 995 -6,390 12.738 3 353 0 3,353 1000% Other Financing Sources (Uses) 0 0 0 0 0 0 0.0%
Net Change in Fund Balances $ (2,995) $ 3,353
Draft
City of Loyalton
Fire Department
Statement of Revenues, Expenditures, and Changes in Fund Balance July 1, 2022 through January 09, 2023
Revenues
Service Area Revenue- Fire Prot
Charges for Current Services - Other
Interest Income
Total Revenues
Expenditures
Bank Fees
Tools & Equipment
Repairs & Maintenance
Utilities
Internet • Broadband
Propane
Electric
Garbage Disposal
Utilities - Other
Total Utilities
Equipment Repair & Maintenance
Solid Waste Benefit Assessment
Salaries and Wages
Services and Supplies
Automobile Expense - Fuel
Contracted Services
Auditing Expense
Accounting & Financial
Contracted Services • Other
Total Contracted Services
Dues and Subscriptions
Insurance
Operating Supplies
Telephone
Total Services and Supplies
Debt Service
Total Expenditures
Excess (deficit) of revenues over expenditures
before other financing sources {uses)
Other Financing Sources (Uses)
Operating Transfers In
Total Other Financing Sources (Uses)
07/01/22 -
01/09/23 Budget
s
29 29
s 46 850
494
150
47 494
29 16
259

1.000
2,000
654
943
2 683
198
4 478
6 .296
508
1 024

6.000

6.000
5000
1 015
994
978 4 000
3,098
245
350
3,693
175
27,101
1,240
335
33,522
46,132
2,000
2,000
30,000

4.815
670
41,485
15,536
73,030
(46,103) (25,536)
10,000
10,000
10,000
10,000
$ Over Budget % of Budget
s (46,850)
(494)
(121 )
(47,465)
00%
00%
19 19%
006%
29 (984)
(1,741)
100 0%
1 58%
12 96%
(1 522)
1,296
(508)
30 7464%
125 93%

50.0%
103 06%
(3 022) 2445%
1 693
175
(2,899)
(3 574)
(335)
(7,963)
(15,536)
(26,898)
184.65%
100.0%

90.34%

25.76%

49.94%

80.81%

0.0%

63.17%
(20,567) 180.54%
100 0%
100.0%
Net Change In Fund Balances $ (36,103) $ (15,536)
Draft
City of Loyalton
Enterprise Funds
Statement of Revenues, Expenditures, and Changes in Fund Balance July 1, 2022 through January 09, 2023
VanDaam
Creek
Repair 2022
Emergency
Repair. Oct
2022
Water Fund
7520-1 • Other
Total Water Fund 7520-1
07/01/22 •
01/09123
07/01122 •
01/09123
07/01/22 •
01109123
07101/22 -
01/09/23 Budget
$ Over
Budget
Revenues
Enterprise Income
Enterprise Late Fee Income
Enterprise Service Income
Revenue Use of Money & Property
Dividend Income- CalTrust
s
s
$
$
s
s
193
145,249
193
$45,249
s
s 300,000
$ 193
s (154 ,751)
Interest Income
LAIF Interest Income
Interest Income • Other 50 50 50
Total Interest Income so so 50
Total Revenue Use of Money & Property 50
Total Revenues 145,491
Expense
Tools & Equipment
Repairs & Maintenance 342 ,162 1,350
Building Repairs
Utilities 49,168
Equipment Repair & Maintenance 2 ,382
Solid Waste Benefit Assessment 153
Salaries and Wages 52 12,918 38 644
Employee Benefits 10 844
Services and Supplies
Postage 736
Total Automobile Expense 184 1 721
Bank Service Charges 29
Chemicals 4,581
Contracted Services
Professional Fees 525 410
Auditing Expense 9 294
Accounting & Financial 770
Testing 358 2 753
Total Contracted Services 883 13 227
Dues and Subscriptions 1 672
Equipment Rental 100
Insurance 28,027
Licenses and Permits 4 165
Office Expense 967
Operating Supplies I 210 535
Telephone 313
50 100 (50)
145 491 300 100 (154.609)
2,000 (2 000)
343, 512 375.000 (31 488)
49, 168 80.000 (30 832)
2,382 3,150 (768)
153 200 (47)
51,614 88,000 (36,386)
10,844 18,600 (7 756)
736 1,800 (1 064)
1 905 1.500 405
29 50 (21)
4 581 8 .000 (l4191
935
9 294
770
3 11 1
14 I 10 25,000 (10,890)
1 672 1 800 (128)
100 100
28027 32,000 (3,973)
4 165 4,000 165
967 2 000 (1,033]
I 745 2,000 (255)
313 1,000 (687)
Total Services and Supplies
Total Debt Serv.ce
Total Expenditures
Excess [deficit) of revenues over expenditures
before other financing sources (uses)
52 (52)
2 378
357 458
(357,458)
55971
42,416
200 929
(55,437)
58 349
42,416
558,439
(412,947)
79,150
62 000
708 100
(408 0001
(20801)
(19,584)
(149,661)
(4,947)
Other Financing Sources (Uses)
Exslsting Fund Assets Budgeted for Use
Operating Transfers Jn
Operating Transfers Out
Total Other Financing Sources (Uses)
115,069
187 378
302,447
166,117
191 883
358,000
Net Change (including use of exsisting assets) (110 500) (50,0001 Net Change in Fund Balances s (225,569)
Draft
% of Budget
1000¾

48.42%

0.0%

0.0%
1000¾
100.0%
5001¾
48 48%

0.0¾

91. 6%

0.0%

61.46¾

75.63¾

76.31¾
5865%
58 3%

40.9%
126.99%

58.0%
57 26%

56.44%
92 86%
1000%

87.58%
10413%
48 33%

87.26%

31.31%
73 72%

68.41%

78.86%
101.21%
City of Loyalton
Enterprise Funds
Statement of Revenues, Expenditures, and Changes in Fund Balance July 1, 2022 through January 09, 2023
Revenues
Enterprise Income
Enterprise Late Fee lncomt
Enterprise Service Income
Revenue Use of Money & Property
Dividend Income- CalTrust
Interest Income
LAIF Interest Income
Interest Income - Other
Total Interest Income
Total Revenue Use ofMoney & Property
Total Revenues
Expense
Tools & Equipment
Repairs & Maintenance
Building Repairs
Utilities
Equipment Repair & Maintenance
Solid Waste Benefit Assessment
Salaries and Wages
Employee Benefits
Services and Supplies
Postage
Total Automobile Expense
Bank Service Charges
Chemicals
Contracted Services
Professional Fees
Auditing Expense
Accounting & Financial
Testing
Total Contracted Services
Dues and Subscriptions
Equipment Rental
Insurance
Licenses and Permits
Office Expense
Operating Supplies
Telephone
Total Services and Supplies
Total Debt Service
Total Expenditures
Excess (deficit) of revenues over expenditures
before other financing sources (uses)
Other Financing Sources (Uses)
Exsisting Fund Assets Budgeted for Use
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
Net Change (including use of exsisting assets)
Ntl Change in Fund Balances
Draft
Total Sewer Fund 7580-1
07/01122.
01109!23 Budget $ Over Budget
$ 289
$ 194 630
s
S 401 000
$ 289
$ (206.370)
825 825
10 747
194
10,940
11 765
206, 684
5000
5,000
10,747
194

10.940
6 ,765
201.684
254
22 473
4,933
531
63 123
10844
500
2,000
500
34,000
5,000
900
93,650
19,000
(500)
I I 746)
(500)
(1 1,527)
(67)
(369)
(30 527)
(8 156)
736
2 591
63 77
1,800

2.000
50 (1.064)
591
13 77
823
9 294
770
3094
13981
175
15,000
1,000
(1,020)
(825,
35,481
24,862
967
2305
599
81 836
220 813
404,807
32,000
21 ,000

2.000
1,000
1,600

77.450
223,000
456,000
3,481

3.862
(1,034)
1,305
(1,001)
4,386
(2,187)
(51, 193)
(198 123) (451,000) 252,877
(157 936)
(157.936)
( 191 886)
(191,886)
(356,059) (642,886)
$ (356,059)
% or Budget
100.0%

48.54%
100.0%
100.0%
100.0%
100.0%
235 3%

4. 133 69%

0.0%

12.71%

0.0%
661%

98.65%
5902%

67.4%
5708%
40 .9%
129 56%
126.0%
100 0%
93 2%
17 5 ...
0 0%
110.88%
118 39%

48.33%
230 51%

37.45%
105.66%

99.02%
8877%

43.93%
Total Enterprise
07/01/22 -
01109/23
s
s
482
339 878
825
10 747
244
10 990
11 815
12 297
343, 767
71641
7 315
684
114 737
21689
1473
4,496
92 4 657
1 758
18588
1 540
6,205
28 091
I 847
100

63.507
29027
1 933
4 050
9 12
140,184
263,229
963 246
(950,948J
115069
187,378
(157,936)
144 5 11
(806,437)
I $ (921,506)

CITY OF LOYALTON

FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

CITY OF LOYALTON
Table ofContents
Independent Auditor's Report ............................................................... ·············-···--···---------··-···--····-····--····· · I Basic Financial Statements:

Government-Wide Financial Statements:

Statement ofNet Position .............................................................................................................. 4 Statement ofActivities .............. .................... ..... ............................... ···--···--··-······················· S Fund Financial Statements:

Governmental Funds:

Balance Sheet --··-·-····--·........... ·-··········...................................................................................... 6 Reconciliation ofthe Governmental Funds Balance Sheet to the Government-Wide Statement ofNet Position - Governmental Activities ................................... 7 Statement of Revenues, Expenditures and Changes in Fund Balances........................................... 8 Reconciliation ofthe Statement of Revenues, Expenditures and Changes In Fund Balances ofGovernmental Funds to the Government-Wide Statement ofActivities Governmental Activities ···········-······················································· 9 Proprietary Funds:

Statement ofNet Position ......................................................................................................... I0 Statement of Revenues, Expenses and Changes in Net Position··········· -·····-·················· ·········· l l Statement ofCash Flows ......... ... ............ ........ ....... .... . . ...... ....... ..... ......... .... ........... ........... ..... 12 Notes to the Financial Statements .................................................................. ····················· ··················-·· 13 Required Supplementary Information:

Budgetary Comparison Schedule:

General Fund········································································· ··········· -······················-- ······--·· 27 Special Revenue Fund
Gas Tax Fund ................................................................................................................... 28 Note to the Required Supplementary Information ............................................................... _.···············-·------··- 29

LARRY BAIN, CPA
An Accounting Corporation
2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]

INDEPENDENT AUDITOR'S REPORT
To the City Council
City of Loyalton, California
Qualified Opinion
Except for the effects ofthe matters described in the "Basis for Qualified Opinion" paragraph, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities, the business-type activities, and each major fund ofthe City ofLoyalton as ofJune 30, 2022, and the respective changes in financial position and where applicable, cash flows thereof for the fiscal year then ended in conformity with U.S. generally accepted accounting principles.

