Marysville City Council
December 16, 2025

CITY OF MARYSVILLE, CALIFORNIA
Audited Financial Statements and Supplemental Information June 30, 2024
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CITY OF MARYSVILLE, CALIFORNIA
Audited Financial Statements and Supplemental Information June 30, 2024
Table of Contents
INDEPENDENT AUDITOR’S REPORT .................................................................................................... 1 Management’s Discussion and Analysis ....................................................................................................... 4

BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:

Government-wide Statement of Net Position ........................................................................................... 16 Government-wide Statement of Activities ............................................................................................... 17 FUND FINANCIAL STATEMENTS:

Governmental Funds:

Balance Sheet – Governmental Funds ................................................................................................... 18 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position ...................................................................................... 19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................................................................................ 20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-wide Statement of Activities .......................................................................................... 21 Proprietary Funds:

Statement of Net Position – Proprietary Fund – Wastewater ................................................................ 22 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Fund – Wastewater ........................................................................................................... 23 Statement of Cash Flows – Proprietary Fund – Wastewater ................................................................. 24 Fiduciary Funds:

Statement of Fiduciary Net Position ..................................................................................................... 25 Statement of Changes in Fiduciary Net Position – Redevelopment Successor Agency Private-Purpose Trust Fund and Custodial Fund .................................................. 26 Notes to the Basic Financial Statements .................................................................................................. 27

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – General Fund ....................................................................... 60 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions to the Pension Plan – Miscellaneous Plan (Unaudited) ......................................................................................................................................... 61 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions to the Pension Plan – Safety Plan (Unaudited) ......................................................................................................................................... 62

COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Major Capital Projects Fund ................................................ 63 Non-Major Special Revenue Funds:

Combining Balance Sheet – Nonmajor Special Revenue Funds ........................................................... 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .......................................................................... 66 Agency Funds:

Combining Statement of Fiduciary Net Position – Custodial Funds ..................................................... 68

CITY OF MARYSVILLE, CALIFORNIA
Audited Financial Statements and Supplemental Information June 30, 2024
Table of Contents
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................................................................................................................... 69

COMPLIANCE REPORTS
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 .............................................................................................................................. 70 Schedule of Findings and Responses ..................................................................................................... 72 550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 INDEPENDENT AUDITOR’S REPORT
To the City Council
Marysville, 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 City of Marysville, California as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the 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 City 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 City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As described in Note N to the financial statements, during the year ended June 30, 2024, the City corrected certain errors as of July 1, 2023. 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 these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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 City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison for the General Fund, Schedule of Proportionate Share of the Net Pension Liability and Schedule of Contributions to the Pension Plan 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 To the City Council
City of Marysville, California
3 of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements 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 November 14, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

November 14, 2025
CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 4 -
This section of the City of Marysville’s Annual Financial Report presents a narrative overview and analysis of the City’s financial activities for the fiscal year that ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the City’s financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
 The City of Marysville's assets exceeded liabilities by $40.25 million (net position), an increase of $3.38 million from the balance of $36.70 million reported in the prior fiscal year. The City has an unrestricted deficit of $4.77 million, $6.69 million restricted for specific purposes such as loan programs, street projects, and other community development, and $38.34 million in net investment in capital assets.
 The City’s change in net position for the current year was an increase of $3.38 million.  The General Fund has a fund surplus of $8.28 million as of June 30, 2024.

OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of this report consists of six parts:
 Independent Auditor’s Report
 Management’s Discussion and Analysis (this section)
 Basic Financial Statements that include:
o Government-Wide Financial Statements
o Fund Financial Statements
o Notes to Basic Financial Statements
 Required Supplementary Information
 Combining and Individual Fund Statements and Schedules  Other Reports
The basic financial statements include two kinds of statements that present different views of the City.

GOVERNMENT-WIDE FINANCIAL STATEMENTS:

The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, similar to a private-sector business.

The Statement of Net Position (page 16) presents information on all the City’s assets, deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference reported as “net position.” Over time, increases or decreases in net position may serve as a valuable indicator of the City’s financial improvement or deterioration.

The Statement of Activities (page 17) shows how the government-wide net position changed during the past year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows (accrual basis of accounting). Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., earned but unused vacation leave).

Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue – “governmental activities” from other functions intended to recover all or a significant portion of their costs through user’s fees – “business-type activities.” The CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 5 -
government activities of the City of Marysville include general government, public safety, streets, public works, and parks. The business-type activity of the City is the wastewater system.

FUND FINANCIAL STATEMENTS
A “fund” is a group of related accounts that control resources segregated for specific activities or objectives.

The City of Marysville, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City of Marysville can be divided into three categories:
 Governmental Funds
 Proprietary Funds; and
 Fiduciary Funds.

Governmental Funds account for the functions reported as “governmental activities” in the governmentwide financial statements. However, unlike those statements, the focus in these statements is on near-term inflows and outflows of spendable resources and balances of spendable resources available at the end of the fiscal year. This information may help evaluate a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, comparing the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements is beneficial. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. The governmental balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Marysville maintains several individual government funds organized according to their type (special revenue, capital projects, etc.). The fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the details of these non-major funds. Major funds present the major activities of the City for the year and may change from year to year due to changes in the pattern or the City’s activities.

Information is presented separately in the governmental fund's balance sheet and in the governmental fund's statements of revenues expenditures and changes in fund balances for the following major funds (found starting on page 18):
 General Fund
 Capital Projects Fund
Data from the remaining non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for these non-major governmental funds is provided as “combining statements,” starting on page 64.

Proprietary Funds are generally used to account for services the City charges customers. They provide the same information as shown in the government-wide financial statements, but only in more detail. The City maintains one type of Proprietary Fund, which is an Enterprise Fund, as described next.

CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 6 -
Enterprise Funds report the same functions as business-type activities in government-wide financial statements. The City uses an Enterprise Fund to account for wastewater collection and treatment.

The debt service for the wastewater system is combined into the business-type activities column of the Statement of Net Position (page 16), and the remaining debt service issues are combined into the governmental activities column of that report.

Fiduciary Funds account for resources held for the benefit of parties outside the City. Since the resources of these funds are not available to support the City’s programs, they are not reflected in the governmentwide financial statements. The City was elected to serve as the successor agency for its former redevelopment agency, which was dissolved by state law. The successor agency activity is accounted for in a private-purpose trust fund. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these resources to finance its operations.

NOTES TO FINANCIAL STATEMENTS
The notes provide additional information essential to fully understanding the data provided in the government-wide and fund financial statements. The Notes on the Financial Statements can be found on pages 27-59 of this report.

REQUIRED SUPPLEMENTARY INFORMATION
This section of the report discloses information that is not part of the basic financial statements, but is required by the Governmental Accounting Standards Board (GASB) to supplement the basic financial statements, including budgetary comparison information for the General Fund and pension plan required supplementary information.

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
This section of the report includes additional detailed information about Non-Major Governmental, Proprietary and Fiduciary Funds and can be found beginning on page 63.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City of Marysville presents its financial statements under the reporting model required by the GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. This report includes a comparative analysis of government-wide data.

ANALYSIS OF NET POSITION
With the consolidation of government-wide net position into one statement and other changes, such as the exclusion of Fiduciary Funds, net position may now be a valuable indicator of a government’s financial position. For the City, assets exceeded liabilities by $40.25 million. The City reported positive balances in the investment in capital assets and restricted categories of net position in both the governmental and business-type activities. The unrestricted net position was in a deficit position for governmental activities and positive for business-type activities.

CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 7 -
The Summary of Net Position is as follows:

TABLE 1

SUMMARY OF NET POSITION
AS OF JUNE 30, 2024
 Total Net Position increased by $3.55 million from 2023 to 2024.  $38.34 million (95.25% of Total Net Position) investment in capital assets (e.g., land, buildings, other improvements, construction in progress, and equipment), less any outstanding related debt and other capital payables used to acquire these assets. The City uses these capital assets to provide services to the community; consequently, these assets are not available for future spending.

Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.  $6.69 million (16.62% of Total Net Position) in restricted net position are earmarked and represent resources subject to external restrictions on how they may be used. The increase in this figure from 2023 to 2024 can be found in the Restricted Net position in the governmental activities.  The remaining unrestricted deficit is $4.77 million.

Governmental Activities Business-type Activities TOTALS 2024 2023 2024 2023 2024 2023
ASSETS:

Current and Other assets 17,143,542 $ 18,055,932 $ 7,220,122 $ 7,352,877 $ 24,363,664 $ 25,408,809 $ Capital Assets, Net 27,049,476 24,243,673 33,393,822 34,531,891 60,443,298 58,775,564 TOTAL ASSETS $ 42,299,605 44,193,018 $ 40,613,944 $ 41,884,768 $ 84,806,962 $ 84,184,373 $

DEFERRED OUTFLOWS
OF RESOURCES $ 6,780,580 4,987,708 $ 725,256 $ 841,438 $ 5,712,964 $ 7,622,018 $ LIABILITIES:

Liabilities due
after one year 24,453,226 24,655,979 16,135,206 16,618,982 40,588,432 41,274,961 Current Liabilities 5,528,674 4,977,313 746,975 1,934,537 6,275,649 6,911,850 TOTAL LIABILITIES $ 29,633,292 29,981,900 $ 16,882,181 $ 18,553,519 $ 46,864,081 $ 48,186,811 $

DEFERRED INFLOWS
OF RESOURCES $ 6,594,820 3,235,330 $ 168,942 $ 325,255 $ 3,404,272 $ 6,920,075 $ NET POSITION:

Investment in
Capital assets 18,430,548 14,907,412 19,908,279 20,410,794 38,338,827 35,318,206 Restricted 3,713,010 3,376,705 2,972,951 2,918,999 6,685,961 6,295,704 Unrestricted (6,180,062) (5,432,044) 1,406,847 517,639 (4,773,215) (4,914,405) TOTAL NET POSITION $ 12,852,073 15,963,496 $ 24,288,077 $ 23,847,432 $ 40,251,573 $ 36,699,505 $ CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 8 -

CHANGES IN NET POSITION
The following table reflects the change in net position for governmental and business-type activities:

TABLE 2

CHANGE IN NET POSITION
AS OF JUNE 30
Governmental Activities Business-type Activities TOTALS 2024 2023 2024 2023 2024 2023
PROGRAM REVENUES:

Charges for Services $1,926,078 $1,680,331 $4,392,937 $4,222,858 $6,319,015 $5,903,189 Operating Grants and Contributions 2,873,939 3,503,396 - - 2,873,939 3,503,396 Capital Grants and Contributions 635,385 706,162 184,004 3,917,545 819,389 4,623,707 GENERAL REVENUES:

Sales and Use Taxes 6,773,353 6,360,492 - - 6,773,353 6,360,492 Property Taxes 2,466,502 1,846,903 - - 2,466,502 1,846,903 Transient Occupancy Tax 95,048 95,392 - - 95,048 95,392 Franchise Fees 651,359 644,078 - - 651,359 644,078
Gas Taxes 402,234 372,143 - - 402,234 372,143
Other Taxes 945,660 800,837 - - 945,660 800,837
Motor Vehicle In-Lieu 1,396,766 1,307,298 - - 1,396,766 1,307,298 Investment Income 535,208 232,548 272,074 119,316 807,282 351,864 Rental Income 267,506 220,506 - - 267,506 220,506
Miscellaneous Revenues 267,685 129,774 21,430 33,207 289,115 162,981 Gain(Loss) on Sale of Fixed Assets 5,198 (20,212) (6,678) - (1,480) (20,212) TOTAL REVENUES $ 17,952,741 19,322,958 $ 3,762,732 $ 8,219,833 $ 23,085,690 $ 26,172,574 $ EXPENSES:

Governmental Activities:

General Government 4,610,970 5,155,246 - - 4,610,970 5,155,246 Public Safety 7,218,909 11,180,552 - - 7,218,909 11,180,552 Streets and Public Works 2,338,144 1,725,204 - - 2,338,144 1,725,204 Parks and Recreation 1,186,964 835,970 - - 1,186,964 835,970 Interest on Long-Term Debt 856,548 861,202 - - 856,548 861,202 Business-Type Activities
Wastewater - - 3,071,967 3,374,825 3,071,967 3,374,825
Interest on Long-Term Debt - - 426,941 435,072 426,941 435,072 TOTAL EXPENSES $ 19,758,174 16,211,535 $ 3,498,908 $ 3,809,897 $ 19,710,443 $ 23,568,071 $

EXCESS (DEFICIENCY) BEFORE

TRANSFERS AND EXTRAORDINARY ITEM
Transfers 81,037 73,093 (81,037) (73,093) - -
Extraordinary Item - Loss on Impairment - - (1,019,998) - (1,019,998) - CHANGE IN NET POSITION (1,805,433) 3,111,423 263,824 4,409,936 3,375,247 2,604,503 NET POSITION, JULY 1: 14,657,506 12,852,073 23,847,432 19,437,496 36,699,505 34,095,002 PRIOR PERIOD ADJUSTMENT - - 176,821 - 176,821 -
NET POSITIONS, JULY 1 - AS RESTATED 14,657,506 12,852,073 24,024,253 19,437,496 36,876,326 34,095,002 NET POSITION, JUNE 30 $ 12,852,073 15,963,496 $ 24,288,077 $ 23,847,432 $ 40,251,573 $ 36,699,505 $ CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 9 -
Governmental activities increased the City’s net position by $3.11 million, and business-type activities increased the City’s net position by $441,000, respectively. Restatements of $177,000 were reported in business-type activities, as disclosed in Note N to the financial statements, and an extraordinary loss of $1.02 million decreased the net position of business-type activities as described in Note F to the financial statements.

REVENUES
For the year ended June 30, 2024, total revenues for governmental activities were $19.32 million, and business-type activity revenues were $3.76 million. This represented a total decrease of $3.09 million from 2023.

Program revenues include charges for services, grants, and contributions. Program revenues provided $5.44 million (28.13% of total revenues) for governmental activities and approximately $5.89 million for business-type activities.

General revenues include taxes, assessments, and intergovernmental revenues. They provided $13.89 million (71.88% of total revenues). Most general revenues came from property, sales, and use taxes.

The fiscal year ended June 30, 2024; revenues are reflected graphically as follows:

Charges for Services,

10.0%
Operating Grants,

14.9%
Capital Grants, 3.3%
Other Taxes, 5.4%
Sales & Use Tax,

35.1%
Property Taxes, 12.8%
Franchise Fees, 3.4%
Street Gas Taxes, 2.1%
Motor Veh. In-Lieu, 7.2%
Other Revenues, 5.6%
2024 Governmental Revenues
CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 10 -
The fiscal year ended June 30, 2023; revenues are reflected graphically as follows:

EXPENSES
Expenses for the City totaled $19.71 million. Governmental activities incurred $16.21 million in expenses, as reflected in the chart on the next page, and business-type activities incurred $3.50 million in expenses during the year. Business-type activities expenses were 100% funded by program revenues, except interest and investment earnings.

