CITY OF LOYALTON
LOFA
COUNTY OF SIERRA
605 SCHOOL STREET
P.O. BOX 128
LOYALTON, CALIFORNIA 96118
(530) 993-6750 ERRA
·190 CALIFORN
cityofloyalton.org
COUNTY
OFFICE OF THE MAYOR
AGENDA FOR THE REGULAR MEETING OF THE
LOYALTON CITY COUNCIL
6:00 P.M. - CITY HALL AUDITORIUM
605 SCHOOL STREET
MARCH 17, 2026
NEXT ORDINANCE #425
NEXT RESOLUTION NO 1-2026
AGENDA & PACKET AVAILABLE ON CITY WEB SITE
cityofloyalton.org
Any person with a disability may submit a request for reasonable nodification or accommodation to the above-described means for accessing and offering comment at the meeting to Kathy LeBlanc, City Clerk, at [[email protected]] 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
Special Meeting February 17, 2026 (Attachment)
Regular Meeting February 17, 2026 (Attachment
STAFF REPORTS/WRITTEN COMMUNICATIONS/UNFINISHED
BUSINESS
1. Ethics Course
2. 700 Forms
TIMED ITEM 6:20 PUBLIC HEARING ZONING CODE AND FIRST
READING OF ORDINANCE 425
9. TIMED ITEM 6:45 PUBLIC WORKSHOP FEMA MAPS
PUBLIC COMMENT
This is an opportunity for members of the public to address the Council on items which are not on the genda. Please state your name for the record. Comments are limited to three minutes. Written comment hould 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
11. FIRE DEPARTMENT REPORT
12. FINANCIAL COMMITTEE REPORTS
1. Financial Committee Report/Update
• Approval of Reconciled Accounts (Attachment)
• Approval of Bill Sheet for February 2026 (Attachment) • Acknowledgment of Approval of Fund Transfer from General 1956 to Enterprise Loan MM 0559 not to exceed $25,000.
(Attachment)
13. PUBLIC WORKS COMMITTEE REPORTS/PARK AND RECREATION
14. OTHER COMMITTEE REPORTS
15. DISCUSSION AND POSSIBLE ACTION ITEMS
1. Discussion and Possible Action regarding Reaffirming our State of Emergency Water Distribution System.
2. Discussion and Possible Action regarding approval Annual Housing Progress Report.
3. Discussion and Possible Action regarding approval of Draft Audit 2024
4. Discussion and Possible Action regarding Prop 68 Grants
5. Discussion and Possible Action regarding Business License for Mary Ferraro- Crafters 3D Creations.
16. AGENDA INPUT FOR UPCOMING MEETINGS
17. BOARD MEMBER CLOSING REMARKS
18. ADJOURNMENT
February 17, 2026
SPECIAL MEETING
The special meeting of the Loyalton City Council was called to order by Mayor Markum on February 17, 2026, at 5:00 p.m.
COUNCIL MEMBERS' PRESENT
J. Markum, J. Gerow, S. Mcllravy, B. Mertton
COUNCIL MEMBERS ABSENT:
STAFF PRESENT: City Clerk-Kathy LeBlanc
GUESTS PRESENT: None
APPROVAL OF AGENDA
It was moved by B. Mertton seconded by J. Gerow to approve the agenda as presented. Motion carried.
ANNOUNCEMENTS
None
STAFF REPORTS
None
PUBLIC COMMENT
None
DISCUSSION AND POSSIBLE ACTION
CLOSED SESSION:
1. Mayor Markum adjourned the meeting to go into closed session. Mayor Markum reconvened the meeting stating it was decided by consensus of the council to give G.
Lonergan a raise of $25.00 per hour.
2. Mayor Markum will cover the contract negotiations in open session.
AGENDA IMPUT FOR UPCOMMING MEETING
COUNCIL MEMBER CLOSING REMARKS
MEETING ADJOURNED
APPROVED:
Mayor Markum
ATTEST:
Kathy LeBlanc- City Clerk
February 17, 2026
REGULAR MEETING
The Regular meeting of the Loyalton City Council was called to order by Mayor Markum on February 17, 2026, at 6:00 p.m. Loyalton City Auditorium
COUNCIL MEMBERS' PRESENT: J. Markum, S. Mcllravy, 1. Gerow, B. Mertton, COUNCIL MEMBERS ABSENT:
STAFF PRESENT
City Clerk- Kathy LeBlanc
GUESTS PRESENT
S. Snider, M. DeBerg. S. Moran, K. Moran
APPROVAL OF AGENDA
It was moved by S. Mcllravy, seconded by B. Mertton to approve the agenda as presented. Motion carried.
ANNOUNCEMENTS
1. Mayor Markum reported that the council has given G. Lonergan a raise of $25.00 per hour in
2. Mayor Markum would like to open the discussion from closed session regarding contract negotiations with the Senior Center. M. DeBerg addressed the council on the repairs that need to be done at the Senior Center. After a discussion it was moved by J. Gerow, seconded by S.
Mcllravy, to waive the $500.00 monthly fee until after the repairs are completed. Motion carried.
APPROVAL OF MINUTES
1. It was moved by S. Mcllravy, seconded by J. Gerow to approve the minutes for the Regular meeting of 1-20-26. Motion carried
STAFF REPORTS/WRITTEN COMMUNICATIONS/UNFINISHED BUSINESS
1. Mayor Markum will send the Fire Department down to look at the outbuildings on the cul-de- sac of Patterson Ave.
2. City Clerk will check on the cost for the earthquake insurance.
ACCEPT RESIGNATION LETTER FORM JOE DINES
It was moved by J. Gerow, seconded by S. Mcllravy, to accept the letter of resignation from Joe Dine.
Motion carried. Councilmember Mcllravy thanked Joe for all his work on the council.
It was moved by S. Mcllravy, seconded by J. Gerow to post the flyer for the vacant council position.
Motion carried.
TIMED ITEM SEAN SNIDER
S. Snider addressed the council on the expansion for the Loyalton Middle school. After a discussion on a proposed land exchange, it was moved by J. Gerow, seconded by B. Mertton to proceed with the land exchange of property. Motion carried. The city will pay for our cost and the SPJUSD will pay for their cost.
PUBLIC COMMENT
No Public Comment
FIRE DEPARTMENT REPORT
No Report was given
FINANCIAL COMMITTEE REPORT/UPDATE
1. No Report given
2. It was moved by S. Mcllravy, seconded by B. Mertton to approve the reconciled accounts.
Motion carried.
3. It was moved by S. Mcllravy, seconded by B. Mertton to approve the bill sheet for January 2026 not to exceed $49,822.40. Motion carried.
ACKNOWLEDGEMENT OF APPROVAL OF FUNDS TRANSFERS.
1. It was moved by B. Mertton, seconded by J. Gerow, to approve fund transfer from General 1956 to Enterprise Loan MM not to exceed $20,000. Motion carried.
PUBLIC WORKS COMMITTEE REPORTS/PARK AND RECREATION
Mayor Markum announced that J. Gerow will replace J. Dines on the Public Works Committee.
OTHER COMMITTEE REPORTS
None
DISCUSSION AND POSSIBLE ACTION ITEMS
1. After a brief discussion It was moved by S. Mcltravy, seconded by B. Mertton to reaffirm our State of Emergency Water Distribution System. Motion carried. (This item will be added to the next agenda)
2. It was moved by S. Mcllravy, seconded by B. Mertton to approve G. Price to prepare the Annual element Progress Report. Motion carried.
3. Councilmember Mertton presented a proposed water restriction schedule. After a discussion this item will be put on the nest agenda.
4. It was moved by S. Mcllravy, seconded by B. Mertton to approve Business License for Eli Helvey- Handyman Service. Motion carried.
5. It was moved by B. Mertton, seconded by J. Gerow to approve Business License for Bob Feeney- Timber Café. Motion carried.
IMPUT FOR UPCOMING MEETING
Water Restrictions
CLOSING REMARKS
Meeting Adjourned
APPROVED:
Mayor Markum
ATTEST:_
Kathy LeBlanc, City Clerk
DRAF
CITY OF LOYALTON
PUBLIC HEARING NOTICE
NOTICE IS HEREBY GIVEN that the City of Loyalton will hold a public hearing during a regular meeting of the City Council on Tuesday, March 17, 2026, 2023, at 6:00 p.m. at the Loyalton City Hail Auditorium at 605 School Street, Loyalton, to consider the following:
Zoning Ordinance Amendment (ZOA 2026-01) for amending various sections of the Zoning Code to bring the City's housing regulations into compliance with State Housing Law.
Amendments include, but are not limited to, updating the accessory dwelling unit regulations, amending parking requirements for emergency housing shelters, adding definitions for residential care facilities, employee and farmworker housing, allowing supportive and transitional housing uses in certain zoning districts, and updating density bonus requirements. In accordance with the Calitornia Environmental Quality Act (CEQA), this action to adopt the Zoning Ordinance Amendments have tentatively been determined to be exempt from environmental review in accordance with the CEQA Guidelines "common sense" exemption, Cal. Code of Regulations, Title 14, Section 15061(b)(3).
Please feel free to review the Public Review Draft of the proposed zoning code amendments at the following link:
https://www.cityofloyalton.org/uploads/1/0/8/1/108187787/loyalton_zoning_code_2021 _amend ments_full_document_with_track_changes_draft _nol.pdf
All interested persons are invited to present testimony on the matter during the public hearing, and/or submit written comments prior to and/or during the public hearing. Additional information may be obtained regarding this matter and you may also request an electronic version of the document by contacting Kathy LeBlanc, City Clerk, (530) 993-6750 or by e-mail at ofclerk- [email protected]
The City of Loyalton does not discriminate in housing or employment on the basis of race, religion, sex, age, national origin, or disability. The location of the public hearing is fully accessible to mobility-impaired individuals.
In compliance with the Americans with Disabilities Act, the City of Loyalton encourages those with disabilities to participate fully in the public hearing process. If you require special accommodations in order for you to attend or participate in this public meeting process, please contact the City Clerk at (530) 993-6750 or by e-mail at [email protected] well in advance of the public hearing so that we may make every reasonable effort to accommodate you.
POSTED: February 13, 2026
By: Kathy LeBlanc
City Clerk
CITY OF LOYALTON
CITY COUNCIL STAFF REPORT
MEETING OF: March 17, 2026
Subject: Zoning Code Update ZOA 2026-01
From: Kathy LeBlanc, City Clerk
Gary Price, Contract Planner
Recommended Action: 1. Conduct public hearing and consider public comments.
2. Determine that this action to amend the Zoning Ordinance is exempt from environmental review.
3. Determine that this action is consistent with the General Plan.
4. Waive first reading and adopt Ordinance No. 425, an amendment to Chapter 12 of the Loyalton Municipal Code repealing and replacing the Zoning Ordinance.
5. Schedule second reading of ordinance for April 21, 2026 BACKGROUND: The Zoning Code/Ordinance is a chapter of the City's Municipal Code that regulates the development of buildings, activities, uses, and signs. It affects how the City looks and how projects work now and in the future. The primary purpose of this update is to bring the zoning regulations into conformance with current State Housing laws. Going through the entire document, we made a number of changes to provide consistency throughout and to provide more clarity. These amendments are also required to implement the 2024-29 Housing Element, adopted last year. Due to the complexity of the Zoning Code, and the number of changes being made to these regulations, amendments are being proposed throughout the whole document. The redline version of the proposed amended regulations are reference in the City's website at:
https://www.cityofloyalton.org/uploads/1/0/8/1/108187787/loyalton_zoning_code_2021_amend ments_full_document_with_track_changes_draft_nol.pdf
Attached is Ordinance No. 425 that is a clean version of the final draft of the regulations for Council's adoption (excludes redine changes).
DISCUSSION: A number of State housing laws, too many to list, have been created over the last couple of years that apply to the City. To comply with these laws, a number of amendments are being made to address a statewide goal of producing more housing. Referring to the redline version of the proposed amendments, the following summarizes the changes:
1. Chapter 12.08.2, Definitions; Pages 4-34, several changes and added words.
2. Chapter 12.08.4, General Use Design and Open Space Requirements; A. New Accessory Dwelling Units Section 4-11, Pages 43 to 50 B. Fiscal Impact Change, Section 4-12; Page 50
C. Employee Housing Development, New Section 4-18, Page 54 D. Residential Care Facilities, New Section 4-19, Pages 55 to 57 E. Transitional and Supportive Housing, New Section 4-20, Page 58 F. Flood Protection, New Section 4-22, Page 59
Added new allowed and conditional use permit uses and revised standards to various zoning districts starting with Chapter 12.08.5, Single Family Residential District, Page 59 through Chapter 12.08.11, Heavy Industrial District Page 108
4. Amend Chapter 12.08.27, Density Bonus regulations to comply with new housing laws, Pages 177 through 184
Changes to parking requirements and standards in Chapter 12.08.12, Parking, Pages 114 to 126
6. Revised objective design standards to remove discretion throughout.
7. Removed reference to Site Plan Review. Development Review has replaced Site Plan Review.
8. Omitted Chapter 12.08.14 regarding Floodway Fringe Overlay Zone, Page 137
9. Added Section 4-22, Flood Protection, Page 59
10. Replaced Zoning Map to remove reference to Floodway Fringe Overlay Zone, Page 2 GENERAL PLAN CONSISTENCY: There are a number of programs in the recently adopted General Plan, Housing Element, which provides for amending the Zoning Code in compliance with many statutes in 2026. So, all of the proposed amendments are consistent with the General Plan. Included in the Council's motion to adopt Zoning Ordinance Amendment ZOA 2026-01, the Council should determine that the project is consistent with the General Plan.
