Mammoth Lakes City Council
May 7, 2025

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 21 of 39
conducted in 2024 cleaned and restriped the 9-lane all-weather track surface along with several patches to the rubber surface and synthetic turf. Total investment was $100,000. 2024 Summer Camps
The Parks and Recreation Department hosted 644 campers supported by 22 staff members over 9 weeks of summer camps. Campers got a chance to explore the Sierra by biking, hiking, paddleboarding, skateboarding, swimming, and climbing all over the region. The Department integrated adventure sports with visual and performance arts to provide a holistic camp experience that nurtures both interpersonal and intrapersonal growth. The biggest addition to the program this summer was hosting camps at the new Mammoth RecZone operating within the CRC, which provided necessary protection from the elements and was greatly appreciated during the “monsoon week.” Our backpackers continued to enjoy ice cream in the backcountry, our nature campers sponsored by LADWP helped Clean Up the Lake, our Wave Rave skateboarders loved the “indoor skatepark at the CRC,” and our bikers shredded miles of trails! More local children took advantage of the Tony Colasardo Scholarship Fund in 2024. The Department awarded 89 Scholarships valued at just under $13,000. Recipients enjoyed the UK International and Challenger Sports Soccer Camps, several signature summer camps and After School Programs, such as Gymnastics, Little Wreckers, and the Spring Bike Squad.

Special Use Taxes
The “Mammoth Lakes Recreation, Trails and Parks Investment Initiative” (aka Measure R) was adopted by the Mammoth Lakes Town Council in February 2008 and was approved by the voters of Mammoth Lakes in June 2008. The Ordinance imposed a Transactions and Use Tax in the amount of one-half percent for the purpose of funding Recreation, Trails and Parks. Measure R is a special fund designated for use by the Town of Mammoth Lakes only for the planning, construction, operation, maintenance, programming and administration of all trails, parks and recreation facilities managed by the Town of Mammoth Lakes without supplanting existing parks and recreation facility maintenance funds. Recommendations for the use of Measure R funds are determined by Mammoth Lakes Recreation and presented to Town Council for approval.

Measure R projects completed in 2024 include:
• Measure R audit
• Whitmore Track/Trails End Park maintenance
• Recreation Equipment/Supplies
• Mammoth Lakes Recreation administration
• Trails administration and projects
The “Mammoth Lakes Mobility, Recreation and Arts & Culture Utility Users Tax Ordinance” (aka Measure U) was adopted by the Mammoth Lakes Town Council in March 2010 and approved by the voters of the Town of Mammoth Lakes in June 2010. The Ordinance states: “On or after July 1, 2011 all proceeds of the tax and imposed hereunder shall be accounted for and paid into a special fund designated for use by the Town of Mammoth Lakes, and used only for the following purposes: Planning, construction, operation, maintenance, programming and administration of facilities and projects for Mobility, Recreation and Arts & Culture. Such tax proceeds shall not supplant existing funds used

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 22 of 39
for the purposes set forth above.” Recommendations for the use of Measure U funds are determined by Mammoth Lakes Recreation and presented to Town Council for approval.

Measure U projects completed in 2024 include:
• Special event transit services
• Arts and cultural programming and special projects
• Contract administration
• Measure U audit
• Special event equipment
• Mammoth Lakes Recreation administration
Conservation Elements
Two elements in the 2007 General Plan address conservation. These elements are Resource Management and Conservation and Arts, Culture, Heritage and Natural History.

Resource Management and Conservation Element
The Resource Management and Conservation Element states: “Mammoth Lakes is valued for its majestic setting, the forest and trees, the smell of the pines, wildlife, clean air and water. The goals and policies of this Element address the community of Mammoth Lakes being a leader in managing and conserving these resources.” The Town continues to support the preservation of Mammoth Creek, which runs through town, by prohibiting development that does not maintain established setbacks and by managing Town-owned properties along Mammoth Creek for open space, habitat preservation, and passive recreation.

In accordance with the Town Council’s Strategic Priority to “provide support for long-term forest recreational, health and safety projects such as ESCCRP, USFS planning processes, and amenity investment, working with local and regional partners,” the following items were accomplished in 2024:

Summer Trails and Programs
• The Mammoth Lakes Trail System (MLTS) trail crew was actively engaged throughout the summer, clearing fallen trees from over 90 miles of the trail network, maintaining system trails, and installing new signage. • Construction of the Sherwin Meadows Trailhead progressed with the completion of pavement work and the installation of a new pit toilet. The trailhead is expected to be completed by spring 2025.
• The Town of Mammoth Lakes Outdoor Recreation Hosts provided on-the-ground safety and educational services throughout the summer, stationing at high-use trailheads to assist visitors. They distributed trail system information, brochures, trail etiquette guidelines, and regulatory details. From June to September 2024, hosts were stationed at Horseshoe Lake Trailhead, Lake George, Twin Lakes, Coldwater Trailheads, Mammoth Creek Park, Shady Rest Park, and served as town floaters. During late summer the addition of Hosts on E-Bikes throughout the Towns multi-use pathways added extra exposure and outreach to the public.

Summer 2024 saw above-average temperatures, with warm weather persisting

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 23 of 39
and trails becoming accessible by mid-June. During the season, hosts documented 10,902 user interactions, observed 81% of dogs on leash, and removed 964 pounds of trash and 251 pounds of pet waste.
• The 2024 MLTS Summer of Stewardship kicked off with a major milestone. In partnership with Mammoth Lakes Recreation, the Town of Mammoth Lakes was selected as a Leave No Trace (LNT) Spotlight community, recognizing local conservation efforts and encouraging public engagement in preserving natural spaces. As part of the LNT Spotlight initiative, the Town hosted educational programs, outreach activities, and stewardship events during the first weekend of June. Throughout the summer, MLTS organized monthly Wednesday Worknights, weekly Trashy Thursday clean-ups, and two additional Trail Days events to promote stewardship and trail maintenance.
• The Eastern Sierra Adopt-a-Trail Program also experienced significant growth, with 44 volunteers and 37 sponsors actively participating. This program is a collaborative effort between Mammoth Lakes Recreation, Mono County, and the U.S. Forest Service, further enhancing community engagement and trail conservation.

Winter Trails and Programs
The winter multi-use trails were groomed and open to the public through early April 2024.

This season's grooming operations were successful, thanks to strong partnerships. When the Nordoni equipment broke down, Mammoth Mountain Ski Area generously provided a replacement sled, ensuring continued grooming for the community. Shady Rest Winter Trails remained a highly popular destination, accommodating Nordic skiers, walkers, fatbike riders, snowshoers, and dog owners. Grooming on the Sherwins Winter Trail was conducted as conditions permitted. At the start of the 2024/25 winter season, the Town purchased a new sled for grooming. However, with limited early-season snowfall, minimal grooming took place in December 2024. Additionally, starting winter 24/25 the Town has assumed responsibility for all Winter Over-Snow Vehicle (OSV) grooming, previously managed by the U.S. Forest Service. Town staff will now oversee a significant portion of the 90+ mile OSV system. The Winter Recreation Map was updated, printed and distributed throughout the Town and Mono County. From November 2023 to May 2024, Winter Hosts were stationed at Shady Rest Park, the Lake Mary Road closure, and the Sherwin Meadows Trailhead, while also providing floating and bus support throughout the Town of Mammoth Lakes.

These accomplishments made progress towards meeting the Town Council’s objectives for this Strategic Priority, which includes enhancing the public’s experience with improved access points to the natural environment and utilizing partnerships with Mammoth Lakes Recreation, Mono County, U.S. Forest Service, and the Eastern Sierra Sustainable Recreation Partnership to identify grant funded projects and programs that should be pursued.

Climate Change Vulnerability Assessment
As part of the SB1 Climate Adaptation Planning Grant awarded to the Town in 2017, the Town contracted Placeworks, Inc., to prepare a Climate Change Vulnerability Assessment.

The Vulnerability Assessment identified and analyzed the impacts climate change poses to the Town and the specific geographic areas at risk from certain impacts. The Vulnerability Assessment informed the preparation of climate adaptation goals, policies, and objectives, as well as the development of feasible implementation measures. The

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
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adaptation strategies were adopted as part of the 2019 Public Health and Safety Element update.

This project furthers Resource Management and Conservation Element Goal R.1 which directs the Town to “Be stewards of habitat, wildlife, fisheries, forests and vegetation resources of significant biological, ecological, aesthetic and recreational value.” The tourism-based economy of Mammoth Lakes relies on its scenic qualities and world-class recreational opportunities, and some of these assets were considered in the Vulnerability Assessment, and the Town adopted recommended adaptation strategies in order to lessen identified impacts to these resources.

Stormwater Resource Plan
The Town is an active member of the Inyo-Mono Integrated Regional Water Management Plan (IRWMP) and has a Stormwater Resource Plan (SWRP). The SWRP provides a regional prioritization of stormwater management projects that qualifies agencies for participation in Prop 1 Funding.

Waste Management/ Recycling
In 2020, Town Council approved a new Solid Waste Franchise Agreement between the Town and Mammoth Disposal Company. The Agreement allows Mammoth Disposal to provide all solid waste collection and processing services on behalf of the Town for 20 years. This includes addressing the disposal of solid waste after the Benton Crossing Landfill closed at the end of 2022. The new Agreement provides for increased solid waste disposal services and improved recycling services for customers in Mammoth Lakes. To accommodate current and future solid waste disposal needs, Mammoth Disposal constructed a new transfer station for solid waste and a Materials Recovery Facility (MRF) for recyclables in 2023. Additional elements of the project included the reconfiguration and renovation of the existing site to accommodate the new facilities and improve circulation.

Work continued on a feasibility study for a potential biomass facility which was facilitated through a U.S. Forest Service Wood Innovations Grant.

The Town held its annual Town Clean-Up Day in May 2024. The Town provided a dropoff station for the collection of large/bulky items, metal objects, green waste, food waste, hazardous household waste, and recyclable materials.

Tree Removal Permits
Planning staff continues to implement the Town’s Tree Removal and Protection Ordinance by requiring property owners obtain a Tree Removal Permit for the removal of live trees that are 12 inches or greater in diameter at breast height. In 2024, 56 tree removal permits were processed with a small number of those permits being denied because the minimum criteria for removal was not met. The top three reasons specified on the tree removal permit requests include the removal of hazard trees, trees causing property damage, and tree removal for wildfire fuel reduction purposes.

Air Quality
The Town monitors air quality in coordination with the Great Basin Unified Air Pollution Control District (GBUAPCD). This monitoring effort focuses on particulate matter (PM10), which is primarily caused by wood burning and cinders spread on roads to increase

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
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traction during icy conditions. During the period of November 15th to March 15th, the Town monitors the air quality and when PM10 reaches certain levels in town, “no-burn” days are called, meaning that the use of fireplaces and wood stoves are prohibited for that time period.

The GBUAPCD provides the Town an annual report in May of each year that summarizes the air quality measurements recorded by the district during the monitoring period (MidMarch through Mid-March of the following year) and identifies any exceedances of the State and Federal PM10 standards. During the Mid-March 2023 through Mid-March 2024 reporting period, the Federal PM10 standard was exceeded on zero (0) days and the State PM10 standard was exceeded on nine (9) days. All nine of the monitored State exceedances in 2023-24 were due to local sources such as construction related dust and residential woodburning during the winter months.

An update to the Air Quality Management Plan (AQMP) was completed in 2013, and the Town continues to implement the goals and policies of that Plan. As part of the AQMP update process, the Town and the GBUAPCD requested the EPA re-designate the Town as in attainment for the federal air quality standard for particulate matter less than 10 microns (PM10). The Town had been designated non-attainment for PM10 since 1987. EPA found that the Town has met the federal standard since 2009 and the EPA formally redesignated the Town as in compliance in 2015.

In 2023, GBUAPCD completed the Second 10-year Maintenance Plan for the Town of Mammoth Lakes. The federal Clean Air Act (CAA) requires that an area redesignated attainment from nonattainment status must submit a maintenance plan ensuring the Nation Ambient Air Quality Standards (NAAQS) will be met for a 10-year period following redesignation. The CAA required redesignated areas to submit a second maintenance plan to the United Stations Environmental Protection Agency eight years after the first plan has been approved in order to demonstrate continued maintenance of the NAAQS for the subsequent 10-year period.

Outdoor Lighting
Mammoth Lakes’ dark night skies are an important resource to the community and local wildlife. These starry skies continue to be preserved through the Town’s Outdoor Lighting Ordinance, which requires exterior lighting to be downward directed and shielded. This requirement significantly reduces dangerous glare for drivers and pedestrians and helps preserve the dark skies for wildlife and residents. The Town continues to require all development projects to be consistent with these lighting requirements and continues code compliance efforts to bring non-conforming fixtures into compliance with the Town’s Lighting Ordinance.

Arts, Culture, Heritage, and Natural History Element
The Arts, Culture, Heritage and Natural History Element states: “It is important that arts, culture, heritage and natural history are encouraged throughout the community.” One of the Town Council’s Strategic Priorities directs various work programs and funding to “Enhance our recreational based economy through amenity investment.” A specific objective associated with accomplishing this priority include finalizing an agreement with the Mammoth Lakes Foundation for the Mammoth Arts & Cultural Center (MACC), which

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 26 of 39
the Town will construct and operate with funding to be provided through Measure U.

Construction of the MACC is expected to begin in 2025.

CEQA requires a cultural resource analysis for all proposed projects. Mitigation measures are identified for each project to reduce impacts to cultural resources. The Town also complies with Senate Bill 18 and Assembly Bill 52 regarding Native American Tribal consultation.

Noise Elements
Noise is addressed in two elements of the 2007 General Plan. These elements are Noise (1997) and Community Design.

Noise Element
A goal of the Noise Element is “To protect the citizens of the Town from the harmful and annoying effects of exposure to excessive noise.”
The Town continues to enforce the noise limits stated in Municipal Code §8.16 Noise Regulation. An update of the Noise Element and the Noise Ordinance is included on the Community and Economic Development Work Program, but a start date and funding source has not been established.

Community Design Element
A goal of the Community Design Element states, “Enhance community character by minimizing noise.”
The California Environmental Quality Act (CEQA) requires a noise analysis for all proposed development projects that are not exempt from CEQA review. Mitigation measures are identified for each project to reduce noise impacts. The Town includes these project specific mitigation measures as conditions of approval for the project to reduce noise impacts. Nuisance complaints related to noise are handled by continued enforcement through the Mammoth Lakes Police Department and the Town Code Compliance staff.

Safety Element – Public Health and Safety Element
The Public Health and Safety Element states: “The community will be comfortable and safe. Facilities that are important to a livable community will be supported, provided, and encouraged.”
The proliferation of e-Bikes and other modes of transportation has resulted in congestion and dangerous conditions on Town Multi-Use Pathways (MUPs), sidewalks, and trails. In December 2023, the Town introduced an ordinance to govern MUPs, sidewalks, and trails with the Mammoth Lakes Police Department issuing citations and educating the public regarding the use of e-Bikes and other related modes of transportation. This ordinance will help to ensure a safer environment on MUPs, sidewalks, and trails along with providing better opportunities to educate our locals and visitors on the use of these amenities. To support e-Bike safety, the Office of Outdoor Recreation introduced a new e-bike hosts program where three e-bikes and supplemental safety equipment were purchased to allow trained hosts to patrol the MUPs and engage with visitors. Additionally,

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 27 of 39
six new “speed measuring devices” were installed along with painted messaging on the paths highlighting biking etiquette.

The Town continues to enforce building code requirements to minimize loss of life, injury, and property damage from snow, earthquakes, and fire. The Town also continues to work closely with the Mammoth Lakes Fire Protection District to review proposed development projects to ensure adequate emergency access and fire equipment access. The Town continues to respond to code compliance complaints including those related to potential safety issues. Additionally, the Town’s snow removal operations are essential to the safety, wellbeing, and daily operations of the Community. The Town’s Public Works Department prioritizes streets for snow clearing to maintain safe routes during snowstorms.

Staff continue to enforce the Quality-of-Life Ordinance, adopted in 2015, to ensure that transient rental uses do not create adverse impacts to neighboring properties due to excessive traffic, noise, trash, and similar issues and to ensure that the number of occupants within such rental units do not exceed the design capacity of the structure or cause health and safety concerns. This ordinance requires any new transient use within a residential structure to be inspected prior to the commencement of the transient use.

The inspection verifies compliance with the standards and conditions of operation outlined in the Ordinance and ensures compliance with all applicable safety requirements.

All development project applicants are required to submit a Hazardous Waste Acknowledgement Form to disclose any hazardous materials information prior to project review and approval. In addition, the Town maintains an Emergency Operations Plan (EOP) that outlines how the Town will organize to respond to emergencies within the Town’s jurisdiction. In 2024, EOP training continued for all Town staff who have a designated roll in EOP operations.

Economy Element
The Economy Element in the 2007 General Plan is an optional Element (not required by California State Law) that states: “Mammoth Lakes’ economy is tourismbased…Mammoth Lakes’ economic sustainability is dependent upon the mountain resort, expanded employment opportunities, shoulder season and midweek occupancy, air service and many other components of the community.”
The Town continues to track economic indicators for changes that may affect community land resources, tax base, including Transient Occupancy Tax (TOT), and employment base. In 2024, the Town continued its TOT enforcement program and initiated approximately 30 TOT compliance cases. Revenue collected through enforcement efforts in 2024 totaled over $173,550. The total TOT revenue decreased approximately 2.3% in 2024. TOT revenue collection remained strong with record breaking TOT revenue collected during the months of February, March, and August.

As part of the implementation of the Town Council’s Strategic Priority mentioned above, a portion of the excess TOT revenue was allocated to ensure the long-term health and resiliency of the Town by investing in the Town’s reserve funds. • The Operating Reserve (OR) Fund target is 5% of the Baseline Revenue established in the Reserve Policy at $33,000,000 ($1,650,000). The status of the fund is 100%

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
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funded to target.
• The Reserve for Economic Uncertainty (REU) target is 20% of the Baseline Revenue established in the Reserve Policy at $33,000,000 ($6,600,000). Status of this fund is 100% funded to target.

A Commercial Cannabis Tax Ballot item was approved by Town Council in February 2018, to include a measure on the June 5, 2018, General Municipal Election ballot. The approved measure read, “To fund general Town core services such as police, recreation, and road maintenance, shall an ordinance be adopted to impose a business license tax of up to 8% for cannabis retail businesses and up to 4% for all other cannabis businesses (cultivation, manufacturing, distribution, testing), to raise an estimated $99,550-$261,708 per year, levied until voters change or repeal it.” This measure passed in 2018. A total of $113,252 was collected from this tax in 2024, which was an approximately 14% decrease from 2023.

The Economy Element includes several implementation items that relate to Mammoth Yosemite Airport (MMH) operations, including seeking Federal funding for airport improvements, upgrading the airport terminal, updating the Airport Master Plan and working with the Federal Aviation Administration (FAA) to evaluate the development of Mammoth Yosemite Airport.

During 2024, there was one capital improvement project constructed at the airport. The project was the Automated Weather Observation System (AWOS) Relocation and Upgrade project. Construction began in July 2023 and was substantially completed in September 2024. The scope of work included relocating the AWOS from its exiting location to a new location further west near the segmented circle and upgrading the equipment.

Staff worked with consultants to design the Aircraft Rescue Firefighting Vehicle (ARFF)/Snow Removal Equipment Building project. Design is still underway in 2024, and the project was renamed as the Multipurpose Building to include ARFF and SRE. Staff worked with consultants to redesign the Multipurpose Building to include Aircraft Rescue Firefighting Vehicle (ARFF) and Snow Removal Equipment (SRE). The construction of phase I site work, including an access road and relocation of Taxiway A3, is going out to bid in spring 2025, with construction likely to occur spring of 2026. The phase II site work and the building design are planned for completion in summer of 2025 and the project will likely go out to bid early 2026.

Staff continue to work with Inyo County, Mono County, Eastern Sierra Council of Governments, Mammoth Lakes Tourism, Caltrans, Federal Aviation Administration, and Hot Creek Aviation, the Airport’s Fixed Based Operator (FBO), to enhance regional air service and transportation and the Mammoth Yosemite Airport’s amenities and services.

Housing Element
Housing element law requires local governments to adequately plan to meet the existing and projected housing needs of all economic segments of the community and requires all Housing Elements meet the requirements of the California Government Code sections 65583 and 65584. The Town’s 6th cycle Housing Element was adopted in 2019 and covers

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
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the 8-year planning period of 2019-2027.4
The following summarizes the Town's progress to achieving the programs identified in the adopted Housing Element. A complete summary of the Town's progress for each Action Item identified in the adopted Housing Element is included as Attachment 1, 2024 Mammoth Lakes Hosing Element Annual Progress Report (Table D).

Alignment with Town Council Strategic Priorities
The top Town Council Strategic Priority for 2024 directed staff to, “Expand availability and affordability of community housing.” Progress made in 2024 towards this priority and the identified objectives are summarized below:
• Objective: Complete construction on Phase 1 (81 units), complete core infrastructure and support development plans for Phase 2 and funding participation (148 units) of the Parcel.
o Phase 1 (The Sawyer) of the Parcel was completed in summer 2024 and all 81 units were leased up as of December 2024. In December 2023, the developer was successful in obtaining tax credit financing for the initial 76 units of Phase 2 (Kingfisher I) and construction began in 2024.
• Objective: Implement Housing Now! Initiatives to deliver diverse housing solutions working with private sector and other agencies locally and regionally. o Town staff continued to partner with Eastern Sierra Community Housing (ESCH) (formerly Mammoth Lakes Housing) on the Bridge Program with the goal of increasing the number of affordable units within the Town through the acquisition of existing market-rate units that are then resold at a reduced affordable price (focus is on missing-middle income households [120%-150% AMI]). As of the end of 2024, eight (8) have been resold to income eligible households with a deed-restriction in place and four (4) additional units were for sale.
o The conversion of the Innsbruck Lodge into a rental affordable housing development was partially completed in 2024 with the leasing of 6 of the 16 units. The remaining units will be completed in early 2025. The project is largely funded through the State Project Homekey program and is intended to assist those who are experiencing homelessness.
o ESCH’s Access Apartments project began construction in summer 2024 and will provide 13 affordable rental apartments that will be available to households earning up to 120% AMI. The project will be completed in 2025. o The Town, working together with Placemate, launched the Lease to Locals program in July 2024. The program aims to unlock existing housing stock for the local workforce by providing a set of incentives for homeowners that shift from renting their home short-term (or not renting at all) to 5 to 12-monthplus lease arrangements with locally employed tenants. Participating 4 The change in the Housing Element update cycle from a 5-year cycle to an 8-year cycle was implemented by CA Senate Bill 375 (SB-375) and is intended to align land use planning for housing with land use planning for greenhouse gas reduction. The RHNA sets local housing and zoning goals to support future growth and these local goals are in turn aggregated into a region-wide Sustainable Community Strategy (SCS) to fairly allocate greenhouse gas emission reduction targets across the region. SB-375 requires consistency between the RHNA and the region-wide SCS, and the consistency is achieved through the implementation of the Regional Transportation Plan (RTP). The Mono County RTP was last updated in 2019, shortly after the adoption of the Town’s Housing Element.