Charges for Services
9%
Operating Grants
20%
Capital Grants
4%
Other Taxes
5%
Sales & Use Tax
36%
Property Taxes
10%
Franchise Fees
4%
Street Gas Taxes
2%
Motor Veh. In-Lieu
7%
Other Revenues
3%
2023 Governmental Revenues
CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 11 -
The fiscal year ended June 30, 2024; expenditures are reflected graphically as follows:

The fiscal year ended June 30, 2023; expenditures are reflected graphically as follows:

General Government,

28.4%
Public Safety, 44.5%
Streets and Public
Works, 14.4%
Parks and Recreation,

7.3%
Interest on Long-Term Debt,

5.3%
2024 Governmental Expenditures
General Government,

26.1%
Public Safety, 56.6%
Streets and Public
Works, 8.7%
Parks and Recreation,

4.2%
Interest on Long-Term Debt,

4.4%
2023 Governmental Expenditures
CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 12 -
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City of Marysville uses fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance.

GOVERNMENTAL FUNDS
The focus of the City’s government funds is to provide information on near-term inflows, outflows, and balances of resources available to provide services and capital project construction. Unreserved fund balance may be a valuable measure of a government’s net spendable resources.

At the end of FY 2023-24, the City’s governmental funds reported a combined fund balance of $11.95 million. The City has an unassigned fund balance of $8.16 million. The remainder of the governmental ending fund balance of $3.79 million is non-spendable, committed, or restricted. It is not available for new spending because it has been designated to pay for prior year commitments and other specific requirements.

PROPRIETARY FUNDS
The City’s Proprietary Funds statements provide the same information found in the government-wide financial statements but in more detail.

GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund revenue was $851,000 more than the prior year due to an increase in sales and use tax as well as property taxes. Other noteworthy items was an increase in motor vehicle in lieu tax and a significant increase in cannabis tax revenue. In total, General Fund revenues were $727,000 higher than the amount budgeted, which was mainly due to taxes and assessments and investment earnings reported within use of money and property being higher than the amount budgeted, offset by sales and use taxes and intergovernmental revenues being lower than the amounts budgeted.

The General Fund expenditures were $410,000 higher than the prior year, primarily due to several capital projects in progress that completion dates were extended into FY 2023-24 and the Hotel Marysville remediation efforts. Expenditures were $1.05 million lower than the amount budgeted, which was mainly due to public safety, general governments, streets and public works and capital outlay being less than the amounts budgeted.

CAPITAL ASSET AND DEBT ADMINISTRATION

CAPITAL ASSETS
The City’s investment in capital assets, net of depreciation, as of June 30, 2024, totaled $60.44 million and consist of the following:

CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 13 -
TABLE 3

CAPITAL ASSETS, NET OF DEPRECIATION
AS OF JUNE 30
This investment in capital assets includes land, buildings, improvements other than buildings, and equipment. The City’s investment in capital assets had a net increase from FY 2022-23 of $1.67 million.

For government-wide financial statement presentation, all depreciable capital assets are depreciated from the acquisition date over their useful lives—governmental fund financial statements record capital asset purchases as expenditures.

DEBT ADMINISTRATION
At the end of FY 2023-24, the City of Marysville had long-term liabilities of $25.77 million and $16.70 million for governmental activities and business-type activities, respectively. Amortizing debt decreased due to scheduled repayments and the net pension liability increased due to the effects of reducing the discount rate in 2023, an increase in the City’s proportion of the CalPERS Miscellaneous Risk Pool and changes in investment earnings by the Risk Pool. Additional information about the City’s long-term obligations can be found in Note G in the Notes to Basic Financial Statements. 2024 2023 2024 2023 2024 2023
Capital assets, not
being depreciated:

Land 6,057,051 $ 6,057,051 $ - $ - $ 6,057,051 $ 6,057,051 $ Intangible Asset - Right to Capacity - - 12,300,000 12,300,000 12,300,000 12,300,000 Construction in Progress 3,917,439 1,658,531 4,725,460 4,529,148 8,642,899 6,187,679 Depreciable capital assets, net:

Sewer Plant - - 15,815,913 17,123,317 15,815,913 17,123,317 Infrastructure 9,423,470 9,582,252 - - 9,423,470 9,582,252 Buildings 2,435,701 2,516,342 11,469 13,819 2,447,170 2,530,161 Machinery and Equipment 2,416,576 1,112,614 155,056 179,732 2,571,632 1,292,346 Vehicles 2,775,378 3,316,883 379,096 191,464 3,154,474 3,508,347 Equipment Under Capital Lease 23,861 - 6,828 194,411 30,689 194,411 TOTAL $ 18,186,622 20,992,425 $ 33,393,822 $ 34,531,891 $ 54,386,247 $ 52,718,513 $ Governmental Activities Business-type Activities Total
CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 14 -
TABLE 4

OUTSTANDING DEBT
AS OF JUNE 30
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City’s General Fund reserves declined, with a fund balance as of June 30, 2024, of $8,278,774 compared to the prior year at $10,133,774, a decrease of $1,855,000. The Hotel Marysville Fire caused a significant decrease in fund balance as monies were utilized to demolish the unstable building and subsequently encapsulate the debris in concrete until plans for remediation are established.

The voters passed Measure C in June 2016, which called for a 1% transaction and use tax, which took effect on October 1, 2016. The sales tax was estimated to be between $1.60 million and $1.70 million each full fiscal year for ten years. Actual Measure C revenue received in FY 2023-24 was $3,949,849. This new revenue source has helped rebuild deteriorated infrastructure, fund public safety, offset debt service payments, increase financial reserve funds to above the 20% Council approved minimum, and help rebuild services in all areas of City services provided to the residents.

The voters passed Measure F in November 2016, which called for a cannabis business tax on medical marijuana dispensaries. Measure F had the potential to generate approximately $650,000 a year for the General Fund, which would help pay for general City services. With the addition of adult-use sales, the City generated $945,660 in FY 2023-24.

Moody’s Investor Service currently lists the City’s credit rating with a stable outlook based on our financial rebuilding strategy, which has increased fund balance reserves. The stability in the City’s credit rating also 2024 2023 2024 2023 2024 2023
Pension Obligation Bond 12,715,000 $ 13,280,000 $ - $ - $ 12,715,000 $ 13,280,000 $ BBT Lease 2019 5,483,000 5,823,000 - - 5,483,000 5,823,000 Cert of Participation, 2017 Series A 1,019,794 1,024,778 - - 1,019,794 1,024,778 Cert of Participation, 2017 Series B 141,815 162,069 - - 141,815 162,069 PNC Equipment Lease 2020 707,259 770,931 - - 707,259 770,931 Digital Encryption Lease 535,445 632,109 - - 535,445 632,109 FNB Wildland Engine Lease 419,837 473,493 - - 419,837 473,493 GM Tahoe Lease 2023 247,239 319,466 - - 247,239 319,466 GM Financial - SCO Vehicle 32,688 - - 32,688 -
Enterprise Lease May 2018 18,581 65,361 - - 18,581 65,361 Ford Lease 2020 - 29,122 - - - 29,122
GM Tahoe Lease 2020 13,270 25,962 - - 13,270 25,962
GM Silverado Lease 2020 - 9,970 - - - 9,970
Compensated Absences 466,401 451,426 17,783 8,478 484,184 459,904 Net Pension Liability 3,365,970 2,268,655 221,158 137,187 3,587,128 2,405,842 OPEB Liability 10,898 13,392 - - 10,898 13,392
Enterprise Lease May 2018 - - 6,085 21,807 6,085 21,807 Sewer Revenue Bonds, 2021 Series A - - 11,730,000 12,145,000 11,730,000 12,145,000 Sewer Revenue Bonds, 2021 Series B - - 4,370,000 4,505,000 4,370,000 4,505,000 Add: Unamortized Bond Premium 592,032 621,267 351,265 367,232 943,297 988,499 $ 25,971,001 25,769,229 $ 16,696,291 $ 17,184,704 $ 42,465,520 $ 43,155,705 $ Governmental Activities Business-type Activities Total
CITY OF MARYSVILLE, CALIFORNIA _______________
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
______________________________________________________________________________ ____________________________________________________________________________________________ - 15 -
signals that the financial markets have confidence in the City’s policies and continued improved financial future.

Over the past decade, the City has faced several financial challenges in personnel cuts, service level reductions, and increases in unfunded pension liability, workers’ compensation, and liability insurance costs. The City continues to be very optimistic and believes that its finances will continue to strengthen in the short and long term and will continue to fund all its financial obligations, such as debt service, pension, and personnel costs, as it has in past years.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Marysville’s finances for all those interested in the government’s finances. Questions concerning any information provided in this report or requests for additional financial information should be addressed to the City of Marysville Finance Department at 526 C Street, Marysville, CA 95901, phone (530) 749-3901.

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BASIC FINANCIAL STATEMENTS

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CITY OF MARYSVILLE, CALIFORNIA
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 10,278,247 $ 3,802,837 $ 14,081,084 $ Accounts receivable, net 458,819 403,384 862,203
Interest receivable 112,607 27,461 140,068
Loans receivable 2,413,206 2,413,206
Leases receivable, current 84,624 84,624
Due from other governments 3,190,214 13,489 3,203,703
Restricted cash and investments 4 2,972,951 2,972,955
Total current assets 16,537,721 7,220,122 23,757,843
Noncurrent assets:

Leases receivable, noncurrent 605,821 605,821
Capital assets, net of accumulated depreciation
Non-depreciable 9,974,490 17,025,460 26,999,950
Depreciable, net 17,074,986 16,368,362 33,443,348
Total capital assets, net 27,049,476 33,393,822 60,443,298 Total noncurrent assets 27,655,297 33,393,822 61,049,119 Total assets 44,193,018 40,613,944 84,806,962

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 312,431 312,431
Pension plan 4,987,708 412,825 5,400,533
Total deferred outflows of resources 4,987,708 725,256 5,712,964

LIABILITIES
Current liabilities:

Accounts payable 1,553,146 87,222 1,640,368
Salaries and benefits payable 585,117 25,878 610,995
Deposits and other payables 43,197 43,197
Interest payable 98,672 72,790 171,462
Unearned revenue 1,932,539 1,932,539
Long-term debt, due within one year 1,316,003 561,085 1,877,088 Total current liabilities 5,528,674 746,975 6,275,649
Long-term liabilities:

Long-term debt, due after one year 20,609,957 15,896,265 36,506,222 Long-term compensated absences 466,401 17,783 484,184
Net pension liability 221,158 3,365,970 3,587,128
Net other postemployment benefits liability 10,898 10,898 Total long-term liabilities 24,453,226 16,135,206 40,588,432 Total liabilities 29,981,900 16,882,181 46,864,081

DEFERRED INFLOWS OF RESOURCES
Leases 630,179 630,179
Pension plan 2,605,151 168,942 2,774,093
Total deferred inflows of resources 3,235,330 168,942 3,404,272

NET POSITION
Net investment in capital assets 18,430,548 19,908,279 38,338,827 Restricted 2,972,951 3,713,010 6,685,961
Unrestricted (deficit) 1,406,847 (6,180,062) (4,773,215) Total net position 15,963,496 $ 24,288,077 $ 40,251,573 $ The accompanying notes are an integral part of these financial statements.

GOVERNMENT-WIDE STATEMENT OF NET POSITION
June 30, 2024
16 Operating Capital
Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:

General government $ 998,832 4,610,970 $ 29,263 $ 37,992 $ $ (3,544,883) $ (3,544,883) Public safety 404,485 7,218,909 1,417,660 211,360 (5,185,404) (5,185,404) Streets and public works 382,423 2,338,144 1,427,016 270,440 (258,265) (258,265) Parks and recreation 140,338 1,186,964 115,593 (931,033) (931,033) Interest on long-term debt
and issuance costs 856,548 (856,548) (856,548)
Total governmental activities 16,211,535 1,926,078 2,873,939 635,385 (10,776,133) (10,776,133) Business-type activities:

Wastewater 4,392,937 3,071,967 1,504,974 184,004 $ 1,504,974 Interest on long-term debt 426,941 (426,941) (426,941)
Total business-type activities 3,498,908 4,392,937 184,004 1,078,033 1,078,033 Total government $ 6,319,015 19,710,443 $ 2,873,939 $ 819,389 $ (10,776,133) 1,078,033 (9,698,100) General revenues:

Taxes:

Sales and use taxes 6,773,353 6,773,353
Property taxes 2,466,502 2,466,502
Transient occupancy tax 95,048 95,048
Franchise fees 651,359 651,359
Gas taxes 402,234 402,234
Other taxes 945,660 945,660
Motor vehicle in-lieu 1,396,766 1,396,766
Investment income 272,074 535,208 807,282
Rental income 267,506 267,506
Miscellaneous revenues 21,430 267,685 289,115
Gain (loss) on disposal of capital assets 5,198 (6,678) (1,480) Transfers 81,037 (81,037)
Extraordinary item - loss on impairment (1,019,998) (1,019,998) Total general revenues, transfers
and extraordinary items 13,887,556 (814,209) 13,073,347 Change in net position 3,111,423 263,824 3,375,247
Net position, beginning of year,
as previously reported 23,847,432 12,852,073 36,699,505 Prior period adjustment 176,821 176,821
Net position, beginning of year, as restated 12,852,073 24,024,253 36,876,326 Net position, end of year $ 24,288,077 15,963,496 $ 40,251,573 $ The accompanying notes are an integral part of these financial statements.

Program Revenues

CITY OF MARYSVILLE, CALIFORNIA

GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2024
17 Capital Nonmajor
General Projects Governmental
Fund Fund Funds Total
ASSETS
Cash and investments $ 114,482 8,915,792 $ 1,247,973 $ 10,278,247 $ Accounts receivable, net 33,772 425,047 458,819
Interest receivable 10,369 102,238 112,607
Loans receivable 2,412,826 380 2,413,206
Leases receivable 690,445 690,445
Due from other governments 116,182 2,897,836 176,196 3,190,214 Due from other funds 42,843 42,843
Restricted cash and investments 4 4
TOTAL ASSETS $ 230,664 13,074,585 $ 3,881,136 $ 17,186,385 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 231,721 1,245,081 $ 76,344 $ 1,553,146 $ Accrued payroll liabilities 25,709 559,408 585,117
Deposits and other payables 43,197 43,197
Due to other funds 42,843 42,843
Unearned revenue 1,932,539 1,932,539
Total liabilities 3,780,225 231,721 144,896 4,156,842
Deferred inflows of resources:

Unavailable revenue 385 33 ,407 32 ,120 450 ,244 ,771
Leases 630,179 630 ,179
Total deffered inflows
of resources 1 33 ,015,586 32 ,120 1 ,244 ,080,950
Fund balances:

Nonspendable 60,646 2,473,472 2,412,826
Restricted 4 1,312,583 1,312,579
Unassigned 8,218,124 (34,177) 8,162,538 (21,409)
TOTAL FUND BALANCES (DEFICIT) (34,177) 8,278,774 3,703,996 11,948,593

TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES $ 230,664 13,074,585 $ 3,881,136 $ 17,186,385 $ The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
June 30, 2024
18 Total Fund Balances of Governmental Funds 11,948,593 $ Amounts reported for governmental activities in the statement of net position are different because:

Pension contributions subsequent to the valuation measurement date and other items will reduce the pension liability in the future and are reported as deferred outflows of resources on the statement of net position. 4,987,708 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 27,049,476 Certain receivables are not available to pay current period expenditures and therefore are deferred in the governmental funds. 450,771 Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds balance sheet.