ENVIRONMENTAL DETERMINATION: Adoption of these code amendments are exempt from environmental review under the "Common Sense Rule" of the CEQA Guidelines Section 15061 (b) (3) that this is not a project that would result in a direct impact on the environment.
Included in the Council's motion to adopt Zoning Ordinance Amendment ZOA 2026-01, the Council should determine that the project is exempt from environmental review.
ALTERNATIVES: The City Council should open and close the public hearing, consider the 2 staff/consultant team's recommendation and public comments, and then either adopt this first reading of the proposed zoning ordinance amendment or continue this item with specific direction. Should the Council continue this matter, it should keep the public hearing open and continue to the June meeting (to avoid further legal noticing).
QUESTIONS/COMMENTS: Please feel welcome to contact the City's planning consultant, Gary Price, at (530) 218-1059 of gary @plannerprice.com with any questions regarding the draft document before the meeting. It is always good to provide staff the opportunity to address questions before the meeting to allow time to research answers and possibly present them for the understanding of the entire council at the meeting.
ATTACHMENTS:
Ordinance No. 425 adopting Zoning Ordinance Amendment ZOA 2026-01
ORDINANCE NO. 425
AN ORDINANCE OF THE CITY OF LOYALTON REPEALING AND REPLACING ZONING. OF THE LOYALTON MUNICIPAL CODE (CHAPTER12 OF THE LOYALTON MUNICIPAL CODE) The City Council of the City of Loyalton hereby finds and declares as follows:
WHEREAS. the City of Loyalton has initiated Zoning Ordinance Application ZOA 2026-01 to update the Zoning Code and incorporate applicable State housing law provisions into the Loyalton Zoning Ordinance: and
WHEREAS. the General Plan Housing Element prioritizes the need to update the Zoning Code to comply with various State Housing laws: and
WHEREAS. an opportunity was provided for public review of the Zoning Code including circulating the document for agency comment on February 9. 2026. posting the proposed amendments to the Zoning Code on the City's Website starting on February 9. 2026. and posting a minimum 20-day public hearing notice in the newspaper on February 13. 2026. and:
WHEREAS. the City Council finds that the provisions of this Ordinance are consistent with the City of Loyalton's General Plan and meets the requirements of State Housing law: and WHEREAS. the proposed amendments to the Municipal Code of Loyalton set forth herein provide for the "public necessity and convenience and general welfare and would not be detrimental to the public's health. safety. and welfare: and
WHEREAS. the Loyalton City Council has considered public comment at a duly noticed public hearing.
NOW. THEREFORE. THE CITY COUNCIL OF THE CITY OF LOYALTON HEREBY ORDAINS AS FOLLOWS:
Section 1. The Loyalton City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment). 15060(c)(3) (the activity is not a project as defined in Section 15378). and Section 1506l (b)(3) of the CEQA Guidelines. California Code of Regulations. Title 14. Chapter 3.
Section 2. Chapter 12 of the Municipal Code of the City of Loyalton. Zoning Code. is hereby repealed in its entirety and reenacted as set forth in the attached Exhibit A. that is incorporated herein by this reference.
Section 3. The City Council declares that. should any provision. section. subsection. sentence. paragraph. clause. phrase. or word of this Ordinance. or the Code section hereby adopted. be rendered or declared invalid by any final court action in a court of competent jurisdiction. or by any reason of any preemptive Loyalton City Zoning Ordinance No. 425 1
legislation. the remaining provisions. sections, subsections. sentences. paragraphs. clauses. phrases or words of this Ordinance and Code section hereby adopted shall remain in full force and effect.
Section 4. The Mayor shall assign and the City Clerk shall attest to the passage of this Ordinance. This Ordinance shall become effective 30 days from its final adoption.
NOW. THEREFORE. BE IT RESOLVED by the City Council of the City of Loyalton that it hereby:
Introduced at a Regular Meeting of the City Council of the City of Loyalton on March 17. 2026. by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Joy Markum. Mayor
City of Loyalton
Adopted and approved this ordinance at a meeting held on the 27th day of April 2026. by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Joy Markum. Mayor
City of Loyalton
WITNESSED and ATTEST by my hand seal of the organization.
Kathy LeBlanc. City Clerk
Loyalton City Zoning Ordinance No. 425 2
FEMA SIERRA COUNTY
SPECIAL MEETING NOTICE
CHANGES TO FEMA FLOOD MAPS FOR SIERRA VALLEY
You May Be Required to Get Flood Insurance
Opportunity to Review Proposed New Flood Maps
The Federal Emergency Management Agency (FEMA) is in the process of revising the flood maps for Sierra County in the vicinity of Sierra Valley. FEMA's new preliminary flood maps show that many parcels, including most of the city of Loyalton, Sierra Valley and outlying communities, will be partially or fully located within a designated special flood hazard area, based on new studies.
If you have a federally-backed mortgage and FEMA's new maps show all or part of your structure within a "100-year" designated flood hazard area, your lender will likely require that you purchase flood insurance, once the new maps become effective (estimated to be Summer 2027). The determination is solely up to your lender, in reliance on these flood maps and in compliance with federal regulations. In addition, any proposed development in a FEMA- mapped special flood hazard area may be subject to federal regulations and State and local Building Codes pertaining to flood-resistant construction.
The Sierra County Planning Department and City of Loyalton are working with FEMA 1o inform the affected communities. Presentations of the proposed new flood maps have been scheduled before the Sierra County Board of Supervisors, as well as the "open house" workshop at Loyalton City Hall listed below. At this "open house" the preliminary flood maps will be available for viewing, and staff will be available to help locate your property on the TUESDAY, March 17, 2026
Loyalton City Hall
605 School Street
Loyalton, CA
6:30 pm - 8:00 pm
The flood insurance program is a nationwide, federal program. For additional information, and to view the maps, please check the following websites:
• Current flood insurance maps: https://msc.fema.gov/portal/home New Preliminary flood maps: https://www.sierracounty.ca.gov/259/Floodplain-Management • Proposed changes to current flood maps (comparison with new preliminary maps) Google search: "flood map changes arcgis'
General flood insurance program information: https://www.floodsmart.gov You can also contact the Sierra County Planning Department at [email protected] or (530) 289-3251 for additional information.
Acknowledgement of Approval, City of Loyalton
The City of Loyalton acknowledges approval of the below listed reconciled Plumas Bank Accounts
General Account (1956) $156,325.66 Reconciled as of 02/28/2025 Enterprise Loan Savings (0559) $235,905.17 Reconciled as of 02/28/2025 WWTP Settlement (4387) $13,722.16 Reconciled as of 02/28/2025 Fire Department Savings (7243) $76,015.98 Reconciled as of 02/28/2025 FEMA Flood Savings (0059) $45,728.36 Reconciled as of 02/20/2025 CalTRUST Enterprise $148,117.98 Reconciled as of 02/28/2025 CalTRUST Fire Dept Reserve $160,341.78 Reconciled as of 02/28/2025 CalTRUST Roof $7,837.53 Reconciled as of 02/28/2025
LAIF WWTP Settlement (496) $1,494,008.82 Reconciled as of 02/28/2025 Wildland Fire Checking (4162) $149,349.90 Reconciled as of 02/28/2025 This authorization took place at the council meeting held on 03/17/2026 and will be further reflected in the council minutes of this meeting.
Joy Markum Mayor, Dated 03/17/2026
Authorized Signature Printed Name
10:53 AM City of Loyalton
03/10/26 Bills Paid
Accrual Basis February 17 through March 11, 2026
Type Date Num Name Memo Amount
General Funds
Enterprise Loan MM 0559
Bill Pmt -Check 03/02/2026 200 -17,640,00
Bill Pmt -Check 03/02/2026 199 USD 92-05 -11,409,56
Bill Pmt -Check 03/02/2026 199 USDA 92-03 -1,718.48
Bill Pmt -Check 03/02/2026 199 USDA 92-07 -32,456.64
Total Enterprise Loan MM 0559 -63,224,68
General Checking 1956- NEW
Bill Pmt -Check 02/18/2026 10006 Employment Development Department 69817369 -1,278.93 Bill Pmt -Check 02/18/2026 10007 High Sierra Gas LLC 105 Beckwith St. 80.7 Gallons @$2.80 -255.32 Bill Pmt -Check 02/18/2026 10008 403 Poole Ln. -4,871.64 Bill Pmt - Check 02/18/2026 Plumas Sera Real i 1738
Sewer Plant
Bill Pmt -Check 02/18/2026 Plumas-Sierra Telecomm Broadband 19112 Bill Pmt -Check 02/18/2026 Plumas-Sierra Telecomm.- Fire Broadband -60.00 Bill Pmt -Check 02/18/2026 Sılver State Analytical Laboratories, Inc Effluent Weir Vault -251.00 Bill Pt -Check 02/18/2026 Silver State Analytical Laboratories, Inc Effluent Weir Vault -77.00 Check 02/18/2026 Reimbursements -2,377.58
Check 02/23/2026 George Marily Retiree February 2026 Pension -323.85
Liability Check 02/24/2026 Employment Development Department 69817369 QB Tracking # 866100642 -240.53 Liability Check 02/24/2026 -1,724.10
Liability Check 02/24/2026 Employment Development Department -90.09 Liability Check 02/24/2026 94-6000364 QB Tracking # 867226642 -114.72 Liability Check 02/24/2026 ay Prent Development Department 69817369 QB Tracking # 867231642 -6.60 Bill Pmt -Check 02/24/2026 09/01/25-01/30/26 -4,340.00
Bil Pm Check 027402026 10026 High Siera Gas LIC Fire Dept 208 From i2 20 alone g32° -616.58 10027 -658.52
Bill Pmt -Check 02/24/2026 10028 League of Califomia Cities Membership 2026 -542.00 Bill Pmt -Check 02/24/2026 10029 Installment 8 -11,273.00 Bill Pmt -Check 02/24/2026 10030 Sie State Analyical Laboratories, InG Effluent Weir Vault -77.00 Bill Pmt -Check 02/24/2026 10031 1100 -248.20
Paycheck 02/26/2026 10016 LeBlanc, Katherine L -722.42
Paycheck 02/26/2026 10017 -1,653.91
Paycheck 02/26/2026 10018 -553.64
Paycheck 02/26/2026 10019 Wolley, George W. -2,641.69
Check 02/26/2026 USPS -200.08
Bill Pmt -Check 02/26/2026 10037 High Sierra Gas LLC Pos Poole Ln. 178.4 Gallons @5280 -548.72 Bill Pmt -Check 02/26/2026 10038 ntermountain Disposal, Inc. Garbage Disposal -123.92 Bill Pmt -Check 10039 Jefferson Supply Company INV #55438, INV #55459 -71.33 Bill Pmt -Check 10040 Silver State Analytical Laboratories, Inc Testing -683.00 Bill Pmt - Check 10041 Xerox Corporation 951429299 -229.10 Paycheck 10021 LeBlanc, Katherine L -138.52
Paycheck 10023 Mollravy. Susan L -138.53
Paycheck Mertton, William J - 138.53
Paycheck 10020 Gerow, Jerry C -138.53
Paycheck 10022 Markum, Joy L -138.53
Check 10032 Patsy Jardin Retiree March 2026 Pension -2 306. 13 Check 10033 March 2026 Pension -1.414.06
Check 03/01/2026 10034 March 2026 Pension -619,76
Check 03/01/2026 10035 March 2026 Pension -323.85
Bill Pmt -Check 03/06/2026 10042 FY26 General Services -8,719.25 Liability Check 03/10/2026 E-pay 69817369 QB Tracking # 1136085642 -223.37 Liability Check 03/10/2026 E-pay sTen Development Department 94-6000364 QB Tracking # 1136091642 -1,639.94 Liability Check 03/10/2026 E-pay 69817369 QB Tracking # 1136104642 -39.06
10:53 AM City of Loyalton
03/10/26 Bills Paid
Accrual Basis February 17 through March 11, 2026
Date Name Memo Amount
Total General Checking 1956- NEW -53,032.95
Total General Funds -116,257.63
TOTAL -116,257.63
10:53 AM City of Loyalton
03110/26 Bills Paid
Accrual Basis February 17 through March 11, 2026
Type Date Num Name Memo Amount
General Funds
Enterprise Loan MM 0559
Bill Pmt -Check 03/02/2026 200 USDA 91-05
Bill Pmt -Check 03/02/2026 199 USDA 32-01 - 179080
Bill Pmt - Check 03/02/2026 199
Bill Pmt -Check 03/02/2026 199 USDA 92-07 32,456.64
Total Enterprise Loan MM 0559 -63.224.68
General Checking 1956- NEW
Bill Pmt -Check 02/18/2026 10006 Employment Development Department 69817369 -1,278.93 Bill Pmt -Check 02/18/2026 10007 High Sierra Gas LLC 105 Beckwith St 807 Gallons @52 80 -255.32 Bill Pmt -Check 02/18/2026 10008 4.871 64
Bill Pmt -Check 02/18/2026 Plumas Siera Rural Electre 27386 10000 -91 42
Bill Pmt -Check 02/18/2026 Broadband -109 00
Bill Pmt -Check 10012 Broadband -60.00
Bill Pmt -Check 021822026
-251.00
Bill Pmt -Check 02/18/2026 10013 Silver State Analytical Laboratories, Inc -77.00 Check 02/18/2026 10014 2.377.58
Check 0212312026 10015 -323.85
Liability Check 027412026 E-pay Es Treasury Development Department -240.53 Liability Check E-pay -1,724 10
Liability Check 02124/2026 Employment Development Department -90 09 Liability Check 0202412026 94-6000364 QB Tracking # 867226642 -114.72 Liability Check any Pyrent Development Department 69817369 QB Tracking # 867231642 -6.60 Bill Pnt - Check 0212412026 09/01/25-01/30/26 -4,340 00 Bit Pm Check 02/24/2026 10026 616.58
02/24/2026 -658 52
Bill Prt -Check 02/24/2026 10028 -542 00
Bill Pmt -Check 02124/2026 -11,273 00
Bill Pmt -Check 02/2412026 10030 Silver State Analytical Laboratories, Inc Effluent Weir Vault -77 00 Bill Pmt -Check 02/24/2026 SVHC -248.20
Paycheck 02/26/2026 10016 -722.42
Paycheck 02/26/2026 10017 -1 653.91
Paycheck 02/26/2026 10018 -553 64
Paycheck 02/26/2026 10019 Wolley, George W. -2.641.69
Check 02/26/2026 10036 USPS Postage -200.08
Bill Pmt -Check 02/26/2026 10037 403 Poole Ln 178 4 Gallons @ $2 80 -548.72 Bill Pmt - Check 02/26/2026 10038 Garbage Disposal - 123 92 Bill Pmt -Check 02/26/2026 10039 INV #55438, INV #55459 -71 33 Bill Pmt -Check 10040 Silver State Analytical Laboratories, Inc Testing -683 00 Bill Pmt -Check 10041 951429299 -229 10
Paycheck 10021 -138.52
Paycheck 10023 Merton, Suita - 138 53
Paycheck 10024 -138 53
Paycheck 10020 -138 53
Paycheck -138 53
Make a do Retiree
Check 10032 March 2026 Pension -2,306 13
Check 10033 John Cussins Retiree March 2026 Pension -1.414.06 Check 10034 March 2026 Pension -619 76
Check 10035 -323.85
Bill Pmt -Check 03/06/2026 10042 -8.719 25
Liability Check 03/10/2028 E-pay 69817369 QB Tracking # 1136085642 -223.37 Liability Check Epay Es Tremen Development Department 898106900 rang 113610451622 • 1,639 94 Liability Check 03/10/2026 -39.06
10:53 AM City of Loyalton
03/10/26 Bills Paid
Accrual Basis February 17 through March 11, 2026
Type Date Num Name Memo Amount
Total General Checking 1956- NEW -53,032.95
Total General Funds - 116,257.63
TOTAL - 116,257,63
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 03/01/2026
Water 1,000.00
Sewer 4,000.00
General Fund Enterprise Loan MM 0559 03/08/2026
Water 1,000.00
Sewer 4,000.00
General Fund Enterprise Loan MM 0559 03/15/2026
Water 1,000.00
Sewer 4,000.00
General Fund Enterprise Loan MM 0559 03/22/2026
Water 1,000.00
Sewer 4,000.00
General Fund Enterprise Loan MM 0559 03/29/2026
Water 1,000.00
Sewer 4,000.00
THIS TOTAL $25,000.00
This authorization took place at the council meeting held on 03/17/2026 and will be further reflected in the council minutes of this meeting.