Basis for Qualified Opinion
The City does not utilize an accounting system with a self-balancing set ofaccounts for recording transactions to each fund. As a result entries can be posted to the general ledger causing the financial statements to be out ofbalance by fund and entries posted to funds causing material misstatement without being detected in a timely manner by the finance staff.

The City has not reviewed and adjusted prior year allocations for the enterprise funds debt service reserve transfers. The net effect of adjustments could result in material misstatements to these financial statements, the amount of which is unknown.

The City has not obtained an actuarial valuation and has not recorded the information in these financial statements in accordance with Governmental Accounting Board Statement No. 68 (GASB 68), for the pension commitment made to certain retirees ofthe City. As a result of not obtaining an actuarial valuation in accordance with GASB 68, the amount of misstatement to the net pension liability, the deferred outflow of resources, the deferred inflow of resources and pension expense is unknown.

Revenue from strike team incidents were deposited to the Loyalton Volunteers Fire Association (Association) and then transferred from the Association checking account to the City. The Association is operating as a non-profit organization, however they have not established legal non-profit status as a 501(c)(3). Because the Association is not a legally recognized organization their activities are not included in these financial statements as a component unit of the City, and as such the associated Strike Team activity was not audited for completeness. The effect ofthis condition on these financial statements is unknown.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America.

Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section ofour report. We are required to be independent ofthe City ofLoyalton 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 opinion.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about City ofLoyalton's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

Auditor's Responsibilities for the Audit ofthe 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 opinion.

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 generally accepted 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, including omissions, 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 generally accepted 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 understandingofinternal 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 City of Loyalton'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 City ofLoyalton's ability to continue as a going concern for a reasonable period oftime.

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

Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, 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 offinancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements are not affected by this missing information.
2 Other Information
The required supplementary information other than Management Discussion and Analysis, described as the budgetary comparison schedules in the table of contents on pages 27 and 28 are presented to supplement the basic financial statements. Such information, although not a part ofthe basic financial statements, is required by the Governmental Accounting Standards Board (GASB), who considers it to be an essential part offinancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States ofAmerica, which consisted ofinquiries ofmanagement about the methods ofpreparing 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.

Larry Bain, CPA
Ai, Accounting Corporatio11
November 17, 2022
3 CITY OF LOYALTON

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-type
Activities Activities Total
Current Assets
Cash and investments $ 380,972 $ 2,344,362 $ 2,725,334
Prepaid expense 33,768 33,768
Accounts receivable 134,180 57,593 191,773
Grants receivable 44,541 44,541
Restricted cash and investments 350,878 350,878
Total current assets 559,693 2,786,601 3,346,294
Non Current Assets
Internal balances 560,583 (560,583)
Capital assets;
Land 55,293 373,319 428,612
Construction in Progress 88,500 17,550 106,050
Buildings 867,070 415,920 1,282,990
Site improvements 2,363,686 11,386,016 13,749,702
Equipment 855,403 787,303 1,642,706
Less: accumulated depreciation (1,931,449) !6, 11 5,834) (8,047,283} Total capital assets 2,298,503 6,864,274 9,162,777
Total non current assets 2,859,086 6,303,691 9,162,777
Total assets 3,418,779 9,090,292 12,509,071
Liabilities
Current liabilities:

Accounts payable 4,793 7,017 11,810
Accrued wages 7,934 7,934
Accrued interest payable 57,589 57,589
Unearned revenue-advance 75,402 75,402
Long-tenn liabilities-due within one year 13,983 138,800 152,783 Total current liabilities 102,112 203,406 305,518
Liabilities-due in more than one year:

Capital lease 29,483 29,483
Note payable 765,729 765,729
Certificate ofparticipation 3,623,900 3,623,900
Total liabilities due in more than one year 29,483 4,389,629 4,419,112 Total liabilities 131,595 4,593,035 4,724,630
Net Position
Net investment in capital assets 2,284,520 2,335,845 4,620,365 Restricted for debt service 350,878 350,878
Unrestricted 1,002,664 1,810,534 2,8 13,199
Total net position $ 3,287,184 $ 4,497,257 $ 7,784,441
The accompanying notes are an integral part ofthese financial statements 4 CITY OF LOYALTON

STATEMENT OF ACTIVITIES
Functions/programs
Governmental Activities:

General government
Public safety
Public works
Health and welfare-cemetery
Streets and roads
Community development
Culture/recreation
Interest expense
Total governmental activities
Business-type Activities:

Water
Sewer
Interest on long-term debt
Total business-type activities
Total Government
General Revenues:

Taxes:

Property taxes
Sales and use tax
Franchise tax
Motor vehicle in lieu tax
Other
Investment income
Total general revenues
Change in net position
Net position - beginning of f1Scal year
Net position - end of f15cal year
JUNE 30, 2022
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Charges for Operating Grants Governmental Business-type Expenses Services and Contributions
$ 243,356 $ 18,908
320,114 46,864
1,793 9,187
439 1,550
44,852 52,486
10,791
58,626 1,455
2,036
682,007 130,450
299,466 286,228
448,555 355,597
146,606
894,627 641,825
$1,576,634 $ 772,275
$ 167,930
490,382
15,321
673,633
$ 673,633
Activities Activities Total
$ (56,518) $ $ (56,518)
217,132 217,132
7,394 7,394
1,111 1,111
22,955 22,955
(10,791) (10,791)
(57,171) (57,171)
(2,036} (2,036)
122,076 122,076
(13,238) (13,238)
(92,958) (92,958)
(146,606) (146,606)
{252,802) (252,802)
122,076 (252,802) (130,726)
41,3 I 1 41,311
79,147 79,147
14,434 14,434
6,307 6,307
179 5,523 5,702
141,378 5,523 146,901
263,454 (247,279) 16,175
3,023,730 4,744,536 7,768,266
$3,287,184 $4,497,257 $7,784,441
The accompanying notes are an integral part ofthese financial statements 5 CITY OF LOYALTON

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
Major Special Revenue
Funds Total
Governmental
General Gas Tax CDBG Funds
Assets
Cash and investments $ 304,337 $ 76,635 $ $ 380,972
Receivables
Accounts 134,180 134,180
Grants 44,541 44,541
Due from other funds 708,517 18,974 727,491
Total assets $ 1,191,575 $ 95,609 $ $ 1,287,184
Liabilities
Accounts payable $ 4,793 $ $ $ 4,793
Accrued wages 7,934 7,934
Unearned revenue-advance 38,788 55,465 94,253
Due to other funds 104,225 62,683 166,908
Total liabilities 155,740 I18,148 273,888
Fund Balances
Assigned for special revenue funds
Unassigned 1,035,835 (22,539( 1,013,296
Total fund balances 1,035,835 (22,539) 1,013,296
Total liabilities and fund balances $ 1,191,575 $ 95,609 $ $ 1,287,184 The accompanying notes are an integral part of these financial statements 6 CITY OF LOYALTON

RECONCILIATION OF GOVERNMENTAL FUNDS

BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Fund balances ofgovernmental funds $ 1,013,296
Amounts reported for governmental activities in the statement ofnet position are different because:

Capital assets, net of accumulated depreciation, are not current financial resources and are not included in the governmental funds. 2,298,503
Long-term debt is not payable in the current period and therefore is not reported in the funds (43,466) Net position ofgovernmental activities $ 3,268,333
The accompanying notes are an integral part ofthese financial statements 7 CITY OF LOY ALTON

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Major Special Revenue
Funds Total
Governmental
General Gas Tax CDBG Funds
Revenues
Taxes $ 120,458 $ $ $ 120,458
Licenses and permits 28,726 28,726
Intergovernmental 639,461 67,807 707,268
Charges for current services 62,671 62,671
Use of money and property 179 179
Other 7,307 7,307
Total revenues 858,802 67,807 926,609
Expenditures
Current:

General government 169,109 169,109
Public safety 281,964 281,964
Health and sanitation 439 439
Highways and streets 44,852 44,852
Community development 10,791 10,791
Culture and recreation 25,050 25,050
Debt service
Principal 13,500 13,500
Interest 2,036 2,036
Capital outlay 88,500 88,500
Total expenditures 591,388 44,852 636,240
Excess (deficit) ofrevenues over expenditures
before other fmancing sources (uses) 267,414 22,955 290,369 Other Financing Sources (Uses)
Sale ofassets
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
224,926
(31,780)
193,146
31,780
31,780
(224,926)
(224,926)
256,706
(256,706)
Net change in fund balances 460,560 54,735 (224,926) 290,369 Fund balances, beginning of fiscal year 609,618 (111,617) 224,926 722,927 Prior period adjustment (34,343) __34,343 ----------
Fund balances, end of fiscal year $ 1,035,835 $ (22,539) $ ====
$ 1,013,296
The accompanying notes are an integral part ofthese financial statements 8 CITY OF LOYALTON