Long-term debt (21,925,960)
Compensated absences (466,401)
Net OPEB liabilility (10,898)
Net pension liability (3,365,970)
Employee pension differences to be recognized in the future as pension expense are reported as deferred inflows of resources on the statement of net position. (2,605,151)
Interest payable on long-term debt does not require the use of current financial resources and, therefore, is not reported in the governmental funds. (98,672) Net Position of Governmental Activities 15,963,496 $
The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO GOVERNMENT-WIDE STATEMENT OF NET POSITION
June 30, 2024
19 Capital Nonmajor
General Projects Governmental
Fund Fund Funds Totals
REVENUES:

Taxes and assessments 3,507,210 $ 3,507,210 $
Sales and use taxes 6,773,353 6,773,353
Motor vehicle in-lieu tax 1,396,766 1,396,766
Franchise tax 651,359 651,359
Licenses, permits and fees 1,005,875 32,429 $ 1,038,304 Intergovernmental revenues 1,420,472 311,181 $ 759,276 2,490,929 Reimbursements 698,331 80,423 778,754
Charges for services 690,945 340,356 1,031,301
Use of money and property 44,796 801,402 846,198
Program income 34,392 34,392
Other revenues 220,316 72,821 293,137
Total revenues 17,166,029 391,604 1,284,070 18,841,703
EXPENDITURES:

Current:

General government 4,296,495 161,845 90,339 4,548,679
Public safety 19,499 6,462,523 177,081 6,659,103
Streets and public works 1,200,589 774,196 1,974,785
Parks and recreation 1,111,023 1,111,023
Debt service:

Principal retirement 1,189,656 117,328 17,853 1,324,837 Interest and fiscal charges 842,028 38,623 444 881,095
Capital outlay 3,585,606 390,593 107,824 4,084,023
Total expenditures 15,492,907 3,922,901 1,167,737 20,583,545 Excess (deficiency) of revenues
over (under) expenditures 1,673,122 116,333 (3,531,297) (1,741,842) OTHER FINANCING SOURCES (USES):

Insurance proceeds 4,413 58,701 63,114
Issuance of long-term liabilities 42,504 42,504
Proceeds from sale of assets 28,974 28,974
Transfers in 217,528 3,531,812 293,783 4,043,123
Transfers out (3,821,541) (1,084) (139,461) (3,962,086) Total other financing sources (uses) 3,530,728 (3,528,122) 213,023 215,629 Net change in fund balances (1,855,000) 329,356 (569) (1,526,213) Fund balances (deficit), beginning of year,
as previously reported 10,133,774 3,341,032 13,474,806
Change within financial reporting entity
(nonmajor to major fund) 33,608 (33,608)
Fund balances (defict), beginning of year,
as restated 10,133,774 3,374,640 (33,608) 13,474,806
Fund balances (deficit) - end of year 8,278,774 $ (34,177) $ 3,703,996 $ 11,948,593 $ The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - For the Year Ended June 30, 2024

GOVERNMENTAL FUNDS
Major Governmental Funds
20 Net Change in Fund Balances - Total Governmental Funds (1,526,213) $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the government-wide statement of activities and changes in net position, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.

Capital outlay 4,084,023
Depreciation expense (1,254,444)
Governmental funds report proceeds from disposal of capital assets as revenues.

However, in the government-wide statement of activities, only the gain or (loss) on the sale of capital assets is reported. This is the difference between the gain or (loss) and proceeds.

Proceeds from sale of capital assets (28,974)
Gain on sale of capital assets 5,198
Some receivables are deferred in the governmental funds because the amounts do not represent current financial resources that are recognized under the accrual basis in the statement of activities. Deferred receivables in the governmental funds are recognized once received in the subsequent period, but will not be accrued again in the statement of activities.

Unavailable revenue recognized 331,906
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the government-wide statement of net position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. These are the amounts by which proceeds exceeded repayments.

Principal repayment 1,324,837
Amortization of premiums 29,236
Issuance of long-term liabilities (42,504)
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not expenditures in the governmental funds.

Change in net OPEB liability 2,494
Change in interest payable (4,689)
Change in net pension liability 205,528
Change in compensated absences (14,975)
Change in Net Position of Governmental Activities $ 3,111,423 The accompanying notes are an integral part of these financial statements.

For the Year Ended June 30, 2024

CITY OF MARYSVILLE, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
21 ASSETS:

Current Assets:

Cash and investments $ 3,802,837
Accounts receivable, net 403,384
Interest receivable 27,461
Due from other governments 13,489
Restricted cash and investments 2,972,951
Total current assets 7,220,122
Noncurrent Assets:

Capital assets:

Nondepreciable 17,025,460
Depreciable, net 16,368,362
Total capital assets, net 33,393,822
Total assets 40,613,944
DEFERRED OUTFLOWS OF RESOURCES:

Deferred loss on refunding 312,431
Pension plan 412,825
Total deferred outflows of resources 725,256
LIABILITIES:

Current Liabilities:

Accounts payable 87,222
Salaries and benefits payable 25,878
Interest payable 72,790
Long-term debt, due within one year 561,085
Total current liabilities 746,975
Long-term Liabilities:

Long-term debt, due after one year 15,896,265
Long-term compensated absences 17,783
Net pension liability 221,158
Total long-term liabilities 16,135,206
Total liabilities 16,882,181
DEFERRED INFLOWS OF RESOURCES:

Pension plan 168,942
Total deferred inflows of resources 168,942
NET POSITION:

Net investment in capital assets 19,908,279
Restricted for capital projects 2,972,951
Unrestricted 1,406,847
Total net position 24,288,077 $
The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF NET POSITION

PROPRIETARY FUND - WASTEWATER FUND
June 30, 2024
22 Operating revenues:

Service charges $ 4,392,937
Other revenues 21,430
Total operating revenues 4,414,367
Operating expenses:

Salaries and related expenses 518,306
Operations and maintenance 2,090,782
Depreciation and amortization expense 462,879
Total operating expenses 3,071,967
Income from operations 1,342,400
Non-operating revenues (expenses):

Intergovernmental revenue 184,004
Investment income 272,074
Interest expense (426,941)
Loss on disposal of capital asset (6,678)
Total nonoperating revenues (expenses) 22,459
Income before capital contributions, transfers and extraordinary items 1,364,859 Transfers out
Transfers out (81,037)
Total transfers out (81,037)
Extraordinary item - loss on impairment (1,019,998)
Change in net position 263,824
Net position, beginning of year, as previously reported 23,847,432 Restatement - error correction 176,821
Net position, beginning of year 24,024,253
Net position, end of year 24,288,077 $
The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUND - WASTEWATER FUND
For the Year Ended June 30, 2024
23 Cash Flows from Operating Activities
Cash received from customers 4,410,640 $
Cash paid to suppliers (3,231,482)
Cash paid to employees and related benefits 490,267
Cash provided by operating activities 1,669,425
Cash Flows from Noncapital Financing Activities
Grant proceeds received 184,004
Transfers (81,037)
Cash used for noncapital financing activities 102,967
Cash Flows from Capital and Related Financing Activities Capital expenditures (351,486)
Capital debt principal paid (565,722)
Interest paid (413,984)
Cash used for capital and related financing activities (1,331,192) Cash Flows from Investing Activities
Investment income received 258,323
Cash provided by investing activities 258,323
Increase in cash and cash equivalents 699,523
Cash and cash equivalents, beginning of year 6,076,265
Cash and cash equivalents, end of year $ 6,775,788
Reconciliation of cash and cash equivalents
to the statement of net position:

Cash and investments $ 3,802,837
Restricted cash and investments 2,972,951
Cash and cash equivalents 6,775,788 $
Reconciliation of operating income from operations to cash provided by operating activities:

Income from operations 1,342,400 $
Adjustments to reconcile income from operations to cash provided by operating activities:

Depreciation and amortization 462,879
Amortization of premiums on debt (15,967)
(Increase) decrease in assets:

Accounts receivable, net (3,727)
Due from other governments 955,033
(Decrease) increase in liabilities:

Accounts payable (1,124,733)
Salaries and benefits payable 14,597
Compensated absences 9,305
Deferred outflows of resources 101,980
Net pension liability 83,971
Deferred inflows of resources (156,313)
Cash provided by operating activities 1,669,425 $
The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUND - WASTEWATER FUND
For the Year Ended June 30, 2024
24 Redevelopment
Successor Agency
Private-Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments $ 1,259,877 104,388 $
Receivables:

Interest receivable 8,231
Due from other governments 115,035
Capital assets, net of accumulated depreciation
Non-depreciable 966 4,941,658
Depreciable, net 8,111 248,649
TOTAL ASSETS 113,465 6,573,450

LIABILITIES
Accounts payable 40,534
Due to other governments 1,781
Salaries and benefits payable 5,737
Interest payable, due within one year 972,798
Note payable, due after one year 2,404,981
TOTAL LIABILITIES 3,425,831

NET POSITION
Net investment in capital assets 9,077 2,785,326
Restricted for other organizations 104,388 362,293
TOTAL NET POSITION 113,465 $ 3,147,619 $
The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF FIDUCIARY NET POSITION
June 30, 2024
25 Redevelopment
Successor Agency
Private-Purpose Custodial
Trust Fund Funds

ADDITIONS
Property taxes 495,345 $
Intergovernmental revenue 209,393
Contribution revenue 45,800
Other revenue 823
Investment income 35,371
Disposition of assets 61,989 $
TOTAL ADDITIONS 61,989 786,732

DEDUCTIONS
Community development 591,364
Personnel costs 115,104
Operations and maintenance 169,506
Depreciation expense 1,622 12,305
Interest expense 96,463
TOTAL DEDUCTIONS 592,986 393,378
CHANGE IN NET POSITION (530,997) 393,354
Net position, beginning of year, as previously reported 644,462 2,265,559 Restatement - error correction 488,706
Net position, beginning of year, as restated 644,462 2,754,265 NET POSITION, END OF YEAR 113,465 $ 3,147,619 $
The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

REDEVELOPMENT SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND For the Year Ended June 30, 2024
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NOTES TO THE BASIC FINANCIAL STATEMENTS

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CITY OF MARYSVILLE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
27 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Marysville (the City) was incorporated on February 5, 1851, under the laws and regulations of the State of California (the State). The City lies at the confluence of the Yuba and Feather Rivers at the foot of the Sierra Mountains and is located about 40 miles north of Sacramento. Marysville and neighboring Yuba City, commonly known as the “Twin Cities,” form a regional community of approximately 125,000 people. The City’s economic base is agriculture (rice, peaches, tomatoes, etc.), government (Beale Air Force Base and District 3 Office of Caltrans), and retail trade services.

The City operates under a City Manager-Council form of government and provides the following services: public safety (Police and Fire), streets, sewer, culture-recreation, public improvements, planning and zoning, and general administration. The voters of the City of Marysville, California, give authority and responsibility for operations to the City Council. The City Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the City’s management is the financial budget, which is adopted annually by the City Council.

The financial statements of the City have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. The more significant of these accounting policies are described below.

Reporting Entity: The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides.

The City’s main funding sources include property taxes, sales taxes, other inter-governmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

These basic financial statements present the financial status of the City and its component units, which are included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. The City’s reporting entity includes the following component units:

Marysville Financing Authority: The Financing Authority issues debt on behalf of the City. The debt is backed by the City’s General Fund. The Financing Authority is governed by the City Council and is reported as a blended component unit.

Redevelopment Successor Agency Private-Purpose Trust Fund: The City of Marysville Community Development Agency (the Agency) was formed as a separate legal entity under the Community Redevelopment Law. On December 29, 2011, the California Supreme Court upheld Assembly Bill

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
28 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. On January 17, 2012, the City Council elected to become Successor Agency for the redevelopment agency in accordance with the bill as part of City Resolution No. 2012-02. Based upon the nature of the successor agency’s custodial role, it is reported as a fiduciary fund private-purpose trust fund.

Basis of Presentation—Government-wide Financial Statements: The government-wide financial statements (i.e. the statement of net position and statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external parties.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported in separate columns in the fund financial statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses of most business-type activities. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Sales taxes are recognized when the underlying sales transaction takes place. Grants and similar items are recognized as revenues when all eligibility requirements are met.

Basis of Presentation—Fund Financial Statements: The accounts of the City are organized on the basis of funds. A fund is a separate self-balancing set of accounts. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions or limitations.

Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 to 180 days of the end

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
29 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) of the current fiscal period, depending on the revenue source. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period.

All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

General Fund – The General Fund is the primary operating fund of the City. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the General Fund includes such activities as public safety, public works, parks and recreation, and economic development services.

Capital Projects Fund – The Capital Project Fund is used to account for financial resources used for the acquisition or construction of major capital facilities.

The City reports the following major enterprise fund:

Wastewater Enterprise Fund – The Wastewater Enterprise Fund is used to account for all revenues and expenses for operation maintenance and capital improvement funding of the Marysville Wastewater facilities.

Additionally, the City reports the following fund types:

GOVERNMENTAL FUNDS
Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

PROPRIETARY FUNDS
Enterprise Funds – Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user charges.

FIDUCIARY FUNDS
Private-Purpose Trust Fund – Private Purpose Trust funds are used to account for trust arrangements where the principal and income benefit individuals, private organizations, or other governments.

Examples include successor agencies for redevelopment agencies.

Custodial Funds – Custodial Funds account for assets held by the City in a purely custodial capacity.

Custodial Funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments and include the Marysville Levee Commission and Mary Aaron Museum.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
30 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise fund are charges to customers or other funds for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Cash and Cash Equivalents: The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition, including the City’s investment in California Local Agency Investment Fund (LAIF).

Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost.

Receivables and Payables: Sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and receivables and considered available if received within 90 days of year-end. Property taxes related to the current fiscal year are accrued as revenue and receivables and considered available if received within 60 days of year-end. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the governmentwide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and collectible if received within 180 days of year-end. Unbilled utility revenue earned is recognized as revenue and accounts receivable in the enterprise funds.

Transactions between funds that represent lending/borrowing arrangements outstanding at the end of the fiscal year 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 non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Eliminations have not been made between or within the fund types.

The City has provided an allowance for doubtful accounts of $167,054 at June 30, 2024 related to its wastewater operations estimated by the City to be uncollectible.

Property Taxes: The County of Yuba (the County) is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year end. Secured property taxes are levied on or before September 30 of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, costs, and interest when paid.