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
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homeowners will receive grants ranging from $2,000 to $18,000 dependent on the number of qualified tenants and the length of the lease. • Pursue implementation of sustainable funding source(s) for community housing including potential EIFD and in-lieu housing fee increases. • As a part of the moratorium on the issuance of new STR certificates, the STR Advisory Committee gave direction to pursue an increase in TOT tax that will be dedicated to housing projects and programs. The Town worked to get the ballot measure on the November 2024 ballot and the voters overwhelmingly passed the ballot measure (Measure L) to increase the TOT tax by two percentage points (raised to 15%). The ballot measure was passed as a General Tax; however, in January 2025 the Town Council committed 100% of the increased TOT revenue to housing projects and programs. The increase became effective in January 2025 and is estimated to raise ~$2.5M annually. The increase will sunset after 10 years, unless extended by the voters.
o Since 2021, Town Council has allocated approximately $24M ($8.1M in 2021, $5.7M in 2022, $5.3M in 2023, & $4.8M in 2024) towards various workforce housing programs and projects, including the Parcel, small-site development (e.g., 60 Joaquin PUD), the Bridge Program, and partnership projects with ESCH (e.g., Access Apartments, Homekey hotel conversion). • Collect and analyze data on short-term rental compliance with Town codes and impact on local housing market and review Town code for updates. o In October 2023, the Town Council adopted a moratorium on the issuance of new Short-Term Rental (STR) certificates in defined zoning areas within the Town. This action was in response to the significant and increasing shortage of housing that is accessible to the local workforce, along with the need to protect the health, safety and welfare that results from the lack of available and affordable housing to the local workforce and residents. The moratorium ended in March 2024 with the introduction of a Certified Properties program. The program is a new approach to the management of STRs that will provide enhanced management intended to address various quality of life issues related to STRs. Aside from the implementation of the Certified Properties program, the moratorium resulted in several recommendations to the Town Council from the STR Advisory Committee including: (1) a ballot tax measure to fund housing programs (e.g., Measure L); (2) a rental subsidy program (e.g., Lease to Locals); (3) a housing down payment purchase program (not yet implemented or developed); and (4) consideration of zoning changes to the RMF-2 zoning designation.

Progress on General Plan Action Items
• Initial planning for “The Parcel” shall be complete and ready to proceed to development and funding through the development of a community-based master plan. (Action H.1.F.1)
o The Parcel Master Plan was adopted by Town Council in January 2021. The updated Master Plan provides the framework for development. o The Town Council made a determination that the Parcel was ‘exempt surplus land’ pursuant to Government Code §54221(f)(1)(A) in April 2021, thereby allowing the Town to enter into a Disposition and Development Agreement (DDA) with the Town’s development partner for the project, Pacific West

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ANNUAL PLANNING REPORT
January 1 – December 31, 2024
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Companies, Inc (PWC).
o The building permit for Phase 1 (80 affordable units and 1 manager’s unit) was issued in May 2022.
o Construction of Phase 1 was completed in summer 2024 and all 81 units were leased up as of December 2024.
o The initial 76 units of Phase 2 (Kingfisher I) was awarded tax credit financing in late 2023 and construction began in summer 2024.

The Town continued to dedicate funding (including allocation of Transient Occupancy Tax monies) in support of affordable and workforce housing programs (Action H.2.A.1). In 2024, the following programs and entities were funded:
• ESCH, operating under a contract with the Town, continued to receive funding from the Town to support their work. ESCH was established by the Town in 2003 under the name Mammoth Lakes Housing to acquire and develop reasonably priced housing for the resident worker population of Mammoth Lakes, and to manage and facilitate the ownership and rental of such housing. ESCH has successfully rehabilitated and preserved numerous income-restricted housing units in coordination with the Town and other organizations such as IMACA. • The Town has committed approximately $24M of General Fund dollars towards housing over the past three years to the following programs and projects:
o Parcel Phases 1 (the Sawyer) and 2 (the Kingfisher)
o Bridge Program (conversion of market-rate to affordable) o Creative housing solutions (i.e., public/private partnerships, acquisition of employee housing units)
o Small-site affordable housing development projects (i.e., 60 Joaquin Rd) o ESCH’s 238 Sierra Manor Road affordable housing project (11 affordable units) and Innsbruck Lodge affordable housing project (15 affordable units / 1 manager’s unit)
o Lease to Local rental subsidy program
To assist in the inadvertent loss of deed-restricted units (Policy H.2.G), the Town and ESCH achieved the following:
• The Town and ESCH monitors approximately 65 deed restricted properties on an annual basis.
• The Town continues to maintains a Revolving Loan Fund (RLF) funded at $1M to assist in buying back existing deed restricted units in an effort to maintain these units and ensure no existing deed restricted units are lost. The RLF was used one time in 2024 to preserve an existing deed restricted unit.

The Town and ESCH continue to pursue grant funds to support housing programs (Action H.2.A.2) and the following grant-related work was completed in 2024:
• The Town and ESCH were awarded a $4.56M Homekey grant for the Innsbruck Lodge Affordable Housing project in 2022 to convert the existing hotel into 16 residential rental units, of which 15 will be affordable to households earning at or below 80% AMI. Six of the units were completed in 2024 and the remaining 10 units will be completed in early 2025.

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January 1 – December 31, 2024
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• In 2024, the Town was awarded an additional $4.1M in CDBG funds in addition to the previously awarded $3M in CDBG funding for the Access Apartments project.

This additional award allowed ESCH to forgo the previously awarded $3.4M HOME grant, which will simplify the regulatory oversight of the project since there are less stacking of funds in the project. This adaptive reuse project will convert two existing commercial buildings into 11 residential rental units affordable to households earning at or below 80% AMI. Construction of the project began in July 2024.
• The Town was awarded $317,184 in CDBG funding allocated by the CARES Act in 2021. The Town initially intended to use the funds for a subsistence payment program (e.g., rental, mortgage, and utility payment assistance) for those financially impacted by COVID-19; however, due to low interest in the program, the Town amended the scope of work to allow for the remaining $290,000 in funding to go towards the new public park in the Parcel. The park equipment was ordered in 2023 and was installed in 2024.
• The Town applied for $500,000 in CDBG grant funding for downpayment assistance in 2022 and received notification of the grant award in 2023. ESCH, working as the Town’s subrecipient, launched the program in late-2023. In 2024, one grant was provided to an income eligible household to assist with their downpayment. • The Town applied for $490,000 in Permanent Local Housing Allocation (PLHA) grant funding for mortgage assistance to households earning up to 120% AMI in 2022 and received notification of the grant award in 2023. The Town, working together with ESCH, launched the program in 2024 and assisted one household with down-payment assistance. The Town and ESCH continue to market the program to provide additional assistance.
• Mortgage assistance continues to be provided through the reinvestment of repaid BEGIN, CDBG, and HOME program funds.

In 2024, progress was made on the following work program items intended to increase the supply of workforce housing:
• Construction of the initial 81 units (80 of the units will qualify as affordable housing w/ AMI levels no higher than 80%) of Phase 1 of The Parcel was completed in summer 2024 and construction of the initial 76 units in Phase 2 began. Future phases will be dependent on the acquisition of additional funding. • The Town’s initial small site development project, located at 60 Joaquin Road, began construction in 2024 and will be completed in early 2025. The project will provide four deed-restricted ownership units available to households earning up to 200% AMI.
• Through the Town’s Bridge program, eight (8) units have been sold to income eligible households with a deed restriction in place. The income restrictions on these units range from 120% -150% AMI and require occupancy by a local workforce household.
• The Town continues to encourage use of SB-35 streamlining (ministerial approval of certain housing projects), SB-9 allowances (allowance for residential property owners to split a single-family lot into two lots and/or place up to two units on each residential lot), and State ADU provisions.
•

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 33 of 39
In order to ensure accessibility and the provision of equal housing opportunities for all persons, the following was implemented and/or continued in 2024:
• ESCH has established a relationship with Bishop Indian Legal Aid services to assist tenants and respond to substandard housing complaints and has setup a legal aid remote workstation in the ESCH office. The Town’s Code Compliance Officer aids in investigating substandard housing complaints. (Action H.2.E.1; Action H.5.C.1) • The Town continues to process applications at no cost to the applicants for Reasonable Accommodation to provide appropriate relief from development standards to might create a barrier to providing housing for a disabled or special needs person. (Action H.1.E.3)
• The Town requires that all new developments and rehabilitations of housing units meet the requirements of Title 24 of the California Code of Regulations (Building Code). (Action H.6.B.1)
• ESCH and the Town continue to maintain information regarding fair housing practices on their websites and in the offices. (Action H.5.B.1) Additional 2024 housing related highlights:
• The Town continues to implement the mitigation requirements of the Housing Ordinance and the Town collected approximately $215,000 in Housing Impact Mitigation Fees from the issuance of building permits for 19 residential units, 164 lodging rooms, and 3 service/retail permits.

The Town and ESCH continue to monitor the annual apartment vacancy rate and enforce its condominium-conversion requirements pursuant to Municipal Code Section 17.52.110.

Due to the ongoing low apartment vacancy rate (less than 1%), no condominium conversions have taken place in recent years.

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 34 of 39

REGIONAL HOUSING NEEDS
Table 1 summarizes the Town's progress towards meeting the Town’s share of the Regional Housing Needs Allocation (RHNA) for the 2019-2027 Housing Element period.

Table 1: 2019-2027 Progress to Meeting RHNA 1
Year
Constructed/Restricted
Extremely
Low Very Low Low Moderate AboveModerate
RHNA 2019-2027 13 13 30 34 65
2019 0 0 0 0 232
2020 0 0 0 0 612
2021 0 0 0 0 422
2022 8 8 64 0 462
2023 2 0 13 0 262
2024 8 8 66 6 33
Total 18 16 143 6 231
Total Remaining by
Income Level
0 (5 units
over the
allocation)
0 (3 units
over the
allocation)
0 (113 units
over the
allocation)
28 0
(166 units
over the
allocation)
1 The State relies on the number of building permits issued, rather than the number of permits completed, to demonstrate progress in meeting the jurisdiction’s share of the RHNA for the planning period.
2 In years 2019-2024, all of the Above Moderate units permitted were non-deed restricted market rate units.

Over the course of 2022 - 2024, the Town made substantial progress towards meeting the Town’s share of the RHNA for the lower income levels with building permits being issued for the first and second phases of the Parcel development (156 affordable rental units), the Innsbruck Lodge Homekey project (15 affordable rental units), and the Access Apartments (13 affordable rental units). The units in these projects will target households earning between the extremely-low to moderate AMI levels Additional efforts will need to focus on the production of housing for moderate-income residents, in order to achieve the Town's fair share of the regional housing needs.

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 35 of 39

GOVERNMENTAL CONSTRAINTS TO

AFFORDABLE HOUSING
The Housing Element is required to analyze and identify potential government constraints to the production of affordable housing, and where possible, identify programs that will help to lessen these constraints. Examples of such constraints are government-imposed fees that contribute to the overall cost of housing production, development standards that make it more difficult or costly to develop, or review processes that add time and cost to housing development proposals.

Although some development standards, such as those for on-site parking, lot coverage, and setbacks may be more stringent than in other communities, they are appropriate in the town’s local context, particularly the need to deal with large amounts of snowfall.

The analysis of government constraints found that the Town’s permitting, development review, and fees represent actual staff costs and time to process applications and are not unduly restrictive to new residential development. The Town undertook a review of its development impact fees, including housing mitigation in-lieu fees, and as a result lowered fees substantially in 2015. Work began in 2021 on a new Housing Nexus Study and Development Impact Fee study, which will be completed in 2025.

The Town of Mammoth Lakes has a Reasonable Accommodation ordinance to help facilitate the construction of special facilities or features for persons with disabilities. The Community and Economic Development Division is committed to reviewing and processing applications for Reasonable Accommodation, at no cost, to provide appropriate relief from development standards that might create a barrier to providing housing for a disabled or special needs person.

Related to the elimination or reduction of government constraints to the production of affordable housing, the Town has completed the following zoning code amendments in recent years aimed at achieving this objective:
• The Town Council adopted an urgency ordinance in 2019 making amendments to the Municipal Code standards for Secondary Dwelling Units (“accessory dwelling units” or “ADUs”) to bring the Zoning Code into compliance with the State ADU laws. This amendment to the Zoning Code reduced governmental constraints applicable to building ADUs by further limiting certain development standards and approval requirements. Staff initiated a subsequent amendment in 2020 to the Town’s ADUs regulations with the goal of further reducing governmental constraints and improving the clarity and usability of the ADU regulations. This amendment was completed in 2021.
• Town staff completed an update to the Town Density Bonus Program in 2020, which included modifications to the General Plan and Zoning Code. Amendments to the Zoning Code regulations included implementing the revised Town Density Bonus Program and allowing for multi-family residential projects to obtain proportionately greater density bonuses in exchange for deed restricting a greater percentage of the base density units, up to a maximum of twice the base density.

This program update reduces governmental constraints by allowing for greater flexibility in the use of the Town density bonus and an allowance for smaller projects to qualify for the program. The minimum project size prior to the update

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 36 of 39
required a base density of at least five-units and the updated minimum project size allows for projects with a base density of at least two-units to qualify. • The Town initiated a zoning code amendment to implement Senate Bill 9 (SB 9) in December 2021. SB 9 requires local agencies consider certain proposed twounit projects and lot splits ministerially and allows residential property owners to split a single-family lot into two lots and place up to two units on each resulting lot. SB 9 was signed into law in September 2021 and became effective on January 1, 2022. The Town adopted an urgency ordinance in January 2022 to implement development standards related to SB 9. This amendment to implement SB 9 standards is intended to reduce governmental constraints applicable to building residential units by eliminating and/or reducing certain development standards (e.g., setbacks, density, parking, lot coverage, and height) and approval requirements (e.g., ministerial approval of urban lot splits).

Programs identified in the 2019-2027 Housing Element to reduce governmental constraints to housing production include:
• Policy H.4.A. Periodically review and update permit and development fees to ensure that they appropriately reflect the cost of processing applications and providing services to new development, without unduly increasing costs to build housing. The Town is required to conduct annual reviews of development impact fee expenditures, and has a goal of updating the development impact fees every five years.
• Policy H.4.B. Consider reduction or waiver of permit and development impact fees for projects that dedicate some or all of their units to affordable housing.

Consider waiving development impact fees only when significant impacts (e.g. circulation) can be avoided.
o Action H.4.B.1. Consider changes to the Development Impact Fee schedule to reduce or eliminate fees for developments in which at least five percent of units are affordable to extremely low-income households. To be eligible for reduced or waived fee, the units shall be affordable by affordability covenant. The waiving or reduction of service mitigation fees may also be considered when an alternative funding source is identified to pay these fees.
• Policy H.4.C. Ensure that the Zoning Code continues to meet State Law requirements and does not unduly restrict certain types of housing to be developed. The Town regularly reviews and updates to the Zoning Code to incorporate mandates and other appropriate revisions.
• Policy H.4.D. Continue to allow accessory dwelling units by right in all residential zones.
o Action H.4.D.1. Accessory dwelling units (ADU) can be an affordable housing option and can help meet the needs of many residents in the Town.

To ensure consistency with state law (Assembly Bill 2299/Senate Bill 1069 and Assembly Bill 494/Senate Bill 229) and implement community goals, the Town shall review standards and revise as necessary to facilitate the development of ADUs.
o Action H.4.D.2. Promote development of accessory dwelling units (ADU) by increasing awareness regarding the ability to create accessory dwelling units on single-family residential properties, exploring variances (e.g. side

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 37 of 39
yard setbacks) to make it easier to fit ADUs on some lots, and establishing a goal for a desired number of ADUs to be built. The Town will also offer incentives to develop ADUs in exchange for long-term rental contracts. • Policy H.4.E. Periodically review and update Town codes, ordinances, fee programs and procedures to ensure that they do not unduly constrain housing development, while ensuring development impacts are adequately mitigated through development impact fees and/or other appropriate measure(s). o Action H.4.E.1. Continue to monitor the Town’s DIF ordinance to assure that impact fees do not create an economic impediment that deters construction of housing needed to meet the Town’s Regional Housing Needs Allocation or workforce housing objectives. If an economic impediment is discovered, Council will take appropriate actions to mitigate it.
o Action H.4.E.2. To address constraints to the availability of long-term rental housing associated with short-term rentals the Town will establish a program identifying methods to mitigate the issue. Components of the program may include waiving fees for illegal short-term rentals owners who commit to restricting their properties as long-term rentals, creating an impact fee levied on short-term rentals that would go towards preserving or creating long-term rental housing, and conducting a nexus study to further study how short-term rentals are impacting the rest of the housing market.
• Policy H.4.F. Prioritize workforce and affordable housing when considering future development proposals relative to Town policies that limit overall population growth.

Additional information on the Town’s progress towards implementing the above-described policies and actions related to governmental constraints to affordable housing is included in Attachment 1, 2024 Mammoth Lakes Hosing Element Annual Progress Report.

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 38 of 39

PLANNING APPLICATIONS
The following table summarizes the status of planning applications as of December 31, 2024. A detailed list of application requests is attached to this report (Attachment 2).

Table 2: 2024 Planning Applications
Table 1
Application Types Requests Approved5 Denied In Process
General Plan Amendments (GPA) 1 0 0 1
District Zoning Amendments (DZA) 1 0 0 1
Zoning Code Amendments (ZCA) 0 0 0 2
Use Permit Applications (UPA) 4 1 0 5
Tentative Tract Maps (TTM) 3 1 0 4
Tentative Parcel Maps (TPM) 0 0 0 0
Variances (VAR) 2 2 0 1
Design Reviews (DR) 9 6 0 5
Administrative Design Review (ADR) 9 8 0 2
Lot Line Adjustments (LLA) 4 2 0 2
Concept Reviews (CR) 0 NA NA 0
Adjustments (ADJ) 10 5 0 5
Administrative Permits (AP) 5 5 0 0
Time Extension Requests (TER) 2 2 0 0
Land Donations 0 0 0 0
Building Permits (BP) 897 805 NA NA
Code Compliance Cases (CC) 319 NA NA NA
TOT Compliance Cases 30 NA NA NA
Sign Permits (SP) 16 16 0 0
Master Sign Plans (MSP) 0 1 0 0
Tree Removal Permits (TRP) 56 56 0 0
Outdoor Sales Permit (OS) 0 0 0 0
Business Tax Certificates (BTC) 335 313 NA NA
Film Permits (FP) 2 2 0 0
5 Approved list includes projects from previous years approved in 2024 by the Director, Planning and Economic Development Commission, or Town Council

TOWN OF MAMMOTH LAKES

ANNUAL PLANNING REPORT
January 1 – December 31, 2024
2024 Annual Planning Activities Report Page 39 of 39
LOOK AHEAD - MAJOR PROJECTS IN 2025
The Town of Mammoth Lakes anticipates a busy 2025 completing significant work programs and projects that will further implement the 2007 General Plan and anticipated projects include:
• Process entitlements and the environmental review for the Main Lodge redevelopment project. This multi-year effort will continue in 2025 upon the submittal of the revised project scope of work.
• Various hotel entitlement projects within the Commercial zones and North Village Specific Plan (NVSP) area.
• Continue the development of the Parcel Phase II, which will include up to 148 units (funding dependent) and continue planning Parcel Phase III which will consist of a phased for-sale affordable townhome development.
• Continue the planning and development of the new Civic Center in conjunction with the Mammoth Lakes Hospital expansion.
• Continue developing and planning the Mammoth Lakes Foundation (MLF) site.

Complete the development of the child-care facility and begin development of the redesigned MACC.
• Continue to pursue the purchase of market-rate units through the Bridge program that will then be resold as affordable deed-restricted units. • Complete construction on the four-unit residential project on the Town-owned 60 Joaquin Road site. These units will be sold at an affordable deed-restricted price. • Complete the Housing Nexus Study and DIF Fee Study update. • Continued administration of existing housing grants (CDBG, HOME, and BEGIN) in conjunction with ESCH. The Town and ESCH will continue to review and consider additional housing grant opportunities as funding becomes available. • Continued TOT Enforcement.
• Continued implementation of the Quality-of-Life Ordinance. • Code Compliance.
• Permit Processing.
• Implementation of grant funded sidewalk and trails projects.

Attachment 2: Detailed List of Application Requests
The following summarizes the status of applications that have been submitted or approved during the period of January 1, 2024 - December 31, 2024.

A. Adjustments –

1. ADJ 24-001: 317 John Muir Road - A 20% reduction of the front yard setback requirement to allow for the construction of a new singlefamily residence; Ongoing at the end of 2024

2. ADJ 24-002: 445 East Bear Lake Drive – A 20% reduction of the rear yard setback requirement to allow for the construction of a new large addition for the existing single-family residence; Approved 5/7/2024

3. ADJ 24-003: 280 Le Verne Street – A 5% lot coverage increase for the construction of a 3,554-square-foot single-family residence and a 1,030-square-foot attached accessory dwelling unit; Approved 6/18/2024

4. ADJ 24-004: 419 Joaquin Street – A 5% lot coverage for the addition of one exterior parking space located within the front setback of the existing duplex property; Approved on 8/19/2024

5. ADJ 24-005: 345 Pine Street – A 20% reduction of the front setback to allow for the construction of a new single-family residence; Ongoing at the end of 2024

6. ADJ 24-006: 396 Hillside Court - A 20% reduction of the side and rear setback for a new secondary driveway to the existing singlefamily residence located on the adjacent property (under same ownership) addressed 382 Hillside Drive; Ongoing at the end of 2024

7. ADJ 24-007: 504 Hillside Drive - A 20% reduction of the front yard and side yard setback requirement to allow for the construction of a new covered entryway for the existing single-family residence; Approved 10/16/2024

8. ADJ 24-008: 388 Mammoth Knolls Drive - A 20% reduction of the front and side yard setback requirement to allow for the construction of an attached two-car garage for the existing single-family residence; Approved 12/4/2024

9. ADJ 24-009: 190 Grindelwald Road - A 20% reduction of the" front yard setback requirement and for a 10% increase of the building height maximum for the garage to allow for the construction of a new single-family residence; Ongoing at the end of 2024

10.ADJ 24-010: 4 St. Anton Circle - A 20% reduction of the side yard setback requirement to allow for the construction of an attached onecar garage for the existing single-family residence; Ongoing at the end of 2024
B. Administrative Design Reviews –

1. ADR 23-002: 145 Le Verne Street - New single-family residence in

the Bluffs Subdivision; Approved 1/18/2024

2. ADR 24-001: 485 Le Verne Street - New single-family residence and attached garage; Approved 6/22/2024

3. ADR 24-002: 248 Fir Street – New single-family residence and detached accessory dwelling unit; Approved 5/20/2024

4. ADR 24-003: 280 Le Verne Street – New single-family residence and attached accessory dwelling unit; Approved 6/18/2024

5. ADR 24-004: 480 Fir Street – New single-family residence in the Bluffs Subdivision; Ongoing at the end of 2024

6. ADR 24-005: 481 Old Mammoth Road – Re-paint permit for Vons; Approved 5/30/2024

7. ADR 24-006: 205 Juniper Road – New single-family residence and attached garage; Approved 9/16/2024

8. ADR 24-007: 2252 Meridian Boulevard – Re-paint permit for St.

Moritz Villas; Approved 8/5/2024

9. ADR 24-008: 2963 Main Street – Re-paint permit for Shilo Inn; Approved 8/20/2024

10.ADR 24-009: 65 Juniper Court – New single-family residence and attached garage; Ongoing at the end of 2024
C. Administrative Permits –

1. AP 24-001: Capybara Empanadas – Mobil business vendor;

2. AP 24-002: Kittredge Sports – Temporary outdoor sales permit;

3. AP 24-003: Footloose Outdoor Sale – Temporary outdoor sales permit;

4. AP 24-004: Embers BBQ – Mobil business vendor;

5. AP 24-005: Seasonal Sales Area – Temporary outdoor sales permit; D. Building Permits - A total of 897 building permits were applied for in 2024 and 805 building permits were issued.