Joy Markum _ Mayor, Dated 03/17/2026
Authorized Signature Printed Name
CITY OF LOYALTON
CITY COUNCIL STAFF REPORT
MEETING OF: March 17, 2026
Subject: Annual Housing Progress Report for 2025
From: Kathy LeBlanc, City Clerk
Gary Price, Planner Director
Recommended Action: Conduct public review, consider any public comments, and approve 2025 Annual Progress Report on Implementation of the General Plan Housing Element.
BACKGROUND:
California Government Code Section 65400 ("Section 65400") requires cities and counties to submit an Annual Progress Report (APR) to the State by April 1 of each year. The Code requires the City Council to conduct public review of the report, consider public comments, and approve the report prior to submittal. APRs must be submitted to two State agencies: the Governor's Office of Planning and Research (OPR) and the Department of Housing and Community Development (HCD). The APRs describe each jurisdiction's progress in implementing the housing elements of their General Plans and shows the City's accomplishments toward meeting its Regional Housing Needs Allocation (RHNA)'. Filing these reports also qualifies the City for various State grants, such as the Housing Related Parks (HRP) program and Building Homes and Jobs Act funds.
The RHNA is a State guideline/objective directed to local governments to help improve housing production to accommodate various family income levels based on local housing needs/characteristics. However, since the City is not a housing developer, the City is not obligated to produce these units. Table 1 presents the City of Loyalton's RHNA for the 7'h Cycle, 2024-29 period. It indicates that the City's objectives of meeting RHNA is to produce two lower-income units by 2029. This is the first year of the 7' Cycle Housing Element. The City did not experience any housing development, nor any production of units in 2025.
RHNA (Regional Housing Needs Allocation) The Regional Housing Needs Assessment (RHNA) is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan. It includes housing production objectives according to income level for each jurisdiction.
Table 1-1. Loyalton Regional Housing Needs Allocation (2024-2029) Income Category Income Range RHNA
(New Construction Need)
Very Low $0 to $45,000 per year 1
Low $45,001 to $72,000 per year
Moderate $72,001 to $108,000 per year
Above Moderate More than $108,000 per year
Total Units 2
For a family of 4, Median Income is $90,000.
Source(s): Income Levels - HCD Income Limits for 2024; Regional Housing Need Determination for 7th Housing Element Planning Cycle
The APR, which is electronically formatted for filing on-line with HCD, provides an update on the City's progress in implementing the Housing Element during 2025 based on the current 2024- 29 Housing Element. All APRs have a variety of tables with required information regarding whether dwelling unit production resulted in income levels of housing, such as very-low, low, moderate, or above moderate income housing units (in an Excel Format that is difficult to print out and read). The most important part of the reports is Table D which lists all programs and accomplishments from the Housing Element. To simplify this review Table D is attached for Council and public review. The electronic version of the report with various tables can be transmitted via email upon request of staff.
Although the City has experienced very limited housing production over the years there have been many programs implemented from the current housing element to improve housing production potential in 2025, such as:
• Updates of the City's Website with a Planning Resources Page that includes information on addressing housing discrimination, sites inventory of vacant land, inventory of City land, and reference to a housing rehabilitation program that is available to qualifying homeowners.
• Securing grants and moving forward with water system improvements to increase water capacity.
• Update of the Zoning Code.
State Review: Once the Council approves this report staff will submit the report to the California Department of Housing and Community Development (HCD) and the Governor's Office of Land Use and Climate Innovation (LUCI) in accordance with state law. The City received the attached letter from HCD regarding the need for the City to amend the zoning code to address new laws concerning Accessory Dwelling Units (ADU)s. The proposed amendments to the Zoning Code comply with all updated statues. Upon final adoption of the updated Zoning Code, we will submit the Updated code to HCD's ADU division for approval. 2 Other Related General Plan Implementation: In accordance with Housing Element Program 3-3- 6, to encourage expansion of higher density residential development and also to respond to Sierra County's Housing Element, which also encourages this, there is a 13.54-acre portion of Assessor's Parcel No. 16-040-099 that currently is shown on the City's General Plan Land Use Map for low density residential development. Although this property is located outside the City's current jurisdictional boundaries, it is located within the City's General Plan and Sphere of Influence boundaries (refer to the attached General Plan Land Use Map). This property section is shown on the County's Zoning Map for MUR-R-3 (High Density Residential). I have been in touch with property owner, Jeff Holland, regarding this inconsistency and have indicated that both agencies support redesignation of this property section in the City's General Plan Land Use Map for Medium Density Residential (see attached email trails). Consistent with the Housing Element, we would like direction to move forward with a General Plan Amendment to return to Council in April to redesignate this property section from Low Density Residential to Medium Density Residential. This amendment would bring the City's and County's land use intentions for this property into consistency with each other. The change would also provide the property owner with more flexible options and more certainty with developing the property in the future.
Future Implementation: There are a few significant programs that City will need to consider going forward.
Program 1-2-2, Preliminary Applications (SB 330), and Streamlined Approval (SB 35), and Permit Streamlining Act. The City needs to develop a preliminary application form and procedure to process streamline housing projects per Government Code 65913.4 in 2026. The Zoning Code update establishes these regulations.
Program 3-3-2, Local Hazard Mitigation Plan: Requires the City update the General Plan Safety Element and create policies and programs in the General Plan that address Environmental Justice per by 2027. The City should prioritize budgeting for this significant program that should take a year to complete (approximately $60K).
Program 3-3-3, Floodplain Mitigation Program: The City should collaborate with FEMA and the County to update flood maps to identify residential development constraints throughout the City and develop mitigation programs.
Update of the Housing Element: Due to new state review procedures that extend the time it takes to complete an update to the Housing Element, the City should start budgeting for an update to the Housing Element to commence in 2027 to allow at least 18 months to complete by May, 2029 (approximately $60K).
Questions: If Council Members or the public have any questions regarding the report, they are requested to contact Gary directly either by phone at (530) 272-6434 or by email at [email protected] before the meeting.
Attachments:
Table D for 2025 APR
Letter from HCD Regarding Accessory Dwelling Unit Regulations General Plan Map Amendment
Correspondence with Jeff Holland
3 ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Jurisdiction 2025
Reporting 06/30/2024 -
Year 06/30/2029
D_ 1_Name D.2 Objective D_5_ Complete D_6 Cycle D_7_ImpStatus D_ 1_ Status Table D
Program Implementation Status pursuant to GC Section 65583 Housing Programs Progress Report
Projected
Completion Status of
Name of Applicable Program Program Implementation
Program Objective Date in
Housing Cycle Implemen Details
Element tation
1-1-1 Housing
Element Posting on Website 30-Jun-29 7th Cycle Continuous Completed Outreach
1-1-2 Housing work closely with the business No outreach was conducted due to the development communities toward 30-Juп-29 7th Cycle water service crisis (no water available City of Loyalton 2025 Housing Element Annual Report Development achieving the City's affordable housing in Progress to new units) the City did not reach out Collaboration to developers in 2025.
1-1-3 Public City created a Planning Page on
information Posting on Website 30-Jun-29 7th Cycle Continuous website that includes all housing Access postings.
Implement the City's density bonus
1-2-1 Density ordinance that offers increased In Progress Density bonus regulations have been Bonus discretionary denisity and/or additional 30-Jun-29 7th Cycle updated in April, 2026.
Implementations incentive to affordable housing
development
Table D
1-3-1 Assistance No applications received in 2025. The
for Emergency Zoning code was updated in April, 2026
Shettres, Low
Barrier 7th Cycle In Progress
Navigation expedited permit approvals in support of with State law. No outreach was Centers and conducted in 2025 due to water supply
Extremely Low- crisis.
Income Housing
Meet Periodically with local non-profit
service providers at least bi-annually to
has to treate sero in the ca
30-Jun-29 7th Cycle In Progress
eri we non-prot gantatines and develop new special needs housing. identify suitable sites for the placement of
housing and facilities
1-3-3 Support series rough the place or
Services for informational materials at the City offices 30-Jun-29 Ongoing.
Elderly and 7th Cycle In Progress
Disabled Persons andr asking for accessing state of
1-34 Annual Evaluates progess of housing element
Housing Review programs and General Plan consistency 30-Jun-29 7th Cycle Continuous Ongoing Ensure that all constuction projects
1-3-5 ADA requiring building permits comply with the 30-Jun-29 7th Cycle Continuous includes compliance review with ADA Implementation the Amercians Disability Act (ADA) as Very limited development occurred provided by the uniform Building Code. during 2026, but ADA compliance was assured.
1-3-6 Monitor Zoning code, including reasonable
Reasonable accommodation regulations updated in
Accommofation 30-Jun-29 7th Cycle In Progress (commodation requests were received Program accommodate realisaded provisions
in 2025.
1-3-7 development per RHNA for the 2019- Reservation policy adopted in Housing Water/Sewer 30-Jun-29 7th Cycle Completed Element. No applications for lower- Reservation 2024 oeriod; 2 equivalent dwelling unit income housing made in 2025. serves for very low-an-low income
households
2-1-1 Piggy back
Application 30-Jun-29 7th Cycle Completed No applications received in 2025.
Processing processed
3-1-1 Vacant Maintain a vacant land inventory and
Land Inventory associated mapping to the market sites 30-Jun-29 7th Cycle Continuous Posted on website via Planning Page. for furture residential development
The City recerved a development
application for a 52-unit manufactured
located within the City and the
remaining 48 units located in Sierra
County (former site of the Loyalton
Mobile Home Park). Through an
Support replacement housing projects agreement with the applicant, City, and 3-2-1 Extend City within adjoining territory outside the County, Sierra County is processing this Services to City's jurisdiction (on a case-by-case 7th Cycle In Progress planning application. Due to the water Housing tocate baser sy make or repacement anor 30 un 28 crisis, the project developer is Outside the City developing a well system to provide its existing housing. own water supply so the City will not need to exend water services to this
development. The City will continue to
provide sewer services to this project
and continue to provide water and
sewer services to the Sierra Senior
Apartments a 50-unit residential
complex reserved for lower income
households (located outside the City's
jurisdiction).