The term “unsecured” refers to taxes on personal property other than land and buildings. Property tax revenues are recognized in the fiscal year for which they are levied, provided they are due and collected

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
31 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) within sixty days after fiscal year-end. The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the “Teeter Plan,” as prescribed by Section 4717 of the California Revenue and Taxation code. Therefore, the City receives 100% of the secured property tax levies to which it is entitled, whether or not collected. Unsecured delinquent taxes are considered fully collectible.

These taxes are accrued as intergovernmental receivables only if they are received from the County within 60 days after year-end for the governmental funds and are accrued when earned for governmentwide presentation regardless of the timing of the related cash flows.

Lease Receivable: The City is a lessor on noncancellable leases for property and telecommunications facilities. The City recognizes a lease receivable and a deferred inflow of resources in the governmentwide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expended 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 at the present value of the lease payments on the measurement date, adjusted for lease payments received at or before the lease commencement date. All leases receivable are discounted at 4/75%. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The City uses its estimated incremental borrowing rate as the discount rate for leases. 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 lease.

The City monitors changes in circumstances that would require a remeasurement of its lease receivable 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.

Restricted Cash and Investments: Restricted cash and investments represents cash and investments held by fiscal agents under the City’s debt agreements.

Capital Assets: Capital assets for governmental fund types of the City are not capitalized in the funds used to acquire or construct them. Capital acquisitions are reflected as expenditures in the governmental fund, and the related assets are reported in the government-wide financial statements at historical cost or estimated historical cost if purchased or constructed. Contributed capital assets are recorded at their estimated fair market value on the date donated.

Public domain (infrastructure) capital assets consisting of certain improvements other than buildings, but including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems have been capitalized prospectively beginning June 30, 2005.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not included in the current year’s additions to governmental or business-type capital assets. Capital assets are depreciated using the straight-line method over the following useful lives:

Buildings and improvements 80 to 150 years
Machinery, equipment and vehicles 5 to 40 years

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
32 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) It is the policy of the City to capitalize all land, building, improvements, equipment, and eventually infrastructure assets, except assets costing less than $5,000. Interest incurred during the construction phase of capital assets of business-type activities is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. The cost of assets sold or retired, and the resulting gain or loss are included in the operating statement of the related proprietary fund. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale. The proceeds reported in the governmental fund are eliminated and the gain or loss on sale is reported in the government-wide statements.

Compensated Absences: It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave. Unused vacation is paid to employees upon termination after one year of service.

The maximum accrual for all employees for vacation varies depending on the position but varies from 250 to 454 hours. Vacation is accrued when incurred in the government-wide presentation and in the proprietary funds and reported as a liability. Amounts that are expected to be liquidated with expendable available financial resources, for example, as a result of employee resignations or retirements that are currently payable, are reported as expenditures and a fund liability of the governmental fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources represent a reconciling item between the fund and government-wide presentation. No expenditure is reported in the governmental fund financial statements for accrued compensated absences.

There is no limit as to the accrual of sick leave. Sick leave is not payable upon termination but may be converted to service credits under the City’s defined benefit pension plan and is excluded from the compensated absences liability.

Long-term Obligations: Long-term debt of governmental funds are reported at face value in the government-wide financial statements and represent a reconciling item between the fund and governmentwide presentation. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the government-wide financial statements and represent a reconciling item between the fund and government-wide presentation. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds.

For governmental fund types, proceeds from borrowing are reported as another financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.

Deferred Outflows and Inflows of Resources: In addition to liabilities, the statement of financial position reports a separate section for deferred outflows and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position by the government that is applicable to a future reporting period. Deferred inflows of resources represent an acquisition of net position that is applicable to a future reporting period. These amounts will not be recognized as an outflow of resources (expenditure/expense) or an inflow of resources (revenue) until the earnings process is complete. The governmental funds report unavailable revenues for grants and other revenues when the amounts meet the asset recognition criteria and were accrued as receivables, but the amounts were not received in the availability period. Deferred outflows and inflows of resources include amounts deferred related to the City’s pension plan under GASB Statement No. 68 as described in Note I and related to leases receivable as described in Note C.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
33 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Pension Plan: For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to the defined benefit pension plan, and pension expense, information about the fiduciary net position of the Commission’s California Public Employee’s Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

Fund Equity: In the fund financial statements, governmental funds report nonspendable, restricted, committed, assigned and unassigned balances.

Nonspendable Funds – Fund balance should be reported as nonspendable when the amounts cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Nonspendable balances are not expected to be converted to cash within the next operating cycle, which include prepaid items and long-term leases receivable, net of related deferred inflows of resources.

Restricted Funds – Fund balance should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.

Committed Funds – Fund balance should be reported as committed when the amounts can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority, the City Council. These amounts cannot be used for any other purpose unless the City Council modifies or removes the fund balance commitment.

Assigned Funds – Fund balance should be reported as assigned when the amounts are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed.

Unassigned Funds – Unassigned fund balance is the residual classification of the City’s funds and includes all spendable amounts that have not been restricted, committed, or assigned to specific purposes.

Net Position: The government-wide financial statements report net position. Net position is categorized as the net investment in capital assets, restricted and unrestricted.

Net Investment in Capital Assets – This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt and other payables that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category presents 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 – This category represents net position of the City not restricted for any project or other purpose.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
34 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted, committed, assigned and unassigned resources as they are needed. The City’s committed, assigned, or unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Use of Estimates: The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

Budgetary Information: The City Council annually adopts the budget resolution for all operating funds of the City. Budgetary control is legally maintained at the fund level. Department heads submit budget requests to the City Manager. The Administrator prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30.

All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year. Amounts shown in the financial statements represent the original budgeted amounts and all supplemental appropriations.

The supplemental appropriations were immaterial. The budgetary data is prepared on the modified accrual basis consistent with the related “actual” amounts, except as indicated below. The City does not use encumbrance accounting.

Excess Expenditures Over Appropriations: The following governmental funds had excess expenditures and transfers out over appropriations.

Total
Expenditures and Excess
Fund Appropriations Transfers Out Expenditures
Nonmajor Special Revenue Funds:

CDBG Principal and Interest Fund 5,000 $ 13,461 $ 8,461 $ Code Enforcement Nuisance Abatement Fund 23,704 23,704
2015 Community Development Block Grant
(CDBG) Fund 27,750 27,750
Traffic Grant Fund 25,058 60,872 35,814
Excess expenditures and transfers over appropriations generally occur in funds where the timing of the related expenditures is unknown when the budget is approved or due to the City Council approving expenditures without the budget being formally amended. The CDBG Principal and Interest Fund is over budget due to an interfund transfer out to the General Fund to reimburse City loan expenses. The Code Enforcement Nuisance Abatement and 2015 CDBG Funds were not budgeted but program activities occurred during the year, including CDBG loans made and approved by a loan committee of management and City Council members. The Traffic Grant fund is over budget due to salaries overtime paid for City Council approved DUI and traffic checkpoints.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
35 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) New Pronouncements: In June 2022, the GASB issued Statement No. 101, Compensated Absences.

This statement requires that liabilities for compensated absences be recognized for leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or paid in cash or settled through noncash means and leave that has been used but not paid in cash or settled through noncash means. Leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in the liability for compensated absences. This Statement requires that a liability for certain types of compensated absences, including parental leave, military leave and jury duty leave, not be recognized until the leave commences. Certain salary related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.

Governments are allowed to disclose the net change in the liability if identified as such in the footnotes to the financial statements. The provisions of this Statement are effective for years beginning after December 15, 2023.

In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a concentration or constraint makes a primary government, or reporting unit that reports a liability for revenue debt, vulnerable to the risk of a substantial impact and to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to occur within 12 months of the date the financial statements are issued. If the criteria in the Statement have been met for a concentration or constraint, the government should disclose information in notes to financial statements in sufficient detail to enable users of financial statements understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The provisions of this Statement are effective for years beginning after June 15, 2024.

In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This Statement improves key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability, including 1) certain topics and disclosures in Management’s Discussion and Analysis; 2) requiring the display of inflows and outflows of unusual and infrequent items to be reported separately as the last presented flow(s) of resources prior to the net change in resources flows in the government-wide, governmental fund, and proprietary fund statement of resources flows; 3) changing the definition of, proprietary fund nonoperating revenues and expenses to include subsidies received and provided, contributions to permanent and term endowments, revenues and expenses related to financing, resources from the disposal of capital assets and inventory and investment income and expenses and defines operating revenues and expenses as revenue and expenses other than nonoperating revenue and expenses; 4) requires major component units to be presented separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements; and 5) requires budgetary comparison schedules to be reported as Required Supplementary Information (RSI), requires the presentation of variances between original and final budget amounts and final budget and actual amounts in the RSI and requires the explanation of significant variances to be reported in notes to the RSI. The provisions of this Statement are effective for years beginning after June 15, 2025.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
36 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires lease assets recognized in accordance with GASB Statement No. 87, Leases, right-touse assets recognized in accordance with GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, subscription assets recognized in accordance with GASB Statement. No 96, Subscription-Based Information Technology Arrangements, and other intangible assets to be disclosed separately in capital assets footnote disclosures. This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should disclose the ending historical cost and accumulated depreciation by major class of asset and the carrying amount of debt for which the assets are pledged as collateral by major class of asset held for sale under this Statement. This provisions of this Statement are effective for fiscal years beginning after June 15, 2025.

The City is currently analyzing the impact of the required implementation of these new statements.

NOTE B – CASH AND INVESTMENTS
The City follows the practice of pooling cash and investments of all funds. Cash represents cash on hand, demand deposits in the bank and amounts invested in the State of California Local Agency Investment Fund (LAIF). Cash and investments at June 30, 2024 were classified in the accompanying financial statements as follows:

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments 10,278,247 $ 3,802,837 $ 1,364,265 $ 15,445,349 $ Restricted cash and investments 4 2,972,951 2,972,955
$ 6,775,788 10,278,251 $ 1,364,265 $ 18,418,304 $
As of June 30, 2024, the City’s cash and investments consisted of the following:

Cash on hand 900 $
Deposits in financial institutions 1,890,530
Total cash 1,891,430
California Local Agency Investment Fund 7,261,456
U.S. Treasury Notes 5,288,247
Yuba County investment pool 999,993
Money market mutual funds 4,223
Held by bond trustee:

Money market mutual funds 2,972,955
Total investments 16,526,874
Total cash and investments 18,418,304 $

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
37 NOTE B – CASH AND INVESTMENTS (Continued)
Investment policy: California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 - Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity Of Portfolio In One Issuer
U.S. Treasury obligations 5 years None None
U.S. Agency securities 5 years None None
U.S Instrumentalities 5 years 30% None
Registered state warrants 5 years None None
Local agency bonds 5 years None None
Mortgage-back securities 5 years 20% None
Bankers acceptances 180 days 40% None
High grade commercial paper 270 days 25% 10%
FDIC insured or fully collaterized
time certificates of deposit 2 years 5% None
Negotiable certificates of deposit 5 years 30% None
LAIF None None None
Medium term corporate notes 5 years 30% None
Money market fund None 20% 10%
Yuba county treasurer's investment pool None 25% None
The City complied with the provisions of California Government Code pertaining to the types of investments held, institutions in which deposits were made and security requirements. The City will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.

Investments Authorized by Debt Agreements: Investment of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The Pension Obligation Bond debt agreement contains certain provisions that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity Of Portfolio* In One Issuer
Federal securities 5 years None None
U.S. government agency obligations 5 years None None
Municipal obligations None None 10%
Bankers acceptances 365 days 40% 30%
Commercial paper 270 days 25% 10%
Certificates of deposit 365 days None None
Money market funds 5 years 30% 5%
Local Agency Investment Fund 365 days 20% None

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
38 NOTE B – CASH AND INVESTMENTS (Continued)
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. One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by the bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months
Total or Less
LAIF 7,261,456 $ 7,261,456 $
U.S. Treasury Notes 5,288,247 5,288,247
Yuba County investment pool 999,993 999,993
Money market mutual fund 4,223 4,223
Held by bond trustee:

Money market mutual funds 2,972,955 2,972,955
Total 16,526,874 $ 16,526,874 $
Remaining Maturity
(in months)
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. The current rating of the money market mutual funds is AAA. LAIF does not have ratings assigned by a nationally recognized statistical organization.

Concentration of Credit Risk: The investment policy of the City contains no limitations on the amount that can be invested with any one issuer beyond that stipulated by the California Government Code. As of June 20, 2024, no investments represented more than 5% of the total investments (other than mutual funds and external investment pools) in any one issuer.

Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its 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 City’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 Governmental Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2024, the carrying amount of the City’s deposits was $1,890,530 and the balance in financial institutions was $2,045,270. Of the balance in financial institutions, $250,000 was covered by federal depository insurance and $1,795,270 was covered by the pledging financial institution with assets held in a common pool for the City and other governmental agencies.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
39 NOTE B – CASH AND INVESTMENTS (Continued)
Investment in LAIF: LAIF is stated at amortized cost, which approximates fair value. The LAIF is a special fund of the California State Treasury through which local governments may pool investments. The total fair value amount invested by all public agencies in LAIF is $179,046,993,600 managed by the State Treasurer. Of that amount, 3.00% is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’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. At June 30, 2024, these investments matured in an average of 217 days.

Investment in the County of Yuba Investment Pool: The City has cash in the County of Yuba Treasury.

The County maintains an investment pool and allocates interest to the various funds based upon the average daily cash balances. Investments held in the County’s investment pool are available on demand to the City and are stated at cost, which approximates fair value. Information regarding fair value measurements of the County pool may be found in the notes to the County of Yuba financial statements at www.yuba.gov/auditor-controller. As of June 30, 2024, the weighted average maturity of investments contained in the County of Yuba investment pool was approximately 167 days.

Fair Value Measurement: The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. 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. All of the City’s investments are considered to be valued based on Level 2 inputs with the exception of investment pools (LAIF and County pool) that are not categorized under the fair value hierarchy.

Investments are valued using pricing models that are based on market data, such as matrix or model pricing, which use standard inputs, which include benchmark yields, reported trades, broker/dealer quotes, issue spreads, two sided markets, benchmark securities, bids, offers and reference data including market research publications.