E. Business Tax Certificates – A total of 335 business tax certificates were applied for in 2024 and 313 were approved.

F. Concept Reviews/Planning Services Review – No Concept Reviews or Planning Services Reviews were processed in 2024
G. Design Review –

1. DR 23-004: 540 Old Mammoth Road – Proposed commercial building; Approved 6/12/2024

2. DR 23-005: 126 Old Mammoth Road – Proposed renovation of existing Mammoth Mall; Approved 4/10/24

3. DR 23-006: 1344 Tavern Road – Proposed Town Civic Center; Approved 4/10/24

4. DR 24-001: 6060 Minaret Road – New resort Condominium development project located within the North Village Specific Plan area; Approved on 4/10/24

5. DR 24-002: 100 College Parkway Daycare – Relocation of 6 modular units to 100 College Parkway for a childcare center; Approved 4/3/2024

6. DR 24-004: 100 College Parkway MACC – Proposed new design for the Mammoth Arts and Cultural Center project; Ongoing at the end of 2024

7. DR 24-005: 94 Old Mammoth Road – Exterior remodel; Approved 11/26/2024

8. DR 24-006: 54 Mono Street – 6-unit apartment development; Ongoing at the end of 2024

9. DR 24-007: Mammoth Brewing Patio – New patio and wall design for Mammoth Brewing; Ongoing at the end of 2024

10.DR 24-008: Mammoth Hospital Expansion – Proposed hospital expansion; Ongoing at the end of 2024

11.DR 24-009: Parcel Phase 3 – New affordable town-home housing development; Ongoing at the end of 2024
H. District Zoning Amendments –

1. DZA 24-001: Outbound Hotel Clearwater Specific Plan Amendment to revert the Clearwater Specific Plan area back to the underlying commercial Old Mammoth Road (OMR) zoning designation; Ongoing at the end of 2024
I. Film Permits – Two (2) Film Permit applications were processed in 2024 J. General Plan Amendments –

1. GPA 24-001: Outbound Hotel; Ongoing at the end of 2024 K. Interpretation Requests – No Interpretation Requests were processed in 2023
L. Lot Line Adjustments –

1. LLA 24-001: 49 and 61 Meadow Lane - Merge two parcels in the Residential Single-Family Zone; Approved on 11/25/2024

2. LLA 24-002: Fir Street Properties – Split 465 Fir Street between the neighboring lots; Approved on 8/21/2024

3. LLA 24-003: 540 Old Mammoth Road – Adjust Lot 13 and Lot A; Ongoing at the end of 2024

4. LLA 24-004: Mammoth Hospital – Merge two adjacent lots on the Mammoth Hospital campus; Ongoing at the end of 2024
M. Master Sign Plans –

1. MSP 23-001: 164, 202, and 248 Old Mammoth Road – Master Sign Program for the Outbound Hotel; Approved 4/10/2024

N. Outdoor Sales Permits –No Outdoor Sales Permits were processed in 2024 O. Sign Permits –16 sign permits were processed in 2024 P. Time Extension Requests1. TER 24-001: 94 Berner Street – Request for a one-year time extension for TTM 21-21-003, UPA 21-004, and DR 21-004; Approved on 2/14/2024

2. TER 24-002: 3789 Main Street – Request for a three-year time extension for TTM 22-003 and DR 22-002; Ongoing at the end of 2024
Q. Tentative Tract Maps –

1. TTM 23-002: 1 Fairway Drive – Proposed condominium subdivision for lots 1-3 of final map for Snowcreek VIII; Approved on 9/11/2024

2. TTM 24-002: 6060 Minaret Road – Development of a five-story, resort condominium use within the North Village Specific Plan area; Approved on 4/10/24

3. TTM 24-003: Outbound Hotel – The conversion of 20 newly constructed hotel "villas" into condominium-hotel units that may be sold individually; Ongoing at the end of 2024

4. TTM 24-004: Parcel Phase 3 – New affordable town-home housing development; Ongoing at the end of 2024
R. TOT Compliance Cases- 30 TOT compliance cases were initiated in 2024 S. Tree Removal Permits – 56 tree removal permit applications were submitted in 2024. Some tree permits included multiple trees, and many trees were removed for fuel reduction purposes to provide defensible space around residences and other structures. Other trees were removed because they were dying or deemed hazardous by a certified arborist.

T. Use Permit Applications –

1. UPA 23-002: 1574 Old Mammoth Road – Proposed AT&T Cell Tower; Approved 1/31/2024; Appealed to Town Council; Ongoing CEQA legal dispute

2. UPA 24-001: 6060 Minaret Road – 6060 Minaret Road –
Development of a five-story, resort condominium use within the North Village Specific Plan area; Approved on 4/10/24

3. UPA 24-002: 345 Pine Street Bluffs – The construction of a new single-family residence with an attached garage located in the Bluffs subdivision; Ongoing at the end of 2024

4. UPA 24-003: 54 Mono Street – 6-unit apartment development; Ongoing at the end of 2024

5. UPA 24-004 Outbound Hotel - The conversion of 20 newly constructed hotel "villas" into condominium-hotel units that may be sold individually; Ongoing at the end of 2024

U. Variances -

1. VAR 23-001: 13 Davison Road – Reduction of the front and rear setbacks to allow construction of a new single-family residence; Approved on 2/14/2024

2. VAR 24-001: 682 Canyon Blvd – Reduction of the front and east side yard setback to allow the construction of an enclosed access stairway to replace an existing exterior access stairway; Approved on 5/8/2024

3. VAR 24-002: 65 Juniper Court - Increase in building height to 25 feet above the grade of the adjacent street for a new sing family residence; Ongoing at the end of 2024
V. Zoning Code Amendments –

1. ZCA 24-001: Lodging use cleanup; ADU, SB-9, and WELO updates; Small accessory structure standards; Ongoing at the end of 2024

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Approve the Amendment to the Professional Services Agreement with Aviation Insights, LLC for one additional year of Airport Management Support Services at Mammoth Yosemite Airport
Council Meeting Date: 5/7/2025
Prepared by: Rob Patterson, Town Manager
Recommended Motion: Approve the amendment to the professional services agreement for Aviation Insights, LLC for an additional year to provide Airport Management Support Services to Mammoth Yosemite Airport and authorize the Town Manager to execute the amendment.

Summary: The Town of Mammoth Lakes engaged the services of Aviation Insights, LLC in April 2022 to support growth and development of the Airport Core Management Team (ACMT) in executive level management of Airport operations and Federal Aviation Administration (FAA) relationships. The initial term of the agreement expired in April 2025 and an extension of services is desired. The proposed term contract renewal is for one year, ending April 30. 2026.

Aviation Insights LLC is comprised of three distinct areas of focus for Airport operations and development. The first is the vast experience of the principal consultant Dennis Roberts who worked for the FAA for many years with extensive experience in proper operation, planning and development of airport opportunities. Dennis also has extensive connections with key FAA personnel and is able to make direct contact with key issues, providing a unique opportunity for our Airport.

There are a few work plans that have been initiated but are still in progress. The first is the strategic planning effort that was initiated last year. This effort intends to enhance the utilization of the Airport as an important asset for our community. This is one of the Strategic Priorities and Key Objectives designed by the Town Council. The work that has been completed this far has included community outreach and initial scoping. The additional work will include formulating the key strategic objectives to expand utilization opportunities, growing enplanements, augmenting firefighting capabilities, and attracting new business opportunities to the Airport.

A key part of the initial contract was the development of a new Instrument Approach Procedure designed to drastically reduce the minimums required for landing at Mammoth Yosemite Airport.

The extension of the contract is intended to provide administrative and technical support as the FAA’s Air Traffic Organization (ATO) reviews these proposals for potential implementation. This is typically a multi-year process and is currently underway.

Key enhancements have been made to the contract to provide for general discussion and support for management operations on a monthly basis. The contract has a total of $50,000 for this 1-year extension of the contract.

Mammoth Lakes Town Council
Agenda Action Sheet

TOWN OF MAMMOTH LAKES
PROFESSIONAL SERVICES AGREEMENT (A-2113)
AMENDMENT #1
This amendment to agreement (“Amendment”) made and entered into as of the 25th day of April 2025, amends the Agreement heretofore entered into between the Town of Mammoth Lake, a municipal corporation, hereinafter referred to as the (“Town”) and Aviation Insights, a limited liability company (“Consultant”).

RECITALS
Whereas, Town and Consultant entered into an Agreement dated April 28, 2022, for the purpose of professional airport management consulting services for the Mammoth Yosemite Airport.

AGREEMENT
Now, Therefore, in consideration of the foregoing and of the covenants, conditions, and premises hereinafter contained, to be kept and performed by the respective parties, the parties agree that the aforesaid Agreement be amended as follows:

1. Section 3.1.2 of the Agreement shall be modified to extend the term deadline from April 25, 2025 to April 30, 2026.

2. Section 3.3.1 of this Agreement shall be modified with the addition of “The total compensation shall not exceed Fifty Thousand ($50,000) for the fourth year, without prior written approval of the Town Council or Town Manager as applicable.”

3. Replace Exhibit A with the attached Exhibit “A” Amended - General Project Description and Scope of Work.

4. Replace Exhibit B with the attached Exhibit “B” Amended - Organizational Chart.

5. Replace Exhibit C with the attached Exhibit “C” Amended – Compensation.

6. Except as otherwise provided herein, the Agreement entered into by Town and Consultant, dated April 28, 2022, remains in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

TOWN OF MAMMOTH LAKES AVIATION INSIGHTS, LLC
By: By:

Rob Patterson Dennis E. Roberts
Town Manager President

A-1 Amended
EXHIBIT "A" AMENDED

GENERAL PROJECT DESCRIPTION AND SCOPE OF WORK
The Consultant worked with the Airport Core Management Team (ACMT) on a variety of regional, state, and Federal Aviation Administration (FAA) matters over the last three years.

Previous tasks included initial project scoping and familiarization with the airport, staff development and evaluation of administrative processes, evaluation of the ALP and ACIP, strategic planning, financial recommendations, advice on FAA requirements, timelines, relationships, and air service.

Future Consulting services may include the following tasks:

Meetings:

Consultants will participate in monthly meetings starting September 2025. Monthly meetings will be used to discuss upcoming efforts, generate ideas, and brief each other on progress.

Attend an in-person meeting if needed. Any in-person meetings will be scheduled and coordinated when a specific need arises.

General Scope of Work:
• Provide guidance on air service and provide recommendations for increasing enplanements to get us closers to 10,000.
• Provide administrative and technical support for projects requiring coordination with the FAA’s Air Traffic Organization (ATO). Continue work on the Instrument Approach Procedure as needed.
• Continue efforts on strategic planning for the airport. • Further relationships with the Federal Aviation Administration (FAA), DOT Division of Aeronautics, other agencies, and legislative representatives. • Assist with strategic visioning and enhancement of airport facilities through progression of the Airport Layout Plan and Airport Capital Improvement Plan. Provide recommendations for project funding and assist with the advocacy of projects requiring discretionary and other competitive funding requests.
• Additional projects and services as requested.

B-1 Amended
EXHIBIT "B" AMENDED

ORGANIZATION CHART
Aviation Insights
Dennis Roberts
Flightpath
Economics
Matt Barton
QED
Ronald Price
Town Manager
Rob Patterson
Airport Operations
Manager
Soibian Spring
Airport
Maintenance
Coordinator
Airport
Maintenance
Coordinator
Seasonal Airport
Maintenance
Worker
Airport
Maintenance
Coordinator
Seasonal Airport
Maintenance
Worker
Deputy Airport
Manager
Sierra Waugh
Part-Time Airport
Administrative
Analyst

C-1 Amended
EXHIBIT "C" AMENDED

COMPENSATION
Hourly Rates
Dennis Roberts, Aviation Insights, LLC $400/hour
Matt Barton, Flightpath Economics, LLC $400/hour
Ronald Price, QED Airport & Aviation Consultants $400/hour Retainer
Dennis Roberts, Aviation Insights, LLC 4 hours/month
Matt Barton, Flightpath Economics, LLC 4 hours/month
*Retainers will start September 2025.

Expenses
Lodging Cost NTE $195/night
+ taxes & fees
Meal/Incidentals $86/day
Airfare Cost
Car Rental Cost + Gas
Insurance Cost NTE $3,600/year
*Per diem rates are based on 2025-2026 California General Service Administration (GSA) rates. *Hours charged during travel shall be designated for time spent working on assignments, preparation, or closeout, not general hours spent traveling such as driving.

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Accept the Town’s 2023-24 Independent Auditors Report.

Council Meeting Date: 4/16/2025
Prepared by: Megan Chapman, Finance Director
Recommended Motion: Accept the Town’s 2023-24 Independent Auditors Report as presented.

Summary: Each year the Town is required to have its financial records audited by an outside independent auditor. The audit has been completed, and the auditor has issued an unqualified opinion on our financial reports. As per the independent auditor, the Town’s financial statements present fairly in all material respects, the respective financial position of the governmental activities the business type activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of June 30,2024. The audit is an essential part of the Town’s financial reporting process. The audit has been filed with required reporting agencies and is published on the Town website. The audit complies with both state and the federal requirements. The audit report for fiscal year ending June 30, 2024 is presented for Town Council review, comment, and acceptance.

Town of Mammoth Lakes | California
Financial Statements
For the Year Ended June 30, 2024

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Financial Statements

TABLE OF CONTENTS
PAGE
Independent Auditor’s Report ............................................................................................................................................ 1 Management’s Discussion and Analysis ............................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements:

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

Governmental Funds:

Balance Sheet ....................................................................................................................................................... 15 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 16 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................... 17 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 18 Proprietary Funds:

Statement of Net Position .................................................................................................................................... 19 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 20 Statement of Cash Flows ...................................................................................................................................... 21 Custodial Funds:

Statement of Fiduciary Net Position .................................................................................................................... 23 Statement of Changes in Fiduciary Net Position .................................................................................................. 24 Notes to the Basic Financial Statements ............................................................................................................................ 26 Required Supplementary Information:

Pension Plans:

Cost-Sharing Multiple-Employer Plan:

Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions .................................................................................................................................. 66 Notes to the Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions.............................................................................................................. 67

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Financial Statements
Required Supplementary Information (Continued):

Pension Plans (Continued):

Single-Employer Defined Benefit Plan:

Schedule of Changes in Net Pension Liability and Related Ratios ....................................................................... 68 Notes to the Schedule of Changes in Net Pension Liability and Related Ratios .................................................. 69 Retiree Healthcare Plan (OPEB):

Schedule of Changes in Net OPEB Liability and Related Ratios ........................................................................... 70 Budgetary Comparison Schedules:

General Fund ............................................................................................................................................................... 72 Tourism Business Improvement District Fund ............................................................................................................ 73 Housing and Community Development Fund ............................................................................................................. 74 Gas Tax Fund ............................................................................................................................................................... 75 Notes to the Budgetary Comparison Schedules .......................................................................................................... 76 Supplementary Information:

Combining Fund Financial Statements:

Nonmajor Governmental Funds:

Combining Balance Sheet .................................................................................................................................... 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. 84 Internal Service Funds:

Combining Statement of Net Position ................................................................................................................. 89 Combining Statement of Revenues, Expenses and Changes in Net Position ....................................................... 90 Combining Statement of Cash Flows ................................................................................................................... 91 Schedule of Expenditures of Federal Awards ..................................................................................................................... 93 Notes to the Schedule of Expenditures of Federal Awards ................................................................................................ 94 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................. 95 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ............................................................ 97 Findings and Questioned Costs:

Schedule of Findings and Questioned Costs .................................................................................................................... 100 Summary Schedule of Prior Audit Findings ...................................................................................................................... 102 Corrective Action Plan ...................................................................................................................................................... 103

1 INDEPENDENT AUDITOR’S REPORT
To the Town of Mammoth Lakes Council
Town of Mammoth Lakes, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mammoth Lakes, California (the Town), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Change in Accounting Principle
As described in Note 1 to the financial statements, in 2024, the Town adopted new accounting guidance, GASB Statement No. 100, Accounting Changes and Error Corrections. Our opinion is not modified with respect to this matter.

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

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

2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, proportionate share of net pension liability and schedule of contributions – cost-sharing multiple employer plan, schedule of changes in net pension liability and related ratios – single employer defined benefit pension plan, schedule of changes in net OPEB liability and related ratios, and budgetary comparison information as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2025 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance.

Clovis, California
March 28, 2025

4 MANAGEMENT’S DISCUSSION AND ANALYSIS

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Management’s Discussion and Analysis
5 The Discussion and Analysis of the Town of Mammoth Lakes’ (Town) financial performance for the fiscal year ended June 30, 2024, provides an analysis of the Town’s overall financial position and municipal operations. It is intended to assist readers in evaluating the Town’s finances and provides a discussion of significant changes that affected various funding sources. In addition, it describes the activities during the year related to capital assets and long-term debt. We encourage readers to consider the information presented here in conjunction with the audited financial statements.

Financial Highlights
 As of June 30, 2024, the Town reported a total fund balance of $142,891,899 within the Governmental funds.

This was a 3.03% increase from the prior year.
 At the end of the fiscal year the General Fund balance was $27,781,062, or 115% of total expenditures.

OVERVIEW OF THE FINANCIAL STATEMENTS
Discussion and analysis here is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements are comprised of three components: government-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
A frequently asked question about the Town’s finances: “Is the Town as a whole better or worse off as a result of the year’s activities?” The government-wide financial statements report information about the Town as a whole and about its activities in a way that answers this question. These statements include all the Town’s assets and liabilities using the accrual basis of accounting; this is similar to the accounting used by most private sector companies.

The Statement of Net Position presents information on all the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between these reported as the net position. Changes to the net position is one way to measure the Town’s financial health or position. Over time, increases or decreases in the Town’s net position is an indication of whether its financial health is improving or deteriorating.

The Statement of Activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in the net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes).

It is important to remember this measure of financial health considers all the Town’s assets, including street infrastructure, storm drainage, and streetlights. While these assets are valuable to the Town, they are not always available for immediate sale to fund other Town priorities. Furthermore, the depreciation of these assets is recorded as a non-cash expense in the Statement of Activities and can be confusing if the goal of the reader is to follow the flow of cash and expenditure. Hence, this is why the Fund Financial Statements continue to be an important part of the Town’s financial overview and are presented after the Statement of Activities.

In both the Statement of Net Position and the Statement of Activities, the Town’s activities are separated as follows:

Governmental Activities: Almost all the Town’s services are reported in this category, including general administration (Town Manager, Town Clerk, personnel, finance, etc.), police protection, public works, tourism and recreation, community and economic development, and as of June 30, 2024, the Airport.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Management’s Discussion and Analysis
6 Transient occupancy tax, sales tax, property taxes, other taxes, interest income, grants, intergovernmental revenue and service charges provide the financing for these activities. The Statement of Net Position also includes the value of capital assets (historic cost net of depreciation, and future debt payments) and the assets and liabilities of the internal service funds. The Statement of Activities includes depreciation expense and records the activity in the internal service funds on the accrual basis of accounting. Therefore, significant differences from the Fund Financial Statements exist.

Business-Type Activities: The Town operates the Long Valley Mineral Pit as a business-type activity, charging customers for the cost of services (disposal of clean materials).

FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The Fund Financial Statements provide detailed information only about the most significant funds, rather than the Town as a whole. Some funds are required to be established by state law and by bond covenants. In addition, management established several other funds to help control and manage money for purposes and to show that we are meeting legal requirements in the use of certain taxes, grants, and other resources. The Town’s two types of funds are governmental and proprietary.

Governmental Funds: Most of the Town’s basic services are reported in governmental funds, which focus on the flow of money in and out, and the balances left at year-end that are available for spending. These funds are reported using an accounting method called “modified accrual accounting” which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Town’s general governmental operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the Town’s programs.

There is a reconciliation of the significant differences between the Governmental Funds Balance Sheet and the Statement of Net Position. These differences are unavoidable because, by definition, the reports are looking at different financial activities. The two reports provide different perspectives on the Town’s finances, both of which are considered beneficial to financial statement users.

At June 30, 2024, the Town’s governmental funds, (including general, special revenue, and capital project) reported an increase in combined fund balances of $6.33 million, a 9% increase over the prior year. The increase was due to greater tourism-related revenues for sales tax, transient occupancy tax, a larger amount of grant revenue, and an increased amount of interest revenue.

Proprietary (Enterprise) Fund: When the Town manages a functional area on a business basis with specific charges to customers for services and accounts for all revenue, assets, and liabilities separately, this activity is generally reported in proprietary. The Town’s proprietary fund for the Long Valley Mineral Pit is reported in the Statement of Net Position and the Statement of Activities as business-type activity. Other reports, such as the Statement of Cash Flows, provide more details and additional information.

Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Reporting the Town’s Fiduciary Responsibilities
The Town is the trustee, or fiduciary, for certain funds held on behalf of developers and assessment districts. The Town’s Statement of Fiduciary Assets and Liabilities reflects these fiduciary activities which are excluded from the Town’s other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring the assets reported in these funds are used for their intended purposes.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Management’s Discussion and Analysis
7 Statement of Net Position
Governmental Activities Business-Type Activities Total
2023-2024 2022-2023 2023-2024 2022-2023 2023-2024 2022-2023 Current and other assets 100,968,228 $ 97,181,531 427,094 $ 410,466 $ 101,395,322 $ 97,591,997 $ Capital assets, net of depreciation 99,813,375 91,203,481 - - 99,813,375 91,203,481 Total Assets 188,385,012 200,781,603 427,094 410,466 201,208,697 188,795,478 Deferred outflows of resources 11,519,680 12,260,349 - - 11,519,680 12,260,349 Current and other liabilities 13,927,485 3,502,455 50 - 13,927,535 3,502,455 Long-term liabilities 52,120,267 53,380,768 - - 52,120,267 53,380,768 Total Liabilities 66,047,752 56,883,223 50 - 66,047,802 56,883,223 Deferred inflows of resources 5,070,461 3,898,477 - - 3,898,477 5,070,461 Invested in capital assets 94,729,141 85,030,523 - - 94,729,141 85,030,523 Restricted 45,253,951 54,221,166 - - 45,253,951 54,221,166 Unrestricted (560,012) 2,371,962 427,044 410,466 2,799,006 (149,546) Total Net Position $ 138,691,677 142,355,054 $ 427,044 $ 410,466 $ 142,782,098 $ 139,102,143 $ Internal Service Funds
Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town, or to other government units on a cost reimbursement basis.

Vehicle Service: The Town’s Vehicle Service Fund is operated as an internal service fund. Services provided by the garage are charged to other governmental agencies that have contracted with the Town to receive garage motor pool services such as fuel and vehicle maintenance, in addition to services the garage provides to individual Town departments.

The internal service fund is also used to account for purchases of vehicles and equipment when adequate funds have been accumulated and replacement is necessary. The current net investment in capital assets within the internal service fund is approximately $6.6 million.

Self-Insurance: The Town also uses an internal service fund to account for certain insurance and benefit programs offered to employees. Premiums are collected from the employee or the department, depending on the benefit, and paid to the internal service fund, which, in turn, processes certain medical reimbursements and premiums.