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS TO THE STATEMENT OF

ACTIVITIES-GOVERNMENTAL ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Net change in fund balances - total governmental funds $ 290,369 Amounts reported for governmental activities in the statement ofactivities differs from the amounts reported in the statement of revenues, expenditures and changes in fund balances because:

Governmental funds report capital outlays as expenditures. However, in the statement ofactivities. The costs ofthose assets is allocated over their estimated useful lives as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. This activity is reconciled as follows:

Cost of assets capitalized
Depreciation expense
88,500
(147,767)
Principal payment on long-term debt is recorded as an expense in the fund financial statements, however the payment is recorded as a reduction to the liability in the statement of net position 13,500
Change in net position ofgovernmental activities $ 244,603 The accompanying notes are an integral part ofthese financial statements 9 CITY OF LOY ALTON

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Water Sewer Totals
Current Assets:

Cash and investments $ 177,614 $ 2,166,748 $ 2,344,362
Restricted cash and investments 61,887 288,991 350,878
Prepaid expense 33,768 33,768
Receivables
Accounts (net ofallowance for doubtful accounts) 26,295 31,298 51,593 Interest receivable
Due from other funds 71,963 43,224 115,187
Total current assets 337,759 2,564,029 2,901,788
Capital assets:

Nondepreciable Capital Assets:

Land 373,319 373,319
Construction in progress 17,550 17,550
Depreciable Capital Assets
Building 415,920 415,920
Site improvements 2,787,734 8,598,282 11,386,016
Equipment 149,993 637,310 787,303
Less accumulated depreciation (1,409,748) (4,706,086) (6,115,834) Total capital assets (net ofaccumulated depreciation) 1,527,979 5,336,295 6,864,274 Total assets 1,865,738 7,900,324 9,766,062
Liabilities
Current Liabilities:

Accounts payable 4,910 2,107 7,017
Due to other funds 158,707 517,063 675,770
Current portion - long term liabilities 22,600 116,200 138,800 Interest payable 13,211 44,378 57,589
Total current liabilities 199,428 679,748 879,176
Noncurrent Liabilities:

Bonds payable 765,729 765,729
Certificates ofparticipation 858,IO0 2,765,800 3,623,900 Total noncurrent liabilties 858,100 3,531,529 4,389,629 Total liabilities 1,057,528 4,211,277 5,268,805
Net Position:

Net investment in capital assets 647,279 1,688,566 2,335,845 Restricted for debt service 61,887 288,991 350,878
Unrestricted 99,044 1,711,490 1,810,534
Total net position $ 808,210 $ 3,689,047 $ 4,497,257
The accompanying notes are an integral part of these financial statements 10 CITY OF LOY ALTON

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Operating Revenues
Charges for services
Water
$ 286,228
Sewer
$ 355,597 $
Totals
641,825
Total operating revenues 286,228 355,597 641,825
Operating Expenses
Salaries and benefits
Services and supplies
Depreciation expense
61,653
166,044
71,769
78,664
141,782
228,!09
140,317
307,826
299,878
Total operating expenses 299,466 448,555 748,021
Operating income (loss) (13,238) (92,958) (106,196)
Non-Operating Revenues (Expenses)
Interest income
Interest expense
126
(39,794)
5,397
(106,8I2)
5,523
(146,606)
Total non-operating revenues (expenses) (39,668) (101,415) (141,083) Net increase (decrease) in net position (52,906) (194,373) (247,279) Net position, beginning offiscal year 861,116 3,883,420 4,744,536 Net position, end offiscal year $ 808,210 $ 3,689,047 $ 4,497,257 The accompanying notes are an integral part ofthese financial statements I I

CITY OF LOYALTON

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
JUNE 30, 2022
Water Sewer Totals
Cash Flows from Operating Activities
Cash received from customers $ 298,364 $ 365,988 $ 664,352 Cash payments to suppliers (164,084) (137,274) (301,358) Cash payments to employees (61,653) (78,664) (140,317)
Net cash provided by (used for) operating activities 72,627 150,050 222,677 Cash Flows from Noncapital Financing Activities
lnterfund activity (472) 56,859 56,387
Net cash provided by (used for) noncapital
financing activities (472) 56,859 56,387
Cash Flows from Capital and Related Financing Activities Purchase offixed assets (17,549) (17,549)
Reductions ofdebt (21,600) (113,800) (135,400)
Interest expense (40,1 18) (108,358) (148,476)
Net cash provided by (used for) capital and related
financing activities (61,718) (239,707) (301,425)
Cash Flows from Investing Activities:

Interest income 126 5,397 5,523
Net cash provided by investing activities 126 5,397 5,523 Net increase (decrease) in cash and cash equivalents 10,563 (27,401) (16,838) Cash and cash equivalents, beginning offiscal year 228,938 2,483,140 2,712,078 Cash and cash equivalents, end offiscal year $ 239,501 $ 2,455,739 $ 2,695,240 Reconciliation ofCash and Cash Equivalents:

Cash and investments $ 177,614 $ 2,166,748 $ 2,344,362
Restricted cash and investments 61,887 288,991 350,878
Total cash and cash equivalents $ 239,501 $ 2,455,739 $ 2,695,240 Reconciliation ofOperating Income to Net Cash
Provided by (used for) operating activities $ (13,238) $ (92,958) $ (106,196) Adjustments to operating income:

Depreciation 71,769 228,109 299,878
(Increase) decrease in accounts receivable 12,136 10,391 22,527 (Increase) decrease in prepaid expense 5,628 5,628
Increase (decrease) in accounts payable 1,960 (1,120) 840 Increase (decrease) in accrued payroll
Net cash provided by (used for) operating activities $ 72,627 $ 150,050 $ 222,677 The accompanying notes are an integral part of these financial statements 12 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note ]: Summary ofSignificant Accounting Policies
The basic financial statements of City of Loyalton, California, (the "City") have been prepared in conformity with accounting principles generally accepted in the United States ofAmerica ("U.S. GAAP") as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the acceptable standard setting body for establishing governmental accounting and financial reporting principles. The more significant ofthe City's accounting policies are described below.

A. Reporting Entity
The City was incorporated in 1901, as a municipal corporation operating under the general laws ofthe State of California. The City operates under a Council-Manager form of government and provides services including general government, public works, public safety, water, sewer, and parks and recreation. Control or dependence is determined on the basis of budget adoption, selection of governing authority and designation of management, outstanding debt secured by revenues or general obligations of the City and ability to significantly influence operations.

The financial reporting entity, as defined by the GASB, consists of the primary government, the City, organizations for which the primary government is financially accountable, and any other organization for which the nature and significance oftheir relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

B. Basis ofAccounting
The government-wide, proprietary and agency fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned or, for property tax revenues, in the period for which levied. Expenses are recorded when a liability is incurred, regardless ofthe timing of related cash flows. Revenue from sales tax is recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when both measurable and available. Measurable means the amount of the transaction can be determined and available means collectible in the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Resources not available to finance expenditures and commitments of the current period are recognized as deferred revenue or as a reservation of fund balance.

The City considers property taxes available ifthey are collected within sixty-days after year-end.

Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt, as well as compensated absences and claims and judgments are recorded only when payment is due. General capital acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term debt and capital leases are reported as other financial sources.

When applicable, the City reports deferred revenue on its combined balance sheet. Deferred revenue arises when a potential revenue source does not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has legal claim to them, as when grant monies are received prior to the occurrences of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has legal claim to the resources, deferred revenue is removed from the combined balance sheet and revenue is recognized.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. 13 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note I: Summary ofSignificant Accounting Policies {Continued) C. Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement ofactivities display information about the primary government (the City). These statements include the financial activities of the overall government. These statements distinguish between the governmental and business-type activities ofthe City. Governmental activities, which normally are 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 ofactivities demonstrates the degree to which the program expenses ofa given function are offset by program revenues. Program expenses include direct expenses, which are clearly identifiable with a specific function. Program revenues include 1) charges paid by the recipient ofgoods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements ofa particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

When both restricted and unrestricted net position are available, unrestricted resources are used only after the restricted resources are depleted.

Fund Financial Statements
The fund financial statements provide information about the City's funds. Separate statements for each fund category - governmental and proprietary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in separate columns. All remaining governmental and enterprise funds are separately aggregated and reported as non-major funds.

The City reports the following major governmental funds:

General Fund - This fund accounts for all the financial resources not required to be accounted for in another fund. This fund consists primarily ofgeneral government type activities.

Gas Tax Fund - This fund is used to account the revenues and expenditures of the State Gas Tax CDBG Fund - This is used to account for Community Development revenue and expenditures The City reports the following major enterprise funds:

Water and Sewer Funds - account for the operation ofthe City's water and sewer utilities. Activities ofthese funds include administration, operation and maintenance of the water and sewer systems and billing and collection activities. The Funds also accumulate resources for, and payment of long-term debt principal and interest. All costs are financed through charges made to utility customers with rates reviewed regularly and adjusted ifnecessary to ensure the integrity ofthe Funds. 14 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note I: Summary of Significant Accounting Policies (Continued} D. Use ofEstimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

E. Cash Equivalents
For the purpose ofthe statement ofcash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts ofcash and so near their maturity that they present insignificant risk ofchanges in value because ofchanges in interest rates.