33-1 Housing
Element Amend the Zoning Code and other
regulations to comply with State Housing 30-Jun-26 7th Cycle Completed Zoning code was updated in April, 2026 Regulatory to address this program.
Amendments Law
Sierra County has completed a first
3-3-2 Local draft of the Local Hazard Mitigation Plan
12/30/2027 7th Cycle in Progress
and Govt Code § 65302 (h)
3-3-3 Floodplain
Mitigation 7th Cycle in Progress
Program
Encourage the development of
(Assessor's Parcels 017-050-001 and
3-3-4 Lot Split oy on sur son, sing lee.
Program adjustment and lot merger applications 6/30/2029 7th Cycle Continuous and expediting approval of these 2025 to take advantage of this program. applications to create
No ADUs produced in 2025. A new
3-3-5 Accessory AD program was posted to the
Dwelling Create a public outreach and information Planning Page of the City website. The Marketing program to increase production of 4 new 6/30/2029 7th Cycle Continuous Zoning Code was amended in April units 2026 to comply with more recent
Program Accessory Dwelling Unit (ADU)
provisions of State Code.
Collaborate with the Regional Partnership The City worked with the regional 3-3-6, Accessory for Achievable Housing Program with
meter plans for coties no 4 vida 800/2029 7th Cycle Completed per the program
Program
2 units during 7th Cycle. Actively partner
including the following: a. Work with the
Sierra County to expand housing both
inside and outside the City's boundaries
where water and sewer service is
available and of sufficient capacity. b. To
the extent the City has resources,
support Sierra County's efforts to The City is in the process of updating improve the Citys public water and 6/30/2029 7th Cycle In Progress the General Plan Land Use Map to sewer systems to increase capacity for change subject parcel to Medium increased housing production.c. Amend Density Residential. coincide with Sierra County's MUR/R-3
5-3-7, Increase
Workforce and
Affordable and the County.
Housing Supply
2 new units during 7th Cycle Encourage
11 Market Rate boreduction of marten ale rental and
Housing Program above moderate-income 6/30/2029 7th Cycle In Progress Ongoing households through its land development
policies.
Promote rehabilitation of existing
substandard housing by distributing
information on the U.S. Department of
41-2 Housing Agriculture Rural Development Single
Rehabilitation Family Housing Rehabilitation Program, 16/30/2029 7th Cycle Compieted Added link to website Program which provides up to $50,000 in grants
to residents of Sierra County to seek
nousing grants, loans and programs that
support housing rehabilitation.
Continue to seek grant funding to
support an enhanced Code Enforcement
Program and evaluate feasiblity of
securing grant funding for enhancing 6/30/2029 7th Cycle in Progress No funding obtained 4-1-3, Code pod am resent a corin provide
Enforcement
Funding code enforcement services by 2027.
Maintain operation of a housing
inspection program through the Plumas
County Community Development
progat, a series ofter 6/30/2029 7th Cycle Ongoing-Building Inspector Continuous implementation
4-1-4 Housing
Inspection
Program
Ensure the City has an accurate
percentage of the homes in need of
rehabilitation and replacement, the City
will complete a Housing Conditions
Survey in older neighborhoods and
neighborhoods with lower median The City currently does not have incomes, to evaluate rehabilitation need. sufficient resources to conduct a Based on findings of the focused housing conditions survey. The City will evaluation, the City will identify measures 6/30/2029 7th Cycle in Progress reach out to some non-profit housing
to encourage housing preservation, agencies in 2026 to determine conservation, and acquisition feasibility.
rehabilltation, and mitigate potential
costs, displacement and relocation
impacts on residents. Complete a
4-1-5 Housing Housing Conditions Survey by December
Conditions 2025 and determine next steps by June
Promote several current ongoing energy
conservation programs offered to
Loyalton residents, including the Home
Energy Assistance Program and the free
Home Weatherization Improvement
Program (provided by the Plumas County The City has posted this program on Community Development Commission) 6/30/2029 7th Cycle in Progress the website and maintains information and the Energy Rate Reduction Program at City Hall.
(provided by PG&E). Promotion will
include posting these programs on the
4-1-5 Energy City Website, providing program
Conservation brochures at City Hall to the public and
Program at public meetings.
4-1-6 Title 24 Calories tile a the gate qurements.
Energy Code Title 24 energy requirements define 16/30/2029 7th Cycle Ongoing-Building Inspector in Progress implementation
Administration construction standards that promote
energy conservation
Promote rehabilitation of existing
4-2-7 Housing substandard housing by distributing
Rehabilitation/ information on the U.S. Department of
Agriculture Rural Development Singie
Code Family Housing Rehabiltation Program, 6/30/2026 Continuous Information posted on website 7th Cycle
Enforcement
Coordination reice is or ser out 0 grants to
Program
support housing real roames a
Continue to serve as liaison between the
5-1-1 Assistance public and appropriate agencies in
to public matters concerning housing
regarding discrimination. The City will promote
housing and equal housing opportunities through the Fair housing information posted on housing posting of information and distribution of 6/30/2029 7th Cycle in Progress website. The AFFH Plan has been discrimination literature at City buildings. The City will incorporated into the Housing Element. and Affirmatively refer discrimination complaints to Legal Furthering Fair Services of Northern California (LSNC)
Housing and the State Fair Employment and 12
Housing Commission.
Locomode in eing tens updated in
6/30/2027 7th Cycle Continuous October 2021. No reasonable Regulations accommodation requests were received
disabled provisions in 2025.
Maintain posting of Equal Employment
6-1-3 Post EESC Opportunity Commission (EEOC)- Ongoing. The City recently posted this Information generated brochures and leaflets at City 6/30/2027 7th Cycle Continuous information on the Planning Page sties to dai brain online a Website
Continue to support the Plumas County
Community Development Commission
(PCCDC) to maintain the Housing Choice
Vouchers (Section 8) for City residents
and will add information regarding this
program to the City's Website. In
partnership with the POCDC, and
61-1 Expansion
of Section 8 Posted on website and periodic
7th Cycle Continuous coordination with PCCDC and the
Housing
Vouchers
resources, the City will support Sierra
County's efforts to distribute this
information to property owners and
managers to facilitate mobility
households to get are count.
Direct persons with complaints of
housing discrimination to the appropriate
7-1-1: Housing The City maintains housing
Discrimination to make literature available on housing 6/30/2027 7th Cycle Continuous discrimination and fair housing resources
at the City Hall, City website and other
areas in which the public gathers
information.
The City will disseminate fair housing
information in English and Spanish at
7-1-2 Furthering appropriate public locations and events. Continuous Website Nice referedon bothe The City will work with other local 6/30/2027 7th Cycle Fair Housing agencies and service providers to include English and Spanish. far at with ther actin appropriate
Reduce key barriers to fair housing
coordination between the City, demand
7-1-3 Reduce response transit service non-profits, City did not have sufficient resources to Barriers to Fair community service providers, and local 7th Cycle In Progress complete all of the items in 2025 but Housing school leadership to assess the need for 6/30/2027 plans to start in 2026. improved transit options, including
for telecommunications access or install
infrastructure to increase availability and
reliability of telecommunications
infrastructure across the county. d.
Glity Management Destine to conduct
outreach about available grant and
incentive programs
STATE DE CALFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
www.hcdca.gav
February 27, 2026
Kath LeBlanc
City Clerk, Planning Department
City of Loyalton
105 Beckwith Street
Loyalton, CA 96118
Dear Kath LeBlanc:
RE: City of Loyalton - Accessory Dwelling Unit (ADU) Ordinance Updates - Letter of Technical Assistance
The most recent ADU ordinance on file for the City of Loyalton with the California Department of Housing and Community Development (HCD) is from 2021. Given the numerous changes to State ADU Law since the adoption of the ordinance, the ordinance may be outdated and out of compliance with State ADU Law. If HCD's records are incorrect, and a new ordinance has been adopted, please submit it to the ADU Portal for HCD's review.
Below are the changes to State ADU Law that have occurred in recent years and may warrant an update to the City of Loyalton ADU ordinance:
Updates to the ADU Handbook (2025)
• Clarifies that ADU Law prohibits deed restrictions on ADUs. A deed restriction would be an "additional standard" and thus cannot be imposed on ADUs (Gov.
Code, § 66315).
• Clarifies that homeowners' associations (HOAs), as a third party, cannot influence the approval of an application to create an ADU. Third party reviews by an HOA or their representatives or agents would violate State ADU Law. (Gov. ode, § 66315) No other local ordinances, policies, or regulations may l plied in the approval or denial of an ADU or junior ADU (JADU) pern application (Gov. Code, § 66317, subd. (c)).
• Clarifies that a local agency may not require parking as a condition to permitting a JADU, even when the JADU is converted from an attached garage (Gov. Code, § 66334, subd. (a)).
15 Kath LeBlanc, City Clerk, Planning Department
Changes to ADU Law in 2025:
• Specifies that if a JADU has shared sanitation facilities with the primary structure, owner-occupancy will be required. If the JADU does not have shared sanitation facilities, owner-occupancy will not be required (Gov. Code, § 66333, subd. (b)).
Requires rental terms for JADUs for terms longer than 30 days (Gov. Code 5333, subd. (a
• Revises the definition of a "junior accessory dwelling unit" to require the size of a JADU to be no more than 500 square feet of interior livable space (Gov. Code, § 66313, subd. (d)).
• Revises the limitations on impact fees to, instead, prohibit impact fees upon the development of an ADU that has 750 square feet of interior livable space or less or a JADU that has 500 square feet of interior livable space or less, and to require that any impact fee on an ADU that has more than 750 square feet of interior livable space be charged proportionately in relation to the square footage of the primary dwelling unit (Gov. Code, § 66311.5, subds. (a) - (d)).
Requires a permitting agency to determine whether an application for an ADU or JADU is complete and provide written notice of the determination not later than 15 business days after the permitting agency received the application (Gov.
Code, § 66317, subd. (a)(2)(A)).
Requires the permitting agency to provide the applicant with a list of incomplete items and a description of how the application can be made complete in the written notice and authorizes the applicant to cure and address the application, as specified, if it is determined that an application is incomplete (Gov. Code, § 66317, subd. (a)(2)(B)).
Requires the permitting agency to provide a process for the applicant to appeal a denied application, as provided, and requires the permitting agency to provide a final written determination by not later than 60 business days after receipt of denied (ov. Code. 8 06377, suld. (on) determined to be incomplete or is • Specifies that an ADU or JADU that contains less than 500 square feet o nterior livable space does not increase assessable space Revises size limitations to be based on the square footage of interior living space of the ADU (Gov. Code, § 66321, subds. (b)(2)(A), (b)(2)(B), and (b)(3)). 16 Kath LeBlanc, City Clerk, Planning Department
• Specifies the number of allowable ADUs per lot with a proposed or existing single-family dwelling (Gov. Code, § 66323, subd. (a).
• Clarifies that fire sprinklers are not required for a JADU if the primary residence does not have fire sprinklers and that the addition of a JADU cannot trigger the requirement for fire sprinklers (Gov. Code, § 66323, subd. (d)). • Adds section 66333.5, which specifies that if a local agency fails to submit an adopted JADU ordinance to HCD within the 60-day timeline or fails to respond to HCD's findings regarding their ordinance within the 30-day timeline, that ordinance is null and void and the local agency must only apply State ADU Law when processing applications for ADUs.
• Requires a local agency to issue a certificate of occupancy for an ADU constructed in a county that is subject to a proclamation of a state of emergency made by the Governor on or after February 1, 2025, even if the primary dwelling has not yet been issued a certificate of occupancy, if certain requirements are met, including that the primary dwelling was substantially damaged or destroyed by an event referenced in the state of emergency proclamation (Gov. Code, § 66328).
Creates an exception to areas that fall under the California Coastal Act by requiring a local government or the Coastal Commission, as specified, to either approve or deny a coastal development permit application for an ADU within 60 days of receiving a completed application (Gov. Code, § 66329, subd. (a).) • Specifies that no reimbursement is required for school service charges, fees, or assessments sufficient to pay for the program or level of service within the meaning of Government Code section 17556 (Gov. Code, § 66329). • Specifies that reasonable restrictions in covenants, restrictions, and conditions, as described in the Civil Code, shall not include any fees or other financial requirements (Civil Code, § 714.3, subd. (b)).
Changes to ADU Law in 2024:
• SB 477 (Chapter 7, Statutes of 2024) made changes to the numbering of the sections of the Government Code for State ADU and JADU Laws. • Prohibits a local agency from denying a permit for an unpermitted ADU or JADU that was constructed before January 1, 2020, for building code violations, unless the local agency makes a finding that correcting the violation is necessary to comply with conditions that would otherwise deem a building substandard (Gov. • Defines "livable space" as a space in a dwelling intended for human habitation, as the term appears in Government Code sections 66313, subdivision (e), and 66323, subdivision (a)(3)(A).
17 Kath LeBlanc, City Clerk, Planning Department
• Provides that uncovered, off-street parking spaces demolished in conjunction with the construction of an ADU do not need to be replaced (Gov. Code, § 66314, subd. (d) (11)).
• Changes the allowable number of detached ADUs on a lot with an existing multifamily dwelling to eight detached ADUs, provided that the number of ADUs does not exceed the number of existing units on the lot (Gov. Code, § 66323, subd. (a)(4)(A)(ii)).