The internal service funds are included in the government-wide financial statements under governmental activities as they are for the benefit of the government rather than business-type functions.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Management’s Discussion and Analysis
8 The revenue and expenditures for the governmental and business-type activities are summarized in the following table:

Statement of Activities
Governmental Activities Business-Type Activities Total
2023-2024 2022-2023 2023-2024 2022-2023 2023-2024 2022-2023 Revenues
Program revenues:

Charges for services $ 4,774,496 5,540,776 $ - $ 198,840 $ 5,540,776 $ 4,973,336 $ Operating grants and contributions 4,462,576 5,051,263 - - 5,051,263 4,462,576 Capital grants and contributions 3,008,983 3,613,868 - - 3,613,868 3,008,983 General revenues:

Property tax 6,125,639 6,323,788 - - 6,323,788 6,125,639 Transient occupancy tax 30,116,305 28,065,965 - - 28,065,965 30,116,305 Sales tax 6,503,407 6,450,021 - - 6,450,021 6,503,407
Investment earnings 1,577,787 3,208,373 17,802 7,784 3,226,175 1,585,571 Other taxes 8,407,455 8,046,443 - - 8,046,443 8,407,455 Other revenue 2,184,121 4,109,866 - - 4,109,866 2,184,121 Total Revenues 70,410,363 67,160,769 17,802 206,624 70,428,165 67,367,393 Expenses
General government 8,630,127 13,255,948 - - 13,255,948 8,630,127 Public safety 4,669,290 6,486,749 - - 6,486,749 4,669,290 Tourism, parks and recreation 12,200,514 12,371,429 - - 12,371,429 12,200,514 Community development 5,401,060 12,640,013 - - 12,640,013 5,401,060 Public works 6,657,940 4,137,577 - - 4,137,577 6,657,940 Transportation and transit 769,374 1,060,971 - - 1,060,971 769,374 Community support 1,804,371 1,885,857 - - 1,885,857 1,804,371 Interest on long-term debt 669,898 580,033 - - 580,033 669,898 Airport 3,100,829 2,847,125 - - 2,847,125 3,100,829
Solid waste - - 1,224 8,635 1,224 8,635
Total Expenses 55,265,702 43,903,403 1,224 8,635 55,266,926 43,912,038 Excess (deficiency) before transfers 15,144,661 23,257,366 16,578 197,989 15,161,239 23,455,355 Transfers 9,998,768 - - (8,643,279) - 1,355,489
Change in net position 15,144,661 33,256,134 16,578 (8,445,290) 15,161,239 24,810,844 Net position - beginning, as presented 138,691,677 103,709,713 410,466 8,855,756 139,102,143 112,565,469 Change in accounting principle (see footnote 16) (11,481,284) - - - (11,481,284) - Change due to error correction 1,725,830 - - - - 1,725,830 Net position - beginning, restated 105,435,543 127,210,393 410,466 8,855,756 127,620,859 114,291,299 Net position - ending $ 138,691,677 142,355,054 $ 427,044 $ 410,466 $ 142,782,098 $ 139,102,143 $

CAPITAL ASSETS AND DEBT ADMINISTRATION
The Town’s investment in capital assets for its governmental activities as of June 30, 2024, $73.7 million (net depreciation) and represents, by far, the largest portion of the net position. This investment in capital assets is comprised of land, buildings, infrastructure and machinery and equipment, less any outstanding related debt used to acquire them.

The investment in capital assets increased over the prior year by $19.1 million. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Long Term Debt
The Town issued Lease Revenue Bonds in the amount of $3,550,000, replacing the existing Certificates of Participation ($1,430,000) to construct a new public safety facility ($2,120,000) in 2015. Construction of the new public safety facility was completed in 2017. The debt is scheduled to mature in fiscal year 2029-30 and had an outstanding balance of $1,690,000 as of June 30, 2024.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Management’s Discussion and Analysis
9 In 2010, the Town lost their final appeal before the State Supreme Court related to litigation with a real estate developer for alleged breach of contract. The award for damages was $30 million plus attorney’s fees. The Town reached a settlement with the developer in November 2012 in the amount of $29,500,434 payable over 24 years. In October 2018, the Town refunded the award by issuing Obligation Bonds at a reduced interest rate. The outstanding balance on June 30, 2024, was $17,585,000.

In 2017, the Town entered into an installment sales agreement in the amount of $5,550,000 for the initial phase of construction for a new community recreation center. The outstanding balance on June 30, 2023, was $2,345,000.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Town Council continues to re-invest unallocated revenue into our sustainable, recreation-based economy. The strategic priorities of the Town Council, which guide the Town’s annual work plan, focus our investment in four main areas. The first priority is an investment in public safety through project identification and implementation. This includes emergency management for all hazards, projects to mitigate risks of natural disasters, and enhancement of our facilities to support emergency response. The second priority is community investment to enhance growth, development and quality of life for our citizens. This includes affordable housing development, leveraging our partnerships for greater achievement, providing opportunities for our citizens to partner with us for collective success, either in funding or volunteer work, and ensuring that our future development is aligned with community values. The third priority is to improve municipal services to support a vibrant, sustainable, and cohesive community. This includes engagement to ensure the community outreach in both English and Spanish in review of investment in core services, including public safety, and capital projects that will build capacity and benefit the community. The fourth priority is the development of recreation amenities and programs to deliver high-quality, affordable, and sustainable recreation programs and amenities. This includes working with federal and state partners to ensure our recreation experiences drive visitation, improve our wildlife management practices for the benefit of the natural environment and visitors, enhance community connectivity through wayfinding and mobility upgrades, and improve access, availability and affordability of parks and recreation, amenities, programs and services.

The Town will continue to fund these important initiatives through thoughtful budgeting practices, and is committed to keeping our organization lean, while executing on our core services. As we remain conservative with revenue expectations for our annual budget, the Town also provides quarterly budget analysis, realizing any unallocated revenues available for investment in the priorities stated above. In addition to these budget practices, the Town remains committed to established reserve policies, ensuring they are updated annually as part of the budget process. These reserves include the following: The Reserve for Economic Uncertainty (REU) at $6,600,000, the Operating Reserve (OR) at $1,650,000, the Debt Reserve (DR) at $1,700,000 is fully funded for FY 24-25. All these reserve elements add security to the Town’s financial position as just under $10 million is available for continuing operation of Town services. In conclusion, the Town continues to position itself in a strong financial position through proven fiscal policy that will enable it to meet the needs of our community and deliver the core services provided by the Town.

Respectfully submitted,
Rob Patterson
Town Manager

10 BASIC FINANCIAL STATEMENTS

11 GOVERNMENT-WIDE FINANCIAL STATEMENTS

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 12 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 87,146,504 $ 414,412 $ 87,560,916 $ Restricted cash and investments 2,088,278 - 2,088,278
Receivables 8,095,145 - 8,095,145
Inventory 765,458 - 765,458
Property held for resale 2,671,713 - 2,671,713
Internal balances (12,682) 12,682 -
Other assets 31,118 - 31,118
Lease receivable 182,694 - 182,694
Capital assets not being depreciated 26,099,207 - 26,099,207 Capital assets, net of depreciation - 73,714,168 73,714,168 Total assets 427,094 200,781,603 201,208,697

DEFERRED OUTFLOWS OF RESOURCES
Pension related 10,875,870 - 10,875,870
OPEB related - 643,810 643,810
Total deferred outflows of resources - 11,519,680 11,519,680

LIABILITIES
Accounts payable 10,659,248 - 10,659,248
Accrued salaries and benefits 310,658 50 310,708
Deposits 77,043 - 77,043
Unearned revenue 2,880,536 - 2,880,536
Noncurrent liabilities:

Due within one year 2,886,256 - 2,886,256
Due in more than one year 20,922,520 - 20,922,520
Net pension liability 27,427,524 - 27,427,524
Net OPEB liability 883,967 - 883,967
Total liabilities 50 66,047,752 66,047,802

DEFERRED INFLOWS OF RESOURCES
Pension related 1,953,052 - 1,953,052
OPEB related 1,766,174 - 1,766,174
Lease related 179,251 - 179,251
Total deferred inflows of resources 3,898,477 - 3,898,477

NET POSITION
Net investment in capital assets 94,729,141 - 94,729,141 Restricted:

Public safety 81,260 - 81,260
Community development 12,045,366 - 12,045,366
Public works 6,281,787 - 6,281,787
Community support 1,209,000 - 1,209,000
Tourism, parks and recreation 8,441,228 - 8,441,228
Transportation and transit 150,841 - 150,841
Capital projects 14,706,868 - 14,706,868
Airport 2,337,601 - 2,337,601
Unrestricted 2,371,962 427,044 2,799,006
Total net position $ 427,044 142,355,054 $ 142,782,098 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 13 Program Revenues Net (Expense) Revenue and Changes in Net Position Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities:

General government $ 3,946,635 13,255,948 $ 955,741 $ 3,222,584 $ (5,130,988) $ - $ (5,130,988) $ Public safety 168,630 6,486,749 185,640 - (6,132,479) - (6,132,479) Tourism, parks and recreation 258,310 12,371,429 - - (12,113,119) - (12,113,119) Community development 134,128 12,640,013 1,261,175 - (11,244,710) - (11,244,710) Public works/streets 574,107 4,137,577 2,139,726 - (1,423,744) - (1,423,744) Transportation and transit 47,298 1,060,971 259,992 - (753,681) - (753,681) Community support - 1,885,857 - - (1,885,857) - (1,885,857) Airport 411,668 2,847,125 248,989 391,284 (1,795,184) - (1,795,184) Interest on long-term debt - 580,033 - - (580,033) - (580,033) Total governmental activities 55,265,702 5,540,776 5,051,263 3,613,868 (41,059,795) - (41,059,795) Business-type activities:

Landfill management - 1,224 - - - (1,224) (1,224)
Total business-type activities - 1,224 - - - (1,224) (1,224) Total primary government $ 5,540,776 55,266,926 $ 5,051,263 $ 3,613,868 $ (41,059,795) (1,224) (41,061,019) General revenues:

Taxes:

Property tax 6,323,788 - 6,323,788
Transient occupancy tax 28,065,965 - 28,065,965Sales tax 6,450,021 - 6,450,021 Measure U tax 1,287,687 - 1,287,687
TBID tax 6,758,756 - 6,758,756
Franchise fees 1,273,237 - 1,273,237
Investment earnings 17,802 3,208,373 3,226,175
Insuance recovery 1,707,591 - 1,707,591
Other revenue 1,129,038 - 1,129,038
Total general revenues 17,802 56,204,456 56,222,258
Change in net position 15,144,661 16,578 15,161,239Net position - beginning 410,466 138,691,677 139,102,143Change in accounting principle (housing loans) - (11,481,284) (11,481,284) Net position - beginning (restated) 410,466 127,210,393 127,620,859 Net position - ending $ 427,044 142,355,054 $ 142,782,098 $

14 FUND FINANCIAL STATEMENTS

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Governmental Funds Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 15 Special Revenue Funds
Tourism Housing and
Business Community Nonmajor Total
General Capital Projects Improvement Development Governmental Governmental Fund Fund District Fund Fund Gas Tax Fund Funds Funds
ASSETS
Cash and investments 32,617,319 $ 13,627,924 $ (298,122) $ 14,989,111 $ 2,411,025 $ 14,889,955 $ 78,237,212 $ Restricted cash and investments - - - - - 2,088,278 2,088,278 Receivables 4,866,728 1,051,875 302,780 373,816 35,276 1,208,768 7,839,243 Inventory - - - - - 9,320 9,320
Property held for resale - - - 2,671,713 - - 2,671,713
Lease receivable - - - - - 182,694 182,694
Due from other funds 223,345 - - - - - 223,345
Other assets 27,069 - - - - - 27,069
Total assets $ 14,706,868 37,707,392 $ 4,658 $ 18,034,640 $ 2,446,301 $ 18,379,015 $ 91,278,874 $

LIABILITIES
Accounts payable 6,696,391 $ - $ - $ 3,908,369 $ 6,174 $ 48,314 $ 10,659,248 $ Accrued salaries and benefits 268,433 - - - 17,288 14,597 300,318 Deposits 77,043 - - - - - 77,043
Unearned revenue 2,880,536 - - - - - 2,880,536
Due to other funds - - - - - 223,345 223,345
Total liabilities - 9,922,403 - 3,908,369 23,462 286,256 14,140,490

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 3,927 - - - - - 3,927
Lease related - - - - - 179,251 179,251
Total deferred inflows of resources - 3,927 - - - 179,251 183,178

FUND BALANCES
Nonspendable - - - - - 9,320 9,320
Restricted:

Public safety - - - - - 81,260 81,260
Community development - - - 10,951,671 - 1,093,695 12,045,366 Public works - - - - 2,422,839 3,858,948 6,281,787
Community support 1,209,000 - - - - - 1,209,000
Tourism, parks and recreation - - 4,658 - - 8,436,570 8,441,228 Transportation and transit - - - - - 150,841 150,841
Capital projects - 14,706,868 - - - - 14,706,868
Airport - - - - - 2,337,601 2,337,601
Committed:

Community development 961,367 - - 3,174,600 - - 4,135,967 Tourism, parks and recreation 1,244,526 - - - - - 1,244,526 Transportation and transit 1,865,307 - - - - - 1,865,307 Debt service 1,100,000 - - - - - 1,100,000
Assigned:

Debt service - - - - - 1,945,273 1,945,273
Unassigned 21,400,862 - - - - - 21,400,862
Total fund balances 27,781,062 14,706,868 4,658 14,126,271 2,422,839 17,913,508 76,955,206 Total liabilities, deferred inflows of
resources and fund balances $ 14,706,868 37,707,392 $ 4,658 $ 18,034,640 $ 2,446,301 $ 18,379,015 $ 91,278,874 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 16 Amounts reported for governmental activities in the statement of net position are different because:

Total fund balance – governmental funds 76,955,206 $
93,239,781
7,325,999
3,927
Debt and obligations (21,620,000)
Compensated absences (1,041,259)
Lease related (1,011,970)
Subscription related (37,264)
Net pension liability (25,987,288)
Net OPEB liability (883,967)
15,411,889
Net position of governmental activities 142,355,054 $
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.

Unavailable revenues represent amounts that are not available to fund current expenditures and, therefore, are not reported in the governmental funds.

Long-term debt and obligations are not due and payable inthe current year period and therefore, are not reported in the governmental funds.

Those liabilities consist of:

Internal service funds are used by the management to charge the cost of the motor pool and employee benefits activities to individual funds.

Those assets, deferred outflows of resources, liabilities, and deferred inflows of resources are included in the Statement of Net Position governmental activities.

Pension and OPEB related deferrals are reported as deferred outflows and inflows of resources on the statement of net position.

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 17 Special Revenue Funds
Tourism Housing and
Business Community Nonmajor Total
General Capital Projects Improvement Development Governmental Governmental Fund Fund District Fund Fund Gas Tax Fund Funds Funds

REVENUES
Taxes and assessments $ - 39,027,929 $ 6,758,756 $ 352,608 $ - $ 4,489,022 $ 50,628,315 $ Licenses and permits - 1,734,315 - - - 1,222,868 2,957,183 Intergovernmental 3,222,584 1,137,454 - 698,215 2,139,726 1,110,617 8,308,596 Charges for services - 1,797,674 - - 123,097 411,668 2,332,439 Fines and forfeitures - 134,901 - - - - 134,901
Use of money and property - 1,661,264 30,308 650,204 115,163 751,434 3,208,373 Insurance recovery - 1,707,591 - - - - 1,707,591
Other revenue 80,031 - - 543,989 57 499,058 1,123,135
Total revenues 47,201,128 3,302,615 6,789,064 2,245,016 2,378,043 8,484,667 70,400,533 EXPENDITURESCurrent:

General government - 5,679,882 - - - - 5,679,882
Public safety - 5,495,161 - - - - 5,495,161
Tourism, parks and recreation - 4,766,001 6,795,414 - - 1,903,551 13,464,966 Community development - 3,220,305 - 9,282,699 - 207,041 12,710,045 Public works/streets - 1,940,013 - - 5,508,532 366,539 7,815,084 Transportation and transit - 1,093,815 - - - - 1,093,815 Community support - 1,885,857 - - - - 1,885,857
Airport - - - - - 2,470,330 2,470,330
Capital outlay 9,759,227 - - - - 297,147 10,056,374
Debt service - - - - - 2,808,757 2,808,757
Total expenditures 24,081,034 9,759,227 6,795,414 9,282,699 5,508,532 8,053,365 63,480,271 Excess (deficiency) of revenues over (under) expenditures 23,120,094 (6,456,612) (6,350) (7,037,683) (3,130,489) 431,302 6,920,262

OTHER FINANCING SOURCES (USES)
Transfers in 2,104,066 8,529,816 - 7,204,494 3,460,139 10,446,161 31,744,676 Transfers out - (20,755,736) - - (331,820) (11,246,978) (32,334,534) Total other financing sources (uses) 2,104,066 (12,225,920) - 7,204,494 3,128,319 (800,817) (589,858) Net change in fund balances (4,352,546) 10,894,174 (6,350) 166,811 (2,170) (369,515) 6,330,404 Fund balances - beginning 16,886,888 19,059,414 11,008 13,959,460 2,425,009 18,283,023 70,624,802 Fund balances (deficit) - ending $ 14,706,868 27,781,062 $ 4,658 $ 14,126,271 $ 2,422,839 $ 17,913,508 $ 76,955,206 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities The notes to the basic financial statements are an integral part of this statement. 18 Amounts reported for governmental activities in the statement of activities are different because:

Change in fund balances – governmental funds $ 6,330,404 6,183,302
(833,619)
316,060
Loans and finance purchase 1,944,000
Leases 284,724
Compensated absences 66,072
3,927
849,791
Change in net position of governmental activities 15,144,661 $ The internal service funds are used by management to charge the costs of motor pool and employee benefits activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense in the current year.

Changes to net pension liability and pension related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Certain revenues and expenses reported in the Statement of Activities and changes in net position do not require the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds.

Changes to OPEB liability and OPEB related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Long-term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of:

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 19 Governmental
Activities
Total Internal
Landfill Enterprise Service
Management Funds Funds
ASSETS
Current assets:

Cash and investments $ 414,412 414,412 $ 8,909,292 $
Receivables - - 255,902
Inventory - - 756,138
Other assets - - 4,049
Total current assets 414,412 414,412 9,925,381
Noncurrent assets:

Capital assets, net of depreciation - - 6,573,594
Total noncurrent assets - - 6,573,594
Total assets 414,412 414,412 16,498,975

DEFERRED OUTFLOWS OF RESOURCES
Pension related - - 602,463
Total deferred outflows - - 602,463

LIABILITIES
Current liabilities:

Accrued salaries and benefits 50 50 10,340
Total current liabilities 50 50 10,340
Noncurrent liabilities:

Due within one year:

Compensated absences - - 49,141
Due in more than one year:

Compensated absences - - 49,142
Net pension liability - - 1,440,236
Total noncurrent liabilities - - 1,538,519
Total liabilities 50 50 1,548,859

DEFERRED INFLOWS OF RESOURCES
Pension related - - 128,008
Total deferred inflows - - 128,008

NET POSITION
Net investment in capital assets - - 6,573,594
Unrestricted 414,362 414,362 8,850,977
Total net position $ 414,362 414,362 15,424,571 $
Adjustments to report the cumulative internal balance for the net effect of the activity between the internal services funds and the enterprise funds over time 12,682 Net position of business-type activities (page 12) 427,044 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 20 Governmental
Activities
Total Internal
Landfill Enterprise Service
Management Funds Funds
Operating revenues:

Charges for services $ - - $ 2,568,558 $
Total operating revenues - - 2,568,558
Operating expenses:

Personnel costs 1,224 1,224 1,179,009
Operations and maintenance - - 917,509
Benefit claims - - 223,576
Depreciation - - 384,381
Total operating expenses 1,224 1,224 2,704,475
Operating income (loss) (1,224) (1,224) (135,917)
Nonoperating revenues (expenses):

Investment earnings 17,802 17,802 389,947
Other nonoperating revenues - - 5,903
Total nonoperating revenues (expenses) 17,802 17,802 395,850 Income (loss) before transfers 16,578 16,578 259,933
Transfers in - - 661,977
Transfers out - - (72,119)
Change in net position 16,578 16,578 849,791
Net position - beginning 397,784 397,784 14,574,780
Net position - ending $ 414,362 15,424,571 $
Adjustment for the net effect on the current year activity between the internal service funds and the enterprise funds -
Changes in net position of business-type activities (page 13) $ 16,578

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Proprietary Funds Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 21 Governmental
Activities
Landfill Total Internal
Management Enterprise Funds Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 2,240 $ 2,240 $ 2,823,555 $ Payments to suppliers 111 111 (893,252)Payments paid for personnel costs (1,224) (1,224) (1,314,784) Net cash provided by (used for) operating activities 1,127 1,127 615,519

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Loans (to)/from other funds - - 851,207Transfers in from other funds - - 661,977Transfers (out) to other funds - - (72,119)Other nonoperating revenues - - 5,903 Net cash provided by (used for) noncapital financing activities - - 1,446,968

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets - - (2,810,973)
Net cash provided by (used for) capital and related financing activities - - (2,810,973)CASH FLOWS FROM INVESTING ACTIVITIES Investment received (paid) 17,802 17,802 389,947
Net cash provided by (used for) investing activities 17,802 17,802 389,947Net increase (decrease) in cash and investments 18,929 18,929 (358,539)Cash and investments - beginning 395,483 395,483 9,267,831 Cash and investments - ending $ 414,412 414,412 $ 8,909,292 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Proprietary Funds Statement of Cash Flows (Continued)
The notes to the basic financial statements are an integral part of this statement. 22 Governmental
Activities
Landfill Total Internal
Management Enterprise Funds Service Funds
Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:Operating income (loss) (1,224) $ (1,224) $ (135,917) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation - - 384,381
(Increase) decrease in accounts receivables 2,301 2,301 254,997 (Increase) decrease in inventory - - 25,569
Increase (decrease) in deferred outflows of resources from pensions - - (2,579) Increase (decrease) in accrued salaries and benefits 50 50 (9,963) Increase (decrease) in compensated absences - - 48,296
Increase (decrease) in deferred inflows of resources from pensions - - (71,881) Increase (decrease) in net pension liability - - 122,616 Net cash provided by (used for) operating activities $ 1,127 1,127 $ 615,519 $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Custodial Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 23 ASSETS
Cash and investments 532,822 $
Cash with fiscal agent 141,225
Total assets 674,047

LIABILITIES -

NET POSITION
Restricted for:

Other organizations and other governments 674,047
Total net position 674,047 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Custodial Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 24 ADDITIONS
Tax assessments 529,249 $
Interest on investments 20,565
Total additions 549,814

DEDUCTIONS
Contractual services 7,740
Debt service 510,690
Total deductions 518,430
Net increase (decrease) in fiduciary net position 31,384 Net position - beginning 642,663
Net position - ending 674,047 $

25 NOTES TO THE BASIC FINANCIAL STATEMENTS

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
26 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Town of Mammoth Lakes, California (the Town) conform to accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the Town are described below.

A. Reporting Entity
The Town of Mammoth Lakes was incorporated in 1985 under the laws of the State of California. The Town operates under a Council-Manager form of government. The Town provides municipal services to its citizens including police, public works, airport facilities, community development and general administrative support. These financial statements present the financial status of the Town.

The Town of Mammoth Lakes and the Mammoth Lakes Municipal Service Corporation (the Corporation) comprise the reporting entity. Although these entities are legally separate from each other, they are presented on a blended basis as part of the primary government because their governing boards consist exclusively of all five members of the Town Council. These entities meet the Governmental Accounting Standards Board (GASB) criteria for inclusion within the Town's financial reports. The Corporation does not issue separate financial statements. Financial information for the Mammoth Lakes Municipal Service Corporation is blended with the Town of Mammoth Lakes’ financial statements. The Town has no discretely presented component units.