Restricted cash and unrestricted pooled cash and investments held by the City are considered cash equivalents for purposes ofthe combined statement ofcash flow's because the City's cash management pool and funds invested by the City possess the characteristics ofdemand deposit accounts.

F. Fixed Assets
Capital assets, recorded at historical cost or estimated historical cost ifactual historical cost is not available, are reported in governmental activities column ofthe government-wide financial statements. Contributed fixed assets are valued at their estimated fair market value. Capital assets include land, buildings and building improvements and equipment. Capital assets are defined by the City as assets with an initial, individual cost ofmore than $5,000.

The costs of normal maintenance and repairs that do not add to the value ofthe asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation is recorded in the government-wide financial statements on the straight-line basis over the useful life ofthe assets as follows:

Assets
Building and improvements
Utility Systems
Equipment and machinery
Useful Life
40-50 years
18-50 years
5-15 years
G. Property Tax
Sierra County is responsible for assessing, collecting and distributing property taxes in accordance with enabling legislation. Revenue received is based on an allocation factor calculated by the County under the provisions of Proposition t3 plus a percentage ofthe increase in market value in specific areas. The City's property tax is levied each July I on the assessed values as of the prior January I for all real and personal property located in the City.

Property sold after the assessment date (January 1) is reassessed and the amount ofproperty tax levied is prorated.

Secured property taxes are due in two equal installments; the first is due November I and delinquent with penalties after December IO; the second is due February 1 and delinquent with penalties after April 10. Unsecured property tax is levied on July I and due on July 31 and becomes delinquent on August 31.

Based on a policy by the County called the Teeter Plan, 100% of the allocated taxes are transmitted by the County to the City, eliminating the need for an allowance for uncollectable. The County, in return, receives all penalties and interest on the related delinquent taxes. 15 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 1: Summary ofSignificant Accounting Policies (Continued) H. Balance Sheet Classifications
Certain resources are classified as restricted assets as their use is restricted for specific purposes by bond agreements, lease agreements, trust agreements, grant agreements, City Charter provisions, or other requirements.

Governmental fund types' restricted assets are for grant advances. Proprietary fund types' restricted assets are for renewal and replacement ofequipment and debt service reserves.

I. Compensated Absences
City employees are granted vacation in varying amounts based on classification and length of service. Upon termination or retirement, the City is to pay 100% ofthe vacation time accrued and 25-35% of the accrued sick leave depending on the length ofemployment with the City.

Governmental Funds - Governmental funds record expenditures for compensated absences as they are taken by employees.

Proprietary Funds - Proprietary funds record expenditures for compensated absences as they are taken by employees.

J. Intergovernmental Revenues
Federal and state governments reimburse the City for costs incurred on certain fixed asset construction projects under capital grant agreements. Amounts claimed under such grants are credited to intergovernmental revenues if the project is being administered by a Capital Projects fund or to contributed capital if administered by a Proprietary fund. Additionally, the City receives reimbursement from federal and state governments for other programs, such as streets, housing and rehabilitation. These reimbursements are recorded in the fund administering the program as intergovernmental revenues with related program costs included in expenditures.

The respective grant agreements generally require the City to maintain accounting records and substantiating evidence to determine ifall costs incurred and claimed are proper and that the City is in compliance with other terms of the grant agreements. These records are subject to audit by the appropriate government agency. Any amounts disallowed will reduce future claims or be directly recovered from the City.

K. Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position are categorized as invested in capital assets (net ofrelated debt), restricted, and unrestricted. • Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement ofthose assets. • Restricted net position - Consists of net position with constraints placed on their use either by ( 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. These principally include restrictions for capital projects, debt service requirements and other special revenue fund purposes. • Unrestricted net position - All other net position that do not meet the definition of "restricted" or "net investment in capital assets."
16 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note I: Summary ofSignificant Accounting Policies (Concluding) L. Fund Balances
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 ofJune 30, 2022, fund balances for governmental funds are made up ofthe following:
• Non-spendable fund balance - includes amounts that are (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, prepaid, and long-term receivables. • Restricted fund balance - includes amounts that can be spent for specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. • Committed fund balance - includes amounts that can only be used for the specific purposes determined by a formal action ofthe City's highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally (for example: resolution and ordinance).
• Assigned fund balance - comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by (1) the City Council or (b) a body (for example: a budget or finance committee) orofficial to which City Counci I has delegated the authority to assign amounts to be used for specific purposes.
• Unassigned fund balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. In other governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, that fund would report a negative unassigned fund balance.

Note 2: Cash and Investments
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion ofthis pool is displayed on the combined balance sheet as cash and investments. Unless otherwise dictated by legal or contractual requirements, income earned or losses arising from the investment of pooled cash are allocated on a quarterly basis to the participating funds and component units based on their proportionate shares of the average quarterly cash balance.

The City maintains "restricted cash and investments". Monies restricted are for debt service reserves and legal settlement funds for the wastewater treatment plant.

Cash and investments at June 30, 2022, consisted ofthe following:

Cash and investments $ 2,725,334
Restricted cash and investments 350,878
Total per statement of activities $ 3,076,212
Checking account $ 732,547
Imprest cash 400
Savings 308,378
LAIF 2,034,887
Total cash and investments $ 3,076,212
17 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 2: Cash and Investments (Continued)
A. Investments Authorized by the California Government Code and the Entity's Investment Policy The table below identifies the investment types that are authorized for the City of Loyalton by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions ofthe California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk and concentration of credit risk. This table does not address investments ofdebt proceeds held by bond trustees that are governed by the provisions ofdebt agreements ofthe City, rather than the general provisions of the California Government Code or the City investment policy.

Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Investment pools authorized under CA
Statutes governed by Government Code NIA None $40 million U.S. Treasury Obligations 5 years None None
Bank Savings Accounts NIA 25% None
Federal Agencies 5 years 75% None
Commercial Paper 180 days 20% None
Negotiable Certificates of Deposit 180 days 20% None
Re-Purchase Agreements 180 days 20% None
Corporate Debt 5 years 25% None
B. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value ofand investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values ofthe District's investments to market interest rate fluctuations is provided by the following table that shows the distribution ofthe District's investment by maturity:

Remaining Maturity (in Months)
12 Months 13-48
Investment Type Totals or Less Months
State Investment Pool* $ 2,034,887 $ 2,034,887 $
Totals $ 2,034,887 $ 2,034,887 $
*Not subject to categorization
C. Concentrations ofCredit Risk
The investment policy ofthe City contains limitations on the amount that can be invested in any one issuer. There are no investments to one issuer exceeding those limits.

D. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposit or will not be able to recover collateral securities that are in the possession ofan outside party. The custodial credit risk for investments is the risk that, in the event ofthe failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment of collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits; The California Government Code requires that a financial institution secured deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the government unit). The fair value ofthe pledged securities in the collateral pool must equal at least I 10% ofthe total amount deposited by the public agencies. California law also allows financial institutions to secure the City's deposits by pledging first deed mortgage notes having a value of 150% ofthe secured public deposits. 18 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 2: Cash and Investments (Continued}
D. Custodial Credit Risk (Continued}
At June 30, 2022, the City's deposits balance was $1,051,488 and the carrying amount was $1,040,925. The difference between the bank balance and the carrying amount was due to normal outstanding checks and deposits in transit. Of the bank balance $801,488 was covered by the Federal Depository Insurance.

E. Investment in State Investment Pool
LAIF is included in the State's Pooled Money Investment Account. The total amount invested by all public agencies in the State's Pooled Money Investment Account approximates $231.57 billion. Ofthe $231.57 billion managed by the State Treasurer, l00% is invested in non-derivative financial products and 1.88% is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists offive members as designated by state statute.

Investments are accounted for in accordance with the provisions of GASB Statement No. 31, which requires governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in fair value of investments in the year in which the change occurred. The City reports its investments at fair value based on quoted market information obtained from fiscal agents or other sources ifthe change is material to the financial statements.

Note 3: Liability, Insured Programs and Workers Compensation Protection The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors and omissions; injuries to employees; and natural disasters. In 1986, the City joined together with other cities in the State to form Small Cities Organized Risk Effort (SCORE), a public entity risk pool currently operating as a common risk management and insurance program for member cities. The City pays an annual premium to SCORE for its insurance coverage. The Agreement for Formation ofthe SCORE provides that SCORE will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of self-insured levels. A Board of Directors governs the SCORE, consisting of one member appointed by each Member City. A management group employed by the SCORE handles the day-to-day business. At the tennination ofthe joint power agreement and after all claims been settled, any excess or deficit will be divided among the cities in accordance with its governing documents. Financial statements ofSCORE are available at the City. 19 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2022 was as follows:

Balance Retirements/ Balance
Governmental Activities July 1, 2021 Additions Adjustments June 30, 2022 Capital assets, not being depreciated:

Land $ 55,293 $ $ $ 55,293
Construction in progress 88,500 88,500
Capital assets, being depreciated:

Buildings and improvements 2,363,686 2,363,686
Site improvements 867,070 867,070
Equipment 855,403 855,403
Total capital assets, being depreciated 4,086,159 4,086,159 Less accumulated depreciation for:

Buildings and improvements (937,112) (77,650) (1,014,762) Site Improvements (448,778) (30,174) (478,952)
Equipment (397,793) (39,942) (437,735)
Total accumulated depreciation (1,783,683) (147,766) ( 1,931,449) Total capital assets, being depreciated, net
Governmental activities capital assets, net $
2,302,476
2,357,769 $
(147,766)
(59,266) $ $
2,154,710
2,298,503
Business-Type Activities
Water
Capital assets, being depreciated:

Site improvements
Equipment
$ 2,787,734
149,993
$ $ $ 2,787,734
149,993
Total capital assets, being depreciated 2,937,727 2,937,727 Less accumulated depreciation (1,337,979) (71,769) (1,409,748) Total capital assets, being depreciated, net
Water capital assets, net $
1,599,748
1,599,748 $
(71,769)
(71,769) $ $
1,527,979
1,527,979
Sewer
Capital assets, not being depreciated:

Land $ 373,319 $ $ $ 373,319
Construction in progress 17,550 17,550
Capital assets, being depreciated:

Buildings 415,920 415,920
Site improvements 8,598,282 8,598,282
Equipment
Total capital assets, being depreciated
637,310
9,651,512
637,31 0
9,651,512
Less accumulated depreciation (4,477,977) (228,109) (4,706,086) Total capital assets, being depreciated, net 5,173,536 (228,109) 4,945,426 Sewer capital assets, net $ 5,546,855 $ (210,559) $ $ 5,336,295 20 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 4: Capital Assets (Continued)
Depreciation
Depreciation expense was charged to functions/programs ofthe City as follows:

Governmental Activities
General government $ 74,247
Public safety 38,150
Streets and roads 1,793
Parks 33,576
Total $ 147,766
The City believes the estimated useful lives ofsome ofthe assets involved at the Wastewater Treatment Plant will be much less than was previously anticipated at the time the assets were completed. Depreciation expense has been increased accordingly. The ultimate useful life ofthese items will depend on the alternative corrective action the City selects for repair ofthe facility.