• Prohibits a local agency from imposing any objective development standards on 66323 Units that are not authorized by the provisions of Government Code section 66323, subdivision (a) (Gov. Code, § 66323, subd. (b)).
Changes to ADU Law in 2023:
• Sunsets a former prohibition on a local agency imposing an owner occupancy requirement on any ADU and instead prohibits a local agency from requiring owner occupancy for an ADU (Gov. Code, § 66315).
• Allows a local agency to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and ADU(s) as condominiums, subject to certain conditions (Gov. Code, §S 66340-66342).
If an existing ADU ordinance fails to meet the requirements of State ADU Law, the ordinance is "null and void" and the local jurisdiction must apply the standards set forth in State ADU Law until it adopts an ordinance that complies with state law (Gov. Code, § 66316). HCD recommends that a local jurisdiction with a noncompliant ADU ordinance repeal the ordinance to provide clarity for ADU applicants who may otherwise rely on the outdated ordinance.
HCD requests a response by March 29, 2026 with either (1) a description of how the ADU ordinance continues to comply with State ADU Law despite the changes to the law, or (2) a plan and timeline to either repeal the current ordinance or adopt an amended, compliant ordinance and submit it to HCD for review.
If you have any questions or need additional information, please contact Tyler Galli at Iyler. [email protected].
Sincerely,
Jamie Candelaria
Jamie Candelaria
Section Chief, ADU Policy
Housing Accountability Unit
18 City of Loyalton General Plan
Land Use Designation
Elementary Hospital
School High School
ElLI
1 Proposed City Of Loyalton
General Plan Amendment
GPA 2601
LDR - Low Density Residential to
MDR Medium Density Residential
13.54 Acres
Proposed MDF
Medium Density Residentia
Land Use Designations Legend Sierra County f
OS - Open Space City of Loyaltan
P. Public Loyalton City Limits
CC - Community Commercial Planning Areas
IND - Industrial Parcels
LDR - Low Density Residential
1,220 Fee
MDR - Medium Density Residential
Map Created 1/30/202e
19 Email to Jeff Holland on March 6, 2026
Hi Jeff,
I tried repeatedly to contact you both by email, phone calls and texts to see what further comments you have on this but I have not received anything back from you. So, I have this item going to the City Council at the next meeting of March 17, 2026, to see if the Council would like me to move forward with this general plan amendment process. If they concur with my recommendation (consistent with the General Plan Housing Element), we would probably have formal approval of this General Plan Map Amendment at their next meeting April. I just wanted to keep you in the loop if you are interested in following this. Extending my appreciation for your participation.
Attached is the Map for you to look at. Please keep in mind this next meeting with Council on March 17, is only to discuss this and to consider direction. No formal action would be taken then.
Please feel welcome to contact me with any questions.
Best Regards,
Gary
Price Consulting Services
530-272-6434 (Business)
530-218-1059 (Cell)
www.plannerprice.com
Price Consulting
Land Uself Grants Af
20 From: Gary Price <[email protected]>
Sent: Thursday, January 22, 2026 5:55 PM
To: [email protected] <[email protected]> Cc: Kathy LeBlanc <[email protected]>; Brandon Pangman <[email protected]>
Subject: City of Loyalton General Plan Amendment AP 16-040-099 Hi Jeff,
Thanks for calling me back today regarding property you own just outside City of Loyalton boundaries. As we discussed, I am updating the zoning code and helping implement programs from the City's Housing Element and am requesting your input.
The attached City General Plan Land Use Map shows an amendment of planned land uses on a 13.54-acre portion of Assessor's Parcel No. 16-040-099 (you own). The second attached map shows the County's zoning which is MUR-R-3. Although the City currently does not have zoning jurisdiction on this property (located in the County, the property is within the City's Sphere of Influence and Planning area, the City needs to bring their general plan into consistency with the County's zoning for the site. Both the City's and the County's General Plan/Housing Elements anticipate future multiple family residential development on the site someday. The general plan amendment would change the City's vision for future land uses for that 13.54 acre portion of the site from Low Density Residential (maximum 6 dwelling units per acre) to Medium Density Residential (maximum 20 dwelling units per acre). The change would bring the City's and County's land use intentions for this property into consistency with each other. The change would also provide you with more flexible options and more certainty with developing the property in the future. We would appreciate any comments or feed back you have on this.
I copied Sierra County Planning Director, Brandon Pangman, on this so he is in the loop.
Please feel welcome to contact me should you have any questions. I look forward to hearing back from you soon.
Best Regards,
Gary
21 CITY OF LOYALTON
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
DRAFT
CITY OF LOYALTON
Table of Contents
Independent Auditor's Report
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Governmental Funds:
Balance Sheet 5
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position - Governmental Activities Statement of Revenues. Expenditures and Changes in Fund Balances 7 Reconciliation of the Statement of Revenues. Expenditures and Changes In Fund Balances of Governmental Funds to the Government-Wide Statement of Activities - Governmental Activities S
Proprietary Funds:
Statement of Net Position 9
Statement of Revenues. Expenses and Changes in Net Position 10 Statement of Cash Flow's =
Notes to the Financial Statements 12
LARRY BAIN, CPA
An Accounting Corporation
2148 Frascati Drive, El Dorado Hills, CA 95762 / 916.601-8894 [email protected]
DRAFT
INDEPENDENT AUDITOR'S REPORT
To the City Council
City of Loyalton, California
Qualified Opinion
Except for the effects of the matters described in the "Basis for Qualified Opinion" paragraph, the financial Basis for Qualified Opinion
The City does not utilize an accounting system with a self-balancing set of accounts for recording transactions to each fund. As a result entries can be posted to the general ledger causing the financial statements to be out of balance 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 of the 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.
The City did not approve a budget for the fiscal year under audit which is a material noncompliance with laws and a departure from GAAP.
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 of the Financial Statements section of our report. We are required to be independent of the City of Loyalton 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 of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Loyalton'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 of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditor's report that includes our 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 rest basis. evidence regarding the amounts and disclosures in the financial statements. • Obrain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of 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 of Loyalton's ability to continue as a going concern for a reasonable period of time.
We are required to comunicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit. significant audit findings. and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management's discussion and analysis and the budgetary comparison schedules 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 of financial 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.
DRAFT
Larry Bain, CPA
An Accounting Corporation
February 17.2026
CITY OF LOYALTON
STATEMENT OF NET POSITION
DRAFT
JUNE 30, 2024
Goremmental Business-type
Activities Activities Total
Current Assets
Cash and investments 157.09+ S 1.625.680 S 2.112.774
Prepaid expense 23.158 23.158
Inventory 127.700 127.100
Accounts receivable 18.925 103.812 132.737
Restricted receivables for water assessment 58.594 38.59+ Grants receivable 304.272 23.000 327.272
Restricted cash and investments 52.469 456.728 509.197
Total current assets $72.760 2.+18.372 3.291.132
Non Current Assets
Internal balances $60.58+ 1560.58+)
Capital assets:
Land 55.293 373.319 +28.612
Constriction in progress +S.270 +8.270
Buildings 609.570 +20.320 1.029.890
Site improvements 2.370.286 11.+16.391 13.786.677
Equipment 1.050.603 $36.394 1.SS6.997
Less: accumulated depreciation (1.990.+32) 16.707.520) (S.697.952) Total capital assets 2.095.320 6.352.174 8.+82.19+
Total non current assets 2.655.904 5.826.590
S.48? 19+
Total assets 3.525.664 S.241.963
11.773.626
Liabrities
Current Liabilities:
Accounts payable 106.13+ 106.826 212.960
Accried wages 10.652 9.960 20.612
Customer deposits 7.595 7.59.5
Accried interest payable 53.662 $3.662
Unearned revenue-advance 65.760 65.760
Long-term liabilities-due within one year 119.900 149,900 Total current Labilities 182.5+6 327.943 510.489
Liabilities-due in more than one year:
Note payable 674.329 674.339
Certificate of participation 3.420.600 3.120.600
Total liabilities due in more than one year 1.094.929 7.094.929 Total Liabilities 182.546 1.+22.872 1.605.418
Ner Position
Net investment in capital assets 2.095.320 2.142.345 1.237.665 Restricted 350.878 350.878
Unrestricted 1.250.798 1.328.867 2.579.666
Total net position S 3.316.118 S 3.822.090 S 7.165.20S
The accompanying notes are an integral part of these financial statements 3 CITY OF LOYALTON
DRAFT STATEMENT OF ACTIVITIES
JUNE 30, 2024
Ver (Expenses Revenue and
Program Revenues Changes in Net Position
Charges for Operating Grants Capital Grants Governmental Business-ope Fluctions programs Expenses Services and Contributions and Contributions Activities Actinities Total Gorernmental Activities:
General gosernnent $ 267.705 S 19.194 S 5(248.511) S S (248.511) Public safery 88.922 64.883 17.034 17.005) 17.005)
Public works 1.793 6.783 1.990 1990
Health and welfare-cemeters 232 1.000 768 768
Streets and roads 66.861 19.830 10.60S 116.423) (16.423) Community development 18.335 (1S.325) (18.325)
Culmure recreation S.715 135.689) (35.689)
Total govermmental acroities 4SS.241 130.105 37.61 (.320.194) 1320.1941 Business-type Acrivities:
Water 132.520 294.743 163.0S+ 25.307 25.307
Serrer 576.978 101.426 1175552) (175.352)
Interest on long-term debr 136.506 (136.806) (1.36.806) Total business-type activities 1.116.304 696.169 163.0S+ (287.051) (287.05 1) Total Gurement S1.634.545 S 826.574 37.642 163.08+ (320.194) (287.051 (607.245) General Revenues:
Taxes:
Property taxes 54287 $4.287
Sales and use tas 20.038 20.038
Franchise tas 13.796 13.796
Motor vehicle in lieu tax 36.617 36.617
Other 7.637 7.637
Investment income 769 S6.56S 87.337
Total general revenues 203.14 S6.368 399.712
Change in ner position (117.050) 1200.183) (317.533)
let position - beginning of fiscal dear as previoust reported 3209.763 3971673 IS+435 Adjustment-error in prior year VIF allocation nore HI 253.106 253,106 A dusument-write off prior rear allowance for doubtful accounts i more It) 47.900 +7.900 Net position beginning of fiscal vear as restated 3.163.168 4.022.573 7.83.71 Ner position - end of fiscal year S 3.346.118 S3.822.090 $7.168.208 The accompanying notes are an integral part of these financial statements
CITY OF LOYALTON
GOVERNMENTAL FUNDS
DRAFT BALANCE SHEET
JUNE 30, 2024
Major Special Total
Retenue Fund Governmental
General Gas Tax Funds
Assets
Cash and investments S 160.529 26.565 S +87.09+
Restricted cash 52.169 52.469
Receivables
Accounts 23.518 5.707 28.925
Grants 304.272 304.272
Due from other funds 708.519 18.974 727.193
Total assets S 1.196.838 103.+15 $ 1.600.253
Liabilities
Accounts payable 29.735 S 6.399 S 106.134
Accried wages 10.178 77+ 10.65?
Unearned revene-advance 13.291 $2.169 65.760
Unearned resenue-unavailable 268.101 268.101
Due to other funds 104.227 62.683 166.910
Total liabilities $95.332 122.025 617.557
Fund Balances
Unassigned 1.001.306 (18.610) 282.696
Total fund balances 1.001.306 (18.610) 282.696
Total liabilities and fund balances 5 1.$96.838 103.115 S 1.600.253 The accompanying nores are an incegral part of these financial starements
CITY OF LOYALTON
DRAFT RECONCILIATION OF GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
Fuud balances of gorernmental funds 982.696
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets, net of accumulated depreciation. are not current fancial resources and are not inchided in the governmental funds. 2.095.321
Accounts receivable received more than 60 days after fiscal year end are recorded as deferred revenue in the find financial statements. but is recognized as revenue in the statement of activities. 268.101
Net position of governmental activities S 3.346.118
The accompanying notes are an integral part of these financial statements
CITY OF LOYALTON
GOVERYMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2024
DRAFT
Major Special Total
Rerenue Fund Gorernmental
General Gas Tax Funds
Resenues
Taxes 129.630 129.630
Licenses and permits 28.527 28.527
Intergovernmental 17.034 87.055 101.089
Charges for current services 84.725 S7.725
Use of money and property 719 719
Other $.506 S.806
Total revenues 269.411 S7.055 356.496
Expenditures
Current:
General government 194.878 194.878
Public safery 31.052 31.052
Health and sanitation 232 232
Highways and streets 66.861 66.861
Community derelopment 18.325 18.325
Culture and recreation 13.248 13248
Capital outlay 6.325 275 6.600
Total expenditures 361.060 67.136 331.194
Net change in fund balances 5.381 12.919 25.302
Fund balances. begining of fiscal year 995.925 (38.529) 957.396 Fund balances, end of fiscal year 1.001.306 (18.610) S 982.698 The accompanying notes are an integral part of these financial statements
CITY OF LOYALTON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS TO THE STATEMENT OF
ACTIVITIES GOVERNMENTAL ACTIVITIES
DRAFT FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Net change in fund balances - total governmental funds 25.302 Amounts reported for governmental activities in the statement of activities 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 of activities. The costs of those assets is allocated over their estimated useful lives as depreciation expense or are allocated to the appropriare functional expense when the cost is belor the capitalization threshold. This activity is reconciled as follows:
Cost of assets capitalized 6.600
Depreciation expense (163.648)
Tax revenue received more than 60 days after fiscal year end is deferred revenue in the fund financial statements. but is recorded as revenue in the statement of activities 14.695
Change in net position of governmental activities 5_ (117.050) The accompanying notes are an integral part of these financial statements
CITY OF LOYALTON
STATEMENT OF NET POSITION
DRAFT PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Water Serrer Totals
Current Assets:
Cash and investments 1.625.680 S 1.625.680
Restricted cash and investments 1657737 2SS.991 456.728 Prepaid expense 323 22.835 23.15S
Inventory 127.400 127.400
Receivables
Accounts (net of allowance for doubtful accounts) +3.781 60.031 103.S12 Restricted receivables for water assessment 58.39+ 58.59+ Due toms techinas 23.000 23.000
+13.938 +13.938
Total current assets 397.835 2.+34.775 2.832.310
Capital assets:
Nondepreciable Capital Assets:
Land 373.319 373.319
Construction in progress +S.270 +8.270
Depreciable Capital Assets
Building 2.200 +1S.120 120.320
Site improvements 2.811.890 S.604.501 11.416.391
Equipment 151.243 6S5.151 $36.39+
Less accummlated depreciation 11.549.0231 15.155.4971 16.707.5101 Total capital assets met of accummlated depreciation) 1.764.580 +.922.59+ 6.357.17+ Total assets 1.S62.+15 7.357.069 2.319.+8+
Liabilities
Current Liabilities:
Accounts pavable $6.95+ 19.572 106.S26
Accried payroll 2.145 7.515 2.960
Customer deposits 3.190 1.t05 7.595
Due to other funds 457.459 $17.063 974.522
Current portion - long term habilities 24.700 125.200 149.900 Interest payable 12.518 +.1H 53.66?