The Corporation was organized on August 1, 1989, pursuant to the Nonprofit Public Benefit Corporations Law of the State of California, solely for the purpose of providing assistance to the Town by acquiring, constructing, improving, developing and installing certain real and personal property together with appurtenances and appurtenant work for the use, benefit and enjoyment of the public. The Corporation was formed at the request of the Town to assist in lease financing of certain capital improvement projects. The Corporation's financial data and transactions are included within the Debt Service Fund. Oversight responsibility is determined by such criteria as financial interdependency, selection of governing authority and designation of management, budget control, and the ability to significantly influence operations. Separate financial statements are not issued.

B. Basis of Presentation
The Town’s basic financial statements consist of the following:
 Government-Wide Financial Statements
 Fund Financial Statements
 Notes to the Financial Statements
Government-Wide Financial Statements: (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government. These statements distinguish between the governmental and business-type activities of the Town. Eliminations have been made to minimize the double-counting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenue, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The Statement of Activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Town and for each function of the Town’s governmental activities. Direct expenses are those that are clearly identifiable with a specific program or function. Program revenue includes (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or program, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
27 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fund Financial Statements: The fund financial statements provide information about the Town’s funds, including fiduciary funds. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

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. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

C. Governmental Fund Types
Governmental funds are those through which most general government functions typically are financed. The Town maintains the following fund types:

General Fund – The Town’s primary operating fund. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds – Used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes.

Debt Service Funds – Used to account for the accumulation of resources for, and the repayment of, general long-term debt obligation payments for principal, interest and related costs.

Capital Projects Funds – Used to account for financial resources to be used for the acquisition, improvements or construction of streets, infrastructure and major capital projects.

Proprietary Fund Types – Used to account for activities that are similar to those found in the private sector. The measurement focus is upon determination of net income and capital maintenance. The following are the Town’s two proprietary fund types:

Enterprise Funds – established to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the Town is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Long Valley Landfill is reported as an enterprise fund.

Internal Service Funds – Established to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town, and to other government units on a cost reimbursement basis. The Town’s purchasing of vehicles and equipment, maintenance of transportation vehicles, and the self-insurance employee benefit program, are reported as internal service funds.

Fiduciary Funds – Used to account for assets held by the Town as a custodian for individuals and other governmental units.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The Town may also select other funds it believes should be presented as major funds.

The Town reports the following major governmental funds in the accompanying financial statements:

General Fund – The Town’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Capital Projects Fund – Used to account for the acquisition, improvements or construction of the government’s streets, infrastructure, and major capital facilities, other than those financed by proprietary funds.

Tourism Business Improvement District Fund – Used to account for restricted-use financial resources received from a voter-approved tax to help fund marketing and sales promotion efforts for Mammoth Lakes’ tourism businesses.

Housing and Community Development Fund – Used to account for restricted-use financial resources received from federal, state and county governments for the purpose of providing affordable housing within the community.

Gas Tax Fund – Used to account for the proceeds of the state-wide voter-approved tax on gasoline, which is collected by the State, and passed through the local governments for the purpose of streets and sidewalk construction and maintenance.

The Town reports the following major enterprise funds in the accompanying financial statements:

Landfill Management Fund – Used to account for proceeds generated from use of the clean material waste disposal site.

The Town reports the following fiduciary fund in the accompanying financial statements:

Custodial Fund – The Town acts as a custodian for collection of property taxes and repayment of a special assessment improvement bonds issued by an Assessment District located within the Town. The financial activities of this fund are excluded from the entity-wide financial statements but are presented in separate Fiduciary Fund financial statements.

E. Measurement Focus, Basis of Accounting
Government-Wide and Proprietary Fund Financial Statements The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Town gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.

Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Measurement Focus, Basis of Accounting (Continued)
Governmental Fund Financial Statements
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The Town considers all revenues other than grant reimbursements reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Grant revenue, which is normally reimbursements of expenses under contractual agreements, is recorded as a receivable when earned rather than when susceptible to accrual. Generally, this occurs when authorized expenditures are made under the grant program or contractual agreement. Expenditures are recognized when the fund liability is incurred, if measurable, except for principal, interest and unmatured interest on long-term debt in the governmental funds, which is recognized when due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under finance leases are reported as other financing sources.

F. Budgetary Data
General Budget Policies
The Town maintains budgetary controls of which the objective is to ensure compliance with legal provisions embodied in the annual budget approval by the Town Council. Budgetary control for operations is maintained at the department level by individual funds. Budgetary control for capital improvement projects (i.e., project-length financial plans) is maintained at the individual project level by fund. The Town’s budgeted expenditure authority lapses at the end of each fiscal year.

However, outstanding purchase order commitments or capital improvement projects may be re-appropriated for the subsequent fiscal year upon Town Council approval.

Budgetary Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America as prescribed by the GASB and the AICPA. The Budgetary Comparison Schedule of the General Fund and special revenue major governmental funds presents comparisons of legally adopted budget amounts (both the original budget and final budget), and actual amounts, on the budgetary basis. The budgeting basis is substantially equivalent to the Town's accounting basis; thus, no reconciliation between the two is considered necessary.

G. Other Accounting Policies
Cash and Investments
Cash and investments held in the Town’s investment pool are reported as cash and investments since “funds” can spend cash at any time without prior notice or penalty. All investments with fiscal agents are also considered cash equivalents if they are liquid. Investments are stated at fair value.

Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the Town considers all highly-liquid investments either: (1) with a maturity of three months or fewer when purchased to be cash equivalents or (2) collected within sixty days of the fiscal year end.

Cash and cash equivalents are reported under the captions “cash and investments” on the Statement of Net Position and Balance Sheet.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Other Accounting Policies (Continued)
Interfund Transactions
Interfund transactions are reflected as loans, services provided or used, reimbursements or transfers. Loans reported as receivables and payables, as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Allowance for Uncollectible Accounts
Management has elected to record bad debts using the direct write-off method. Accounting principles generally accepted in the United States of America require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed.

Inventory of Supplies, Properties Held for Resale, and Prepaid Expenses Inventories consist of fuel, vehicle parts and expendable supplies which are valued at cost on the weighted average method, which approximates fair value. Inventories consist of expendable supplies held on a consumption basis, wherein the cost is recorded as an expense at the time an item is consumed. Inventories also consists of properties held for resale which are valued at lower of cost or market.

Capital Assets
Capital assets used in governmental fund type operations are accounted for on the Statement of Net Position. Public domain general capital assets (infrastructure) consisting of certain improvements other than buildings, such as roads, sidewalks and bridges are capitalized prospectively starting July 1, 2003. Town policy has set the capitalization threshold for reporting capital assets starting at $20,000. Capital outlay is recorded as expenditures in the governmental fund financial statements, and as capital assets in the government-wide financial statements to the extent the Town’s capitalization threshold is met. Donated assets are recorded at estimated fair value at the date of donation.

Property, plant and equipment acquired for proprietary funds are capitalized in the respective fund to which it applies and are stated at their cost. Where cost could not be determined from the available records, estimated historical cost was used to record the estimated value of the assets.

Depreciation is recorded on a straight-line basis over the estimated useful lives of the capital assets which range from 4 to 20 years for equipment and vehicles, 20 to 50 years for buildings and improvements, 20 years for infrastructure, and 50 years for utility systems. Land, art and treasures are not considered exhaustible, therefore are not being depreciated.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Other Accounting Policies (Continued)
Right-to-Use Lease Assets
Right-to-use lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payment made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service.

Right-to-use lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life on the underlying asset, unless the lease contains a purchase option that the Town has determined is reasonably certain of being exercised.

Leases
Lessee: The Town is a lessee for noncancellable lease of a building. The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The Town recognizes lease liabilities with an initial, individual value of $25,000 or more for equipment and vehicles and $100,000 or more for buildings.

At the commencement of a lease, the Town initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the Town determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The Town uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the Town generally uses its estimated incremental borrowing rate as the discount rate for leases, which it has determined is the prime rate at the inception of the lease.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the Town is reasonably certain to exercise.

The Town monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Other Accounting Policies (Continued)
Leases (Continued)
Lessor: The Town is a lessor for a noncancellable lease. The Town recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental financial statements. At the commencement of a lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term.

Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the Town determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The Town uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the Town generally uses the implied rate of return as the discount rate for leases.

When the implied rate of return cannot be determined, the Town uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The Town monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Subscription Based Information Technology Arrangements (SBITAs) Lessee: The Town entered into noncancellable subscription-based information technology arrangements (SBITAs) for information technology services. SBITAs are accounted for in accordance with GASB Statement No. 96.

Upon commencement of a subscription, the Town recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. Subscription liabilities are recognized when their initial individual values are $50,000 or more. The subscription liability is initially measured at the present value of payments expected to be made during the subscription term and is subsequently reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, and any directly attributable initial costs. The subscription asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to SBITAs include determining the discount rate used to discount expected subscription payments to present value, the subscription term, and the composition of subscription payments.  The Town generally uses the interest rate charged by the subscription provider as the discount rate. When the interest rate charged by the provider is not provided, the Town generally uses its estimated incremental borrowing rate as the discount rate for SBITAs, which is the prime rate at the inception of the subscription.  The subscription term includes the noncancellable period of the subscription and subscription payments that the Town is reasonably certain to make.
 The measurement of subscription liability excludes any variable payments such as payments based on the number of user seats unless they depend on an index or a rate or are fixed in substance.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Other Accounting Policies (Continued)
Subscription Based Information Technology Arrangements (SBITAs) (Continued) The Town monitors changes in circumstances that would require a remeasurement of its SBITAs and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other intangible assets, and subscription liabilities are reported as liabilities on the Statement of Net Position.

This disclosure provides information on the accounting policies related to Subscription-Based Information Technology Arrangements (SBITAs) in accordance with GASB Statement No. 96 and should be read in conjunction with the accompanying financial statements.

Unearned Revenue
Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met.

Unavailable Revenue
In the fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrued basis of accounting. The Town records unavailable revenue for transactions for which revenues have been earned but are not available to meet current financial obligations.

Compensated Absences
The Town utilizes the General Fund and proprietary funds to account for a portion of its compensated absences.

Resources have been set aside to cover this liability. The Town’s method of calculating the liability is in accordance with GASB. Vested or accumulated compensated absences that are expected to be liquidated with current financial resources are reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated compensated absences that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities of the government-wide financial statements.

Net Position and Fund Balances
The Town’s net position is classified as follows on the government-wide Statement of Net Position:

Net Investment in Capital Assets – Represents the Town’s total investment in capital assets less accumulated depreciation, reduced by any outstanding debt used to acquire such assets.

Restricted Net Position – Represents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – Represents the net position of the Town, which is not restricted for any project or other purpose.

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the Town’s practice is to apply restricted net position first.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Other Accounting Policies (Continued)
Net Position and Fund Balances (Continued)
Fund Balance designations are classified on the governmental funds balance sheet as follows:

Nonspendable – Amounts that cannot be spent because they are either (a) legally or contractually required to be maintained intact or (b) not in spendable form such as long-term notes receivable.

Restricted – This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation.

Committed – Amounts that can be used only for the specific purposes determined by a formal action of the Town Council, to establish, modify or rescind a fund balance commitment. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements.

Assigned – Amounts that are constrained by the Town’s intent to be used for specific purposes but do not meet the criteria to be classified as restricted or committed. Intent is expressed by the Town Council or its designee and may be changed at the direction of the Town Council or its designee. This classification also includes the remaining positive fund balance for all governmental funds except for the General Fund.

Unassigned – This classification includes amounts that have not been assigned to other funds or restricted, committed, or assigned to a specific purpose within the Town.

The Town has set aside amounts for emergency situations, revenue shortages or budgetary imbalances, commonly referred to as revenue stabilization or reserve for economic uncertainty through a resolution. Stabilization amounts may be expended only when Council determines that a qualifying event has occurred and the level of impact from the emergency warrants the use of the funds. As of June 30, 2024, the stabilization fund had a balance of approximately $6,340,000, which is reported within Unassigned within the General Fund. The policy does not meet the GASB 54 stabilization arrangement criteria requirements.

When expenditures are incurred for purposes for which both restricted and unrestricted amounts are available, it is the Town’s practice to expend restricted fund balances first. When expenditures are incurred for purposes for which committed, assigned, or unassigned amounts are available, it is the Town’s practice to expend committed, then assigned, then unassigned amounts, in that order.

Other Postemployment Benefits Plan (OPEB)
In government-wide financial statements, OPEB plans are required by GASB Statement No. 75 to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as OPEB expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

The Town recognizes a net OPEB liability, which represents the excess of the total OPEB liability over the fiduciary net position (plan assets owned) as reflected in the actuarial report provided by the plan actuarial analyst. The net OPEB liability is measured as of the Town’s prior fiscal year-end. Changes in the net OPEB liability are recorded, in the period incurred, as OPEB expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net OPEB liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective OPEB plan and are recorded as a component of OPEB expense beginning with the period in which they are incurred.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Other Accounting Policies (Continued)
Pension Plan
In government-wide financial statements, as required by GASB Statement No. 68, retirement plans are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

The Town recognizes a net pension liability, which represents the Town’s proportionate share of the excess of the total pension liability over the fiduciary net position (plan assets owned) of the pension reflected in the actuarial report provided by the California Public Employees Retirement System (CalPERS) and the excess of total pension liability over the fiduciary net position of the pension reflected in the Town’s Retirement Enhancement Plan, administered through the Public Agency Retirement Services (PARS). The defined benefit plans are cost-sharing and single-employer plans, respectively. The net pension liability is measured as of the Town’s prior fiscal year-end. Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.

Property Tax Revenue
Property taxes in the State of California are administered for all local agencies at the County level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:

Property Valuations – Established by the Assessor of Mono County for the secured and unsecured property tax rolls; the utility property tax roll is valued by the California State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13, adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%.

However, increase to full value is allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

Tax Levies – Limited to 1% of full assessed value which results in a tax rate of $1.00 per $100 assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax Levy Dates – Attached annually on January 1, preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax Levy Apportionments – Due to the nature of the Town-wide maximum levy, it is not possible to identify generalpurpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by each County auditor-controller based primarily on the ratio that each agency represented of the total Town-wide levy for the three fiscal years prior to the fiscal year 1979.

Property Tax Administration Fees – The State of California fiscal year 1990-91 Budget Act authorized Counties to collect an administrative fee for its collection and distribution of property taxes.

Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Pronouncements
Governmental Accounting Standards Board Statement No. 100 For the year ended June 30, 2024, the Town implemented Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. This standard provides guidance on how to account for and report changes in accounting principles, changes in accounting estimates, and corrections of errors in previously issued financial statements. These changes were incorporated into the Town’s June 30, 2024 financial statements. The impact of these changes to net position are described in Note 16.

NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
The Town follows these annual procedures in establishing the budgetary data reflected in the financial statements:
 The Town Manager submits to the Town Council a proposed draft budget for the fiscal year commencing the following July 1, which includes proposed expenditures and the means of financing them.  The Town Council reviews the proposed budget at special scheduled sessions which are open to the public.  The Council also conducts a public hearing on the proposed budget to obtain comments from interested persons.  Prior to July 1, the budget is adopted by resolution action of the Town Council.  From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein as proposed expenditures become appropriations to the various Town departments.  The Town Council may amend the budget by resolution action during the fiscal year.  The Town Manager is authorized to transfer budget amounts within and between funds as deemed desirable and necessary in order to meet the Town’s needs; however, revisions that alter the total expenditures must be approved by the Town Council. Formal budgetary integration if employed as a management control devise during the year for the governmental type funds.
 All appropriations lapse at year end.

B. Revenue Limitations Imposed by California Proposition 218 Proposition 218, which was approved by the voters in November 1996, regulates the Town’s ability to impose, increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
37 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) C. Dependence Upon Tourism Industry
The Town is economically dependent on tourism-generated tax dollars for providing revenue to its General Fund, the primary operating fund of the Town. Property tax revenue is also a main contributor to the General Fund. The tourism industry accounts for all the transient occupancy taxes collected and a significant portion of all sales taxes collected.

Consequently, a downturn in the tourism industry for the Town would result in a substantial reduction in General Fund revenue. In the event of such a downturn, the Town may have insufficient resources in its General Fund to pay all of its obligations or provide services to its citizens at the current level.

The following table shows what percentage these three revenue sources provide to the Town’s General Fund:
2020 2021 2022 2023 2024
Transient Occupancy tax 61% 61% 67% 67% 62%
Property tax 15% 16% 12% 12% 12%
Sales tax (excludes Measure R) 9% 9% 8% 8% 8%
85% 86% 87% 87% 82%
D. Tourism Business Improvement District
Mammoth Lakes Tourism Business Improvement District (TBID) is a benefit assessment district that provides funds solely dedicated to tourism marketing and sales promotion efforts to attract visitors to the Town of Mammoth Lakes. The TBID ordinance was voted and approved by qualifying businesses and implemented on August 1, 2013 with a sunset provision date of August 31, 2023. As a separate Improvement District, all funds except those retained by the Town for cost reimbursement are passed through to the District. The Town withholds 2% of the amount collected as reimbursement for administrative costs associated with the processing, collection, and enforcement of the TBID. The District is governed by and through Mammoth Lakes Tourism (a separate non-profit organization) with their own board of directors, which governs the appropriation of TBID funds in accordance with the adopted management plan.

The TBID assessment is broken down into three tiers as follows:

Tier 1 – Represents all businesses that have annual sales in excess of $150,000 and can show that more than 50% of their sales revenue is provided by tourists. The assessment is 1% of gross room revenue for lodging, 1.5% of gross retail/restaurant sales or equipment rentals, and 2% of ski lift ticket and ski school sales.

Tier 2 – Represents retail businesses and restaurants with gross annual revenue between $50,000 and $150,000, and can show that more than 50% of their sales revenue comes from local businesses or residents. The assessment is a $500 annual fee.

Tier 3 – Represents retail businesses and restaurants with gross revenue under $50,000, and can show that more than 50% of their sales revenue comes from local businesses or residents. The assessment is a $50 annual fee.

The Town has subsequently passed an ordinance implemented on September 1, 2023 with a sunset provision date of August 31, 2028.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
38 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) E. Voter-Approved Initiatives
Measure R
In 2010, the Town Council approved a ballot measure titled the “Mammoth Lakes Recreation, Trails and Parks Investment Initiative” that would seek voter approval to increase the sales and use tax rate, one-half of one percent, if two-thirds of the electors approve the measure, which was passed by the voters. The revenue from this measure is restricted for expenditures related to recreation, trails and parks funding for planning, construction, operation, maintenance, programming, and administration of all Town recreation facilities and programs, trails and parks, managed by the Town, without supplanting existing parks and recreation facility maintenance funds. There is no sunset provision of this ordinance.

Measure U
In 2010, the Town Council approved a ballot measure titled the “Mammoth Lakes Mobility, Recreation, and Arts & Culture Utility Users Tax Ordinance” that would seek voter approval to establish a utility users tax of 2.5%, if two-thirds of the electors approve the measure, which was passed by the voters. The revenue from this measure is restricted for expenditures for planning, construction, operation, maintenance, programming and administration of facilities and projects for mobility, recreation, and arts & culture. A supplanting policy adopted February 15, 2012 allows Measure U funds to be used to enhance and improve existing efforts including planning, construction, operations, maintenance, programming and administration of facilities and projects for mobility, recreation, and arts and culture. There is no sunset provision of this ordinance.

NOTE 3 – CASH AND INVESTMENTS
The Town maintains a cash and investments pool of all funds except for restricted funds required to be held by outside custodians, fiscal agents, or trustees under the provisions of bond agreements.

Cash and investments are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 87,560,916 $
Restricted cash and investments 2,088,278
Statement of Fiduciary Net Position:

Cash and investments 532,822
Restricted cash and investments 141,225
Total cash and investments $ 90,323,241
Cash and investments as of June 30, 2024 consist of the following:

Demand deposits with financial institutions 3,161,328 $ Petty cash 2,200
Investments with County Investment Pool 6,319,435
Investments with Local Agency Investment Fund (LAIF) 35,642,851 Investments with California Asset Management Program 42,967,925 Investments by fiscal agents 2,229,502
Total cash and investments $ 90,323,241

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
39 NOTE 3 – CASH AND INVESTMENTS (Continued)
A. Deposits
At fiscal year-end, the Town’s carrying amount of demand deposits was $3,161,328 and the bank account balances were $3,731,296, the total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the Town’s name as described below.

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the Town’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure Town deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits.

B. Investment Policy
The table below identifies the investment types that are authorized under provisions of the Town’s investment policy adopted for fiscal year 2023-24, and in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address concentration or maximum percentages and maturity.

Maximum Maximum
Permitted Investments/Deposits Percentages Maturity
Investment Type A:

Securities of the US Government Unlimited 5 years
Certificates of Deposit Unlimited 5 years
Commercial Paper (A-1, P-1 only) 30% 180 days
Local Agency Investment Fund (LAIF) $75,000,000 n/a
California Asset Management Program $45,000,000 n/a
Mono County Investment Pool $6,000,000 n/a
Passbook Deposits n/a n/a
Investment Type B:

Negotiable Certificates of Deposit 30% 5 years
Bankers Acceptances 40% 270 days
Repurchase Agreements n/a 1 year
Mutual Funds 15% 5 years
Medium Term Notes 30% 5 years
 Type A investments do not require any specific approval of the Town Council.  Type B investments require a specific resolution of the Town Council prior to the investment purchase/deposit.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
40 NOTE 3 – CASH AND INVESTMENTS (Continued)
C. 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 an 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 Town’s investments to market interest rate fluctuations is provided by the following table that shows the maturity date of each investment:

Remaining
Investment Type Amount Maturity Date
Local Agency Investment Fund (LAIF) 35,642,851 $ 12 months or less Mono County Investment Pool 6,319,435 12 months or less Money Market (with Fiscal Agent) 2,229,502 12 months or less California Asset Management Program 42,967,925 12 months or less Total 87,159,713 $
D. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Town’s investment policy, and the actual rating as of year-end for each investment type. The column marked “exempt from disclosure” identifies those investment types for which GASB 40 does not require disclosures as to credit risk.

Exempt from
Investment Type Amount Disclosure
Local Agency Investment Fund (LAIF) 35,642,851 $ 35,642,851 $ Mono County Investment Pool 6,319,435 6,319,435
Money Market (with Fiscal Agent) 2,229,502 2,229,502
California Asset Management Program 42,967,925 42,967,925 Total 87,159,713 $ 87,159,713 $
E. Concentration of Credit Risk
The investment policy of the Town contains no limitations on the amount that can be invested in any single issuer beyond that stipulated by the California government code. The Town’s potential losses from credit risk are increased if a significant portion of its resources are invested in a single issuer. Investments issued by or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are exempt from these limitations. At June 30, 2024, the Town did not have any investments in any one issuer that is not exempt that represents 5% or more of the total investments.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
41 NOTE 3 – CASH AND INVESTMENTS (Continued)
F. Custodial Credit Risk
The 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 or collateral securities that are in the possession of another party. The California government code and the Town’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF, Mono County investment pool, or California Asset Management Program).

G. Participation in External Investment Pools
State Pools
The Town is a voluntary participant in the California State Local Agency Investment Fund (LAIF). LAIF, established in 1977, is regulated by California Government Code Section 16429 and under the day-to-day administration of the California State Treasurer. There is a five-member Local Investment Advisory Board that is chaired by the State Treasurer. LAIF determines fair value of its investment portfolio based on market quotations for those securities where market quotations are readily available, and on amortized cost or best estimate for those securities where market value is not readily available. LAIF is part of the Pooled Money Investment Account (PMIA) and under the control of the State Treasurer’s Office, which is audited by the Bureau of State Audits. As of June 30, 2024, PMIA had approximately $178 billion in investments. Audited financial statements of PMIA may be obtained from the California State Treasurer’s website at www.treasurer.ca.gov. The fair value of the Town’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Town’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

The Town is a voluntary participant in the California Asset Management Program (CAMP). CAMP, established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). Investments in CAMP are governed by state statutes and overseen by a seven-member Board of Trustees. CAMP operates and report to participants on an amortized cost basis. The income, gains, and losses, net of administration fees, are allocated based upon the participant’s average daily balance. CAMP participants share proportionally in any realized gains or losses on investments. Deposits in CAMP are not insured or otherwise guaranteed by the State of California. The fair value of CAMP investment pools are approximately equal to the value of the pool shares.