Note 5: Lease Income
The City of Loyalton derives a portion of its revenue from the rental of real property based on a fixed lease amount.

All leases ofthe City are treated as operating leases for accounting purposes. Lease terms can be terminated by lessor at any time and without cause. Because these are cancelable leases we do not present the operating revenue over the term ofthe lease.

Note 6: Long-term Liabilities
Governmental-Type Activities:

A summary of changes in the City's governmental-type activities long-term liabilities for the year ended June 30, 2022:

Balance
July I, 2021 Additions
Retirements/
Adjustments
Balance
June 30, 2022
Due Within
One Year
Capital leases
Total
$ 56,966
$ 56,966
$
$
$
$
( 13,500)
(1 3,500)
$ 43,466
$ 43,466
$ $ 13,983 13,983
$13, 983
During the 2019-20 fiscal year, the City purchased a fire tender water truck for $241,869, paying $171,869 cash and $70,000 with a capital lease. The capital lease agreement was executed on April 24, 2020 with 5 annual payments of $15,536 including interest, starting April 24, 2021 through April 24, 2025, with an interest rate of3.574%.

Future annual requirements to amortize the long•term debt outstanding as ofJune 30, 2022 are as follows:

Fiscal Year End
June 30, Prinicipal Interest Total
2023 $ 13,983 $ 1,553 $ 15,536
2024 14,482 1,054 15,536
2025 15,001 536 15,536
Totals $ 43,466 $ 3,143 $ 46,609
21 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 6: Long-term Liabilities {Continued)
Business-Type Activities:

A summary ofchanges in the City's business-type activities long-term liabilities for the year ended June 30, 2022:

Water Fund Balance
July I, 2021 Additions
Retirements/
Adjustments
Balance
June 30, 2022
Due Within
One Year
2004 COP
Total
$ 902,300
$ 902,300
$
$
$
$
(21,600)
(21,600)
$ 880,700
$ 880,700
$ 22,600
$ 22,600
Sewer Fund Balance
July I, 2021 Additions
Retirements/
Adjustments
Balance
June 30, 2022
Due Within
One Year
1995A Sewer revenue bond
I995B Sewer revenue bond
2009 COP
Total
$ 702,738
105,791
2,953,000
$ 3,761,529
$
$
$
$
(37,500)
(5,300)
(71,000)
(113,800)
$ 665,238
100,491
2,882,000
$ 3,647,729
$ 38,600
5,600
72,000
$ 116,200
Water Fund - 2004 Certificates of Participation
The City of Loyalton issued $1,144,600 in certificates of participation on March I, 2004 through Rural USDA to provide funds for the construction ofvarious water system improvements.

The installment payments are secured by a pledge ofthe net revenues ofthe City's water system as provided in the installment purchase contract. The interest rate is 4.5% with payment due dates ofMarch I and September I and final payment due September 1, 2044.

Future annual requirements to amortize the long-term debt outstanding as ofJune 30, 2022 are as follows:

Fiscal Year End
June 30, Principal Interest Total
2023 $ 22,600 $ 39,123 $ 61,723
2024 23,600 38,615 62,215
2025 24,700 36,997 61,697
2026 25,800 35,861 61,661
2027 27,000 34,673 61,673
2028-2032 154,300 153,574 307,874
2033-2037 192,200 114,750 306,950
2038-2042 239,400 66,375 305,775
2043-2045 171,100 11,779 182,879
Totals $ 880,700 $531,745 $1,412,445
22 CITY OF LOY ALTON
Notes to the Financial Statements
June 30, 2022
Note 6: Long-term Liabilities (Continued)
Sewer Fund - Series 1995-A Revenue Bond
The City of Loyalton issued $1,256,500 in revenue bonds on February I, 1995 through Rural Economic and Community Development Service to provide funds for the construction of various water system improvements.

The payments are secured by a pledge ofthe net revenues of the City's sewer system as provided in the installment purchase contract. The interest rate is 4.5% with payment due dates ofFebruary I and August I and final payment due August I, 2034.

Future annual requirements to amortize the long-term debt outstanding as ofJune 30, 2022 are as follows:

Fiscal Year End
June 30, Principal Interest Total
2023 $ 38,600 $ 29,070 $ 67,670
2024 40,900 27,281 68,181
2025 42,600 25,403 68,003
2026 44,300 23,447 67,747
2027 46,200 21,411 67,611
2028-2032 264,700 84,719 349,419
2033-2035 187,938 22,680 210,618
Totals $ 665,238 $234,011 $ 899,249
Sewer Fund - Series 1995-B Revenue Bond
The City ofLoyalton issued $186,200 in revenue bonds on February I, 1995 through Rural Economic and Community Development Service to provide funds for the construction ofvarious water system improvements.

The payments are secured by a pledge of the net revenues ofthe City's sewer system as provided in the installment purchase contract. The interest rate is 4.5% with payment due dates of February I and August I and final payment due August I, 2034.

Future annual requirements to amortize the long-term debt outstanding as ofJune 30, 2022 are as follows:

Fiscal Year End
June 30, Principal Interest Total
2023 $ 5,600 $ 4,397 $ 9,997
2024 6,300 4,129 10,429
2025 6,600 3,839 10,439
2026 6,900 3,535 10,435
2027 7,IO0 3,220 10,320
2028-2032 40,IO0 10,915 51,015
2033-2035 27,891 1,919 29,810
Totals $100,491 $ 31,952 $ 132,443
23 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 6: Long-term Liabilities (Continued)
Sewer Fund - 2009 Certificate ofParticipation
The City ofLoyalton issued $3,569,000 in certificates ofparticipation on February I, 20 IO through Rural USDA to provide funds for the construction ofvarious sewer system improvements.

The installment payments are secured by a pledge ofthe net revenues ofthe City's water system as provided in the installment purchase contract. The interest rate is 2.5% with payment due dates of February 1 and August 1 and final payment due August I, 2049.

Future annual requirements to amortize the long-term debt outstanding as ofJune 30, 2022 are as follows:

Fiscal Year End
June 30, Principal Interest Total
2023 $ 72,000 $ 71,150 $ 143,150
2024 74,000 69,325 144,250
2025 76,000 67,450 143,450
2026 78,000 65,525 143,525
2027 80,000 63,550 143,550
2028-2032 430,000 286,375 716,375
2033-2037 487,000 229,138 716,138
2038-2042 551,000 164,388 715,388
2043-2047 622,000 91,200 713,200
2048-2050 412,000 15,625 427,625
Totals $2,882,000 $1,123,725 $ 4,006,650
Note 7: Defined Benefit Pension Plan
On November 16, 2016, the CalPERS Board of Administration declared the city of Loyalton in default of its obligation to CalPERS. Effective January 2018, Cal PERS reduced the retirement benefits paid to City of Loyalton retirees', pursuant to Government code section 20577 to 40% of retiree' base pension benefit, as subject to cost of living adjustments as calculated by CalPERS ("Reduced Benefit Amount".) Per a subsequent settlement agreement with three City ofLoyalton retirees, beginning April 2019, and on a monthly basis thereafter, The City of Loyalton agreed to pay an amount equal to 1.075 times the monthly Reduced Benefit Amount for the three retirees. In no event shall Loyalton's monthly payment, when combined with CalPERS' monthly payment, exceed 83% of the three retirees Base Pension or Survivor Benefit (whichever is applicable).

Loyalton's obligations under this Agreement will cease once CalPERS ceases making payments to the retirees or their designated survivors.
24 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 8: Interfund Transactions
Operating transfers are transactions to allocate resources from one fund to another fund not contingent on the incurrence of specific expenditures in the receiving fund. lnterfund transfers are generally recorded as operating transfers in and operating transfers out in the same accounting period.

Receivables and Payables
Balances representing lending/borrowing transactions between funds outstanding at the fiscal year end are reported as either "due from/due to other funds" (amounts due within one year), "advances to/from other funds" (non-current portions of interfund lending/borrowing transactions), or "loans to/ from other funds" (long-term lending/borrowing transactions evidenced by loan agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. The interfund balances are not expected to be repaid within one year ofthe balance sheet date. lnterfund transactions for the fiscal year ended June 30, 2022 are summarized as follows:

Due to Due from
Other Funds Other Funds
General fund $ I04,225 $ 708,517
Special revenue funds 62,683 18,974
Enterprise funds 675,770 115,187
Totals $ 842,678 $ 842,678
Note 9: Stewardship. Compliance and Accountability
A. Deficit Fund Balances
The gas tax fund had a deficit fund balance of$22,539 at June 30, 2022. The deficit fund balance is expected to be eliminated upon receipt offuture funding or transfers from the general fund.