NOTE C – LEASES RECEIVABLE
The City records a lease receivable and deferred inflow for the present value of the future payments received under agreements for leases of property. The City leases property under a lease agreement that expires August 31, 2027 for a monthly rent of $5,000 with an option to extend another 5 years with a 3% increase. The City also has five leases of space on the City’s cellular towers that contain multiple three to five year extensions and provide for increases in rent ranging from 3% to 20%. These leases expire from June 30, 2023 through May 31, 2032. For purposes of discounting future payments on the lease, the City used a discount rate of 4.75%. The deferred inflows of resources are being amortized over 3 to 10.17 years (original lease terms). For the year ended June 30, 2024, the City reported leases receivable of $690,445 and deferred inflows of resources of $630,179. The City recognized $35,360 of interest revenue during the year ended June 30, 2024 under these leases.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
40 NOTE D – INTERFUND TRANSACTIONS
Interfund balances at June 30, 2024 were as follows:

Due from
Other Funds
General
Due to Other Funds Fund
Nonmajor Funds:

Tobacco Grant Fund $ 10,120
HOME Program Income Fund 12,691
Traffic Grant Fund 8,667
Cannabis Tax Grant Fund 11,365
$ 42,843
These balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Transfers during the year ended June 30, 2024 were as follows:

Capital Gas 2015
General Projects Tax CDBG
Transfers out Fund Fund Fund Fund Total
Major Governmental Funds:

General Fund 3,531,812 $ 289,729 $ 3,821,541 $
Capital Projects Fund 1,084 $ 1,084
Nonmajor Governmental Funds:

CDBG Principal and Interest
Fund 9,407 4,054 $ 13,461
COPS/SLESF Grant Fund 126,000 126,000
Enterprise Fund:

Wastewater Fund 81,037 81,037
$ 3,531,812 217,528 $ 289,729 $ 4,054 $ 4,043,123 $
Transfers In
Nonmajor
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expand them and (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
41 NOTE E – LOANS RECEIVABLE
The following is a summary of the various types of loans receivable outstanding as of June 30, 2024:

General Fund – The City made loans to small businesses under the Small Business Emergency Economic Relief Fund through the Yuba-Sutter Economic Development Corporation to mitigate the impact of COVID-19. These loans are zero interest, secured loans with repayment beginning within 90 days of the lifting of the Stay-At-Home order or receipt of an SBA financial award. All loans were repaid as of June 30, 2024. The City also made loans to its employees for computer purchases.

One loan remained outstanding at June 30, 2024 at an interest rate of 6% that matures in October 2024.

CDBG Principal and Interest Special Revenue Fund – The City participates in a CDBG Revolving Loan program. The program is federally funded and provides assistance with single family rehabilitation programs. Funds received from payoffs are deposited in a CDBG Program Income Account to be used for future qualifying CDBG projects to benefit the City. Interest rates vary depending on the terms of the loan and interest may be deferred until the related property is refinanced or sold. Accrued but unpaid interest is added to the loan balance. Interest rates range from 3% to 5%.

HOME Program Income Fund – The City has made various loans to qualifying participants within the City as part of the Federal First Time Home Buyers Program (HOME), which are owner occupied housing rehabilitation programs. Interest rates vary depending on the terms of the loan and interest is deferred until the loan is refinanced or sold and may be waived under certain conditions if the loan is carried to full term. Also, the City utilizes proceeds received from pay-offs under the Housing Revolving Loan Fund to reloan to qualifying participants. The interest rate on the loans range from zero to 3%.

Activity in loans receivable for the year ended June 30, 2024 was as follows:

Balance at Payments Balance at
July 1, 2023 Additions Received Adjustments June 30, 2024 Major Governmental Fund:

General Fund:

Small Business Emergency
Economic Relief 2,451 $ 490 $ (2,662) $ (279) $ - $
Employees - computers 378 574 (572) 380
Total General Fund 2,829 1,064 (3,234) (279) 380
Nonmajor Governmental Funds:

CDBG Principal and Interest Fund:

Block grant principal 867,764 (4,843) (74) 862,847
Block grant accrued interest 528,093 22,842 550,935
22,842 1,395,857 (4,843) (74) 1,413,782
HOME Program Income Fund:

HOME loans principal 824,019 38,730 862,749
HOME loans accrued interest 128,791 7,504 136,295
46,234 952,810 999,044
Total Loans Receivable 2,351,496 $ 70,140 $ (8,077) $ (353) $ 2,413,206 $

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
42 NOTE F – CAPITAL ASSETS
Governmental capital assets activity for the year ended June 30, 2024 was as follows:

Balance at Balance at
June 30, 2023 Additions Retirements Transfers June 30, 2024 Capital assets, not being depreciated:

Land 6,057,051 $ 6,057,051 $
Construction in progress 1,658,531 3,779,666 $ (1,520,758) $ 3,917,439 Total capital assets,
not being depreciated 7,715,582 3,779,666 (1,520,758) 9,974,490 Capital assets, being depreciated:

Infrastructure 10,679,599 97,289 10,776,888
Buildings 5,281,839 60,110 (33,800) $ 5,308,149
Machinery and equipment 2,781,038 104,454 (201,103) 1,520,758 4,205,147 Vehicles 6,469,855 42,504 (145,124) (218,013) 6,149,222 Lease assets - vehicles 218,013 218,013
Total capital assets,
being depreciated 25,212,331 304,357 (380,027) 1,520,758 26,657,419 Less accumulated depreciation for:

Infrastructure (1,097,347) (256,071) (1,353,418)
Buildings (2,765,497) (125,516) 18,565 (2,872,448)
Machinery and equipment (1,668,424) (312,709) 192,562 (1,788,571) Vehicles (3,152,972) (560,148) 145,124 194,152 (3,373,844) Lease assets - vehicles (194,152) (194,152)
Total accumulated depreciation (8,684,240) (1,254,444) 356,251 (9,582,433) Capital assets being
depreciated, net 16,528,091 (950,087) (23,776) 1,520,758 17,074,986

GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 2,829,579 24,243,673 $ (23,776) $ - $ 27,049,476 $ Depreciation expense for governmental capital assets was charged to functions as follows:

General government $ 106,640
Public safety 708,504
Streets and public works 363,359
Parks and recreation 75,941
Total governmental activities depreciation expense 1,254,444 $

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
43 NOTE F – CAPITAL ASSETS (Continued)
Business-type capital assets activities for the year ended June 30, 2024 was as follows:

Balance at Extraordinary Balance at
June 30, 2023 Additions Retirements Transfers Loss June 30, 2024 Capital assets, not being depreciated:

Intangible asset - Right to
Capacity 12,300,000 $ $ 12,300,000
Construction in progress 4,529,148 196,312 $ 4,725,460
Total capital assets,
not being depreciated 196,312 16,829,148 17,025,460
Capital assets, being depreciated:

Sewer plant 87,663 23,456,454 (5,276,256) $ 18,267,861
Buildings 1,483,400 (493,800) 989,600
Machinery and equipment 953,097 13,260 (144,059) $ 225,786 $ (73,530) 974,554 Vehicles 314,836 54,251 271,333 640,420
Equipment under capital lease 570,426 (570,426)
Lease assets - equipment 73,307 73,307
Total capital assets,
being depreciated 26,778,213 155,174 (144,059) (5,843,586) 20,945,742 Less accumulated depreciation for:

Sewer plant (375,899) (6,333,137) 4,257,088 (2,451,948) Buildings (1,469,581) (2,350) 493,800 (978,131)
Machinery and equipment (773,365) (33,667) 137,381 (222,547) 72,700 (819,498) Vehicles (123,372) (49,343) (88,609) (261,324)
Equipment under capital lease (376,015) (1,620) 377,635 Lease assets - equipment (66,479) (66,479)
Total accumulated depreciation (9,075,470) (462,879) 137,381 4,823,588 (4,577,380) Capital assets being
depreciated, net (307,705) 17,702,743 (6,678) (1,019,998) 16,368,362

BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 34,531,891 $ (111,393) $ - (6,678) $ $ (1,019,998) $ 33,393,822 Depreciation expense for business-type capital assets was charged to the wastewater function.

Certain wastewater assets became obsolete due to state regulations that were cost prohibitive to implement resulting in the City writing-off the assets as an extraordinary loss in 2024.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
44 NOTE G – LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2024 was as follows:

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

Bonds and other debt:

Pension Obligation Bonds, Series 2019 13,280,000 $ (565,000) $ 12,715,000 $ 610,000 $ BBT financing 2019 5,823,000 (340,000) 5,483,000 349,000 CREBs 2017 Series A 1,024,778 (4,984) 1,019,794 8,983
CREBs 2017 Series B 162,069 141,815 (20,254) 31,292
Financed purchases:

PNC equipment agreement 2020 770,931 (63,672) 707,259 65,773 Motorola equipment agreement 2023 632,109 (96,664) 535,445 79,576 FNB Wildland engine agreement 2020 473,493 419,837 (53,656) 55,151 GM Tahoe agreement 2023 319,466 247,239 (72,227) 77,097 GM Financial - SCO Vehicle 42,504 $ (9,816) 32,688 7,280 Altec Ford agreement 2020 29,122 (29,122)
GM Tahoe 2020 25,962 (12,692) 13,270 13,270
GM Silverado 2020 9,970 (9,970)
Leases - vehicles
Enterprise Leases May 2018 65,361 (46,780) 18,581 18,581 42,504 22,616,261 (1,324,837) 21,333,928 1,316,003
Add: unamortized bond premium 621,267 (29,235) 592,032
42,504 23,237,528 (1,354,072) 21,925,960 1,316,003
Compensated absences 451,426 14,975 466,401
Net pension liability 1,097,315 2,268,655 3,365,970
Net OPEB liability 13,392 10,898 (2,494)
Governmental activities
long-term liabilities 25,971,001 $ 1,154,794 $ (1,356,566) $ 25,769,229 $ 1,316,003 $ Business-Type Activities:

Bonds:

Sewer revenue bonds, 2021 Series A 12,145,000 $ (415,000) $ 11,730,000 $ 420,000 $ Sewer revenue bonds, 2021 Series B 4,505,000 (135,000) 4,370,000 135,000 Leases - vehicles
Enterprise Leases May 2018 21,807 (15,722) 6,085 6,085
(565,722) 16,671,807 16,106,085 561,085
Add: unamortized bond premium 367,232 (15,967) 351,265
Total long-term debt 17,039,039 (581,689) 16,457,350 561,085 Compensated absences 8,478 9,305 $ 17,783
Net pension liability 137,187 83,971 221,158
Business-type activities
long-term liabilities 17,184,704 $ 93,276 $ (581,689) $ 16,696,291 $ 561,085 $ Long-term debt of the City’s governmental activities consisted of the following as of June 30, 2024, all of which is direct debt:
2019 Pension Obligation Bond, Series 2019: On July 1, 2019, the City issued Taxable Pension Obligation Bonds in the amount of $15,000,000 to finance a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees and pay for a portion of the City’s remaining required normal FY19/20 monthly payments to CalPERS.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
45 NOTE G – LONG-TERM LIABILITIES (Continued)
Debt service is funded by the revenue of the General Fund. Interest rates vary from 2.697% to 5.25%.

Interest on the Bonds is payable semiannually on each January 1 and July 1, commencing January 1, 2020. The principal payments of $255,000 to $1,125,000 and interest payments of $312 to $320,122 are payable annually from July 1, 2020 to July 1, 2044. The Indenture of Trust states that an event of default exists if the City fails to make the due and punctual payment of the principal or interest or if the City fails to observe any of the terms or conditions of the Indenture for a period of 30 days. If default occurs, the principal and accrued interest could be called due and payable immediately.

BBT Financing 2019: The City entered into an agreement with BBT Government Finance (BBT) to assign payments under a lease agreement with the Marysville Public Financing Authority to BBT to provide proceeds to refund prior 2011 Taxable Certificates of Participation. The interest component of the lease will be calculated based on the Taxable Rate. Principal payments ranging from $330,000 to $506,000 are due annually beginning October 1, 2020 through October 1, 2036 and interest payments ranging from $7,792 to $110,320 are due semi-annually on April 1 and October 1 beginning on April 1, 2020 through October 1, 2036. To provide for repayment of the financing, the City intends to lease, on a long-term basis, the business park and a development project. Should the City default on lease payments or any covenants of the lease agreement, the trustee could re-let the property and terminate the lease agreement. The City holds the title to the property throughout the lease term, resulting in the agreement not meeting the definition of a lease under GASB Statement No. 101.

Clean Renewable Energy Bonds (CREBs), Series 2017 A and B: On September 1, 2017, the Marysville Financing Authority issued CREBs in the amount of $1,027,762 (Series A) and $176,907 (Series B) by designating as CREBs a lease agreement with the City under Section 54C of the Internal Revenue Code.

The purpose of the CREBs is to finance its clean renewable energy projects consisting of solar photovoltaic energy systems at the City Hall and Police Department, City Fire Department, and City Corporation Yard. Series A principal payments range from $2,985 to $134,966 and are due annually on September 1 through September 1, 2038 and interest payments, at a rate of 5.62%, ranging from $420 to $28,880 are due semiannually on March 1 and September 1 through September 1, 2038. Series B principal payments range from $190 to $31,292 and are due annually on September 1 through September 1, 2031 and interest payments, at a rate of 5.42%, ranging from $483 to $4,794 are due semiannually on March 1 and September 1 through September 1, 2031. To provide for repayment of the bonds, the City has leased three parcels of land bordered by or near F and 15th Streets to the Marysville Financing Authority under a leaseback agreement. Should the City default on lease payments or any covenants of the lease agreement, payments could be enforced, the lease could be terminated or legal action could be taken.

Financed Purchases: The following agreements are termed leases by the lender but result in title to the related asset passing to the City upon all payments being made and are considered to be financed purchases under paragraph 19 of GASB Statement No. 87.

PNC Equipment Financing Agreement 2020: The City entered into a purchase option lease agreement with PNC Equipment Finance, LLC dated December 4, 2019 for the acquisition of one 2020 Pierce Enforcer 1500 Pumper and one Ford Type 6 F550 fire engine. Due in annual installments of $89,112 through December 4, 2034, including interest at 3.3%. Should the City default on lease payments or any covenants of the lease agreement, the Lessor can demand full payment of the outstanding lease payments or retake possession of equipment or require the City to return property, with the City being responsible for a loss on resale or re-lease of equipment.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
46 NOTE G – LONG-TERM LIABILITIES (Continued)
Motorola Equipment Agreement 2023: The City entered into a purchase option lease agreement with Motorola Solutions, Inc dated February 3, 2023 for police radios, equipment, software, and other support for digital encryption for the Police Department. The City made an initial payment of $800,000 including interest, with the remaining payments due in annual installments of $104,046 from August 1, 2023 to August 1, 2029, including interest at 4.57%. Default provisions are similar to the PNC Equipment Financing Agreement above.

FNB Wildan Engine Agreement 2020: The City entered into a purchase option lease agreement with Community First National Bank dated December 1, 2020 for the acquisition of one Type 3 Wildland Engine. The agreement is due in annual installments of $66,839 through December 10, 2030, including interest at 2.78%. Default provisions are similar to the PNC Equipment Financing Agreement above.

GM Financial Tahoe Agreement 2023: The City entered into a purchase option lease agreement with AmericaCredit Financial Services, Inc., d/b/a GM Financial, dated December 16, 2022 for the acquisition of five 2023 Chevrolet Tahoe police vehicles. The agreement is due in annual installments of $93,770 through December 16, 2026, including interest at 6.74%. Default provisions are similar to the PNC Equipment Financing Agreement above.

GM Financial SCO Agreement 2024: The City entered into a purchase option lease agreement with GM Financial dated July 27, 2023 for the acquisition of one 2023 Chevrolet Colorado vehicle. The agreement is due in annual installments of $9,816 through July 28, 2027, including interest at 7.76%. Default provisions are similar to the PNC Equipment Financing Agreement above.