County Pool
The Town is a voluntary participant in Mono County’s Investment Pool (the Pool). As of June 30, 2024, the Pool had approximately $185 million in investments. Audited financial statements may be obtained from the Mono County Treasury Oversight Committee, Post Office Box 556, Bridgeport, California 93517. The fair value of the Town’s investment in this Pool is reported in the accompanying financial statements at amounts based upon the Town’s pro-rata share of the fair value provided by the County’s finance department for the entire Investment Pool portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the Pool, which are recorded on an amortized cost basis.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
42 NOTE 3 – CASH AND INVESTMENTS (Continued)
H. Investment Valuation
The Town categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The Town’s only investments, which are allocated at fair value, are in the various external investments pools and money market. The external investments pools invests in numerous types of investments ranging all levels in the fair value hierarchy. Accordingly, it is not an investment type that can be categorized in any particular level in the fair value hierarchy. Money market funds have a maturity of less than one year and are presented at amortized costs, which approximates fair value. Since they are presented at amortized costs, they are not an investment type that can be categorized in any particular level in the fair value hierarchy.

NOTE 4 – RECEIVABLES
A. Disaggregated Receivables
Disaggregated receivables as of June 30, 2024 consist of the following:

Governmental Funds
Tourism Housing and
Business Community Other Total
General Capital Projects Improvement Development Governmental Governmental Fund Fund District Fund Gas Tax Fund Funds Funds
Receivables:

Accounts receivable $ 34,770 2,311,503 $ 302,780 $ 14,000 $ 35,276 $ 449,495 $ 3,147,824 $ Due from other governments 1,017,105 2,175,705 - 359,816 - 759,273 4,311,899 Interest receivable - 379,520 - - - - 379,520
Total receivables $ 4,866,728 1,051,875 $ 302,780 $ 373,816 $ 35,276 $ 1,208,768 $ 7,839,243 $ Proprietary Funds
Governmental
Activities
Internal
Service
Funds
Receivables:

Due from other governments $ 255,902
Total receivables $ 255,902

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
43 NOTE 4 – RECEIVABLES (Continued)
B. Forgivable Loans/ Unavailable Revenue
The Town issues deferred payment loans funded by either grants or local funding. Participants are not required to make payments unless the participant is out of compliance (property is sold or transferred). Additionally, loans to developers of apartments that cater to low and moderate income occupants are not required to be paid back unless certain circumstances are met over the 55 year loan. The Town does not expect to receive payment from the developer loans.

Deferred payment loans are “non-performing loans” and are not recorded as receivable or unavailable revenue. Loans are expended when made. If a loan is collected, it is recorded as revenue at that time.

NOTE 5 – LEASE RECEIVABLE
In 2021, the Town began leasing a building to a third party. The lease is for 19 years and the Town will receive monthly payments of $1,200, increasing by between 2% and 5% annually. The Town recognized $11,031 in lease revenue and $5,963 in interest revenue during the current fiscal year related to this lease. As of June 30, 2024, the Town’s receivable for lease payments was $182,694. Also, the Town has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $179,251.

NOTE 6 – ASSESSMENT DISTRICT DEBT
The Town acts as a custodian for collection of property taxes and repayment of a special assessment improvement bonds issued by an Assessment District located within the Town. Since the Town is not obligated in the event of any manner for these special assessment bonds, the debt is not recorded in these financial statements. The outstanding balance of the bond obligations at year-end was as follows:

CFD No. 2001-1 (North Village Area) 2016 Special Tax Refunding Bonds $3,980,946

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
44 NOTE 7 – CAPITAL ASSETS
A. Governmental-Type Activities
Capital assets activity of the governmental activities for the year ended June 30, 2024 is as follows:

Balance Retirements/ Balance
June 30, 2023 Additions Adjustments June 30, 2024
Capital assets, not being depreciated:

Land 17,585,500 $ 744,569 $ - $ 18,330,069 $
Construction in progress 19,034,798 6,401,618 (17,667,278) 7,769,138 Total capital assets, not being depreciated 36,620,298 7,146,187 (17,667,278) 26,099,207 Capital assets, being depreciated:

Buildings and structures 42,529,171 16,873,965 - 59,403,136 Vehicles and equipment 16,485,381 2,810,973 - 19,296,354 Streets and roads 204,176,727 3,937,091 - 208,113,818
Storm drains 16,141,809 - - 16,141,809
Right-to-use lease building 2,346,682 - - 2,346,682
Right-to-use subscription - 87,224 - 87,224
Total capital assets, being depreciated 23,622,029 281,766,994 - 305,389,023 Less accumulated depreciation:

Buildings and structures (27,624,067) (1,316,729) - (28,940,796) Vehicles and equipment (11,685,546) (540,993) - (12,226,539) Streets and roads (176,863,163) (2,753,056) 737,487 (178,878,732) Storm drains (9,787,161) (322,836) - (10,109,997)
Right-to-use lease building (1,184,959) (278,814) - (1,463,773) Right-to-use subscription (38,915) (16,103) - (55,018)
Total accumulated depreciated (5,228,531) (227,183,811) 737,487 (231,674,855) Total capital assets, being depreciated, net 54,583,183 18,393,498 737,487 73,714,168 Governmental activities capital assets, net $ 25,539,685 91,203,481 $ (16,929,791) $ 99,813,375 $ Depreciation and amortization expense was charged to the following governmental activities functions on the Statement of Activities:

Function
General government 505,946 $
Public safety 182,604
Tourism, parks and recreation 1,863,876
Public works/ streets 1,574,290
Transportation and transit 284,055
Airport 433,379
Capital assets held by the internal service funds are charged to the various functions based on usage of the asset 384,381 Total depreciation and amortization expense -
governmental activities $ 5,228,531

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
45 NOTE 8 – LONG-TERM OBLIGATIONS
The following summarizes the change in long-term debt and obligations for the year:

Balance Balance Due Within
June 30, 2023 Additions Reductions June 30, 2024 One Year Governmental Activities:

Net pension liability (CalPERS) 25,394,761 $ 2,338,727 $ (870,252) $ 26,863,236 $ - $ Net pension liability (PARS) 121,456 655,103 (212,271) 564,288 - Net OPEB liability 1,809,275 183,882 (1,109,190) 883,967 - Compensated absences 1,157,318 - (17,776) 1,139,542 569,770 Leases 1,296,694 - (284,724) 1,011,970 300,785
Subscription liability 37,264 - - 37,264 17,701
Direct borrowings and direct placements:

Lease Revenue Bonds Agreement 1,939,000 - (249,000) 1,690,000 258,000 Installment Sales Agreement 2,900,000 - (555,000) 2,345,000 565,000 Taxable Judgment Obligation Bonds 18,725,000 - (1,140,000) 17,585,000 1,175,000 Total Governmental Activities $ 3,177,712 53,380,768 $ (4,438,213) $ 52,120,267 $ 2,886,256 $ A. Lease Revenue Bonds Agreement
In 2015, the Town issued $3,550,000 in Revenue Bonds to refinance existing Certificates of Participation ($1,430,000) and construct a new public safety facility ($2,120,000) which was completed in 2017. Principal and interest payments are due semi-annually on June 1 and December 1. Total annual payments are approximately $315,000, with a fixed interest rate of

3.51% per annum. The debt is scheduled to mature in fiscal year 2029-30. The agreement has a provision that, in the event of default, the purchaser may terminate its obligation to purchase the Corporation’s rights, title and interest under the agreement.

Future debt service requirements are as follows:

Fiscal Years Lease Revenue Bonds
Ending June 30 Principal Interest Total
2025 258,000 $ 57,073 $ 315,073 $
2026 267,000 47,947 314,947
2027 276,000 38,487 314,487
2028 286,000 28,715 314,715
2029 296,000 18,585 314,585
2030 8,108 307,000 315,108
Total $ 1,690,000 198,915 $ 1,888,915 $
B. Installment Sales Agreement
In 2017, the Town entered into an Installment Sales Agreement in the amount of $5,550,000 for phase 1 of a new multiuse facility. Semi-annual interest payments are due April 1, with combined principal and interest payments due October 1.

Total annual payments are approximately $619,000, with a fixed interest rate of 2.23% per annum. The debt is scheduled to mature in fiscal year 2027-28. The agreement has a provision that, whenever any event of default occurs, the lender can exercise any and all remedies available pursuant to law or granted pursuant to the agreement; provided, however, that there shall be no right under any circumstances to accelerate the installment payments or otherwise declare any installment payments not then in default to be immediately due and payable or to terminate the agreement.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
46 NOTE 8 – LONG-TERM OBLIGATIONS (Continued)
B. Installment Sales Agreement
Future debt service requirements are as follows:

Fiscal Years Installment Sales Agreement
Ending June 30 Principal Interest Total
2025 565,000 $ 45,994 $ 610,994 $
2026 580,000 33,227 613,227
2027 595,000 20,126 615,126
2028 6,746 605,000 611,746
Total $ 2,345,000 106,093 $ 2,451,093 $
C. Taxable Judgment Obligation Bonds
The Town was the defendant in litigation with a real estate developer for alleged breach of contract. In 2008, a jury awarded the developer $30 million in damages. In March 2011, the Town lost its appeal of this judgment before the State Supreme Court. In July 2012, the Town filed for a voluntary petition for relief under Chapter 9 of the United States Bankruptcy Code. In November 2012, the Bankruptcy Court dismissed the Town’s Chapter 9 petition after both parties to the litigation reached a settlement and negotiated a $29,500,434 award to be payable over 24 years with interest at 5% per annum, along with other agreements previously entered into. In October 2017, the Town refunded the award by issuing Obligation Bonds at a reduced interest rate which is expected to save the Town in excess of $100,000 per annum.

The agreement has a provision that, in the event of default, any owner may take such actions, by mandamus, suit, action or proceeding, as may be necessary and appropriate to cause the Town to comply with its obligations under the bond agreement.

Future debt service requirements are as follows:

Fiscal Years Taxable Judgment Obligation Bonds
Ending June 30 Principal Interest Total
2025 1,175,000 $ 694,919 $ 1,869,919 $
2026 1,215,000 655,322 1,870,322
2027 1,255,000 612,856 1,867,856
2028 1,300,000 567,331 1,867,331
2029 1,355,000 514,975 1,869,975
2030-2034 7,705,000 1,639,253 9,344,253
2035-2037 3,580,000 158,375 3,738,375
Total $ 4,843,031 17,585,000 $ 22,428,031 $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
47 NOTE 8 – LONG-TERM OBLIGATIONS (Continued)
D. Leases
During 2001, the Town entered into a lease agreement as lessee for a building. The lease term has been extended multiple times. The current lease term is from April 1, 2019 to September 30, 2025 with an option to extend until September 30, 2027. An initial lease liability was recorded in the amount of $2,346,682 for the year the lease was entered. As of June 30, 2024, the value of the lease liability was $1,011,970. The Town is required to make monthly principal and interest payments that range from $26,325 to $31,646. The lease carries an interest rate of 5.5%. The value of the right-to-use asset as of the end of the current fiscal year was $2,346,682 and had accumulated amortization of $1,463,773.

The future principal and interest lease payments as of June 30, 2024, are as follows:

Fiscal Years
Ending June 30 Principal Interest Total
2025 300,785 $ 48,151 $ 348,936 $
2026 317,751 31,185 348,936
2027 335,675 13,261 348,936
2028 57,759 397 58,156
Total 1,011,970 $ 92,994 $ 1,104,964 $
Minaret Village
E. SBITAs as Lessee
In fiscal year 2021, the Town General Fund entered into a five and a half year SBITA arrangement as the lessee to acquire the eScribe software. An initial SBITA liability in the amount of $87,224 was recorded. As of June 30, 2024, the SBITA liability's carrying amount had decreased to $37,264. The Town is obligated to make annual payments for both principal and interest, that range from $16,900 to $20,542. The SBITA carries an interest rate of 5%. The software subscription, corresponding to the SBITA, has a duration of five and a half years. As of the end of the current fiscal year, the right-to-use software was valued at $87,224, with accumulated amortization amounting to $55,018.

The future principal and interest lease payments as of June 30, 2024, are as follows:

Fiscal Years
Ending June 30 Principal Interest Total
2025 17,701 $ 1,863 $ 19,564 $
2026 978 19,563 20,541
Total 37,264 $ 2,841 $ 40,105 $
SBITA

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
48 NOTE 9 – INTERFUND BALANCES
A. Advance To/From
The Town had an outstanding loan from the Internal Service Vehicle Fund to the General Fund, with repayment terms of $340,000 per year amortized over 12 years, zero interest rate. The loan was fully repaid during fiscal year 2024.

B. Current Interfund Receivables/Payables
Current interfund balances represent short-term borrowings resulting from a fund’s temporary need for additional cash.

Primarily, these amounts have been recorded when timing differences between when the services are provided and when they are paid for/reimbursed causes the funds to temporarily overdraw their share of pooled cash. These balances are generally expected to be repaid within the next few months and not longer than a 12- month fiscal operating cycle.

The Town’s interfund receivable and payables consists of the following:
 LTC Planning Transportation and Transit Fund nonmajor special revenue fund has a payable to the General Fund in the amount of $69,018.
 Nonmajor Debt Service Fund has a payable to the General Fund in the amount of $154,237.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
49 NOTE 10 – INTERFUND TRANSFERS
The Town reports interfund transfers between many of its funds. Transfers are used to (1) move revenue from the fund that statute or budget requires to collect them, to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from funds collecting the receipts, to the debt service fund as debt service payments become due, (3) use unrestricted revenue collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and (4) transfers to assessment district maintenance are for street related expenditures. The Town accounts for its capital improvement and construction projects generally through its gas tax and capital project funds. Such expenditures are primarily funded from General Fund revenue, tax revenue, grants and developer impact fees. These transfers are reported in the fiscal period in which the transactions are approved and recorded. The following table reports operating transfers by fund type:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General Fund 8,529,816 $ 20,755,736 $
Capital Projects Fund 2,104,066 -
Housing and Community Development Fund 7,204,494 -
Gas Tax Fund 3,460,139 331,820
Nonmajor Funds:

DIF Admin Overhead 29,266 -
DIF General Facilities - 4,323
DIF Law Enforcement - 166,619
DIF Storm Drains - 3,538
DIF Parks and Recreation - 2,995
DIF MCOE Library - 1,365
DIF Circulation (Streets) - 1,892
DIF MCOE Childcare - 1,071
DIF Fire Facility, Veh. And Eq. - 5,127
DIF Transit and Trails - 7,337
Measure R Trails 550,000 -
Measure R Sales Tax 50,000 1,750,482
Measure U UUT - 715,000
Assessment District Maintenance 567,498 -
LTC Planning Transportation and Transit - 40,000
Airport 1,533,007 -
Debt Service Fund 7,716,390 8,547,229
Internal Service Funds 72,119 661,977
Total $ 32,406,653 32,406,653 $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
50 NOTE 11 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
A. Plan Description
The Town provides retiree medical benefits to employees who retire from the Town at age 50 or later with at least 5 years of service and are eligible for a California Public Employees’ Retirement System (CalPERS) pension (the Plan). Eligible retirees are entitled to the minimum CalPERS medical benefit ($151 per month for 2023 and $157 per month for 2024).

The retiree pays the balance of the premium for the option and tier of coverage, which the retiree elects. The Plan does not include a special disability benefit prior to the employee becoming eligible for the regular retirement benefit. Benefit and vesting service is credited from date of hire. The Plan does not include a death benefit or withdrawal benefit. This benefit expires when the employee/retiree qualifies for Medicare.

B. Employees Covered
As of the June 30, 2023 actuarial valuation, the following current former employees were covered by the benefit terms:

Active employees 87
Inactive employees entitlted to but not yet receiving benefits 34 Inactive employees entitled to but not yet receiving benefits 30 Total 151
C. Net OPEB Liability
The Town's net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023
Reporting Date June 30, 2024
Contribution Policy Town contributes on an ad-hoc basis Actuarial Assumptions:

Actuarial Cost Method Entry Age Normal Level Percentage of Pay Amortization Method Straight-line amortization over a closed 5-year period Discount Rate 5.50%1
Municipal Bond Rate 3.65%
Long-Term Expected Rate of Return on Assets 5.50%
General Inflation 2.50%
Salary Increases
Healthcare Participation for Future Retirees 50% of active employees Medical Trend
Non-Medicare 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076 PEMHCA Minimum Increases 3.50% annually
Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Mortality projected fully genertional with Scale MP-2021 1 Expected Town contributions projected to keep sufficient plan assets to pay all benefits from trust

2.75% wage inflation based on CalPERS 2000-2019 Experience Study

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
51 NOTE 11 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) (Continued) C. Net OPEB Liability (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 50.00% 4.56%
Fixed Income 45.00% 0.78%
Cash 5.00% -50.00%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 5.50%
Total 100.00%
D. Discount Rate
The discount rate used to measure the total OPEB liability is 5.50%. This is the expected long-term rate of return on Town assets using investment Strategy 1 within the California Employers' Retiree Benefit Trust (CERBT). The projection of cash flows used to determine the discount rate assumed that the Town contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position is projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return.

E. Changes in the OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Increase (Decrease)
Balance at June 30, 2023
(Measurement Date June 30, 2022) Total OPEB Liability
OPEB Fiduciary
Net Position
Net OPEB
Liability
Changes recognized for the measurement period: $ 2,238,511 429,236 $ 1,809,275 $ Service cost 115,975 - 115,975
Interest on total the OPEB liability 107,689 - 107,689
Changes in benefit terms - - -
Differences between expected and actual experience 238,217 - 238,217 Changes of assumptions (419,909) - (419,909)
Contributions:

Contributions - employer - 927,498 (927,498)
Contributions - employees - - -
Net investment income (loss) - 44,414 (44,414)
Benefit payments (126,467) (126,467) -
Implicit Rate Subsidy Fulfilled - - -
Administrative expenses - (4,631) 4,631
Net changes 840,814 (84,495) (925,309)
Balance at June 30, 2024
(Measurement Date June 30, 2023) $ 2,154,016 1,270,050 $ 883,966 $ Historically, the OPEB liability for governmental activities has generally been liquidated by the General Fund.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
52 NOTE 11 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) (Continued) F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the Town if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Discount Rate -1% Current Rate Discount Rate +1%

4.5% 5.5% 6.5%
$ 883,967 1,169,653 $ 646,981 $
G. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the net OPEB liability of the Town if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease
Healthcare Cost
Trend Rates 1% Increase
$ 883,967 611,656 $ 1,222,978 $
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the year ended June 30, 2024, the Town recognized an OPEB income of $174,094. At June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to the measurement date 140,936 $ - $ Differences between actual and expected experience 663,911 210,836 Change of assumptions 257,891 1,102,263
Net difference between projected and actual earnings - 34,147 Total $ 1,766,174 643,810 $
The $140,936 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025.

Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Year Ending OPEB
June 30, Expense
2025 (336,967) $
2026 (305,726)
2027 (240,034)
2028 (64,975)
2029 (86,766)
Thereafter (228,832)
Total (1,263,300) $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
53 NOTE 12 – PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing MultipleEmployer Plan (the Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all others). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.

Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The Town sponsors four rate plans (two miscellaneous and two safety.) Benefit provisions under the Plan are established by State statute and Town resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement Law.

The rate plan provisions and benefits in effect at June 30, 2024 are summarized as follows:

Miscellaneous Miscellaneous
1st Tier PEPRA
Hire date Prior to On or after
Benefit formula January 1, 2013 January 1, 2013
Benefit vesting schedule 2.7% @ 55 2% @ 62
Benefit payments 5 years service 5 years service
Retirement age monthly for life monthly for life
Monthly benefits, as a % of annual salary 50 to 60 52 to 67 Required employee contribution rates 2.0% to 3.0% 1.0% to 2.5% Required employer contribution rates 8.000% 7.750%

15.170% 7.680%
Safety
Safety PEPRA
1st Tier Fire and Police
Hire Date Prior to On or after
Benefit formula January 1, 2013 January 1, 2013
Benefit vesting schedule 3% @ 50 2.7% @ 57
Benefit payments 5 years service 5 years service
Retirement age monthly for life monthly for life
Monthly benefits, as a % of annual salary 50-60 52-67
Required employee contribution rates 2.0% to 3.0% 1.0% to 2.5% Required employer contribution rates 9.000% 13.750%

25.650% 13.540%
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability.

The dollar amounts are billed on a monthly basis. The Town’s required contribution for the unfunded liability was $2,104,937 for the fiscal year ended.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
54 NOTE 12 – PENSION PLAN (Continued)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The Town’s contributions to the plan recognized as a part of pension expense for the year ended June 30, 2024 were $3,001,098.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the Town reported a net pension liability for its proportionate share of the net pension liability of the Plan of $26,863,236.

The Town’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The Town’s proportionate share of the net pension liability for the Plan as of the measurement dates ended June 30, 2022 and 2023 was as follows:

Proportion - June 30, 2022 0.5427%
Proportion - June 30, 2023 0.5372%
Change - Increase (Decrease) -0.0055%
For the year ended June 30, 2024, the Town recognized pension expense of $3,433,214. At June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ - 3,088,284 $ Change of assumptions - 1,602,046
Differences between projected and actual experience 196,751 1,592,059 Difference between projected and actual investment earnings - 4,102,838 Change in employer's proportion 1,529,662 -
Differences between the employer's actual contribuƟons and the employer's proportionate share of contributions 471,830 226,639 Total 10,857,057 $ 1,953,052 $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
55 NOTE 12 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) $3,088,284 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending
June 30,
2025 1,427,053 $
2026 1,025,101
2027 3,246,887
2028 116,680
2029 -
Therafter -
Total 5,815,721 $
Historically, the pension liability for governmental activities has generally been liquidated by the General Fund.

C. Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Assumptions:

Actuarial Cost Method Entry- Age Normal Cost Method
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%(1)
Mortality Rate Table
Derived using CalPERS' Membership
Data for all Funds(2)
(1) Net of pension plan investment expenses, including inflation. (2) The mortality table was developed based on CalPERS specific data.

The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
56 NOTE 12 – PENSION PLAN (Continued)
C. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

New Strategic
Asset Class(a) Allocation Real Return(a,b)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
57 NOTE 12 – PENSION PLAN (Continued)
C. Discount Rate (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Town’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate -1% Current Rate Discount Rate +1%

5.90% 6.90% 7.90%
$ 26,863,236 38,608,113 $ 17,219,808 $
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

F. Payable to the Pension Plan
The Town did not have any outstanding contributions payable to the pension plan as of June 30, 2024.

NOTE 13 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN
A. Overview of the Plan
All eligible full-time public safety employees are eligible to participate in the Town’s Retirement Enhancement Plan (the Plan), administered through the Public Agency Retirement Services (PARS), which provides additional retirement benefits to public safety employees above that provided from the cost-sharing multiple-employer defined benefit pension plan.

Eligibility requirements are based upon years of employment, date of hire, and date of birth which meets the requirements of a pension trust under California Government Code. Additional information concerning this singleemployer defined benefit pension plan can be obtained from the Town’s Finance Director.