B. Expenditures over Budgeted Appropriations
General fund expenditures were over the appropriations budget by $442,874.

Note 10: Revenue Limitations Imposed by California Proposition 218 Proposition 218, which was approved by the voters in November 1996, regulates the City's ability to impose, increase, and extend taxes and assessments. Any new increase or extended taxes and assessments subject to the provisions of Proposition 218, requires voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes and assessments are subject to voter initiative and may be rescinded in the future years by the voters.

Note 11: Related Party Transactions
The City currently is operating without a City Manager. Members ofthe City Council have taken on the job duties normally performed by a City Manager. The members ofthe City Council are not compensated for taking on these duties in excess ofthe approved stipend per meeting received by all City Council members. 25 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2022
Note 12: Gann Limit
Proceeds subject to the limit for 2021-22 $ 216,991
Amount oflimit for 2021-22 1,281,075
Amount (under)/over the limit $ (1,064,084)
Per Capita Percentage Change 5.73%
Population Change -0.13%
Note 13: Operating Lease
On March 21, 201 7 the City entered into an operating lease agreement with the Sierra County Probation Department, whereas the City agreed to lease the 1,334 square foot building at I05 Beckwith Street to the Sierra County Probation Department for $1,000 per month, plus the Probation Department has agreed to pay all utilities for the building. The lease had an initial 5-year lease with an option to renew for a one-year period. As ofJune 30, 2022 the lease was on a month-to-month rental period per the holdover provision of the lease, furthermore the rent was reduced to $900 per month to compensate for utilities used by others in the building.

Note 14: Prior Period Adjustment
A prior period adjustment was recorded reducing beginning general fund, fund balance and increasing the gas tax fund, fund balance $34,343 in order to comply with the prior year maintenance-of-effort required by the Road Maintenance and Rehabilitation Program.

Note 15: Commitments and Contingencies
Grants
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 ofthe applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, ifany, to be immaterial.

Commitments
The City had ongoing engineering and professional service commitments as ofJune 30, 2022.

COVID 19
In December 2019, a novel strain of coronavirus has spread around the world resulting in business and social disruption. The coronavirus was declared a Public Health Emergency of International Concern by the World Health Organization on January 30, 2020. The operations and business results of City of Loyalton could potentially be adversely affected by this global pandemic. The extent to which the coronavirus may impact business activity or investment results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions required to contain the coronavirus. The District has not included any contingencies in the financial statements specific to this issue.

The City has committed $88,500 for the completion ofa Fire Brush Truck expected to be completed in the 2022/23 fiscal year. The City put an $88,500 deposit for the vehicle during the 202 1/22 fiscal year.

Note 16: Subsequent Events
The City of Loyalton management has evaluated subsequent events through November 17, 2022, the date these financial statements were available to be issued.
26 CITY OF LOYALTON

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
JUNE 30, 2022
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenues
Taxes $ 116,400 $ 116,400 $ 120,458 $ 4,058
Licenses and permits 16,847 16,847 28,726 11,879
IntergovernmentaI 639,461 639,461
Charges for current services 40,950 40,950 62,671 21,721 Use of money and property 14,988 14,988 179 (14,809)
Other 250 250 7,307 7,057
Total revenue 189,435 189,435 858,802 669,367
Expenditures
Current:

General government 52,595 52,595 169,109 (116,514)
Public safety 65,920 65,920 281,964 (216,044)
Health and sanitation 439 (439)
Community development 10,791 (10,791)
Culture and recreation 25,050 (25,050)
Debt service
Principal 13,500 (13,500)
Interest 2,036 (2,036)
Capital outlay 30,000 30,000 88,500 (58,500)
Total expenditures 148,515 148,515 591,388 (442,874)
Excess (deficit) of revenues over expenditures
before other financing sources (uses) 40,920 40,920 267,414 226,494 Other Financing Sources (Uses)
Operating transfers in
Operating transfers out
224,926
(31,780)
224,926
(3 l,780)
Total other financing
sources (uses)
Net change in fund balance $ 40,920 $ 40,920
193,146
460,560 $
193,146
419,640
Fund balance, beginning of fiscal year
Prior period adjustment
Fund balance, end of fiscal year $
609,618
(34,343)
1,035,835
27 CITY OF LOYALTON

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE

GAS TAX FUND
JUNE 30, 2022
Variance
Revenues
Original
Budget
Final
Budget Actual
Favorable
(Unfavorable)
Intergovernmental $ 61,315 $ 61,315 $ 67,807 $ 6,492
Total revenue * 61,315 61,315 67,807 6,492
Expenditures
Current:

Highways and streets
Total expenditures *
61,315
61,315
61,315
61,315
44,852
44,852
16,463
16,463
Excess (deficit) of revenues over expenditures
before other financing sources (uses) 22,955 (9,971)
Other Financing Sources (Uses)
Operating transfers out
Total other financing
sources (uses)
31,780
31,780
31,780
31,780
Net change in fund balance * $ $ 54,735 $ 21,809
Fund balance, beginning offiscal year (111,617)
Prior period adjustment 34,343
Fund balance, end of fiscal year $ (22,539)
28 CITY OF LOYALTON
Note to Required Supplementary Information
June 30, 2022
Budgets and Budgetary Accounting
As required by State law the City prepares and legally adopts a final operating budget. Public hearings were conducted on the proposed and final budget to review all appropriations and the source offinancing.

The budgets for the general fund and Gas Tax fund are adopted on the modified accrual basis of accounting. The budget for the general fund and Gas Tax fund are the only legally adopted budgets. Appropriations lapse at fiscal yearend.

The budgetary data presented in the final budgeted amount in the accompanying financial statements includes all revisions approved by the City Council.
29 CITY OF LOYALTON

MANAGEMENT REPORT
JUNE 30, 2022
. LARRY BAIN, CPA Member ofAmerican Institute ofCertified Public Accountants An Accounting Corporation Member of AICPA Peer Review Program 2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]

COMMUNICATION OF SIGNIFICANT DEFICIENCIES AND MATERIAL WEAKNESSES To: City Council
City ofLoyalton
We have audited the financial statements of City of Loyalton as of and for the fiscal year ended June 30, 2022, and have issued our report thereon dated November 17, 2022. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica.

In planning and performing our audit, we considered City ofLoyalton' s (City) internal control over financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly we do not express an opinion on the effectiveness ofthe City's internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or a combination ofdeficiencies in internal control, such that there is a reasonable possibility that material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration ofthe internal control overfinancial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. We consider findings 2022-001 through 2022-005 in the following schedule of findings to be deficiencies in internal control that we consider to be material weaknesses.

A significant deficiency is a deficiency, or 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. We consider finding FS 2022-006 through FS 2022-011 in the following schedule of findings to be significant deficiencies in the City's internal control:

City of Loyalton's Response to Findings
The City of Loyalton's written response to the significant deficiencies identified in our audit and any follow up for subsequent year corrections has not been subjected to the audit procedures applied in the audit of the financial statements and accordingly, we do not express an opinion on the responses.

Purpose of this Report
The purpose ofthis report is solely to describe the scope ofour testing of internal controls over financial reporting and the result ofthat testing, and not to provide an opinion on the effectiveness ofthe City's internal control. This report is an integral part of an audit performed in accordance with auditing standards generally accepted in the United States ofAmerica in considering the City's internal control over financial reporting, accordingly this report is not suitable for any other purpose.

This report is intended solely for the information and use ofthe board of directors and management ofCity ofLoyalton.

Larry Bain, CPA,
An Accounting Corporation
November 17, 2022
2 CITY OF LoyALTON

SCHEDULE OF FINDINGS
JUNE 30, 2022
Significant Deficiencies Deemed Material Weaknesses
Finding 2022-001: During our setup ofthe auditor's trial balance we noted the City general ledger is not a self-balancing set ofaccounts per fund. Significant adjustments need to be made in order to balance the funds. Furthermore the City trial balance had not been adjusted for the prior year audit entries and therefore the equity was not be in balance by fund. We noted the City hired a qualified external accountant to assist with posting the prior year audit entries and with balancing the funds. The risk of material misstatement resulting from these conditions is high and this is a condition for the qualified opinion on the financial statements. We have noted this condition in prior audits.

Current Year Follow Up: Condition not corrected during the current year audit period. The City started the conversion to a fund accounting software program, but was unable to complete the conversion and went back to using QuickBooks. For the June 30, 2021 fiscal year-end audit, the City is using an outside accountant to assist with balancing the funds.

Recommendation: We recommend the City continue to pursue replacing QuickBooks with fund accounting software.

City Response: As a small rural government agency, the City faces challenges due to limited resources and staff. The Covid pandemic has exacerbated these challenges. At this time, the City must rely on the system in place and the external accountants it contracts with to complete the fiscal year end fund balancing process. This arrangement has proven the most reliable and accurate. The City continues to consider fund accounting software program options for future implementation.

Finding 2022-002: During our audit we proposed a material journal entry increasing deferred revenue $18,851 to offset the leap grant receivable that was accrued at June 30, 2022, but not received within 90 days from fiscal year. We also recorded a journal entry to reduce accounts receivable by $23,587 for a restored beginning balance entry that was made in error.

During our audit we proposed entries that weren't considered material to a) reduce accrued payroll $11,171, and b) to accrue an additional $6,361 accounts receivable for Sierra County 2021 /22 revenue.