Total current liabilities 557.266 745.199 1.302.465
Concurrent Liabilities:
Bonds payable 674.329 674.329
Certificates of participation $09.500 2.610.500 3.420.600 Total noncurrent Liabilties $09.800 3.285.129 1.094.929 Total liabilities 1.367.066 4.030.328 5.397.394
let Position:
Net investment in capital assets 630.050 1.512265 2.142.345 Restricted for water assessment 164.141 161.44
Restricted for debt service 61.SS7 28S.991 350.S78
Unrestricted (361.062) 1.525. +85
1.164.+23
Total net position 195.349 3.326.74L S 3.822.090
The accompanying notes are an integral part of these financial statements
CITY OF LOYALTON
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
DRAFT FOR THE FISCAL YEAR ENDED JUNE 30, 202+
Water Serrer Totals
Operating Revenues
Charges for services $ =24.743 401.426 696.169
Total operating revenues 294.743 401.426 696.169
Operating Expenses
Salaries and benefits 114.307 169.997 284.304
Services and supplies 276.707 179.679 126.386
Depreciation expense 71.506 227.302 298.80S
Total operating expenses 432.520 576.978 1.009.198
Operating income (loss) (137.777) 1175.5521 (313,329)
Non-Operating Revenues (Expenses)
Interest income 2.107 S4.701 S6.5GS
Water infrastructure assessment 163.05+ 163.08+
Interest expense 137,730) (99.076) (136.506)
Total non-operating revenues (expenses) 127.521 (14.675) 112.816 Net mcrease (decrease) in net position (10.256) (190.2271 1200183) Ner position. beginning of fiscal year as previously reported tSG.H5 3.188.228 3.974.673 Adjustment-write off prior year allowance for doubtful
accounts (note 14) 19.160 28.740 17.900
Net position. beginning of fiscal year as restated 505.605 3.516.968 1.022.573 Net position. end of fiscal vear S 195.349 S 3.326.741 S 3.822.090 The accompanying notes are an integral part of these financial statements 10 CITY OF LOYALTON
STATEMENT OF CASH FLOWS
DRAFT PROPRIETARY FUNDS
JUNE 30, 2024
Water Sever Totals
Cash Flows from Operaring Activities
Cash received trom customers S 236.940 700.676 637.616
Cash payments to suppliers 1302.515) (133.348) (335.863) Cash payments to employees 1113.S5191 (165.738) 1279.5571 Net cash provided by (used for) operating activities 179.3911 101.590 22.196 Cash Flows from Non-capital and Related Financing Activities Interfund borrowing 161.353 (161.553)
Net cash provided by tused for non-capital and related
fuancing activities 161.553 (161.553)
Cash Flows from Capital and Related Financing Activities Purchase of fixed assets 179.576) (35.4911 (115.367)
Reductions of debt (23.600) 1121.2001 (1+H.S00)
Interest expense (3S.08+) 1100.7321 (13S.S161
Water infrastructure assessment 163.0S+ 163.08+
Net cash provided by (used for) capital and related
financing activities 21.524 (257.4231 (235.599)
Cash Flows from Investing Activities:
Interest income 2.167 77,387 79.55+
let cash provided by investing activities 2.167 77.387 79.554 let increase (decrease in cash and cash equivalents 105.850 (239.999) (134.149) Cash and cash equivalents. beginning of fiscal year 61.SS7 2.154.670 2.216.557 Cash and cash equivalents, end of fiscal year 167.737 1.91+.671 2.0S2.+0S Reconciliation of Cash and Cash Equivalents:
Cash and uvestments 1.625.650 S 1.625.680
Restricted cash and investments 163.737 2SS.991 156.725 Total cash and cash equivalents 167.737 1.914.671 2.OS2.+0S Reconciliation of Operating Income to Nei Cash
Provided by (used for) operating activities S (137.777) S (175.552) S (313.329) Adjustments to operating incon:
Depreciation 71.506 227.302 298.S0S
(Increasel decrease in accounts receivable 157.8331 H1+1 158.2461 (Increase) decrease in prepaid espense 5.6IS 5.625
Increase (decrease) in accounts payable 14.192 10.703 84.895 Increase (decrease) in accried payroll +SS 7.259 +.747
Increase (decrease) in customer deposits 29 (336) (307) Ner cash provided by (used for) operating activities (79.394) S 101.590 22.196 The accompanying notes are an integral part of these financial statements 11 CITY OF LOYALTON
DRAFT
Notes to the Financial Statements
June 30,2024
Vote 1: Summary of Significant Accounting Policies
The basic financial statements of City of Lovalton. California. (the "Ciry") have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") as applied to governmental agencies. The Gorernmental Accounting Standards Board (GASB") is the acceptable standard setting body for establishing gorernmental accounting and fmancial reporting principles. The more significant of the 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 of the State of California. The City operates under a Council-Manager form of government and provides services including general goverment, 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 Ciry and ability to significantly influence operations.
The financial reporting entity. as defined by the GASB. consists of the primary government. the Ciry. organizations for which the primary government is financially accounrable, and any other organization for which The nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplere.
B. Basis of Accounting
The government-wide. proprietart 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 of the timing of related cash flows. Revenue from sales tax is recognized when the underiying 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 of the 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 if they 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 of general 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 mer. 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 non- exchange transactions or ancillart activities.
12 CITY OF LOYALTON
Notes to the Financial Statemeuts
June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) C. Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the primary government (the City). These statements include the financial activities of the overall government. These statements distinguish berween the governmental and business-type activities of the Ciry. Gorernmental 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 of activities demonstrates the degree to which the program expenses of a 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 of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a 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 Cir'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 of general government type activities.
Gas Tax Fund - This fund is used to account the revenues and expendinures of the State Gas Tax The City reports the following major enterprise funds:
Water and Sewer Funds - account for the operation of the City's water and sewer utilities. Activities of these 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 if necessary to ensure the integrity of the Funds.
D. Use of Estimates
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 13 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2024
Note 1: Summary of Significant Accounting Policies (Continued) E. Cashi Equivalents
For the purpose of the statement of cash flours, the City considers cash and cash equivalents as short term. highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
Restricted cash and unrestricted pooled cash and investments held by the City are considered cash equivalents for purposes of the combined statement of cash flow's because the City's cash management pool and funds invested by the City possess the characteristics of demand deposit accounts.
F. Fixed Assets
Capital assets. recorded at historical cost or estimated historical cost if actual historical cost is not available. are reported in governmental activities column of the govermment-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 Ciry as assets with an initial. individual cost of more than S5,000.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constricted. Depreciation is recorded in the government-wide financial statements on the straighr-line basis over the useful life of the assets as follows:
Assets Useful Life
Building and improvements 10-50 vears
Utility Systems 18-50 vears
Equipment and machinery 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 bathe County under the provisions of Proposition 13 plus a percentage of the increase in market value in specific areas. The City's property tax is levied each July 1 on the assessed values as of the prior January 1 for all real and personal property located in the Ciry: Property sold after the assessment date (January 1) is reassessed and the amount of property tax levied is prorated.
Secured property taxes are due in to equal installments: the first is due November 1 and delinquent with penalties after December 10: the second is due February 1 and delinquent with penalties after April 10.
Unsecured property tax is levied on July 1 and due on Julv 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.
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 of equipment and debt service reserves. 1+
CITY OF LOYALTO!
Notes to the Financial Statements
June 30, 2024
Note I: Summary of Significant Accounting Policies (Continued) 1 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% of the vacation time accrued and 25-35° of the accried sick leave depending on the length of employment with the City.
Governmental Funds - Govermmental 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 claumed under such grants are credited to intergovermmental 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.
I he respective grant agreements generally requure the City to maintain accounting records and substantiating evidence to determine if all 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 gorernment-wide and proprietary fund financial statements utilize a ner position presentation. Net position are caregorized as invested in capital assets (net of related debt). restricted. and unrestricted. • Vet investment in capital assets - Consists of capital assets including restricted capital assets. net of accumulated depreciation and reduced by the outstanding balances of any bonds. mortgages, notes or other borrowings that are attributable to the acquisition. construction or improvement of those assets. • Restricted net position - Consists of net position with constraints placed on their use either by (1) external groups such as creditors. grantors. contributors or laws or regulations of other governments:
or (2) lait 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."
15 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2024
Note I: Summary of Significant 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 of June 30. 2024. fund balances for governmental funds are made up of the following:
• Non-spendable fund balance - includes amounts that are (a) nor 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 of the Cirs's highest level of decision-making authority, the City Council. Connitments may be changed or lifted only by the Ciry 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) or official to which City Council 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 Ciry maintains a cash and investment pool that is available for use by all funds. Each find type's portion of this 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 debr service reserves and legal settlement funds for the wastewater treatment plant.
Cash and investments at June 30. 2024. consisted of the following:
Cash and investments S 2.112.77+
Restricted cash and investments 509.197
Total per statement of activities S 2.621.971
Checking account $ 295.685
Imprest cash 390
Savings 295.057
LAIF 2.030,839
Total cash and investments S 2.621.971
16 CITY OF LOYALTON
Notes to the Finaucial Statemeuts
June 30, 2024
Note 2: Cash and Investments (Continued)
A. Insestments Authorized by the California Government Code and the Entity's Investment Policy The table belor identifies the investment types that are authorized for the City of Loyalton be the California Government Code (or the City's investment policy, where more restrictive). The rable also identifies certain provisions of the 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 nor address insestments of debr proceeds held by bond tristees that are governed by the provisions of debt agreements of the Ciry, rather than the general provisions of the Calitornia Goverent 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 VA Vone S+0 million U.S. Treasury Obligations 5 years None None
Bank Savings Accounts None
Federal Agencies 5 years lone
Connercial Paper 180 days 20° None
Negotiable Certificates of Deposit 180 days 20° lone
Re-Purchase Agreements 1SO das's 20° lone
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 of and 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 of the District's investments to market interest rate fluctuations is provided by the following rable that shows the distribution of the District's investment by maturity:
Remaining Maturity (in Months)
12 Months 1.3-#S
Intestment Type Totals oi Less Months
State Investment Pool* 2,030.839 2.0.30.839 S
Totals 2.030.8.39 2.030.839
*Nor subject to categorization
C. Concentrations of Credit Risk
The investment policy of the 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 nor be able to recover its deposit or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that. in the event of the 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 of the pledged securities in the collateral pool must equal at least 110% of the 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° of the secured public deposits. 17 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2024
Note 2: Cash and Investments (Continued)
D. Custodial Credit Risk (Continued)
At June 30. 2024. the City's deposits balance was $.590.742 and the carrying amount was $583.267. The difference benveen the bank balance and the carrying amount was due to normal outstanding checks and deposits in transit. Of the bank balance S250.000 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 S179.047 billion. Of the S179.047 billion managed by the State Treasurer: 100° is invested in non-derivative financial products and 3.00° is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by state statute.
Investments are accounted for in accordance with the provisions of GASB Statement No. 31. which requires gorernmental 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 Ciry reports its investments at fair value based on quoted market information obtained from fiscal agents or other sources if the change is material to the financial statements.