B. Benefits Provided
PARS provides service retirement benefits equal to the “3.5% at 55” plan factor less the CalPERS “3.0% at 50” plan factor for all years of Town Safety service as of July 1, 2012. Benefits are frozen effective as of July 1, 2012. Benefits in payment status will increase by 2% per annum on the anniversary of the participant’s date of retirement. The plan does not provide a withdrawal benefit, death benefit, or a disability benefit.

C. Contribution Description
The Town makes contributions required as the employer. Employee members are not required to make contributions.

The contribution requirements of the plan are established and may be amended by PARS. California Public Employees’ Retirement Law Section 20814(c) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by PARS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the plan are made in accordance with the contribution requirements determined by the actuarial valuation of the plan.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
58 NOTE 13 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN (Continued) D. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The following actuarial methods and assumptions were used in the funding valuation:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Reporting Date June 30, 2024
Actuarial Assumptions:

Actuarial Cost Method Entry-Age Normal, Level of Percentage of Salary Amortization Method Straight-line amortization over a closed 5-year period Discount Rate 5.01%
General Inflation 2.30%
Expected Return on Assets 5.75%
Mortality CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality project fully generational with Scale MP-2021 Salary Increases Aggregate - 2.80% annually
Merit - CalPERS 2000-2019 Experience Study
E. Funded Status
Total Pension Liability 2,651,358 $
Plan Fiduciary Net Position (plan assets owned) 2,087,070 Net Pension Liability $ 564,288
Pension plan expense for the year $ 535,405
F. Covered Employees
Inactive employees or beneficiaries currently receiving benefits 14 Inactive employees entitled to but not yet receiving benefits - Active employees 1
Total 15
G. Discount Rate
The discount rate used to measure the total pension liability was 5.01%, which is the long-term expected rate of return on pension plan investments. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2024.

GASB 68 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the Trust set aside to pay benefits, if the plan sponsor makes regular contributions to the Trust such that the assets are not depleted at any point in the future. If the Plans' actuary determines that contributions are not sufficient to keep the Trust funded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax-exempt municipal bonds will be used for the periods when the Trust funds are not sufficient to cover benefit payments. Based on this requirement, and with the approval of the plan sponsor, the discount rate used to measure the total pension liability is 5.01%.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
59 NOTE 13 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN (Continued) G. Discount Rate (Continued)
Target Expected Real
Allocation Rate of Return
Asset Class Component
Global Equity 60.00% 4.56%
Fixed Income 35.00% 0.78%
Cash 5% -0.50%
100.00%
Asset Class
H. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of Town’s Retirement Enhancement Plan, calculated using the discount rate as well as what the Town’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:
$ 890,777 564,288 $ 292,520 $
Discount Rate -1% Current Rate Discount Rate +1%

4.01% 5.01% 6.01%
I. Deferred Outflows/Inflows of Resources Related to Pensions The Town reported deferred outflows of resources and deferred inflows of resources related to this pension plan from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date - $ - $ Difference between economic/demographic gains or losses and assumption changes or inputs - -
Differences between projected and actual earnings - 18,813 Total $ - 18,813 $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
60 NOTE 13 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN (Continued) J. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate Recognition of deferred outflows and inflows of resources in future pension expense is as follows:

Year Ending
June 30
2024 (4,695) $
2025 62,471
2026 (22,092)
2027 (16,871)
2028 -
Total 18,813 $
K. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued PARS financial reports.

L. Payable to the Pension Plan
The Town did not have any outstanding contributions payable to the pension plan as of June 30, 2024.

NOTE 14 – RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The Town is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
61 NOTE 14 – RISK MANAGEMENT (Continued)
C. Primary Self-Insurance Programs of the Authority (Continued) Primary Liability Program (Continued)
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled selfinsurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2023-24 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

D. Purchased Insurance
Pollution Legal Liability Insurance
The Town of Mammoth Lakes participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the Town of Mammoth Lakes. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The Town of Mammoth Lakes participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. Town of Mammoth Lakes property is currently insured according to a schedule of covered property submitted by the Town of Mammoth Lakes to the Authority. Town of Mammoth Lakes property currently has all-risk property insurance protection in the amount of $77,164,104. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The Town of Mammoth Lakes purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. Town of Mammoth Lakes property currently has earthquake protection in the amount of $27,547,465. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
62 NOTE 14 – RISK MANAGEMENT (Continued)
E. Purchased Insurance (Continued)
Crime Insurance
The Town of Mammoth Lakes purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible.

The fidelity coverage is provided through the Authority.

Special Event Tenant User Liability Insurance
The Town of Mammoth Lakes further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the Town of Mammoth Lakes according to a schedule. The Town of Mammoth Lakes then pays for the insurance. The insurance is facilitated by the Authority.

F. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24.

NOTE 15 – COMMITMENTS AND CONTINGENCIES
In the normal course of municipal operations, there are various legal claims and legal actions pending against the Town for which no provision has been made in the financial statements because the amount of liability, if any, is unknown. In the opinion of the Town attorney, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.

The Town participates in various state and federal grant programs for specific purposes that are subject to review and audit by the grantor agencies. Accordingly, the government’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the government anticipates such amounts, if any, will be immaterial.

NOTE 16 – RESTATEMENT OF NET POSITION
During the current fiscal year, the Town changed the accounting principle related to housing loans to improve the understandability and relevance of the financial statements. The housing loans are not expected to be repaid unless the awardee is out of compliance. The beginning net position of the fund identified below has been restated to reflect the change in accounting principle:

Governmental
Activities
Net position, June 30, 2023, as previously reported $ 138,691,677 Change in accounting principle:

Housing loans (11,481,284)
Net position, July 1, 2023, as restated $ 127,210,393
Description

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Notes to the Basic Financial Statements
63 NOTE 17 – SUBSEQUENT FOOTNOTE
Subsequent to the current fiscal year, the Town obtained a bond for approximately $29,670,000 to construct and equip a new town hall facility.

64 REQUIRED SUPPLEMENTARY INFORMATION

65 PENSION PLANS

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Pension Plans
– Cost-Sharing Multiple-Employer Plan
Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions Last Ten Fiscal Years* 66 2024 2023 2022 2021 2020 2019 2018 2017 2016
Town's proportion of the net pension liability 0.5372% 0.5427% 0.8122% 0.5470% 0.5477% 0.5530% 0.5393% 0.5481% 0.2314% Town's proportionate share of the net pension liability 26, $ 863,236 $ 25,394,761 $ 23,071,697 15,421,438 $ 21,932,805 $ 20,842,273 $ 21,259,879 $ 19,039,905 $ 15,881,436 $ Total covered payroll** 7,048,168 $ $ 6,495,446 $ 5,862,517 6,701,933 $ 5,620,984 $ 5,296,220 $ 4,927,404 $ 4,617,105 $ 4,845,793 $ Town's proportionate share of the net pension liability as a percentage of its covered- employee payroll 381.14% 390.96% 230.10% 393.55% 390.20% 393.53% 431.46% 412.38% 327.74%Plan fiduciary net pension as a percentage of the total pension liability 68.91% 68.93% 79.59% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required employer obligation 3,088,284 $ 3,001,098 $ 2,736,606 $ 2,698,794 $ 2,294,971 $ 2,125,168 $ 1,886,543 $ 1,773,473 $ 1,595,253 $ 1,132,342 $ Contributions in relation to the contractually required employer contribution 3,088,284 3,001,098 2,736,606 2,698,794 2,294,971 2,125,168 1,886,543 1,773,473 1,595,253 1,132,342 Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total covered payroll*** 7,711,359 $ 7,048,168 $ 6,495,446 $ 6,701,933 $ 5,862,517 $ 5,620,984 $ 5,296,220 $ 4,927,404 $ 4,617,105 $ 4,845,793 $ Plan fiduciary net pension as a percentage of the total pension liability 40.05% 42.58% 42.13% 40.27% 39.15% 37.81% 35.62% 35.99% 34.55% 0.233675273 NOTES TO THE SCHEDULEChanges of Assumptions - None
*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.Changes in Benefit Terms - In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact from this change is deemed to be immaterial and is included in Differences Between Expected and Actual Experience Report Date - Fiscal Year Ended June 30
Schedule of the Town's ProportionateShare of the Plan's Net Pension LiabilitySchedule of the Town's Contributions Measurement Date - Fiscal Year Ending June 30
*Fiscal year 2015 was the first year of implementation, therefore only nine years are shown **For the measurement date fiscal year ***For the fiscal year ended on the date shown

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Pension Plans – Cost-Sharing Multiple-Employer Plan
Notes to the Proportionate Share of Net Pension Liability and Schedule of Contributions 67 NOTE 1 – SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY The proportion (percentage) of the collective net pension liability represents the Town’s share of both cost-sharing plan assets (the miscellaneous and safety plans) offset against the actuarial determined collective pension liability.

The proportionate share (dollar amount) of the collective net pension liability represents the Town’s share of both costsharing plan assets offset against the actuarial determined collective pension liability.

The employer’s covered-employee payroll represents the payroll of employees that are provided with pensions through the applicable miscellaneous or safety pension plan.

NOTE 2 – SCHEDULE OF CONTRIBUTIONS
The employer’s contributions to the plans are actuarially determined or based on statutory or contractual requirements which comprise the following: (1) the agent employer’s actuarially determined contribution to the pension plan (its statutorily/contractually required contribution), (2) the employer’s actual contributions, the difference between the actual and actuarially determined contributions (its statutorily/contractually required contributions), and (3) a ratio of the actual contributions divided by covered-employee payroll.

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Pension Plans
– Single-Employer Defined Benefit Pension Plan
Schedule of Changes in Net Pension Liability and Related Ratios *Last Ten Fiscal Years 68 2024 2023 2022 2021 2020 2019 2018 2017 2016
Total Pension LiabilityService cost $ 163 203 $ 163 $ 2,462 $ 2,462 $ - $ - $ - $ - $ Interest on total pension liability 134,856 135,921 134,819 134,652 134,166 137,832 134,711 132,879 124,394 Differences - expected/actual experience 18,297 - - 26,940 - (97,782) 61,461 54,634 - Change of assumptions (118,730) 518,979 - 65,932 - 25,909 118,450 38,254 - Changes in benefit terms - - - - - - - - -
Benefit payments (135,710) (138,424) (133,049) (130,440) (127,882) (121,755) (113,479) (100,131) (92,141) Net change in total pension liability (101,124) 516,679 1,933 99,546 8,746 (55,796) 201,143 125,636 32,253Total pension liability - beginning 2,134,679 2,235,803 2,233,870 2,134,324 2,125,578 2,181,374 1,980,231 1,854,595 1,822,342 Total pension liability - ending (a) $ 2,651,358 2,134,679 $ 2,235,803 $ 2,233,870 $ 2,134,324 $ 2,125,578 $ 2,181,374 $ 1,980,231 $ 1,854,595 $ Plan Fiduciary New Position (plan assets)Contributions - employer $ 22,240 - $ 39,928 $ 43,006 $ 38,821 $ 35,084 $ 42,826 $ 26,458 $ 54,775 $ Other additions - - - - - 33,398 - - -
Net investment income 146,055 212,271 (278,597) 462,928 64,573 119,296 186,638 18,860 41,942 Benefit payments (135,710) (138,424) (133,049) (130,440) (127,882) (121,755) (113,280) (99,751) (100,071) Administration expenses (8,713) - (8,660) (8,478) (8,169) (8,088) (8,060) (8,056) - Net change in plan fiduciary net position 23,872 73,847 (380,378) 367,016 (32,657) 57,935 108,124 (62,489) (3,354) Plan fiduciary net position - beginning 2,013,223 1,989,351 2,369,729 2,002,713 2,035,370 1,977,435 1,869,311 1,931,800 1,935,154 Plan fiduciary net position - ending (b) $ 2,087,070 2,013,223 $ 1,989,351 $ 2,369,729 $ 2,002,713 $ 2,035,370 $ 1,977,435 $ 1,869,311 $ 1,931,800 $ Net pension liability (asset) - ending (a) - (b) $ 121,456 564,288 $ 246,452 $ (135,859) $ 131,611 $ 90,208 $ 203,939 $ 110,920 $ (77,205) $ Plan fiduciary net position as a percentage of the total pension liability 78.72% 94.31% 88.98% 106.08% 93.83% 95.76% 90.65% 94.40% 104.16%Covered employee payroll $ 102,885 138,030 $ 146,487 $ 250,623 $ 274,724 $ 297,013 $ 808,659 $ 785,106 $ 1,239,392 $ Net pension liability (asset) as percentage of
covered employee payroll 408.82% 118.05% 168.24% -54.21% 47.91% 30.37% 25.22% 14.13% -6.23%Schedule of Town ContributionsActuarially determined employer contributions $ - 37,631 $ 27,840 $ 27,840 $ 50,645 $ 50,645 $ 3,010 $ 6,555 $ 10,369 $ Actual employer contributions - 22,240 39,928 43,006 38,821 35,084 42,826 26,458 54,775 Contribution excess (deficiency) $ 22,240 (37,631) $ 12,088 $ 15,166 $ (11,824) $ (15,561) $ 39,816 $ 19,903 $ 44,406 $ Town's covered-employee payroll $ 102,885 138,030 $ 146,487 $ 250,623 $ 274,724 $ 297,013 $ 808,659 $ 785,106 $ 1,239,392 $ Contributions as a percentage of
covered-employee payroll 0.00% 21.62% 27.26% 17.16% 14.13% 11.81% 5.30% 3.37% 4.42%Schedule of Changes in the Net PensionLiability and Related Ratios Report Date - Fiscal Year Ended June 30
*The most recent pension plan report was completed with fiscal year data 6/30/2024 valuation data.

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Pension Plans – Single-Employer Defined Benefit Pension Plan Notes to the Schedule of Changes in Net Pension Liability and Related Ratios 69 NOTE 1 – SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS The beginning and ending balances of the total pension liability, the plan fiduciary net position available for pension benefits, and the net pension liability, as well as the change in those amounts during the year are presented on the following page.

Total pension liability, plan fiduciary net position, net pension liability, a ratio of plan net position divided by the total pension liability, payroll amount for current employees in the plan (covered-employee payroll), and a ratio of the net pension liability divided by covered-employee payroll are also presented.

NOTE 2 – SCHEDULE OF CONTRIBUTIONS
When an employer’s contributions to the plan are actuarially determined or based on statutory or contractual requirements: the employer’s actuarially determined contribution to the pension plan (or, if applicable, its statutorily or contractually required contribution), the employer’s actual contributions, the difference between the actual and actuarially determined contributions (or statutorily or contractually required), and a ratio of the actual contributions divided by covered-employee payroll are required to be presented.

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Pension Plans – Retiree Healthcare Plan (OPEB)
Schedule of Changes in Net OPEB Liability and Related Ratios Last 6 Fiscal Years*
70 2024 2023 2022 2021 2020 2019 2018
2023 2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost $ 210,883 115,975 $ 128,263 $ 107,427 $ 151,476 $ 148,580 $ 167,398 $ Interest on the total OPEB liability 70,612 107,689 89,497 96,291 163,159 157,363 137,748 Change of benefit terms - - - - - - -
Differences - expected/actual experience (11,999) 238,217 (89,635) (1,360) (1,669,385) - - Change of assumptions (763,999) (419,909) 252,355 205,888 (277,785) (25,531) (358,937) Contribution from the employer - - - - (190,668) (182,831) - Benefit payments (121,075) (126,467) (138,244) (133,047) - - (178,946) Net change in total OPEB liability (615,578) (84,495) 242,236 275,199 (1,823,203) 97,581 (232,737) Total OPEB liability - beginning 2,238,511 2,854,089 2,611,853 2,336,654 4,159,857 4,062,276 4,295,013 Total OPEB liability - ending (a) $ 2,154,016 2,238,511 $ 2,854,089 $ 2,611,853 $ 2,336,654 $ 4,159,857 $ 4,062,276 $ Plan Fiduciary New Position
Contributions - employer $ 121,075 927,498 $ 138,244 $ 133,047 $ 190,668 $ 182,831 $ 178,946 $ Net investment income (54,140) 44,414 80,563 18,762 25,184 21,380 30,084 Benefit payments (121,075) (126,467) (138,244) (133,047) (190,668) (182,831) (178,946) Administration expenses (4,631) (5,261) (5,116) (4,939) (4,712) (4,859) (4,865) Net change in plan fiduciary net position (59,401) 840,814 75,447 13,823 20,472 16,521 25,219 Plan fiduciary net position - beginning 429,236 488,637 413,190 399,367 378,895 362,374 337,155 Plan fiduciary net position - ending (b) $ 1,270,050 429,236 $ 488,637 $ 413,190 $ 399,367 $ 378,895 $ 362,374 $ Net OPEB liability (asset) - ending (a) - (b) $ 1,809,275 883,966 $ 2,365,452 $ 2,198,663 $ 1,937,287 $ 3,780,962 $ 3,699,902 $ Plan fiduciary net position as a percentage
of the total OPEB liability 58.96% 19.18% 17.12% 15.82% 17.09% 9.11% 8.92% Covered employee payroll 8,823,254 $ 6,353,650 $ 6,116,700 $ 6,710,147 $ 6,818,242 $ 5,679,402 $ 4,742,733 $ Net OPEB liability as percentage of
covered employee payroll 10.02% 28.48% 38.67% 32.77% 28.41% 66.57% 78.01% Schedule of Town Contributions
Actuarially determined employer contributions - $ - $ - $ 27,840 $ 50,645 $ 50,645 $ 3,010 $ Actual employer contributions - - - 43,006 38,821 35,084 42,826 Contribution excess (deficiency) - $ - $ - $ 70,846 $ 89,466 $ 85,729 $ 45,836 $ Town's covered-employee payroll 8,823,254 $ 6,353,650 $ 6,116,700 $ 6,710,147 $ 6,818,242 $ 5,679,402 $ 4,742,733 $ Contributions as a percentage of
covered-employee payroll 0% 0% 0% 33% 28% 67% 78%

NOTES TO THE SCHEDULE
Changes in Benefit Terms - None
Changes of Assumptions
- Long-term expected rate of return on assets was updated - Discount rate was updated based on municipal bond rate as of the measurement date and crossover test - Updated medical trend rates and PEMHCA minimum increase - Mortality improvement scale was updated to Scale MP-2021 - Municipal bond index was updated to Bond Buyer 20-Bond Index *Schedule is intended to show information for ten years. Additional years will be displayed as they become available.

For Reporting at Fiscal Year Ended June 30:

Measurement Date -- Fiscal Year Ended June 30:

71 BUDGETARY COMPARISON SCHEDULES

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Budgetary Comparison Schedule
General Fund
The notes to the budgetary comparison schedule are an integral part of this schedule. 72 Budget Amounts Variance with
Original Final Actual Final Budget

REVENUES
Taxes and assessments $ 38,473,400 27,454,000 $ 39,027,929 $ 554,529 $ Licenses and permits 1,619,600 823,800 1,734,315 114,715 Intergovernmental 235,200 239,800 1,137,454 902,254
Charges for services 1,881,665 1,351,365 1,797,674 (83,991) Fines and forfeitures 124,600 112,200 134,901 10,301
Use of money and property 1,452,000 120,000 1,661,264 209,264 Insurance recovery 471,100 - 1,707,591 1,236,491
Other revenue 377,124 409,024 - (377,124)
Total revenues 30,510,189 44,634,689 47,201,128 2,566,439

EXPENDITURES
Current:

General government 5,832,091 5,811,941 5,679,882 152,209 Public safety 5,408,545 5,716,289 5,495,161 (86,616)
Tourism, parks and recreation 5,052,624 4,680,304 4,766,001 286,623 Community development 3,224,516 2,877,556 3,220,305 4,211 Public works/streets 1,991,408 1,804,008 1,940,013 51,395 Transportation and transit 1,080,020 1,080,020 1,093,815 (13,795) Community support 247,690 - 1,885,857 (1,638,167)
Total expenditures 21,970,118 22,836,894 24,081,034 (1,244,140) Excess (deficiency) of revenues over
(under) expenditures 21,797,795 8,540,071 23,120,094 1,322,299

OTHER FINANCING SOURCES (USES)
Transfers in 576,000 440,000 8,529,816 7,953,816
Transfers out (21,813,147) (8,583,681) (20,755,736) 1,057,411 Total other financing sources (uses) (21,237,147) (8,143,681) (12,225,920) 9,011,227 Net change in fund balances $ 560,648 396,390 $ 10,894,174 10,333,526 $ Fund balances - beginning 16,886,888
Fund balances - ending $ 27,781,062

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Budgetary Comparison Schedule
Tourism Business Improvement District Fund
The notes to the budgetary comparison schedule are an integral part of this schedule. 73 Budget Amounts Variance with
Original Final Actual Final Budget

REVENUES
Taxes and assessments 6,668,250 $ 6,668,250 $ 6,758,756 $ 90,506 $ Use of money and property - - 30,308 30,308
Total revenues 6,668,250 6,668,250 6,789,064 120,814

EXPENDITURES
Current:

Tourism, parks and recreation 6,668,250 6,668,250 6,795,414 (127,164) Total expenditures 6,668,250 6,668,250 6,795,414 (127,164) Excess (deficiency) of revenues
over (under) expenditures - - (6,350) (6,350)
Net change in fund balances $ - - $ (6,350) $ (6,350)
Fund balances - beginning 11,008
Fund balances - ending $ 4,658

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Budgetary Comparison Schedule
Housing and Community Development Fund
The notes to the budgetary comparison schedule are an integral part of this schedule. 74 Budget Amounts Variance with
Original Final Actual Final Budget

REVENUES
Taxes and assessments $ 203,000 203,000 $ 352,608 $ 149,608 $ Intergovernmental 15,000 15,000 698,215 683,215
Use of money and property 8,000 8,000 650,204 642,204
Other revenue 150,000 150,000 543,989 393,989
Total revenues 376,000 376,000 2,245,016 1,869,016

EXPENDITURES
Current:

Community development 5,335,000 5,685,000 9,282,699 (3,597,699) Total expenditures 5,685,000 5,335,000 9,282,699 (3,597,699) Excess (deficiency) of revenues over
(under) expenditures (5,309,000) (4,959,000) (7,037,683) (1,728,683)

OTHER FINANCING SOURCES (USES)
Transfers in 1,454,494 7,204,494 7,204,494 -
Total other financing sources (uses) 1,454,494 7,204,494 7,204,494 - Net change in fund balances $ 1,895,494 (3,504,506) $ 166,811 (1,728,683) $ Fund balances - beginning 13,959,460
Fund balances - ending $ 14,126,271

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Budgetary Comparison Schedule
Gas Tax Fund
The notes to the budgetary comparison schedule are an integral part of this schedule. 75 Budget Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 2,815,233 2,818,033 $ 2,139,726 $ (675,507) $ Charges for services 69,800 10,000 123,097 53,297
Use of money and property 115,200 - 115,163 (37)
Other 100 13,000 57 (43)
Total revenues 2,841,033 3,000,333 2,378,043 (622,290)

EXPENDITURES
Current:

Public works/streets 5,150,862 6,085,662 5,508,532 577,130 Total expenditures 5,150,862 6,085,662 5,508,532 577,130 Excess (deficiency) of revenues over
(under) expenditures (3,085,329) (2,309,829) (3,130,489) (45,160)

OTHER FINANCING SOURCES (USES)
Transfers in 3,448,020 2,672,520 3,460,139 12,119
Transfers out (466,999) (466,999) (331,820) 135,179
Total other financing sources (uses) 2,205,521 2,981,021 3,128,319 147,298 Net change in fund balances $ (104,308) (104,308) $ (2,170) 102,138 $ Fund balances - beginning 2,425,009
Fund balances - ending $ 2,422,839

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Notes to the Budgetary Comparison Schedules
76 NOTE 1 – BUDGETARY DATA
The Town follows these procedures in establishing the budgetary data reflected in the financial statements:
 Prior to the close of each fiscal year, the Town Manager submits to the Town Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed revenue and expenditures.
 Public hearings are conducted at Town Council meetings to obtain taxpayer comments prior to adoption of the budget in June.
 Prior to July 1, the budget is legally adopted for all governmental fund types through a Council-approved budget.  The Town Manager is authorized to transfer budget amounts within and between funds as deemed desirable and necessary in order to meet the Town’s needs; however, revisions that alter the total expenditures must be approved by the Town Council. Formal budgetary integration is employed as a management control device during the year for the governmental type funds.
 Budgets for the governmental type funds are adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts presented are as originally adopted and as further amended by the Town Council.