Recommendation: We recommend as part of year-end closing procedures, the City agree each account in the final trial balance to the underlying documentation.

City Response: The City has reviewed and recorded the recommended year-end adjustments.

Finding 2022-003: During our audit we noted the City entered into a settlement agreement with four retirees of the City, whereby the City agreed to pay a portion ofthe amount ofpension benefits that the retirees receive from Cal PERS. As a result of this agreement the City is subject to rules ofGovernment Accounting Standards Board Statement No. 68 (GASB 68) for pension plans. During the 2018/19 fiscal year the City did not hire an actuarial to determine the net pension liability, the deferred outflows of resources, the deferred inflows of resources and the pension expense on an actuarial basis. This was a condition for the qualified opinion. We have noted this condition in prior audits.

Current Year Follow Up: No change in obtaining an actuarial in compliance with GASB 68.

In the 2021/22 fiscal year, the allocation basis was approximately 28% allocated to the general fund compared to 15% in the prior fiscal year, 36% allocated to the water fund compared to 42.5% in the prior fiscal year and 36% allocated to the sewer fund compared to 42.5% in the prior fiscal year. The 2021/22 fiscal year budget indicated that the retirement expense would be allocated 50/50 to water and sewer and did not allocate any retirement expense to the general fund.

Recommendation: We recommend the City obtain an actuarial report for the pension benefits and record the activity in the financial statements in accordance with GASB 68. We also City Council to review the allocation methodology of the retirement expense and give the finance staff direction on how to allocate between the funds. 3 CITY OF LOYALTON

SCHEDULE OF FINDINGS
JUNE 30, 2022
Significant Deficiencies Deemed Material Weaknesses (Continued) City Response: The City actively seeks resources to obtain the recommended actuarial report. Once this is achieved the City will consider a budget for the long-term liability.

Finding 2022-004: During our review ofthe Gas Tax fund, we noted the fund balance ended with a negative fund balance of $22,539. The Gas Tax fund appears to have a structural deficit. Furthermore, as ofJune 30, 2022, the gas tax fund owes other funds net $43,709, and has an advance from FEMA of $55,465 that is required to be spent on a disaster relief project. The Gas Tax fund had $76,638 cash as ofJune 30, 2022. We have noted these condition in prior audits Recommendation: We recommend the City review the activity in the Gas Tax fund and take action to cure the deficit fund balance and either complete the FEMA project or repay the money that was advanced.

City Response: The City has set aside the unspent balance ofthe FEMA funds in a separate account and is in the process of securing contracts to complete any outstanding projects.

Finding 2022-005: During our testing of revenue we noted revenue from the Dixie strike team incident in the amount of $72,361.91, a second revenue check for the Dixie fire in the amount of$19,639.43 and revenue from pre-position in the amount of $135,855.61, were all deposited to the Loyalton Volunteers Fire Association (Association) and then transferred from the Association to the City. The Association appears to be operating as a non-profit organization, however they have not established legal non-profit status as a 50 l(c)(3). We have noted this condition in the prior audit.

Because the Association is not a legally recognized organization their activities are not included in the financial statements as a component unit ofthe City, and as such the Strike Team activity could not be audited for completeness. This is a condition for the qualified opinion in the auditor's report.

City Response: The Loyalton Fire Department is an all-volunteer Fire Department. All incident response invoices and backup documentation, along with strike team payments are retained by the City. There was one incident (Dixie) where there was a mistake in the online payment system on who to make the check payable to and it was corrected immediately.

Significant Deficiencies Not Deemed Material Weaknesses Finding 2022-006: We noted the City does not have a current investment policy and a current conflict of interest policy. The investment policy is required to be reviewed and adopted bi-annually. We have noted this condition in prior audits.

Recommendation: We recommend the City adopt the investment policy biannually.

City Response: The City has both a basic investment policy and a conflict-of-interest policy and continues to review all policies on a regular basis. The City seeks administrative assistance to further support these actions.

Finding 2022-007: We noted the City had a lack of segregation of duties, as one person is capable of handling all aspects of certain transactions from beginning to end. A lack of segregation ofduties increases the risk of potential errors or irregularities occurring without being detected; however, due to a limited number ofpersonnel an adequate segregation ofduties is not possible without incurring additional costs. We have noted this condition in prior audits.

City Response: Due to our small budget, it is not feasible to hire enough staff to mitigate this finding. The City is aware of the deficiency and has taken steps to minimize risk. The City has a part-time Clerk, a Bookkeeper, two outside Financial Consultants, and an ongoing Finance Committee. Financial policy reviews are in progress. 4 CITY OF LOYALTON

SCHEDULE OF FINDINGS
JUNE 30, 2022
Significant Deficiencies Not Deemed Material Weaknesses (Continued) Finding 2022-008: We noted the City did not implement the provisions ofGovernment Accounting Standards Board Statement 54 as required by U.S. generally accepted accounting policies. This new standard went into effect for fiscal year ending June 30, 2011. The requirement categorizes fund balances into five separate categories and sets a definition for special revenue funds.

We have noted this condition in prior audits.

Current Year Follow Up: No Change.

Recommendation: We recommend the City review the provisions ofGASB 54 and take action to adopt this standard. We also recommend the City create a schedule track all restricted, unspendable and committed fund balances in compliance with GASB

54. City Response: The City is aware ofthe provisions ofthe GASB 54 standards and works to track fund balances appropriately.

The City invests in training for its accounting staff to ensure they are educated in and able to implement the GASB 54 standards. The City further works to educate the Financial Committee members on the provisions.

Finding 2022-009: During our testing ofthe general checking account, we noted the June 2022 bank rec for account new 1956 showed a July 31, 2022 date with a reconciliation date of July 12, 2022, it appears City staff entered the wrong date when performing the June 2022 bank rec. The reconciliation had uncleared checks for checks that were written in July. We also noted many checks written in July that were backdated to June 30. We noted the bank reconciliation had a balance of $173,363, however the general ledger had a balance of$249,025. We noted the bank rec showed outstanding checks of$87,326 where we calculated outstanding checks should have been $21,060 and the bank rec showed deposits in transit of$12,825 as opposed to $1,177. We have noted weak controls over the bank reconciliation in past audits.

Recommendation: We recommend recording checks in QuickBooks the day the check is written (no backdating). We recommend agreeing the reconciled bank balance to the general ledger and explaining any variances. We recommend agreeing outstanding checks and deposits in transit to the underlying activity.

City Response: City accounting staffwill work to recognize exact liabilities at year end and agreeing to bank balances.

Finding 2022-010: During our audit we noted the City has $842,678 interfund loans recorded between the general fund, special revenue funds and the enterprise funds. The interfund loans appear to be an accumulation ofreconciling entries needed to balance the funds at year-end, because the City does not utilize an accounting software program with a self-balancing set of accounts. These interfund loans are classified as due to, due from other funds. The interfund loans have been on the City books for several years and as such they appear to be long-term in nature. Long-tenn interfund loans should be categorized as advances to and advance from other funds and should carry interest that would be paid from the borrowing fund to the lending fund. We have noted this condition in prior audits.

Recommendation: We recommend the City review the due to/due from accounts and determine if the interfund balances should be paid offor converted to advances with terms such as an amortization schedule showing when the payments will be made and the interest rate associated with the lending.

City Response: The City is working to detennine the origination ofthe separate interfund balances. 5 CITY OF LOYALTON

SCHEDULE OF FINDINGS
JUNE 30, 2022
Significant Deficiencies Not Deemed Material Weaknesses (Continued) Finding 2022-011: During our testing of payroll we noted strike team members and City Council Members are being paid through accounts payable. IRS rules require these payments to be paid through payroll with all applicable payroll tax deductions. We have noted this condition in prior audits.

Recommendation: In order to avoid potential fines and to comply with IRS rules, we recommend the City process strike team pay and City Council pay through payroll with all applicable payroll deductions.

City Response: During staffchangeover there was a period oftime when Council Member's pay did not process through payroll, the City has plans to correct the error. The City is in the process of reviewing the recommendation regarding Strike Team pay with counsel and working to create a policy regarding Strike Team pay. 6 . Member of American Institute ofCertified Public Accountants An Accounting Corporation Member ofAICPA Peer Review Program

LARRY BAIN, CPA
2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]
December 15. 2022
To the City Council
City of Loyalton
We have audited the financial statements of the governmental-type activities, business-type activities and fund information of City of Loyalton for the fiscal year ended June 30. 2022, and have issued our report thereon dated November 17, 2022. Professional standards require that we provide you with the following information related to our audit.

Our Responsibility under U.S. Generally AcceptedAuditing Standards As stated in our engagement letter dated August 27. 2022, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit ofthe financial statements does not relieve you or management ofyour responsibilities.

Planned Scope and Timing oftlte Audit
We performed the audit in accordance with the planned scope and timing previously communicated on August 27, 2022.

Significant Audit Findings
Qualitative Aspects ofAccounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms ofour engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by City of Loyalton are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the 2021-2022 fiscal year. We noted no transactions entered into by the governmental unit during the year for which there is a lack ofauthoritative guidance or consensus.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because oftheir significance to the financial statements and because ofthe possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the financial statements was (were):

Management's estimate of the useful lives of assets for calculating depreciation expense is based on GFOA recommended useful lives. We evaluated the key factors and assumptions used to develop the useful life estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Management's estimate in allocating salaries and other expenses to governmental and business type funds are based on actual timesheets as well as estimated percentages ofcertain employee and management time based on historical activity. We reviewed the allocations and assumptions used by management in determining reasonableness to the financial statements. During the 2021-22 fiscal year management again reviewed the allocation and made adjustments as deemed necessary.
1 ..