Altec Ford Agreement 2020: The City entered into a purchase option lease agreement with Altec Capital Services, LLC dated April 1, 2020 for the acquisition of a 2019 Ford F550 Altec Bucket vehicle. The agreement was due in annual installments of $30,945 through April 1, 2024, including interest at 7.5%.

The agreement was paid in full as of June 30, 2024.

GM Financial Tahoe Agreement 2020: The City entered into a purchase option lease agreement with GM Financial dated May 20, 2021 for the acquisition of one 2020 Chevy Tahoe police vehicle. The agreement is due in annual installments of $13,875 through May 20, 2024, including interest at 4.56%. Default provisions are similar to the PNC Equipment Financing Agreement above.

GM Financial Silverado Agreement 2020: The City entered into a purchase option lease agreement with GM Financial dated September 10, 2020 for the acquisition of a 2020 Chevy Silverado police vehicle.

The agreement was due in annual installments of $10,414 through September 10, 2023, including interest at 4.46%. The agreement was paid in full as of June 30, 2024.

Leases: The following agreement is considered a lease under GASB Statement NO. 87.

Enterprise Leases May 2018: The City entered into a master equity lease agreement with Enterprise FM Trust, dated October 4, 2018 for the lease of vehicles from time to time as deemed necessary by the City.

On February 6, 2019 through December 16, 2019 the City leased ten vehicles. Four of those vehicles were returned to Enterprise in April and June of 2021. Six vehicles remained under the agreement as of June 30, 2024. The cost of the remaining assets were $218,013 and accumulated depreciation was $194,152 as of June 30, 2024. Default provisions are similar to the PNC Equipment Financing Agreement above.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
47 NOTE G – LONG-TERM LIABILITIES (Continued)
Long-term debt of the City’s business-type activities consists of the following as of June 30, 2024, all of which is direct debt:
$13,065,000 Sewer Refunding Revenue Bonds, 2021 Series A: Issued on August 25, 2021 to refund the outstanding Marysville Financing Authority Sewer Revenue Bonds, 2012 Series A, that were issued to finance certain improvements to the sewer system, generate annual cash flow savings to the City's sewer system, and reduce restrictive covenants that were imposed on the City with the 2021 Series A Revenue Bonds. The serial bonds with principal payments of $415,000 to $505,000 are due beginning November 1, 2021 through November 1, 2031 with term bonds maturing on November 1, 2036, 2040, and 2045. The serial bonds have stated interest rates of 0.299% to 2.107% and the term bonds have stated interest rates of 2.757% to 3.234%. Repayment is secured by a pledge and lien of the net revenues of the sewer system.

Should the City default on payments or any covenants of the agreement, the bonds could immediately become due and payable.
$4,630,000 Sewer Revenue Bonds, 2021 Series B: Issued on August 25, 2021 to prepay the outstanding loan made by the Linda County Water District to the City made to finance the costs of improvements to the sewer system and finance new improvements to the sewer system. The serial bonds with principal payments of $125,000 to $175,000 are due beginning November 1, 2022 through November 1, 2031 with term bonds maturing on November 1, 2036, 2041, and 2045. The serial bonds have stated interest rates of 2% to 4% and the term bonds have interest rates of 2.25% and 4%. Repayment is secured by a pledge and lien of the net revenues of the sewer system. The default provisions are the same as the Series A bonds.

Enterprise Lease May 2018: The City entered into a master equity lease agreement with Enterprise FM Trust, dated October 4, 2018 for the lease of vehicles from time to time as deemed necessary by the City.

On October 31, 2019 the City leased two 2019 Ford F250 vehicles. The cost of the asset was $73,307 and accumulated depreciation was $51,818 as of June 30, 2023. Should the City default on lease payments or any covenants of the lease agreement, the Lessor can demand full payment of the outstanding lease payments or retake possession of equipment or require the City to return property, with the City being responsible for a loss on resale or re-lease of equipment.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
48 NOTE G – LONG-TERM LIABILITIES (Continued)
Future principal and interest due on debt were as follows at June 30, 2024:

Year Ending
June 30: Principal Interest Principal Interest
2025 1,316,003 $ 848,872 $ 561,085 $ 432,431 $
2026 1,371,311 795,510 565,000 422,858
2024 1,477,136 730,695 575,000 412,004
2028 1,488,897 660,569 585,000 401,318
2029 1,593,044 591,106 600,000 390,800
2030-2034 8,516,613 1,917,182 3,220,000 1,720,398
2035-2039 5,240,924 430,770 3,745,000 1,200,729
2040-2044 330,000 18,946 4,335,000 611,754
2045-2049 1,920,000 57,412
Totals 21,333,928 $ 5,993,650 $ 16,106,085 $ 5,649,704 $ Governmental Activities Business-Type Activities
The Wastewater Fund has pledged a portion of its net revenue to repay $17,695,000 for the Sewer Revenue Bonds to finance certain sewer system improvements. Total principal and interest remaining on the bonds through 2045 is $21,749,639. For fiscal year 2024, the principal and interest paid by the Wastewater fund for these loans was $990,473. The City was in compliance with its debt coverage related to the Sewer Revenue Bond for the year ending June 30, 2024.

NOTE H – NET POSITION/FUND BALANCE
The following are the purposes for which net positions are restricted:

Governmental Business-Type
Activities Activities
Public safety 83,360 $
Public works
Capital projects 2,972,951 $
Other 1,229,219
Debt service 4
Community development 2,400,427
$ 2,972,951 3,713,010 $

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
49 NOTE H – NET POSITION/FUND BALANCE (Continued)
The following are the components of the Governmental Funds fund balances:

Capital Nonmajor Total
General Projects Governmental Governmental
Fund Fund Funds Funds
Fund balances:

Nonspendable:

Loans receivable 60,646 $ 2,412,826 $ 2,473,472 $
Total Nonspendable 60,646 2,412,826 2,473,472
Restricted for:

Public safety 83,360 83,360
Public works 1,226,930 1,226,930
Debt service 4 4
Community development 2,289 2,289
Total Restricted 4 1,312,579 1,312,583
Unassigned/Unrestricted 8,218,124 (34,177) $ (21,409) 8,162,538 Total Unassigned (deficit) 8,218,124 (34,177) (21,409) 8,162,538 Total fund balances
(deficit) 8,278,774 $ (34,177) $ 3,703,996 $ 11,948,593 $ NOTE I – PENSION PLANS AND DEFERRED COMPENSATION PLAN
Defined Benefit Plan Description: All qualified permanent and probationary employees are eligible to participate in the City’s cost-sharing multiple-employer defined benefit pension plan (the Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous risk pool and a safety risk pool and the following rate plans:
 City Miscellaneous Plan Classic Tier 1
 City Miscellaneous Plan Classic Tier 2
 City Miscellaneous PEPRA Tier 3
 Safety Police Plan Classic
 Safety Police Plan PEPRA
 Safety Fire Plan Classic
 Safety Fire Plan PEPRA
Although one pension plan exists, CalPERS provides the information separately for the Miscellaneous and Safety Risk Pools and the information is presented separately where available. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
50 NOTE I – PENSION PLANS AND DEFERRED COMPENSATION PLAN (Continued) 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 (62 for PEPRA Miscellaneous Plan) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is the Optional Settlement 2 Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect at June 30, 2024, are summarized as follows:

City City City
Miscellaneous Miscellaneous Miscellaneous
Classic Tier 1 Classic Tier 2 PEPRA Tier 3
Prior to On or after On or after
January 1, 1982 January 1, 1982 January 1, 2013
Benefit formula (at full retirement) 2.0% @ 55 2.0% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Final average compensation period One Year Three Year Three Year Retirement age 50 - 63 50 - 63 52 - 67
Monthly benefits, as a % of eligible
compensation 1.426% to 2.418% 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 0.00% 7.00% 7.75%
Required employer contribution rates 0.00% 11.84% 7.68% Safety Police Safety Police Safety Fire Safety Fire
Classic PEPRA Classic PEPRA
Prior to On or after Prior to On or after
January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 Benefit formula (at full retirement) 3.0% @ 50 2.7% @ 57 2.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Final average compensation period Three Year Three Year Three Year Three Year Retirement age 50 50 - 57 50 - 55 50-57
Monthly benefits, as a % of eligible
compensation 3.00% 2.0% to 2.7% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9.00% 13.75% 9.00% 13.75% Required employer contribution rates 25.65% 13.54% 19.95% 13.54% The Miscellaneous Plan & Safety Classic Rate Plans are closed to new participants that were not CalPERS participants prior to January 1, 2013 under the Public Employees’ Pension Reform Act of 2013 (PEPRA). Any new participants that were not previously CalPERS participants would be required to join the PEPRA Rate Plans.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
51 NOTE I – PENSION PLANS AND DEFERRED COMPENSATION PLAN (Continued) Contributions: Section 20814(c) of the California Public Employees’ Retirement Law 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 CalPERS. 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2024, the employer contributions made to the Plan were as follows for the year ended June 30, 2024:

Normal UAL
Cost Amortization Total
City Miscellaneous Risk Pool 201,223 $ 201,223 $
Safety Risk Pool 379,545 4,944 $ 384,489
$ 4,944 580,768 $ 585,712 $
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions:

As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability as follows:

Liability
City Miscellaneous Risk Pool 1,151,862 $
Safety Risk Pool 2,435,266
Total Net Pension Liability 3,587,128 $
Proportionate Share
of Net Pension
The City’s net pension liability 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 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 City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2024 and 2023 was as follows:

Miscellaneous Safety
Plan Plan
Proportion - June 30, 2023 0.01665% 0.02367%
Proportion - June 30, 2024 0.02304% 0.03258%
Change - Increase (Decrease) 0.00639% 0.00891%

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
52 NOTE I – PENSION PLANS AND DEFERRED COMPENSATION PLAN (Continued) For the year ended June 30, 2024, the City recognized pension expense of $380,206 for the Miscellaneous Plan and $29,616 for its Safety Plan. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the Plan combined from the following sources:

Deferred Deferred
Outflows of Inflows of
City Miscellaneous Risk Pool Resources Resources
Pension contributions subsequent to measurement date 201,223 $ Change in assumptions 69,543
Net differences between projected and actual earnings
on plan investments 186,497
Difference between employer's and proportionate share
of contributions $ (870,779)
Difference between expected and actual experience 58,843 (9,128) Change in employer's proportion 1,634,025
Total 2,150,131 $ (879,907) $
Deferred Deferred
Outflows of Inflows of
Safety Risk Pool Resources Resources
Pension contributions subsequent to measurement date 384,489 $ Change in assumptions 142,125
Net differences between projected and actual earnings
on plan investments 333,266
Difference between employer's and proportionate
share of contributions (1,878,879) $
Difference between expected and actual experience 178,793 (15,307) Change in Employer's Proportion 2,211,729
Total 3,250,402 $ (1,894,186) $
Total - all risk pools 5,400,533 $ (2,774,093) $
The amount reported as deferred outflows of resources related to contributions subsequent to the measurement date above will be recognized as a reduction of the net pension liability in the following fiscal year. Other amounts reported as net deferred inflows of resources related to pensions will be recognized as pension expense as follows:

City
Fiscal Year Ended Miscellaneous Safety
June 30 Risk Pool Risk Pool Total
2025 599,254 $ 502,584 $ 1,101,838 $
2026 399,831 343,118 742,949
2027 64,564 116,723 181,287
2028 5,352 9,302 14,654
$ 971,727 1,069,001 $ 2,040,728 $

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
53 NOTE I – PENSION PLANS DEFERRED COMPENSATION PLAN (Continued) Actuarial Assumptions: The total pension liabilities in the actuarial valuations for the Plan were determined using the following actuarial assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by entry age and service Mortality Derived using CalPERS Membership Data for all Funds The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 Experience Study report that can be found on the CalPERS website under Forms and Publications.

Discount Rate: The discount rate used to measure the total pension liability was 6.90% for the Plan, which was the same as the discount rate during the year ended June 30, 2023. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate is applied to all plans in the Public Employees Retirement Fund (PERF).

The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of 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 pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class for the Plan. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
54 NOTE I – PENSION PLANS AND DEFERRED COMPENSATION PLAN (Continued) Assumed Asset Real Return Years
Asset Class Allocation 1-101,2
Global Equity - cap-weighted 30.0% 4.54%
Global Equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage (5.0%) (0.59%)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’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:

City
Miscellaneous Safety
Risk Pool Risk Pool Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability 3,701,732 $ 7,429,988 $ 11,131,720 $ Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability 1,151,862 $ 2,435,266 $ 3,587,128 $ 1% Increase 7.90% 7.90% 7.90%
Net Pension (Asset) (946,899) $ (1,648,274) $ (2,595,173) $ Pension Plan Fiduciary Net Position: Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Defined Contribution Pension Plan: The City established a defined contribution pension plan titled the Accumulation Program for Part-time, Temporary and Limited-Service Employees of Public Employers (“APPLE Plan) under Internal Code (IRC) Section 401(a) on November 1, 2023. The Apple Plan was designed under the Keenan & Associates Pre-Approved Plan Document and was administered by Public Agency Retirement Services (PARS) through November 30, 2023 when administrative responsibilities were transferred to US BENCOR MidAmerica (USBMA) and assets began to be held in trust by American United Life Insurance Company. Benefit terms are established and may be amended by the City Council. The Apple Plan is available to part-time, temporary and limited service (two years or less duration) employees that are not eligible to participate in the City’s defined benefit pension plan with CalPERS and participants are eligible upon first rendering paid service to the City. Participants may

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
55 NOTE I – PENSION PLANS AND DEFERRED COMPENSATION PLAN (Continued) contribute up to IRC limits and the required employer contribution is 7.5% of eligible compensation, of which the City pays 1.5% and the employee picks up 6%. All contributions are vested when made.

Employee and employer contributions to the Apple Plan were $3,045 and $761, respectively, during the year ended June 30, 2024.

Deferred Compensation Plan: The City offers a deferred compensation plan under IRC Section 457(b) called the City of Marysville 457(B) Plan (457(b) Plan) to all employees at the date of hire except leased employees and union employees whose employment is governed by a collective bargaining unit. Benefit terms are established and may be amended by the City Council. Nationwide administers the 457(b) Plan.

Employees may contribute to the 457(b) Plan up to IRC limits and are 100% vested in contributions when made. The City does not contribute to the plan. Employee contributions to the 457(b) Plan were $70,690 during the year ended June 30, 2024.

NOTE J – POST EMPLOYMENT HEALTH CARE BENEFITS
Plan Description: Only one City employee is currently eligible for post-retirement health benefits. The City has computed the post-employment benefits using the alternative measurement method. The liability has not been funded nor has a trustee been appointed. The benefit provisions are established in the form of a binding contract with the employee. The plan currently does not issue stand-alone financial statements. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement

75. Total OPEB Liability: The City’s total OPEB liability at June 30, 2024 of $10,898 was measured on the same date using the Alternative Measurement Method described in paragraphs 224-226 of GASB Statement No. 75. Changes in the total OPEB liability are as follows:

Annual required contribution 2 $ ,764
Interest on net OPEB obligation 124
Benefit payments (5,382)
Decrease in net OPEB obligation (2,494)
Total OPEB liability, July 1 13 ,392
Total OPEB liability, June 30 10,898 $
Actuarial Assumptions and Other Inputs: The total OPEB liability was determined using the following assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Discount rate 4.50 percent
Healthcare trend rate 3 percent per year
Retirees' share of benefit-related costs None
Remaining life expectancy 7 years
The discount rate is considered to approximate the yield of a 20-year, tax-exempt general obligation municipal bond with an average rating of AA/Aa or higher as required by paragraph 36b of GASB No.

75. Additional disclosures and required supplementary information required by GASB No. 75 were omitted due to the immateriality of the OPEB liability.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
56 NOTE K – INSURANCE
The City is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article I, Chapter 5, Division 7, Title I of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides claims processing administrative services, risk management services and actuarial studies. A member from each city governs the NCCSIF. The City of Marysville council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the extent of any deficiency in its equity balance.

Banking Layer/
Coverage NCCSIF Excess Deductible
Liability 1,000,000 $ 50,000 $
Employers liability 500,000 4,500,000 $ 100,000
Property 1,000,000,000 25,000
Boiler and machinery 100,000,000 10,000
Mobile equipment 6,800,295 2,000
Workers Compensation liability 500,000 100,000
Cyber Excess 2,000,000 4,000,000
Crime 3,000,000 5,000
Deadly Weapon Response Program 500,000 10,000
Flood 15,000,000 100,000-250,000
The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors.

A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.

Settlements have not exceeded the insurance coverage for the past three fiscal years. There have not been any significant reductions in insurance coverage over the prior year. The audited financial statements of the JPA are available at the NCCSIF’s office.

NOTE L – COMMITMENTS AND CONTINGENCIES
The City participates in various federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
57 NOTE L – COMMITMENTS AND CONTINGENCIES (Continued)
The City is party to various claims, legal actions and complaints that arise in the normal operation of business. Management and the City’s legal counsel believe that there are no material loss contingencies that would have a material adverse impact on the financial position of the City.

The City had the following contract commitments outstanding at June 30, 2024:

Original Remaining
Description Commitment Commitment
2023 Measure C/SB1 Pavement Project 3,717,478 $ 368,253 $ Fire Auxilliary Building Project 392,519 151,247
D Street Walkability Project 282,391 262,615
Gavin Park Project 278,000 59,610
Beverage Recycling Grantt Project 271,036 233,044
$ 1,074,769 4,941,424 $
NOTE M – SUCCESSOR AGENCY TRUST FOR FORMER MARYSVILLE
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, as amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

Under the provisions of AB 1484, the City may elect to become the Housing Successor and retain the housing assets. The City elected to become the Housing Successor and on February 1, 2012, certain housing assets were transferred to the City’s Low Mod Income Housing Asset Special Revenue Fund.

The activities of the Housing Successor are reported in the Low Mod Income Housing Assets Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low-and moderate-income housing provisions of California Redevelopment Law.

The City also elected to become the Successor Agency and on February 1, 2012, the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency.

ABx1 26 requires the establishment of an Oversight board to oversee the activities of the Successor Agency and one was established in April 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of the City Council, one former Redevelopment Agency employee appointed by the Mayor and the remaining members are appointed by external agencies with an interest in Successor Agency assets.

Pursuant to Senate Bill 107, on July 1, 2018, a single consolidated County Oversight Board was established for the four city Oversight Boards.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency, including paying debt service payments of existing Redevelopment Agency debt agreements. Currently, the last of the obligations of the former Redevelopment Agency terminated in 2022.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
58 NOTE M – SUCCESSOR AGENCY TRUST FOR FORMER MARYSVILLE (Continued) The following disclosures of the Successor Agency as of June 30, 2024 are required by debt continuing disclosure requirements.

Successor agency capital asset activity for the fiscal year ended June 30, 2024 was as follows:

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

Land 28,449 $ (27,483) $ 966 $
Capital assets, being depreciated:

Buildings 48,663 48,663
Less: accumulated depreciation
Buildings (38,930) (1,622) $ (40,552)
Capital assets being depreciated, net (1,622) 9,733 8,111 FIDUCIARY CAPITAL ASSETS, NET $ (1,622) 38,182 $ (27,483) $ 9,077 $ Lease Revenue Bonds, 2001 Series A: As previously described, these bonds were issued to refinance the Marysville Community Agency 1992 Tax Allocation Refunding Bonds, along with the City’s 1992 Certificates of Participation. These bonds were paid off during 2022.

State Approval of Enforceable Obligations: The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semiannually that contains all proposed expenditures for the subsequent sixmonth period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

NOTE N – RESTATEMENT
During fiscal year 2024, the City restated July 1, 2023 fund balance and net position as follows:

The City determined that the Capital Projects fund was a major governmental fund. This resulted in a restatement of July 1, 2023 fund balance due to a change within the financial reporting entity.

The City determined that interest payable reported at June 30, 2023 in the Wastewater Proprietary Fund was overstated by $71,544, resulting in net position as of July 1, 2023 being understated by this amount due to over accrual of interest expense.

The City determined that wastewater billings receivable reported at June 30, 2023 in the Wastewater Proprietary Fund was understated by $105,277, resulting in net position as of July 1, 2023 being understated by this amount.

The City determined that the Levee Commission Custodial Fund Flood Maintenance Assistance Program (FMAP) grant had unrecognized qualifying expenses of $258,894, which resulted in due from other governments and net position as of July 1, 2023 being understated by this amount.

CITY OF MARYSVILLE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
59 NOTE N – RESTATEMENT (Continued)
The City determined that an invoice for work on the Marysville levee for asphalt repair should have been capitalized rather than deducted from net position as of June 30, 2023. As a result, non-depreciable capital assets was overstated and net position was understated by $206,167 in the Levee Commission Custodial Fund at July 1, 2023.

The City determined fiscal year 2023 interest expense related to the note payable to Yuba County Water Agency was overstated by $23,645 in the Levee Commission Custodial Fund, resulting in net position being understated at July 1, 2023.

These changes to or within the financial reporting entity and error corrections resulted in adjustments to and restatements of beginning net position and fund balance, as follows:
6/30/2023 Change within Corrections
As Previously the Financial of 6/30/2023
Reported Reporting Entity Errors As Restated
Fund Balance of Governmental Funds
Major Funds:

General Fund 10,133,774 $ 10,133,774 $
Capital Projects Fund 33,608 $ 33,608
Nonmajor Funds 3,341,032 (33,608) 3,307,424
Total Fund Balance of Governmental
Funds - as restated 13,474,806 $ - $ - $ 13,474,806 $
Net Position of Proprietary Fund
Wastewater Fund 23,847,432 $ 176,821 $ 24,024,253 $
Total Net Position of Proprietary
Fund - as restated $ - 23,847,432 $ 176,821 $ 24,024,253 $ Net Position of Fiduciary Funds
Custodial Funds 2,265,559 $ 488,706 $ 2,754,265 $
Total Net Position of Fiduciary
Funds - as restated 2,265,559 $ - $ 488,706 $ 2,754,265 $ NOTE O – SUBSEQUENT EVENTS
In August 2025, the City Council approved the execution of a Tax Sharing Agreement and Appropriations Limit Adjustment between the City of Marysville and the Linda Fire Protection District.

The agreement is related to an application filed with the Local Agency Formation Commission of the County of Yuba (LAFCO) for the annexation of the City’s fire services into the Linda Fire Protection District, which is subject to LAFCO approval.

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COMPLIANCE REPORT

REQUIRED SUPPLEMENTARY INFORMATION

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SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND
Variance with
Actual Final Budget
(Budgetary Positive/
Original Final Basis) (Negative)
Revenues:

Taxes and assessments 2,459,751 $ 2,782,451 $ 3,507,210 $ 724,759 $ Sales and use taxes 6,988,728 6,988,728 6,773,353 (215,375) Motor vehicle in lieu tax 1,376,972 1,291,972 1,396,766 104,794 Franchise tax 644,400 644,400 651,359 6,959
Licenses, permits and fees 736,186 869,186 1,005,875 136,689 Intergovernmental revenues 1,720,992 1,777,564 1,420,472 (357,092) Reimbursements 771,901 771,901 698,331 (73,570)
Charges for services 649,500 649,500 690,945 41,445
Use of money and property 579,352 405,352 801,402 222,050 Other revenues 83,025 83,025 220,316 137,291
Total revenues 15,836,807 16,438,079 17,166,029 727,950 Expenditures:

Current:

General government 4,563,819 4,123,943 4,296,495 267,324 Public safety 6,879,425 6,692,708 6,462,523 416,902
Streets and public works 1,264,499 1,375,042 1,200,589 174,453 Parks and recreation 1,113,288 1,138,329 1,111,023 27,306 Debt service:

Principal retirement 1,233,009 1,233,009 1,189,656 43,353 Interest and other charges 840,282 840,282 842,028 (1,746) Capital outlay 514,630 400,000 390,593 124,037
Total expenditures 15,667,729 16,544,536 15,492,907 1,051,629 Excess (deficiency) of revenues
over expenditures 169,078 (106,457) 1,673,122 1,779,579 Other financing sources (uses):

Insurance proceeds 4,413 4,413
Issuance of long term debt 42,504 42,504
Proceeds from sale of assets 7,600 28,974 21,374
Transfers in 207,038 217,528 10,490
Transfers out (6,462,257) (6,462,257) (3,821,541) 2,640,716 Total other financing sources (6,255,219) (6,247,619) (3,528,122) 2,719,497 Excess (deficiency) of revenues and other
sources over expenditures and other uses (6,086,141) (6,354,076) (1,855,000) 4,499,076 Fund balance - beginning of year 10,133,774 10,133,774 10,133,774 Fund balance - end of year $ 3,779,698 4,047,633 $ 8,278,774 $ 4,499,076 $ The accompanying notes are an integral part of these financial statements.

Budgeted Amounts

CITY OF MARYSVILLE, CALIFORNIA
For the Year Ended June 30, 2024
60 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.02304% 0.01665% -0.13740% 0.00373% 0.11786% 0.11472% 0.11082% 0.10814% 0.10273% 0.08314% Proportionate share of the net pension
liability (asset) 1,151,862 $ 779,027 $ (2,609,034) $ 157,312 $ 4,719,585 $ 4,323,365 $ 4,368,711 $ 3,756,736 $ 2,818,412 $ 2,724,272 $ Covered payroll - measurement period $ 1,611,947 2,115,456 $ 1,517,815 $ 1,398,175 $ 1,330,077 $ 1,217,647 $ 1,209,884 $ 1,172,974 $ 1,228,822 $ 1,243,549 $ Proportionate share of the net pension liability
(asset) as a percentage of covered payroll 54.45% 48.33% -171.89% 11.25% 354.84% 355.06% 361.09% 320.27% 229.36% 219.07% Plan fiduciary net position as a percentage of
the total pension liability 93.89% 95.69% 114.28% 99.13% 73.56% 74.82% 74.10% 76.05% 81.56% 82.70% Notes to Schedule:

Reporting valuation date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Reporting measurement date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Changes in discount rate 6.90% 6.90% 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution
(actuarially determined) 201,223 $ 198,538 $ 151,186 $ 123,368 $ 406,932 $ 327,447 $ 269,762 $ 247,565 $ 209,655 $ 130,826 $ Contributions in relation to the actuarially
determined contributions (201,223) (198,538) (151,186) (123,368) (5,155,280) (327,447) (269,762) (247,565) (209,655) (130,826) Contribution deficiency (excess) - $ - $ - $ - $ (4,748,348) $ - $ - $ - $ - $ - $ Covered payroll - fiscal year $ 2,115,456 2,368,312 $ 1,611,947 $ 1,517,815 $ 1,398,175 $ 1,330,077 $ 1,217,647 $ 1,209,884 $ 1,172,974 $ 1,228,822 $ Contributions as a percentage of covered payroll 8.50% 9.39% 9.38% 8.13% 368.71% 24.62% 22.15% 20.46% 17.87% 10.65% Valuation date: June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortized method
Remaining amortization period
Asset valuation method Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
15-year
smoothed
market
Inflation 2.30% 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Payroll growth 2.80% 2.75% 2.75% 2.75% 2.875% 3.00% 3.00% 3.00% 3.00% 3.00% Investment rate of return 6.80% (1) 7.00% (1) 7.00% (1) 7.00% (1) 7.25% (1) 7.375% (1) 7.50% (1) 7.50% (1) 7.50% (1) 7.50% (1) Mortality (4) (4) (4) (4) (3) (3) (3) (2) (2) (2)
Notes to Schedule:
(2) Probabilities of retirement and mortality are based on CalPERS' 2010 Experience Study for the period from 1997 to 2007. (3) Probabilities of retirement and mortality are based on CalPERS' 2014 Experience Study for the period from 1997 to 2011. (4) Probabilities of retirement and mortality are based on CalPERS' 2017 Experience Study for the period from 1997 to 2015.

Entry age normal
Level percentage of payroll, closed
Varies by Entry Age and Service
Varies, not more than 30 years
(1) Net of administrative expenses, includes inflation.

CITY OF MARYSVILLE, CALIFORNIA

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - MISCELLANEOUS PLAN (UNAUDITED)
Last 10 Years
Last 10 Years

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN - MISCELLANEOUS PLAN (UNAUDITED) Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions:
61 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.03258% 0.02367% -0.13417% 0.01277% 0.16958% 0.17282% 0.16880% 0.17725% 0.18427% 0.14064% Proportionate share of the net pension
liability (asset) 2,435,266 $ 1,626,815 $ (4,708,824) $ 850,990 $ 10,586,186 $ 10,140,138 $ 10,086,254 $ 9,180,407 $ 7,592,673 $ 6,728,712 $ Covered payroll - measurement period $ 2,204,559 2,395,265 $ 2,110,027 $ 1,994,870 $ 1,641,904 $ 1,485,180 $ 1,395,874 $ 1,366,046 $ 1,011,871 $ 996,792 $ Proportionate share of the net pension liability
(asset) as a percentage of covered payroll 101.67% 73.79% -223.16% 42.66% 644.75% 682.75% 722.58% 672.04% 750.36% 675.04% Plan fiduciary net position as a percentage of
the total pension liability 93.31% 95.41% 114.01% 97.37% 66.47% 66.78% 65.97% 68.30% 73.23% 76.23% Notes to Schedule:

Reporting valuation date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Reporting measurement date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Changes in discount rate 6.90% 6.90% 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution
(actuarially determined) 379,545 $ 419,213 $ 370,612 $ 340,014 $ 1,191,731 $ 1,013,415 $ 852,710 $ 657,260 $ 663,213 $ 322,800 $ Contributions in relation to the actuarially
determined contributions (379,545) (419,213) (370,612) (340,014) (10,006,650) (1,013,415) (852,710) (657,260) (663,213) (322,800) Contribution deficiency (excess) - $ - $ - $ - $ (8,814,919) $ - $ - $ - $ - $ - $ Covered payroll - fiscal year $ 2,395,265 2,387,167 $ 2,204,559 $ 2,110,027 $ 1,994,870 $ 1,641,904 $ 1,485,180 $ 1,395,874 $ 1,366,046 $ 1,011,871 $ Contributions as a percentage of covered payroll 15.90% 17.50% 16.81% 16.11% 501.62% 61.72% 57.41% 47.09% 48.55% 31.90% Valuation date: June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortized method
Remaining amortization period
Asset valuation method Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
15-year
smoothed
market
Inflation 2.30% 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Payroll growth 2.80% 2.75% 2.75% 2.75% 2.875% 3.00% 3.00% 3.00% 3.00% 3.00% Investment rate of return 6.80% (1) 7.00% (1) 7.00% (1) 7.00% (1) 7.25% (1) 7.375% (1) 7.50% (1) 7.50% (1) 7.50% (1) 7.50% (1) Mortality (4) (4) (4) (4) (3) (3) (3) (2) (2) (2)
Notes to Schedule:

Varies, not more than 30 years
Level percentage of payroll, closed
Entry age normal
(1) Net of administrative expenses, includes inflation.