NOTE 2 – EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of June 30, 2024, expenditures exceeded appropriations in individual funds as follows:

Excess
Expenditures
General Fund:

Public safety $ 86,616
Transportation and transit 13,795
Community support 1,638,167
Tourism Business Improvement District Fund:

Tourism, parks and recreation 127,164
Housing and Community Development Fund
Community development 3,597,699
Appropriations Category

77 SUPPLEMENTARY INFORMATION

78 COMBINING FUND FINANCIAL STATEMENTS

79 NONMAJOR GOVERNMENTAL FUNDS
Capital Project Funds are used to account for all financial resources that are restricted, committed or assigned to expenditure for capital outlays.

Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes.

Debt Service Funds are used to account for the accumulation of resources for, and the repayment of, general long-term debt obligation payments for principal, interest and related costs.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Nonmajor Governmental Funds Combining Balance Sheet
80 DIF DIF DIF DIF DIF DIF
Admin General Law Storm Parks and Circulation
Overhead Facilities Enforcement Drains Recreation (Streets) ASSETS
Cash and investments 169,351 $ 393,517 $ 10,010 $ 342,432 $ 293,878 $ 150,841 $ Restricted cash and investments - - - - - -
Receivables - - - - - -
Inventory - - - - - -
Lease receivable - - - - - -
Total assets $ 169,351 393,517 $ 10,010 $ 342,432 $ 293,878 $ 150,841 $

LIABILITIES
Payables $ - - $ - $ - $ - $ - $
Accrued salaries and benefits - - - - - -
Due to other funds - - - - - -
Total liabilities - - - - - -

DEFERRED INFLOWS OF RESOURCES
Lease related - - - - - -
Total deferred inflows of resources - - - - - -

FUND BALANCES
Nonspendable - - - - - -
Restricted:

Public safety - - 10,010 - - -
Community development - - - - - -
Public works 169,351 393,517 - 342,432 - -
Tourism, parks and recreation - - - - 293,878 -
Transportation and transit - - - - - 150,841
Airport - - - - - -
Assigned:

Debt service - - - - - -
Unassigned - - - - - -
Total fund balances (deficit) 393,517 169,351 10,010 342,432 293,878 150,841 Total liabilities, deferred inflows of
resources and fund balances $ 169,351 393,517 $ 10,010 $ 342,432 $ 293,878 $ 150,841 $ Capital Projects Funds

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Nonmajor Governmental Funds Combining Balance Sheet (Continued) 81 DIF Public DIF
Airport Arts Transit Total Capital
Improvement Program and Trails Project Funds
ASSETS
Cash and investments 15,710 $ 70,745 $ 733,286 $ 2,179,770 $ Restricted cash and investments - - - -
Receivables - - - -Inventory - - - -Lease receivable - - - - Total assets $ 70,745 15,710 $ 733,286 $ 2,179,770 $

LIABILITIES
Payables $ - - $ - $ - $ Accrued salaries and benefits - - - -Due to other funds - - - - Total liabilities - - - -

DEFERRED INFLOWS OF RESOURCES
Lease related - - - -
Total deferred inflows of resources - - - -

FUND BALANCES
Nonspendable - - - -Restricted:

Public safety - - - 10,010Community development - - - -Public works - 70,745 - 976,045Tourism, parks and recreation - - 733,286 1,027,164Transportation and transit - - - 150,841Airport - 15,710 - 15,710 Assigned:

Debt service - - - -
Unassigned - - - -
Total fund balances (deficit) 70,745 15,710 733,286 2,179,770 Total liabilities, deferred inflows of
resources and fund balances $ 70,745 15,710 $ 733,286 $ 2,179,770 $ Capital Projects Funds

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Nonmajor Governmental Funds Combining Balance Sheet (Continued) 82 Special Revenue Funds
Solid Measure Measure Measure Assessment
Waste R R U District
Fund Trails Sales Tax UUT Maintenance
ASSETS
Cash and investments 1,056,863 $ 847,536 $ 2,587,753 $ 3,310,517 $ 2,429,425 $ Restricted cash and investments - - - - -Receivables 33,511 174 585,241 125,423 5,483Inventory - - - - -Lease receivable - 182,694 - - - Total assets 1,273,068 $ 847,710 $ 3,172,994 $ 3,435,940 $ 2,434,908 $

LIABILITIES
Payables - $ - $ - $ 42,500 $ 1,832 $ Accrued salaries and benefits 4,738 122 - - 4,279Due to other funds - - - - - Total liabilities 122 4,738 - 42,500 6,111

DEFERRED INFLOWS OF RESOURCES
Lease related - 179,251 - - -
Total deferred inflows of resources - 179,251 - - -

FUND BALANCES
Nonspendable - - - - -Restricted:

Public safety - - - - -Community development - 1,093,695 - - -Public works - - - - 2,428,797Tourism, parks and recreation 842,972 - 3,172,994 3,393,440 -Transportation and transit - - - - -Airport - - - - - Assigned:

Debt service - - - - -
Unassigned - - - - -
Total fund balances (deficit) 1,093,695 842,972 3,172,994 3,393,440 2,428,797 Total liabilities, deferred inflows of
resources and fund balances $ 1,273,068 847,710 $ 3,172,994 $ 3,435,940 $ 2,434,908 $

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Nonmajor Governmental Funds Combining Balance Sheet (Continued) 83 Special Revenue Funds
LTC Planning DIF DIF DIF Total Nonmajor
Transportation MCOE MCOE Fire Facility, Total Special Total Capital Debt Service Governmental and Transit Airport Library Childcare Veh. and Eq. Revenue Funds Projects Funds Fund Funds ASSETS
Cash and investments - $ 2,089,336 $ 308,359 $ 9,146 $ 71,250 $ 12,710,185 $ 2,179,770 $ - $ 14,889,955 $ Restricted cash and investments - - - - - - - 2,088,278 2,088,278 Receivables 205,713 241,901 - - - 1,197,446 - 11,322 1,208,768Inventory - 9,320 - - - 9,320 - - 9,320Lease receivable - - - - - 182,694 - - 182,694 Total assets 205,713 $ 2,340,557 $ 308,359 $ 9,146 $ 71,250 $ 14,099,645 $ 2,179,770 $ 2,099,600 $ 18,379,015 $

LIABILITIES
Payables - $ 3,982 $ - $ - $ - $ 48,314 $ - $ - $ 48,314 $ Accrued salaries and benefits 5,364 94 - - - 14,597 - - 14,597Due to other funds - 69,018 - - - 69,018 - 154,327 223,345 Total liabilities 69,112 9,346 - - - 131,929 - 154,327 286,256

DEFERRED INFLOWS OF RESOURCES
Lease related - - - - - 179,251 - - 179,251
Total deferred inflows of resources - - - - - 179,251 - - 179,251

FUND BALANCES
Nonspendable 9,320 - - - - 9,320 - - 9,320
Restricted:

Public safety - - - - 71,250 71,250 10,010 - 81,260
Community development - - - - - 1,093,695 - - 1,093,695 Public works 136,601 - 308,359 9,146 - 2,882,903 976,045 - 3,858,948 Tourism, parks and recreation - - - - - 7,409,406 1,027,164 - 8,436,570 Transportation and transit - - - - - - 150,841 - 150,841 Airport 2,321,891 - - - - 2,321,891 15,710 - 2,337,601
Assigned:

Debt service - - - - - - - 1,945,273 1,945,273
Unassigned - - - - - - - - -
Total fund balances (deficit) 2,331,211 136,601 308,359 9,146 71,250 13,788,465 2,179,770 1,945,273 17,913,508 Total liabilities, deferred inflows of
resources and fund balances $ 2,340,557 205,713 $ 308,359 $ 9,146 $ 71,250 $ 14,099,645 $ 2,179,770 $ 2,099,600 $ 18,379,015 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances 84 DIF DIF DIF DIF DIF DIF
Admin General Law Storm Parks and Circulation
Overhead Facilities Enforcement Drains Recreation (Streets)

REVENUES
Taxes and assessments - $ - $ - $ - $ - $ - $
Licenses and permits - 108,072 40,466 88,441 74,879 47,298 Intergovernmental - - - - - -
Charge for services - - - - - -
Use of money and property 5,910 14,116 6,990 12,380 10,571 5,424 Other revenue - - - - - -
Total revenues 122,188 5,910 47,456 100,821 85,450 52,722 EXPENDITURESCurrent:

Tourism, parks and recreation - - - - - -
Community development - - - - - -
Public works/streets - - - - - -
Airport - - - - - -
Capital outlay - - - - - -
Debt service - - - - - -
Total expenditures - - - - - -
Excess (deficiency) of revenues over (under) expenditures 122,188 5,910 47,456 100,821 85,450 52,722

OTHER FINANCING SOURCES (USES)
Transfers in - 29,266 - - - -
Transfers out (4,323) - (166,619) (3,538) (2,995) (1,892) Total other financing sources (uses) (4,323) 29,266 (166,619) (3,538) (2,995) (1,892) Net change in fund balances 117,865 35,176 (119,163) 97,283 82,455 50,830 Fund balances (deficit) - beginning 134,175 275,652 129,173 245,149 211,423 100,011 Fund balances (deficit) - ending 169,351 $ 393,517 $ 10,010 $ 342,432 $ 293,878 $ 150,841 $ Capital Projects Funds

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 85 DIF Public DIF
Airport Arts Transit Total Capital
Improvement Program and Trails Projects Funds

REVENUES
Taxes and assessments - $ - $ - $ - $
Licenses and permits - - 183,431 542,587Intergovernmental - - - -Charge for services - - - -Use of money and property 674 3,037 27,575 86,677Other revenue - - - - Total revenues 3,037 674 211,006 629,264
EXPENDITURESCurrent:

Tourism, parks and recreation - - - -
Community development - - - -Public works/streets - - - -Airport - - - - Capital outlay - - - -Debt service - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures 3,037 674 211,006 629,264

OTHER FINANCING SOURCES (USES)
Transfers in - - - 29,266
Transfers out - - (7,337) (186,704)
Total other financing sources (uses) - - (7,337) (157,438) Net change in fund balances 3,037 674 203,669 471,826
Fund balances (deficit) - beginning 15,036 67,708 529,617 1,707,944 Fund balances (deficit) - ending 15,710 $ 70,745 $ 733,286 $ 2,179,770 $ Capital Projects Funds

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 86 Special Revenue Funds
Solid Measure Measure Measure Assessment
Waste R R U District
Fund Trails Sales Tax UUT Maintenance

REVENUES
Taxes and assessments 134,128 $ - $ 2,189,571 $ 1,287,687 $ 877,636 $ Licenses and permits - - - - 362,569Intergovernmental 210,352 - - - -Charge for services - - - - -Use of money and property 42,929 39,831 155,545 221,683 68,136Other revenue - 11,031 349,747 13,074 110,475 Total revenues 39,831 398,440 2,694,863 1,522,444 1,418,816 EXPENDITURESCurrent:

Tourism, parks and recreation - 273,615 384,065 433,688 812,183 Community development 207,041 - - - -
Public works/streets - - - - 309,089
Airport - - - - -
Capital outlay - - - - -Debt service - - - - -
Total expenditures 273,615 207,041 384,065 433,688 1,121,272 Excess (deficiency) of revenues over (under) expenditures (233,784) 191,399 2,310,798 1,088,756 297,544

OTHER FINANCING SOURCES (USES)
Transfers in 550,000 - 50,000 - 567,498
Transfers out - - (1,750,482) (715,000) -
Total other financing sources (uses) 550,000 - (1,700,482) (715,000) 567,498 Net change in fund balances 316,216 191,399 610,316 373,756 865,042 Fund balances (deficit) - beginning 902,296 526,756 2,562,678 3,019,684 1,563,755 Fund balances (deficit) - ending 1,093,695 $ 842,972 $ 3,172,994 $ 3,393,440 $ 2,428,797 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 87 Special Revenue Funds
LTC Planning DIF DIF DIF Total Nonmajor
Transportation MCOE MCOE Fire Facility, Total Special Total Capital Debt Service Governmental and Transit Airport Library Childcare Veh. and Eq. Revenue Funds Projects Funds Fund Funds

REVENUES
Taxes and assessments - $ - $ - $ - $ - $ 4,489,022 $ - $ - $ 4,489,022 $ Licenses and permits - - 34,132 26,765 128,164 551,630 542,587 128,651 1,222,868 Intergovernmental 259,992 640,273 - - - 1,110,617 - - 1,110,617 Charge for services - 411,668 - - - 411,668 - - 411,668 Use of money and property - 104,823 12,637 6,463 2,052 654,099 86,677 10,658 751,434 Other revenue 14,731 - - - - 499,058 - - 499,058
Total revenues 1,171,495 259,992 46,769 33,228 130,216 7,716,094 629,264 139,309 8,484,667 -
EXPENDITURES -Current:

Tourism, parks and recreation - - - - - 1,903,551 - - 1,903,551 Community development - - - - - 207,041 - - 207,041
Public works/streets 57,450 - - - - 366,539 - - 366,539 Airport - 2,470,330 - - - 2,470,330 - - 2,470,330
Capital outlay - - - 199,434 97,713 297,147 - - 297,147 Debt service - - - - - - - 2,808,757 2,808,757
Total expenditures 2,470,330 57,450 - 199,434 97,713 5,244,608 - 2,808,757 8,053,365 Excess (deficiency) of revenues over (under) expenditures (1,298,835) 202,542 46,769 (166,206) 32,503 2,471,486 629,264 (2,669,448) 431,302

OTHER FINANCING SOURCES (USES)
Transfers in 1,533,007 - - - - 2,700,505 29,266 7,716,390 10,446,161 Transfers out (40,000) - (1,365) (1,071) (5,127) (2,513,045) (186,704) (8,547,229) (11,246,978) Total other financing sources (uses) (40,000) 1,533,007 (1,365) (1,071) (5,127) 187,460 (157,438) (830,839) (800,817) Net change in fund balances 234,172 162,542 45,404 (167,277) 27,376 2,658,946 471,826 (3,500,287) (369,515) Fund balances (deficit) - beginning (25,941) 2,097,039 262,955 176,423 43,874 11,129,519 1,707,944 5,445,560 18,283,023 Fund balances (deficit) - ending 136,601 $ 2,331,211 $ 308,359 $ 9,146 $ 71,250 $ 13,788,465 $ 2,179,770 $ 1,945,273 $ 17,913,508 $

88 INTERNAL SERVICE FUNDS
Internal service funds are used to account for financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units on a cost reimbursement basis.

Vehicle Service – This fund is used to account for the rental of motor vehicles to other departments and related costs.

Self-Insurance – These funds are used to account for workers’ compensation, liability, and medical malpractice insurance expense.

TOWN OF MAMMOTH LAKES | JUNE 30, 2024
Internal Service Funds
Combining Statement of Net Position
89 Vehicle Self- Total Internal
Service Insurance Service Funds
ASSETS
Current assets:

Cash and investments $ 578,349 8,330,943 $ 8,909,292 $
Receivables - 255,902 255,902
Inventory - 756,138 756,138
Other assets 4,015 34 4,049
Total current assets 9,343,017 582,364 9,925,381
Noncurrent assets:

Capital assets, net of depreciation - 6,573,594 6,573,594 Total noncurrent assets 6,573,594 - 6,573,594
Total assets 15,916,611 582,364 16,498,975

DEFERRED OUTFLOWS OF RESOURCES
Pension related - 602,463 602,463
Total deferred outflows of resources - 602,463 602,463

LIABILITIES
Current liabilities:

Accrued salaries and benefits (1,312) 11,652 10,340
Total current liabilities (1,312) 11,652 10,340
Noncurrent liabilities:

Due within one year:

Compensated absences - 49,141 49,141
Due in more than one year:

Compensated absences - 49,142 49,142
Net pension liability - 1,440,236 1,440,236
Total noncurrent liabilities 1,538,519 - 1,538,519
Total liabilities 1,550,171 (1,312) 1,548,859

DEFERRED INFLOWS OF RESOURCES
Pension related - 128,008 128,008
Total deferred inflows of resources - 128,008 128,008

NET POSITION
Net investment in capital assets - 6,573,594 6,573,594
Unrestricted 583,676 8,267,301 8,850,977
Total net position $ 583,676 14,840,895 $ 15,424,571 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position 90 Vehicle Self- Total Internal
Service Insurance Service Funds
Operating revenues:

Charges for services $ 2,182,100 386,458 $ 2,568,558 $
Total operating revenues 386,458 2,182,100 2,568,558
Operating expenses:

Personnel costs - 1,179,009 1,179,009
Operations and maintenance - 917,509 917,509
Benefit claims 223,576 - 223,576
Depreciation - 384,381 384,381
Total operating expenses 223,576 2,480,899 2,704,475
Operating income (loss) 162,882 (298,799) (135,917)
Nonoperating revenues (expenses):

Investment earnings 389,947 - 389,947
Other nonoperating revenues - 5,903 5,903
Total nonoperating revenues (expenses) - 395,850 395,850 Income (loss) before transfers 162,882 97,051 259,933
Transfers in - 661,977 661,977
Transfers out (72,119) - (72,119)
Change in net position 162,882 686,909 849,791
Net position - beginning 14,153,986 420,794 14,574,780
Net position - ending $ 583,676 14,840,895 $ 15,424,571 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Internal Service Funds
Combining Statement of Cash Flows
91 Governmental Activities
Internal Service Funds
Vehicle SelfService Insurance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 2,435,785 $ 387,770 $ 2,823,555 $ Payments to suppliers (891,940) (1,312) (893,252)
Payments paid for personnel costs (223,576) (1,091,208) (1,314,784) Net cash provided by (used for) operating activities 162,882 452,637 615,519

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Loans (to)/from other funds 851,207 - 851,207
Transfers in from other funds 661,977 - 661,977
Transfers (out) to other funds (72,119) - (72,119)
Other nonoperating revenues - 5,903 5,903
Net cash provided by (used for) noncapital financing activities - 1,446,968 1,446,968

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets - (2,810,973) (2,810,973) Net cash provided by (used for) capital and related financing activities - (2,810,973) (2,810,973)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment received (paid) - 389,947 389,947
Net cash provided by (used for) investing activities - 389,947 389,947 Net increase (decrease) in cash and investments (521,421) 162,882 (358,539) Cash and investments - beginning 8,852,364 415,467 9,267,831 Cash and investments - ending $ 8,330,943 578,349 $ 8,909,292 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Internal Service Funds
Combining Statement of Cash Flows
(Continued)
92 Governmental Activities
Internal Service Funds
Vehicle SelfService Insurance Total
Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) (298,799) $ 162,882 $ (135,917) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation 384,381 - 384,381
(Increase) decrease in accounts receivables 253,685 1,312 254,997 (Increase) decrease in inventory 25,569 - 25,569
Increase (decrease) in deferred outflows of resources from pensions (2,579) - (2,579) Increase (decrease) in accrued salaries and benefits (8,651) (1,312) (9,963) Increase (decrease) in compensated absences 48,296 - 48,296 Increase (decrease) in deferred inflows of resources from pensions (71,881) - (71,881) Increase (decrease) in net pension liability - 122,616 122,616 Net cash provided by (used for) operating activities $ 162,882 452,637 $ 615,519 $

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Schedule of Expenditures of Federal Awards
The notes to the schedule of expenditures of federal awards are an integral part of this statement. 93 Federal Contract/
Assistance Pass-Through
Listing Grantor's Federal
Number Number Expenditures
U.S. Department of Transportation (DOT)
Passed through the State of California Department of Transportation:

Airport Improvement Program Airport Rescue Grant Program 20.106 3-06-0146-047-2021 300,000 $ Airport Improvement Program Relocate and Upgrade AWOS 20.106 3-06-0146-048-2022 248,989Airport Improvement Program - Infrastructure Grant Pavement Maintenance Management Plan (PMMP) 20.106 3-06-0146-051-2023 26,210 Airport Improvement Program - Infrastructure Grant Terminal and GA Parking Lot Reconstruction 20.106 3-06-0146-052-2023 42,660Airport Improvement Program Airport Multipurpose Building
Design 20.106 3-06-0146-053-2024 76,127
Total U.S. Department of Transportation (DOT) 693,986
U.S. Department of Housing and Urban Development (HUD)
Passed through the State of California Department of Housing and Community Development Community Development Block Grant/State Program and non-entitlement Grants in Hawaii - COVID-19 - Community Development Block Grant Coronavirus Response Round 1 (CDBG-CV1) 14.228 20-CDBG-CV1-00028 40,410COVID-19 - Community Development Block Grant Coronavirus Response (CDBG-CV2-3) 14.228 20-CDBG-CV-2-3-0093 154,299 CDBG Standard Agreement 14.228 #22-CDBG-HA-10034 153,088 Total U.S. Department of Housing and Urban Development (HUD) 347,797 U.S. Department of Homeland Security
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 4699DR-CA California Severe Winter Storms 97.036 - 725,188 Total U.S. Department of Homeland Security 725,188
Total Expenditures of Federal Awards $ 1,766,971
Federal Grantor/Pass-through Grantor/Program or Cluster Title

TOWN OF MAMMOTH LAKES | FOR THE YEAR ENDED JUNE 30, 2024 Notes to the Schedule of Expenditures of Federal Awards 94 NOTE 1 – REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the Town of Mammoth Lakes, California (the Town). All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the schedule. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town.

NOTE 2 – BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards is prepared using the modified accrual basis of accounting for program expenditures accounted for in governmental funds and the accrual basis of accounting for expenditures accounted for in proprietary funds, as described in Note 1 of the Town’s basic financial statements.

NOTE 3 – RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the Town’s financial statements.

ALN number 97.036 reported on the SEFA includes expenditures that were incurred in a prior fiscal year. This is the result of the funder approving the related projects during this current fiscal year. See SEFA reconciliation below:

Fiscal Years Total
Ending June 30 Expenditures
2023 $ 190,792
2024 534,396
ALN 97.036 SEFA Total 725,188 $
NOTE 4 – INDIRECT COST RATE
The Town has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

NOTE 5 – PASS-THROUGH ENTITY IDENTIFYING NUMBERS
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When the Town determined that no identifying number is assigned for the program or the Town was unable to obtain an identifying number from the pass-through entity, the Town has indicated “-” as the pass-through identifying number.

95 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Town of Mammoth Lakes Council
Town of Mammoth Lakes, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mammoth Lakes (the Town), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated March 28, 2025.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2024-001 that we consider to be a material weakness.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

96 The Town’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the Town’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The Town’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

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

Clovis, California
March 28, 2025

97 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Town of Mammoth Lakes Council
Town of Mammoth Lakes, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Town of Mammoth Lakes’ (the Town) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the Town’s major federal programs for the year ended June 30, 2024. The Town’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Town’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Town’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and

98 therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Town’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the Town’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.

Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Clovis, California
March 28, 2025