Nore 3: Liability: Insured Programs and Workers Compensation Protection The City is exposed to various risks of loss related to torts: thett of. damage to. and destruction of assets: 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 connon risk management and insurance program for member cities. The Ciry pays an annual premium to SCORE for its insurance coverage. The Agreement for Formation of the SCORE provides that SCORE will be self-sustaining through member premiums and will reinsure through commercial companies for clains in excess of self-insured levels. A Board of Directors governs the SCORE. consisting of one member appointed br each Member Cir. A management group emploved by the SCORe handles the day-to-day business. At the termination of the jout 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 of SCORE are available at the Ciry. 18 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2024
Note t: Capital Assets
Capital asset activity for the year ended June 30. 202+ was as follows:
Balance Retirements Balance
Goverumental Activities July 1. 2023 Additions Adjustments June 30.2024 Capital assets. not being depreciated:
Land 55.293 - - 55.293
Construction in progress
Capital assets. being depreciated:
Buildings and improsements 2.106.186 6.600 2.112.786
Site improvements $67.070 $67.070
Equipment 1.050.603 1.050.603
Total capital assets. being depreciated 1.023.859 6.600 1.30.159 Less accumulated depreciation for:
Buildings and improvements (833.843) 175.5191 (909.362
Site Improvements (50S.+15) (28.+64) (536,879
Equipment (484.528) (59.663) (544.191
Total accumulated depreciation (1.826.786) (163.646) 11.990.432 Total capital assets. being depreciared. ner 2.197.073 (157.046) 2.040.027 Governmental activities capital assets. ner 2.252.366 S (157.046) S 2.095.320 Business Type Activities
Water
Capital assets. not being depreciated:
Construction in progress - 18.270 48.270
Capital assets. being depreciated:
Buildings 2.200 2.200
Site improvements 2.787.73+ 24.156 2.811.890
Equipment 145.993 5.250 151.243
Total capital assets. being depreciated 2.933.727 31.606 2.965.333 Less accumulated depreciation (1.477.517) (71.506) 11.549.023 Total capital assets. being depreciated. net 1.456.210 (39,900) 1.416.310 Water capital assets. net 1.456.210 S.370 1.464.580
Sewer
Capital assets. not being depreciated:
Land 373.319 - 5 373.319
Construction in progress
Capital assets. being depreciated:
Buildings +15.920 2.200 418.120
Site improvements 8.604.501 S.604.501
Equipment 651.860 33.291 685,151
Total capital assets. being depreciared 9.672.281 35.491 9.707.772 Less accumulated depreciation (7.931.195) (227.302) (5.158.497 Total capital assets. being depreciated. net 1.741.086 (191.811) 1.549,275 Sewer capital assets. net 5.114.405 5 (191.811) 4.922.594 19 CITY OF LOYALTON
Notes to the Finaucial Statements
June 30, 2024
Note t: Capital Assets (Continued)
Depreciation
Depreciation expense was charged to functions programs of the City as follows:
Gorernmental Activities
General government 72.S27
Public safety $7.870
Streets and roads 1.793
Parks 31.156
Total S 163.646
The City believes the estimated useful lives of some of the assets involved at the Wastewater Treatment Plant will be much less than was previously anticipared at the time the assets mere completed. Depreciation expense has been increased accordingly. The ultimate useful life of these items will depend on the alternarive corrective action the Note 5: Lease Income
The Ciry of Lovalion derives a portion of its revenue from the rental of real property based on a fixed lease amount.
All lenses of the 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 ire do not present the operating retenue over the term of the lease. and they are not subject to GASB S7.
Nore 6: Long-rerm Liabilities
Business-Type Activities:
A summary of changes in the City's business-type activities long-term liabilities for the year ended June 30. 2024:
Water Fund Balance Retirements Balance Due Within
July 1. 2023 Additions Adjustments June 30.2024 One Year 200+ COP $58.100 - (23.600) S $34.500 24.700
Total $58.100 S (23.600) 834.500 27.700
Sewer Fund Balance Retirements Balance Due Within
July 1. 2023 Additions Adjusuments June 30.2027 One Year 1995A Serrer revenue bond S 626.638 S - (10.900) 585.738 S $2.600 1995B Sewer revenue bond 94.891 (6.300) 8S.591 6.600
3009 COP 2.810.000 (74.000) 2.736.000 76.000
Total 3.531.529 (121.200) 3.110.329
135.200
20 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2024
Note 6: Long-term Liabilities (Continued)
Water Fund - 2004 Certificates of Participation
The City of Loyalton issued S1.144.600 in certificates of participation on March 1. 2004 through Rural USDA to provide funds for the construction of various water system improvements.
The installment payments are secured by a pledge of the net revenues of the City's water system as provided in the installment purchase contract. The interest rate is 4.5°, with payment due dates of March 1 and September 1 and final payment due September 1. 2044
Future annual requirements to amortize the long-term debr outstanding as of June 30. 2024 are as follows:
Fiscal Year End
June 30. Principal Interest Total
2025 24.700 S 36.997 S 61.697
2026 25.800 35.861 61.661
2027 27.000 34.673 61.673
2028 2S.200 33.+31 61.631
2029 29.500 32.132 61.632
2030-2034 168.400 139.059 307.459
2035-2039 209.900 26.06= 306.563
2040-2011 261.400 13.8.53 305.253
2045 59.600 1.341 60.941
Totals S $34.500 S454.007 S1.288.507
Sewer Fund - Series 1995-A Revenue Bond
The City of Losalton issued S1.256.500 in revenue bonds on February 1. 1995 through Rural Economic and Community Development Service to provide funds for the construction of various water system improrements.
The pase ens ace Se idly a ple is 5th it paymes die acts of ebray mid presid in timit payment le August 1. 2034
Future annual requirements to amortize the long-terin debt outstanding as of June 30. 2024 are as follows:
Fiscal Year End
June 30. Principal Interest Total
2025 S $2.600 S 25.403 68.003
2026 1.300 23.417 67.747
3027 $6.200 21.111 67.611
2028 18.600 19.278 67.878
2029 50.800 17.042 67.84?
2030-2034 28S.100 18.202 336.302
2035 65.138 1.167 66.605
Totals S 585.738 $156.219 5 741.987
21 CITY OF LOYALTON
Notes to the Financial Statemeuts
June 30, 2024
Note 6: Long-term Liabilities (Continued)
Sewer Fund - Series 1995-B Revenue Bond
The Ciry of Loyalton issued $186.200 in resenue bonds on February 1. 1995 through Rural Economic and Community Derelopment Service to provide funds for the constriction of various water system improvements.
The payments are secured by a pledge of the net revenues of the City's sewer system as provided in the installment purchase contract. The interest rate is t.5°o with payment due dares of Febriary 1 and August 1 and final payment due August 1. 2034.
Future annual requirements to amortize the long-term debt outstanding as of June 30. 2024 are as follows:
Fiscal Year End
June 30. Principal Interest Total
2025 S 6.600 S 3.839 S 10.439
2026 6.900 3.535 10.435
2027 7.100 3,220 10.320
2028 7.400 2.59+ 10.29+
2029 7.700 2.554 10.254
2030-2034 13.300 6.950 $0.150
2035 9.691 437 10.128
Totals S SS.591 S 23.427 S 112.018
Sewer Fund - 2009 Certificate of Participation
The City of Loyalton issued S3.569.000 in certificates of participation on February 1. 2010 through Rural USDA 1o provide funds for the construction of various sewer system improvements The installment payments are secured by a pledge of the net revenues of the City's water system as provided in the installment purchase contract. The interest rate is 25% with payment due dates of February 1 and August 1 and final payment due August 1. 2049.
Future annual requirements to amortize the long-term debr outstanding as of June 30. 2024 are as follons:
Fiscal Year End
June 30. Principal Interest Total
2025 76.000 $ 67.450 143.450
2026 78.000 65.325 143.525
2027 80.000 63.550 143.550
2028 82.000 61.525 143.525
2029 $4.000 59,450 143.+50
2030-2034 +52.000 264.325 716.325
2035-2039 $11.000 204.188 715.188
2040-2041 $78.000 136.175 714.175
2045-2049 654.000 $9,300 713.300
2050 141.000 1.763 142.763
Totals S2.736.000 S 983.250 S 3.719.250
22 CITY OF LOYALTON
Notes to the Financial Statemeuts
June 30, 2024
Nore 7: Defined Benefit Pension Plan
On Norember 16. 2016. the CalPERS Board of Administration declared the ciry of Lovalton in default of its obligation to CaPERS. Effective January 2018. CalPERS reduced the retirement benefits paid to City of Loyalton retirees • pursuant to Gorernment code section 20577 to 40º of retiree' base pension benefit. as subject to cost of living adjustments as calculated by CalPERS ("Reduced Benefit Amount".) Per a settlement agreement with three City of Lovalton 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). their designated survivors. The total amount paid by the City of Loyalton to the retirees during the 2022 23 fiscal vear was S51.470.
Note S: 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 find. Intertiund transfers are generally recorded as operating transters in and operating transfers out in the same accounting period.
Receivables and Payables
Balances representing lending borrowing transactions beneen funds outstanding at the fiscal year end are reported as either "due from due to other funds" (amounts due within one rear). "adsances to from other funds" (non-current portions of interfund lending borrowing transactions). or "loans to from other finds" (long-term lending borrowing transactions exidenced by loan agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable govermmental 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 vear of the balance sheet date.
Interfund transactions for the fiscal year ended June 30. 2024 are summarized as follows:
Due to Due from
Other Funds Other Funds
General fund S 104.227 S 708.520
Special revenue funds 62.683 18.974
Enterprise fids 974.522 $13.938
Totals S 1.141.432 S 1.1+1.432
Note 9: Stewardship. Compliance and Accountability
A. Deficit Fund Balances
The gas tax fund had a deficit find balance of S16.610 at June 30. 2024. The deficit fund balance is expected to be eliminated upon receipt of funire funding or transfers from the general fund.
The water fund had an unrestricted negative net position of $361.063 and a negative cash balance of S457.+59 ar June 30. 2024 that was reclassified to due to other funds.
B. Budgeted Appropriations
No budget was approved for the 2023 24 fiscal year.
23 CITY OF LOYALTON
Notes to the Financial Statements
June 30, 2024
Note 10: Revenue Limitations Imposed by California Proposition 218 Proposition 218. which was approved by the voters in November 1996. regulates the Ciry'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 Ciry currently is operating without a City Manager. Members of the City Council have taken on the job duties normally performed by a City Manager. The members of the City Council are not compensated for taking on these duties in excess of the approved stipend per meeting received by all City Council members.
Note 12: Gann Limit
Proceeds subject to the limit for 2023-24 245.212
Amount of limit for 2023-24 1.425.588
Amount (under) over the limit (1.180.376)
Per Capita Percentage Change 7.55°
Population Change 0.00°
Note 13: Operating Lease
On March 21. 2017 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 105 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 reneir for a one-year period. As of June 30. 2024 the lease was on a month-to-month rental period per the holdorer provision of the lease. furthermore the rent was reduced to 5900 per month to compensare for utilities used by others in the building.
Note 14: Restatement of Beginning Net Position
Beginning net position increased S19.160 in the water fund and increased S28.740 in the sever fund to remove the prior year allowance for doubtful accounts related to water billing receivables. The delinquent water bills are noir collected by the Sierra County tax collector.
Beginning net position was restated in the governmental fund financial statements resulting in an increase of S253.406 as the result of an error by Sierra County in allocating prior year VLF in lieu tax 24 CITY OF LOYALTON
Notes to the Financial Statements
June 30. 2024
Note 15: Commitments and Contingencies
Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. An disallowed claims. including amounts already collected, may constitute a liability of the 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. if any: to be inmaterial.
Commitments
The City had ongoing engineering and professional service commitments as of June 30. 2024. At June 30. 2024 the City had an open contract for S399.+SS related to the Belli Vandaam waterline repair project.
The City has been notified of a potential underpayment of $99.591 in 941 taxes by the IRS. The City believes this was an error and no liability has been recorded in these financial statements.
Note 16: Subsequent Events
The City of Lovalton management has evaluated subsequent events through February 17. 2026. the dare these financial statements were available to be issued
25 Loyalton Tennis
Client Contractor
City of Loyalton Lakeside Paving Inc. and
Sue Mcilravy Court Czar LLC
councilwomansmcilravy [email protected]
@gmail.com Scott Whiting
(817) 789-3951
Job summary
Phase 1 (Milling and New Asphalt)
(Loyalton will have their fencing contractor remove a section of fencing for asphalt grader access and replace after asphalt is poured.)
Mill two tennis courts: +/- 13,200 square feet to a depth of 3" Haul debris off site. Pave with 3.75" of PG 64-28 asphalt with fibers compacted to 3". All edges to be hand tamped.
Milling Notes: Priced at Prevailing Wages DIR 1000006303.
Proposal based on April 1, 2025 Teichert Pricing for PG 64-16 HMA and is subject to change at time of paving. Any additional work, materials used or removed to be billed accordingly.
Permits and BMPs provided by owner.
Drill and set net post sleeves (4) for two permanent tennis courts.
Phase 2 (Surfacing, after minimum 14 days asphalt cure time) 1 of 3
Patch and seal sleeve areas and basketball goal posts flush with asphalt surface. Apply acrylic surfacer over the entire area of both courts. Apply two coats of textured court paint in standard color scheme (e.g. Green inner, Red outer) for two tennis courts. Lay out, prime, and paint lines on the resulting two tennis courts.
Provide and install two sets of tennis net posts with cranks and nets.
Optional at no extra charge, if desired: Lay out, prime and paint lines for two or three pickleball courts for use with portable nets as space allows.