CITY OF MARYSVILLE, CALIFORNIA

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - SAFETY PLAN (UNAUDITED)
Last 10 Years
Last 10 Years
Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions:

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN - SAFETY PLAN (UNAUDITED) (2) Probabilities of retirement and mortality are based on CalPERS' 2010 Experience Study for the period from 1997 to 2007. (3) Probabilities of retirement and mortality are based on CalPERS' 2014 Experience Study for the period from 1997 to 2011. (4) Probabilities of retirement and mortality are based on CalPERS' 2017 Experience Study for the period from 1997 to 2015.

Varies by Entry Age and Service
62 (This page intentionally left blank.)

COMBINING AND INDIVIDUAL FUND STATEMENTS

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Variance with
Actual Final Budget
(Budgetary Positive/
Original Final Basis) (Negative)
Revenues:

Intergovernmental revenues 216,138 $ 269,346 $ 311,181 $ 41,835 $ Reimbursements 90,000 90,000 80,423 (9,577)
Total revenues 306,138 359,346 391,604 32,258
Expenditures:

Current:

General government 400,718 372,488 161,845 238,873
Public safety 19,499 (15,398) (34,897)
Debt service:

Principal retirement 117,329 117,329 117,328 1
Interest and other charges 38,623 38,623 38,623
Capital outlay 6,113,306 6,126,138 3,585,606 2,527,700
Total expenditures 6,654,578 6,654,578 3,922,901 2,731,677 Excess (deficiency) of revenues
over expenditures (6,348,440) (6,295,232) (3,531,297) 2,763,935 Other financing sources (uses):

Transfers in 6,282,488 6,282,488 3,531,812 (2,750,676)
Transfers out (1,084) (1,084)
Total other financing sources 6,282,488 6,282,488 3,530,728 (2,751,760) Excess (deficiency) of revenues and other
sources over expenditures and other uses (65,952) (12,744) (569) 12,175 Fund balance (deficit) - beginning of year (33,608) (33,608) (33,608) Fund balance (deficit) - end of year (99,560) $ (46,352) $ (34,177) $ 12,175 $ The accompanying notes are an integral part of these financial statements.

CITY OF MARYSVILLE, CALIFORNIA
For the Year Ended June 30, 2024
Budgeted Amounts

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - CAPITAL PROJECTS FUND 63 Code
Enforcement
Narcotics Asset Transportation Nuisance
Gas Tax Enforcement Seizure Sidewalk and Transit Abatement Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments 1,105,399 $ 1,274 $ 1,133 $ 14,409 $ 47,826 $ Receivables:

Accounts receivable 1,528 32,244 $
Interest receivable 8,273 10 9 111 396
Loans receivable
Due from other governments 135,588
TOTAL ASSETS 1,249,260 $ 1,284 $ 1,142 $ 16,048 $ 32,244 $ 48,222 $

LIABILITIES DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 67,334 $
Accrued payroll liabilities 19,266
Due to other funds
Total Liabilities 86,600
Deferred inflows of resources:

Unavailable revenue 32,244 $
Total deferred inflows
of resources 32,244
Fund balances:

Nonspendable
Restricted 1,284 1,162,660 $ 1,142 $ 16,048 $ 48,222 $
Unassigned
TOTAL FUND BALANCES (DEFICIT) 1, 1,284 162,660 1,142 16,048 48,222

TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 1, $ 1,284 249,260 $ 1,142 $ 16,048 $ 32,244 $ 48,222 $

CITY OF MARYSVILLE, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
Special Revenue
64 CDBG HOME
Tobacco Principal Program 2015 COPS/SLESF Cannabis
Grant and Interest Income CDBG Grant Traffic Tax Grant
Fund Fund Fund Fund Fund Grant Fund Totals
2,175 $ 75,757 $ 1,247,973 $
33,772
114 292 $ 1,164 10,369
1,413,782 999,044 2,412,826
$ 11,679 13,241 $ 15,688 $ 176,196
$ 1,416,071 13,241 $ 999,336 $ - $ 76,921 $ 11,679 $ 15,688 $ 3,881,136 $ 9,010 $ 76,344 $
2,674 $ 3,769 $ 25,709
$ 12,691 10,120 $ 8,667 11,365 42,843
12,691 10,120 9,010 11,341 15,134 144,896
32,244
32,244
1,413,782 $ 999,044 2,412,826
2,289 3,121 76,921 $ 338 554 1,312,579
(9,010) (12,399) (21,409)
1,416,071 3,121 986,645 (9,010) 76,921 338 554 3,703,996 $ 1,416,071 13,241 $ 999,336 $ - $ 76,921 $ 11,679 $ 15,688 $ 3,881,136 $ Revolving Loan Funds
Special Revenue
Law Enforcement Grants
65 Code
Enforement
Narcotics Asset Transportation Nuisance
Gas Tax Enforcement Seizure Sidewalk and Transit Abatement Fund Fund Fund Fund Fund Fund

REVENUES
Licenses, permits and fees 32,429 $
Intergovernmental revenues 405,282 $
Charges for services 340,356
Use of money and property 44 35,650 $ 40 $ 510 $ 1,518
Program income
Other revenues 72,821
Total revenues 854,109 44 40 510 33,947

EXPENDITURES
Current:

General government 23,704
Public safety
Streets and public works 774,196
Debt service:

Principal retirement 7,883
Interest and fiscal charges
Capital outlay 107,824
Total expenditures 889,903 23,704
Excess (deficiency) of revenues
over (under) expenditures (35, 44 794) 40 510 10,243

OTHER FINANCING SOURCES (USES)
Insurance proceeds 58,701
Transfers in 289,729
Transfers out
Total other financing sources (uses) 348,430
Net change in fund balances 44 312,636 40 510 10,243
Fund balances (deficit), beginning of year,
as previously reported 1,240 850,024 1,102 15,538 37,979 Change within financial reporting entity
(nonmajor to major fund)
Fund balances (deficit), beginning of year,
as restated 1,240 850,024 1,102 15,538 37,979
Fund balances (deficit) - end of year $ 1,284 1,162,660 $ 1,142 $ 16,048 $ - $ 48,222 $

CITY OF MARYSVILLE, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2024
Special Revenue
66 CDBG HOME
Tobacco Principal Program 2015 COPS/SLESF Cannabis Capital Grant and Interest Income CDBG Grant Traffic Tax Grant Project Fund Fund Fund Fund Fund Grant Fund Fund Totals
$ 32,429
$ 187,628 40,087 $ 60,871 $ 65,408 $ 759,276
340,356
1,021 $ 1,439 $ 4,574 44,796
26,888 7,504 34,392
72,821
27,909 40,087 8,943 192,202 60,871 65,408 1,284,070
3,875 34,427 27,750 $ 583 90,339
51,462 476 60,872 64,271 177,081
774,196
17,853 9,970
444 444
107,824
3,875 34,903 27,750 61,876 60,872 64,854 1,167,737
27,909 5,184 5,068 (27,750) 130,326 (1) 554 116,333
58,701
4,054 293,783
(13,461) (126,000) (139,461)
(13,461) 4,054 (126,000) 213,023
14,448 5,184 5,068 (23,696) 4,326 (1) 554 329,356
1,401,623 (2,063) 981,577 14,686 72,595 339 (33,608) $ 3,341,032 33,608 33,608
1,401,623 (2,063) 981,577 14,686 72,595 339 3,374,640
$ 1,416,071 3,121 $ 986,645 $ (9,010) $ 76,921 $ 338 $ 554 $ - $ 3,703,996 $ Revolving Loan Funds Law Enforcement Grants
Special Revenue
67 Levee Mary Aaron
Commission Museum
Fund Fund Total
ASSETS
Cash and investments $ 1,259,877 1,259,877 $
Receivables:

Interest receivable 8,231 8,231
Due from other governments 115,035 115,035
Capital assets, net
Non-depreciable 4,941,658 4,941,658
Depreciable, net 248,649 248,649
TOTAL ASSETS 6,573,450 6,573,450

LIABILITIES
Accounts payable 25,741 14,793 $ 40,534
Due to other governments 1,781 1,781
Salaries and benefits payable 5,737 5,737
Interest payable, due within one year 972,798 972,798
Note payable, due after one year 2,404,981 2,404,981
TOTAL LIABILITIES 3,409,257 16,574 3,425,831

NET POSITION
Net investment in capital assets 2,785,326 2,785,326
Restricted for other organizations 378,867 (16,574) 362,293 TOTAL NET POSITION 3,164,193 $ (16,574) $ 3,147,619 $

CITY OF MARYSVILLE, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
June 30, 2024
68 Levee Mary Aaron
Commission Museum
Fund Fund Total

ADDITIONS
Property taxes 495,345 $ 495,345 $
Intergovernmental revenue 209,393 209,393
Contribution revenue 45,800 $ 45,800
Other revenue 823 823
Investment income 196 35,175 35,371
TOTAL ADDITIONS 740,736 45,996 786,732

DEDUCTIONS
Personnel costs 115,104 115,104
Operations and maintenance 102,910 66,596 169,506
Depreciation expense 12,305 12,305
Interest expense 96,463 96,463
TOTAL DEDUCTIONS 326,782 66,596 393,378
CHANGE IN NET POSITION 413,954 (20,600) 393,354
Net position, beginning of year, as previously reported 2,261,533 4,026 2,265,559 Restatement - error correction 488,706 488,706
Net position, beginning of year, as restated 2,750,239 4,026 2,754,265 NET POSITION, END OF YEAR 3,164,193 $ (16,574) $ 3,147,619 $

CITY OF MARYSVILLE, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended June 30, 2024

CUSTODIAL FUNDS
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COMPLIANCE REPORTS

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550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
70 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 City Council
Marysville, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Marysville, California (the City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 14, 2025.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, we identified deficiencies in internal control, described as Findings 2024-001 and 2024-002, that we consider to be material weaknesses.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 To the City Council
City of Marysville, California
71 disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

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

November 14, 2025

CITY OF MARYSVILLE, CALIFORNIA

SCHEDULE OF FINDINGS AND RESPONSES
June 30, 2024
72 CURRENT YEAR FINDINGS

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Finding 2024-001 – Capital Asset Accounting – Material Weakness Condition: The following issues were noted in our audit of the City’s capital assets.  The three properties acquired from the Redevelopment Agency need to be recorded at their fair value at the acquisition date. These properties are currently reflected with a zero value.  The City has recorded land with a value of $4.5 million in the general ledger that is not listed on the capital asset list, so it is not clear which parcels of land the City owns that makes up this amount.
 City Hall was acquired in 1939 and it is recorded at a cost of $1.2 million, which appears high for a building purchased on that date. Any remodel work should be recorded on a separate line item of the depreciation list and depreciated starting on the date the remodel was completed over the estimated life of the improvements.

Criteria: An accurate list of capital assets needs to be maintained to support amounts reported in the financial statements.

Cause: A capital asset inventory has not been completed until recently and compared to the listing of capital assets.

Effect: The capital assets, net of accumulated depreciation, reflected in the City’s general ledger may be misstated.

Recommendation: Procedures need to be established to ensure the capital asset list is up-to-date.

Periodic inspections of assets need to be performed to ensure that recorded assets exist. Reconciliations of the subsidiary ledger to the general ledger need to be performed on a periodic basis.

City’s Response: Capital assets management has been a work in progress. The City will contract with an appraiser to assess the fair market value, at the date of acquisition, of City Hall as well as all remaining Redevelopment Agency properties. Additionally, contracting with an asset inventory company to complete a comprehensive initial inventory will be recommended to obtain a foundation of all long-term assets. Capital Asset Management processes and procedures will be updated and re-established, focusing on updating the City’s ERP system to have the option of categorizing expenditures as fixed assets.

Furthermore, general accounting and year-end procedures will also be implemented, which include capital assets appropriately recorded in the City’s general ledger.

Finding 2024-002 – Closing Procedures – Material Weakness Condition: Fourty-four adjustments and closing entries were posted during the audit to report the City’s financial statements in accordance with generally accepted accounting principles.

Criteria: Internal controls over financial reporting should be in place to ensure the City’s financial records are complete and accurate prior to the start of the financial statement audit.

CITY OF MARYSVILLE, CALIFORNIA

SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED)
June 30, 2024
73 Cause: The City’s closing procedures were not completed prior to the start of the audit and did not identify all entries that needed to be posted to report the financial statements in accordance with generally accepted accounting principles.

Context: The City’s Finance Director resigned during the closing process and the new Finance Director did not have adequate time to understand and record all material transactions prior to the start of the audit.

Effect: Adjustments were necessary to report the City’s financial statements in accordance with generally accepted accounting principles and slowed the completion of the audit.

Recommendation: We recommend the City post the adjustments provided during the audit, reconcile fund balance/net position in the general ledger to the audited financial statements ensure opening balances on July 1, 2025 agree to the June 30, 2024 audited financial statements and ensure its closing checklist includes a review of the accounts adjusted during the June 30, 2004 audit.

City’s Response: We will ensure the recommendations are implemented prior to the start of the 2025 audit.

PRIOR YEAR FINDINGS
Finding 2023-001 – Capital Asset Accounting – Material Weakness Finding 2024-001 is a continuation of this finding.

Finding 2023-002 – Schedule of Expenditures of Federal Awards (SEFA) – Significant Deficiency Program: All Federal Programs
Compliance Requirement: Reporting
Condition: The expenses and awards reported on the Schedule of Expenditures of Federal Awards (SEFA) were revised during the single audit.

Current Status: A single audit was not necessary during the year ended June 30, 2024. Consequently, there was no SEFA prepared and the finding was not applicable.