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We provided management with all known adjusting entries and after review all entries were posted to the accounting system. A prior period adjustment was recorded in the general fund and the gas tax fund to comply with the Cities maintenance of effort requirements for State Road Maintenance funding.

Disagreements with Management
For purpose ofthis letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significance to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated November 17, 2022.

Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. Ifa consultation involves application ofan accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety ofmatters, including the application ofaccounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

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

Very truly yours,
Larry Bam, CP
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Funding leads, agencies and updates as of 1.5.2023
SPJUSD
• 1.3.2023 Spoke with Superintendent James Berardi he's in support of possibly putting school funding towards the Rec Center if the school can use a portion of it for their wellness program
Possibly $100-150K towards the building from the Behavioral Grant that came through the County.
• If it's possible SPJUSO would need a formal agreement to use those classrooms for wellness and any other stipulation.
o Possibly 2-3 400 sq. classrooms for the Wellness/mental health portion of the grant.
• Loyalton High School
o Principal Megan Meschery is in support of looking for and applying for more funding through the school to support the facility in hopes of the high school athletics program.
• Loyalton Elementary School
o Still need to speak with Andrea Ceresola (meeting set early next week) First 5 Sierra
• 1.2.2023 Spoke with Executive Director Candy Corcon and she is in support of both the Rec and Perfonning Arts Center.
o Funding Sources available to run programs, purchase equipment for programs, equipment such as playground and exterior structure.

Would apply for this in Phase 3 when we're ready to open and furnish the classrooms and such
Sierra Nevada Children's Services
• 1.2.2023 Spoke with program manager Jessica Norman and she is in support of both the Rec and Perfonning Arts Center.
o We can apply for a short fall grant to close the gap for the building itself, then apply for programs and equipment later.
o Funding Sources available to run programs, purchase equipment for programs, equipment such as playground and exterior structure.

Would apply for this in Phase 3 when we're ready to open and furnish the classrooms and such
USDA
• 1.4.2023 Spoke with our country rep, Micheal Vukas, he's very helpful in navigating all the funding that we can access
50K Equipment grant is the most useful one, this would require an 18% match which Musica Sierra can provide .

There is funding for a food pantry as well
Community Development Block Grant
• 1.5.2023 Spoke with Felicity Gasser. the rural specialist for CBDG's and this grant is flexible and a good fit for our projects. Due to our 55% low to medium income as well as not being funded by them since the 1990's we are in a good position to be funded if applied.

Funding opportunities:
■ Planning Grant for the School House; application open June 1. 2023 ■ Up to 1.5 for infrastructure once the Rec center is up; this grant can pay for plumbing, HVAC, electrical, pathways, ADA. ect. That application would be for Jan 1, 2024.
■ This one is tricky for the structure building portion as to receive funding you have to meet all the federal procurement regulations. She suggested we wait and apply once the building is built and apply for infrastructure. ■ Follow up with her
Private Funding Avenues for the Building, infrastructure and equipment • Sierra Pacific Foundation
• The AARP Community Challenge grant
• California Arts Council Creative Corps Program for the Stainglass commission for The School House by local Paiute Tribe Member Marjoree Voorhees.

Toda:
• Connect with Vickie Ckare at the Family Resource Center • Connect with Carolyn Widman at lhe Senior Center
• Tom Beam: CTL Sponsorship
• Rural Electric
W HATI
HEHU
The oldest building in Loyalton, the historic school
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reflect the beauty of the Sierra Valley. Under the
Leadership of Lindsay McIntosh of Musica Sierra,
the School House will be your Hub for local &
international artists and musicians.

THE HUB Arts&R&C
LoyaltonCA
WHATIS
The Hub?

PORTSAN RECREATION
The new 10,000 sq ft complex will be a hub for
year-round indoor fitness, sports, and recreation.
• After-school programs
• Community Classes
• Gym Memberships
• Indoor Winter Training
• Youth Recreation
Located at the north side of
Loyalton, the Hub: Arts & Rec is
Sierra Valley's home for youth
and community eng agement.

Whether a senior discount gym
membership or a free afterschool youth program, the Hub:

Arts & Rec provides outlets for
all ages.

THE HUB

ARTS & REC

LOYALTON CA
- ARTS & REC

LOYAL TON CA
Enjoy Classlc Rock In the park or
Bluegrass In the oldest buildlng
in [oyalton? The Hub: Arts & Rec,
In partnership with Musica
Sierra, provides year-round
programming in the newly
restored School House & Sierra
Valley Event Center.

VOLU TEER
DEIVIOL.ITION &
DEVELOPIVIENT ARts ltlC
Loyalton CA
Louis Siqueido,
Sierra Brooks resident,
father, husband, fac Facilitator.
structural superintendent
community leader, 1ttle
league president
Sean Troup ,
Sierra Brooks resident
fach Husband band, faci/1tator,
h equipm equipment o raror
Tyler Martin,
Loyalton resi nt father th r,
husbandnd, heavy
op r t
Michael
r sident recycling hauling
nd pr ce processing
Volunteer

DEIVIOLITION &
Development THE HUB ARTS &REC

LOYALTON CA
Louis Siqueido,
Sierra Brooks resident,
father, husband, facilitator,
structural superintendent,
community leader, little
league president
Sean Troupe,
Sierra Brooks resident,
father, husband, facilitator,
heavy equipment operator
Tyler Martin,
Loyalton resident father,
husband, heavy eqwpment
operator
Volunteer
Demolition &
Development ARts & REC

LOYALTON CA
Alex & Jonas Ellison
Loyalton resident, parents,
authors, minster, Musica
Sierra Board Member
Chelsea Johnson,
Loyalton resident, Guilded
Drifter owner/ opertator
Lindsay & Owen
McIntosh,
Sierra Brooks residents,
parents, facilitators, Musica
Sierra directors
Gary Nelson & Bob
Feeny,
Sierra Brooks resident,
facilitators Milton Gottard,
Muse m board member,
THE HUB AllTS & REC

LOYALTON CA
u

AL POMBO

SOIL ANALYSIS,HAULING &

PROCESSING OF CONCRETE
& RECYCLING

CONTRUBUTIONS

Q&O CONSTRUCTION

EQUIP ENT

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USAGE, AND FUEL

INTERMOUNTAIN DISPOSAL - RICHARD ROSS

SOLID WASTE HAULING AND DISPOSAL

THE HUB ARTS & REC
Loyalton CA

THE NEED

FUNDRAISINC EFFORTS
Our fundraising goal is $350,000, which will retrofit the School House and outfit the new Arts &Rec Building.

Our entire budget for renovation and development is
$550,00.

Thanks to a grant that City Councilwoman Joy Markum and Louis Siqueido secured through Parks & Rec from Prop 68, we are a tittle less than halfway there!
We need the support of every resident and business in our county and beyond to make this incredible vision a reality.

SPONSORSHIP

EIVIBERSHIPS
GRANTS

DONATION
Do you want to be part of our
Initiative?
Are you a community member or
business with a trade or service
they'd like to see In The Hub?
Please get in touch with us at
[email protected]
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the progress
@thehubloyalton
@thehubloyalton

THE HUB ARTS & REC
Loyalton CA thehubloyalton.com

(APN # 017-076-003) 502 Beckwith, Loyalton, CA - Tree Branch on Roof (1/1/2023) Board Room
I , I 54 ScQ ft
.

I . I .
. Office 2 I
R Room 162.5 Sq Ft
.3 40 Sq Ft
r ' 1iRRoom 1
60 Sq Ft Conference Room .. Lobby . 979 SQ FT 220 Sq Ft R room 2 Storage 60 Sq ft
- .
. . 82.5 .. Sq Kitchen
Kitchen 1
76 Sq Ft II I Sq Ft .. .

Office1
162.5 Sq Ft
-·
.

Total SQ FT (Approx.) 3, 107 .•5
Meeting Space 2, 133
• Office Space 325
Lobby 220
Rest Room oom 1(.0
Kitchen 187 • Storage 82.5
-----------------------
- -

CITY OF LOYALTON
County Of Sierra
605 SCHOOL Street 1
PO Box 128
Loyalton California 96 118
(530) 993-6750
cityofloyalton@digitalpath .net
Officeof 111£ mayor APPLICATION FOR A BUSINESS LICENSE
Name ofOwner of Business: Tyler Jon Martin
(first) (Middle) (Last)
Address: PO Box 890 Telephone: 530 448 2 287
Name of Business: Martin SnowRemoval
Nature of Business: n snow removal
State Contractors License No. N/A Resale License No:

Pennanent Location of Business:
___________________Telephone: ------------
Is Business a Corporation or Partnership? Yes ___ _ No X If so, please indicate the name(s), address(s), and title(s) of officer(s) or Partner(s):

Annual Gross Receipts from Business$ Less than $10,000 c) (The City needs this information 10 determine thetaxdue per quarter. See schedulebelow.) 8' 12/ 15/2022 Signature (wife) Date · ature Title
************************** ::::: ******************************************** Sales or use tax may apply to your business activities. You may seek, written advice regarding the application of tax for your particular business by writing to the nearest State Board ofEqualization office.
**************************************************************************** TAXES Section 5.04.220 ofLoya/1011 Municipal Code)
All businesses having gross receipts of:

A. Less than $ I 0,000 annually - Fee of$ 60.00* per year B. D Between $10,000 and 50,000 annually Fee of $100.00* per year C. D Between$ 50,000 and$ I00,000 annually - Fee of $140.00* per year D. D Between $100,000 and $150,000 annually - Fee of$180.00* per y ear E. D More than $150,000 annually - Fee of $220.00* per year * Please note that an additional $4.00 fee will be added to the annual fee for the State ADA Fees
For oftic 1al use on!):

Date Received: 12/15/2022
Fee Received: $64.00
City Clerk: Date approved: _
License No. issued:
-