Project budget
$123,210 - includes all materials, shipping, taxes, and labor Notes
The state of court surfaces over time depends on many factors, including court foundation material and quality; rain, snow, and freeze cycles; temperature fluctuations; accumulation of dirt and organic matter; UV light exposure; maintenance practices; emersion of clay balls and rust spots from asphalt layers; court material aging; and amount of play, to name a few. All surfaces, covered with any brand or type of surfacing material, even with the best methods and expert application, will eventually crack.
Contractor does not warranty the project against inevitable cracking or imperfections due to any of the causes mentioned above.
Any additional required bonds, fees, permits, or engineering is not included. Over-excavation or stabilization due to the discovery of unsuitable subgrade materials is not expected on existing courts and is not included. Asphalt NV#69490, CA#829462. See bid from 2 of 3
Lakeside Paving for company specific details. (Asphalt price, surfacing, and all aspects of the entire project are included in total price above.)
Contractors will need nearby electric and water access, rinse water disposal, dumpster access, and jobsite access 24-7 for the duration of the project.
Timeline
After the asphalt is laid down (one to two days) it will need to cure for at least fourteen days (depending on weather) before surfacing and painting (five to seven days). The courts and adjacent areas will need to be closed to all foot traffic, watering, sprinklers, pets, and other visitors during this time and up to 48 hours after completion for the materials to fully dry and cure before playing.
Terms: Payment for Phase 1 due within 30 days after asphalt is installed. Remaining payment due within 30 days of completion of entire project.
Quote is valid for 30 days. This proposal will serve as a contract for services upon Client acceptance.
Contractor signature
. Date.
Client acceptance of proposal
Date
3 of 3
LAKESIDE
Paving & Sealing, Inc.
50583-3600
LakesidePaving.com • Tahoe Truckee CA NV
Post Office Box 924
Carnelian Bay, CA 96140
[email protected]
Loyalton City Park phone 530-583-3600
C/O Scott Whiting
fax 530-583-5232
CA Lic#829462
NV Lic# 69490
3/3/2026
Lakeside Paving and Sealing, Inc. proposes to furnish all materials and perform all labor necessary to complete the work of improvement in a substantial and workmanlike manner according to standard practices on the following real property:
Loyalton Tennis Courts - Loyalton - Scott Whiting - (817) 789-3951 MILL TWO tennis courts: +/- 13,200 square feet to a depth of 3". Haul debris off site. Pave with 3.75" of PG 64-28 asphalt 85.550.00 with FIBERS compacted to 3". All edges to be hand tamped.
Fencing, posts and netting to be removed prior to our work and reinstalled after our work by owner/others Milling Notes: Priced at Prevailing Wages DIR 1000006303. No vehicles on new asphalt for 48 hours. Foot traffic ok 4-6 hours later. Estimate is valid for 10 days. Proposal based on April 1, 2025 Teichert Pricing for PG 64-16 HMA and is subject to change at time of paving. Price is for proposed work as listed above. Any additional work, materials used or removed to be billed accordingly. Permits & BMPs provided by owner. Water needs to be provided at the site. Proposal does not include repair, adjustment or installation of utility boxes. Paving in colder temps could potentially affect esthetics of finished mat. New asphalt should cure a minimum of t/- 30 days prior to tennis court surfacing. Tennis court surfacing is not included unless otherwise stated. Lakeside Paving not responsible for damage to items under or in our work area (automatic gates, dog fences, hydronics, irrigation, etc).
All work to be completed at such time that is mutually acceptable or by October 31, 2025, save and except for any delays caused by any unforeseen happenstances, such as weather, over which the contractor has no control. Total amount to be paid in full upon completion without any retention. If not timely paid, interest shall accrue on the unpaid balance at the rate of 1.5% per month. In the event suit is commenced to collect this obligation, or to enforce any term or conditions of this agreement, prevailing party shall be entitled to all costs of collection to include without any limitations reasonable attomey's fees. The undersigned agrees that any dispute or legal action related to, or arising out of, this proposal shall be filed in Placer County, CA Any alteration or deviation from the above specifications involving extra costs of material or labor will become an extra charge over the sum mentioned in this contract. This proposal shall be binding upon the contractor for a period not to exceed 10 days unless earlier revoked by written notice of revocation prior to ceptance, at which time this proposal shall terminate automatically. No contractual rights arise until this proposal is accepted in writing. Lakeside I responsible for permit requirements not related to asphalt work. speetfully submitted by Lakeside Paving and Sealing, I Stephen Gregor, RMO
The above proposal is hereby accepted according to the terms thereof and the owner agrees to pay the amounts mentioned in said proposal and according to the terms thereof.
Signature Date
Print Name Total $85,550.00
PROPOSAL
P.O. Box 2024 February 9, 2025
Portola, CA 96122 Valid for 15 days
[email protected]
CSLB# 263770/DIR# 1000014126
Proposal Submitted to: Sue Mcliravy RE: Loyalton Little League Field Loyalton, CA 96118
We hereby submit specification and estimate for:
Replace damaged chain link fence fabric around existing baseball field - Approximate footages:
700 lineal feet of 4' high fence, 200 lineal feet of 8' high fence at backstop wings, 50 lineal feet of 6' high fence at batter's box, 60 lineal feet of 10' high fence at bottom section of 2 back stops, 85 lineal feet of 12' high fence at other 2 back stops, 200 lineal feet of 12' high fence at batting cage as well as add and replace top rail as needed.
Straighten all posts as needed.
Replace wire on all gates.
We Propose hereby to furnish materials and labor - complete in accordance with the above specifications, for the sum of:
Thirty Two Thousand Five Hundred Ninety-Seven Dollars $32,597.00 Payment is due upon completion of job. Add 4% if paying with a debit or credit card.
Tom burnett
Tom Burnett - Owner
Acceptance of Proposal: The above price, specifications and conditions are satisfactory and are hereby accepted.
Date Signature
Dolease note that without a signed proposal we wil not ad you to our schedule. Once a signed contract is received, we will call you with an installation start date.
Notice to homeowner: (Section 7019-Contractors License Law) - Under the mechanics' lien law, any contractor, subcontractor, laborer, materialman or other person who helps improve your property and is not paid for his labor, services or materials, has a right to enforce his claim against your property.
Under the law, you may protect yourself against such claims by filing, before commencing such work of improvements, an original contract for the work of improvement or a modification thereof, in the office of the county recorder of the county where the property is situated and requiring that a contractor's payment bond be recorded in such office. Said bond shall be in an amount not less than fifty percent (50%) of the contract price and shall, in addition to any conditions for the performance of the contract, be conditioned for the payment in full of the claims of all persons furnishing labor, services, equipment or materials for the work described in said contract.
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by workman's compensation Insurance.
Kunsman Fence Co. is not responsible for the following unless written directly in the proposal as a line item.
Exclusions as indicated: Water lines, sewer lines, sprinkler lines, surveying, staking, dust control, noise control, temporary fence, clearing/grubbing, haul away, back filling, grading, compacting, core drilling, traffic control, saw cutting, grounding on fence/gate, determination of property lines and/or easements, special insurance endorsement requirements, insurance liability limits over $1,000,000.00, bid payment and/or performance bond costs and fees, obtaining, filing or paying for any/all permits, planning, engineering and fines when applicable, fire department codes, tree/root damage, asphalt or concrete damage/repair.
Kunsman Fence Co. is a fully insured contractor with insurance certificates available upon request.
Conditions: It is understood and agreed that Kunsman Fence Co. shall not be held liable for any loss, damage or delays due to fire, disturbed labor conditions, materials stolen after delivery to job site, accidents, material shortages or delivery delays from suppliers, inclement weather or other causes beyond our control. Prices quoted in this proposal are conditional to acceptance of proposal within fifteen days from contract date. The buyer may cancel this transaction at any time prior to the third business day after the date of this transaction. Any transaction canceled after the third business day will be subject to a 20% restocking fee. Special orders require a NON-REFUNDABLE deposit of 50% of the contract value.
Tb
Kunsman Fence Co. Initials Buyer Initials
The return to us of this signed proposal shall constitute a contract. Contractors are required by law to be licensed and regulated by the contractors' state license board. Any questions concerning ontractor may be referred to the registrar of the board at: Contractors' State License Board - 1020 N Street - Sacramento, CA 95814 or visit: www.cslb.ca.gov.
KUNSMAN FENCE CO. IS NOT RESPONSIBLE FOR LOCATION/DAMAGE TO UNDERGROUND LINES (WATER, POWER, SEWER, SPRINKLER) OR LOCATION OF PROPERTY LINES.
TB
Kunsman Fence Co. Initials Buyers Initials
832-4998
PROPOSAL
P.O. Box 2024 February 9, 2025
Portola, CA 96122 Valid for 15 days
[email protected]
CSLB# 263770/DIR# 1000014126
Proposal Submitted to: Sue Mollravy RE: Museum
Loyalton, CA 96118
We hereby submit specification and estimate for:
Replace approximately 90 lineal feet of 6' high 9 ga. chain link fence fabric.
Replace 1 corner posts and 3 line posts.
Set all posts in concrete.
Replace approximately 80 lineal feet of top rail.
We Propose hereby to furnish materials and labor - complete in accordance with the above specifications, for the sum of:
Four Thousand Five Hundred Fifty-Eight Dollars $4,558.00 Payment is due upon completion of job. Add 4% if paying with a debit or credit card.
TomBunett
Tom Burnett - Owner
Acceptance of Proposal: The above price, specifications and conditions are satisfactory and are hereby accepted.
Date Signature
Date Signature
**Please note that without a signed proposal we will not add you to our schedule. Once a signed contract is received, we will call you with an installation start date.
Notice to homeowner: (Section 7019-Contractors License Law) - Under the mechanics' lien law, any contractor, subcontractor, laborer, materialman or other person who helps improve your property and is not paid for his labor, services or materials, has a right to enforce his claim against your property.
Under the law, you may protect yourself against such claims by filing, before commencing such work of improvements, an original contract for the work of improvement or a modification thereof, in the office of the county recorder of the county where the property is situated and requiring that a contractor's payment bond be recorded in such office. Said bond shall be in an amount not less than fifty percent (50%) of the contract price and shall, in addition to any conditions for the performance of the contract, be conditioned for the payment in full of the claims of all persons furnishing labor, services, equipment or materials for the work described in said contract.
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control, Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by workman's compensation insurance.
Kunsman Fence Co. is not responsible for the following unless written directly in the proposal as a line item.
Exclusions as indicated: Water lines, sewer lines, sprinkler lines, surveying, staking, dust control, noise control, temporary fence, clearing/grubbing, haul away, back filling, grading, compacting, core drilling, traffic control, saw cutting, grounding on fence/gate, determination of property lines and/or easements, special insurance endorsement requirements, insurance liability limits over $1,000,000.00, bid payment and/or performance bond costs and fees, obtaining, filing or paying for any/all permits, planning, engineering and fines when applicable, fire department codes, tree/root damage, asphalt or concrete damage/repair.
Kunsman Fence Co. is a fully insured contractor with insurance certificates available upon request.
Conditions: It is understood and agreed that Kunsman Fence Co. shall not be held liable for any loss, damage or delays due to fire, disturbed labor conditions, materials stolen after delivery to job site, accidents, material shortages or delivery delays from suppliers, inclement weather or other causes beyond our control. Prices quoted in this proposal are conditional to acceptance of proposal within fifteen days from contract date. The buyer may cancel this transaction at any time prior to the third business day after the date of this transaction. Any transaction canceled after the third business day will be subject to a 20% restocking fee. Special orders require a NON-REFUNDABLE deposit of 50% of the Tb
Kunsman Fence Co. Initials Buyer Initials
Street - Sacramento, CA 95814 or visit: www.cslb.ca.gov.
KUNSMAN FENCE CO. IS NOT RESPONSIBLE FOR LOCATION/DAMAGE TO UNDERGROUND LINES (WATER, POWER, SEWER, SPRINKLER) OR LOCATION OF PROPERTY LINES.
TB
Kunsman Fence Co. Initials Buyers Initials
CITY OF LOYALTON
COUNTY OF SIERRA
6OS SCHOOL STREET
PO BOX 128
LOYALTON. CALIFORNIA 96LI8
(530) 993-6750 71901- CALIFORNI
illyofloyalion org COUN
OFFICE OF THE MAYOR
APPLICATION FOR A BUSINESS LICENSE
Name of Owner of Business: Mary Elizabeth Ferraro
Address: 16 Joses Dt. Telephone: 909) 436-0423
Name Business 30 tent Pacedic Mids
State Contractors License No. Resale License No:
Permanent Location of Business:
Telephone:
Is Business a Corporation or Partnership? Yes
If so, please indicate the name(s), address(s), and title(s) of officers) or partner (s):
Annual Gross Receipts from Business S
(The City needs this information to determincahe tax due per quarter, See schedulc helo».) 2-24-26 MAT wner
Date Signature Tilte
***: ********* ***********************
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 of Equalization office.
**************•*******•***************************
TAXES (Section 5.04.220 of Loyalton Municipal Code)
All businesses having gross receipts of:
A. I Less than $10.000 annually - Fee of $ 70.40* per year B. • Between $10,000 and 50,000 annually - Fee of $114.40* per year C. O Between $50,000 and $100,000 annually - Fee of $158.40* per year D. • Between $100,000 and $150,000 annually - Fee of $202.40* per year E. O More than $150,000 annually - Fee of $268.40* per year * Please note the $4.00 fee has been included with the annual fee for the State ADA Fees
For official use only
Date Received:
Fee Received:
City Clerk: Date approved: