Needles City Council
April 8, 2025

(ACT) ACTION NEEDED
(INF) INFORMATION ONLY
(DIS) DISCRETIONARY
AGENDA

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES

CITY OF NEEDLES, CALIFORNIA
EL GARCES – 950 FRONT STREET, NEEDLES
TUESDAY, APRIL 8, 2025
COUNCIL EXECUTIVE SESSION – 5:30 PM
CITY COUNCIL MEETING – 6:00 PM

THE PUBLIC MAY ATTEND VIA TEAMS AND MAY SUBMIT ANY COMMENTS IN WRITING PRIOR TO NOON ON THE DAY OF THE MEETING BY EMAILING [email protected] TO JOIN THE LIVE TEAMS MEETING: log into the City of Needles website at www.cityofneedles.com to access the agenda and Click here to join the meeting If asked, enter the following: Meeting ID: 204 736 663# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: 204 736 663# The meetings are being recorded.

CALL TO ORDER

ROLL CALL

RECESS THE CITY COUNCIL MEETING AND CONVENE A JOINT COUNCIL / NPUA / HACN

MEETING

PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS A three-minute time limit per person has been established.

RECESS TO EXECUTIVE SESSION

EXECUTIVE SESSION
a. Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4). Re: Medical Investor Holdings, LLC (MIH) and MIH Related Entities

CALL TO ORDER

ROLL CALL
EXECUTIVE SESSION REPORT - by City Attorney

PLEDGE OF ALLEGIANCE

INVOCATION

APPROVAL OF AGENDA

CONFLICT OF INTEREST

CORRESPONDENCE

INTRODUCTIONS
CITY ATTORNEY – Parliamentary Procedures
As a courtesy to those in attendance, we would ask that cell phones be turned off or set in their silent mode. Thank you
PUBLIC APPEARANCE - Persons wishing to address the NPUA / HACN / City Council on subjects other than those scheduled are requested to do so at this time. When called by the Mayor, please announce your name and address for the record. In order to conduct a timely meeting, a three-minute time limit per person has been established by Municipal Code Section 2-18. Amendments to the California Government Code Section 54950 prohibits the City Council from taking action on a specific item until it appears on the agenda.

PRESENTATION
(A ten-minute time limit per presentation has been established per Municipal Code Section 2-18.)

1. Certificates of Appreciation to the Needles Varsity Boys and Girls Basketball Teams in recognition for their outstanding performance at the State Championships. (INF)

2. NPUA: Accept and file the NPUA fiscal year ended June 30, 2023 audit report completed by Vasquez & Company LLP. (ACT)

3. San Bernardino County Sheriff's Department Deputy Jeff Dean will give a presentation on Ebike Safety. (INF)

4. Code Enforcement Presentation Update (INF)

PUBLIC HEARING

5. HACN: Adopt Housing Authority of the City of Needles (HACN) Resolution No. 2025-9-HACN, adopting the Five-Year Plan and Annual Agency Plan (2025-2029) for the Housing Authority of the City of Needles (HACN) and accept and file Annual Public Hearing and the Civil Rights Certification with United States Department of Housing and Urban Development (HUD).  Staff Report
 Council questions of staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Council Discussion / Deliberation
 Adopt Housing Authority of the City of Needles (HACN) Resolution No. 2025-9-HACN, adopting the Five-Year Plan and Annual Agency Plan (2025-2029) for the Housing Authority of the City of Needles (HACN) and accept and file Annual Public Hearing and the Civil Rights Certification with United States Department of Housing and Urban Development (HUD). (ACT)

HACN / COUNCIL REGULAR ITEM

6. Housing Authority of the City of Needles financial audit report for the fiscal year ended June 30, 2024. (ACT)

ADJOURN THE JOINT CITY COUNCIL / NPUA / HACN MEETING AND RECONVENE THE

COUNCIL MEETING

PUBLIC COMMENTS PERTAINING TO THE COUNCIL ITEMS
A three-minute time limit per person has been established.

COUNCIL CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the City Council may pull an item from the Consent Calendar for discussion. Prior to Council action, a member of the public may address the City Council on matters scheduled on the Consent Calendar. A threeminute time limit per person applies. RECOMMENDED ACTION: Approve Items 7 through 8 on the Consent Calendar by affirmative roll call vote. (ACT)

7. Approve the Warrants Register through April 8, 2025.

8. Approve the Minutes of March 25, 2025.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

9. Consideration of an Ordinance Regarding Homeless Encampments (DIS)

CITY ATTORNEY REPORT

CITY CLERK REPORT

CITY MANAGER REPORT
City Manager's Report for the weeks of March 21 and 28, 2025.

COUNCIL REQUESTS
Council Member Longacre
Council Member McCorkle
Vice Mayor Campbell
Council Member Pogue
Council Member Belt
Council Member Longbrake
Mayor Jernigan

ADJOURNMENT

INTERNET ACCESS TO CITY COUNCIL AGENDAS AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT: http://www.cityofneedles.com Posted: April 4, 2025
SB 343-DOCUMENTS RELATED TO OPEN SESSION AGENDAS -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office, 817 Third Street, Needles, CA 92363.

In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 326-2113 ext 133. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-104 ADA Title II).

I hereby certify, under penalty of perjury under the laws of the State of California that the foregoing Agenda was posted at the front entrance of City Hall not less than 72 hours prior to the meeting.

Dated this 4th day of April 2025
/s/        Candace Clark, CPMC, CMC, Interim City Clerk City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 8, 2025
Title: Presentation by Vasquez & Company LLP of the NPUA audit report for the fiscal year ended June 30, 2023
Background: The fiscal year 2022/23 NPUA audit report has been completed by Vasquez & Company LLP. The audit report will be presented via teleconference by Roger Martinez who is the engagement partner.

Attached are the 2023 Audit Results Presentation materials, and audit report for the fiscal year ended June 30, 2023.

The Board of Public Utilities reviewed the FY 23 NPUA audit report on April 1, 2025.

Fiscal Impact: None
Environmental Impact: n/a
Recommended Action: Accept and file the NPUA fiscal year ended June 30, 2023 audit report completed by Vasquez & Company LLP.

Submitted By: Barbara DiLeo, Acting Director of Finance City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:
4/3/2025
Agenda Item 2.

REPORT TO THE

BOARD OF PUBLIC UTILITIES
April 1, 2025
Agenda Item 2.
1 / Introduction
To the Honorable Members of the Board of Public Utilities Needles Public Utility Authority
We are pleased to present this report related to our audit of the financial statements of Needles Public Utility Authority (the Authority) as of and for the year ended June 30, 2023. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the Authority’s financial reporting process, as well as other matters that we believe may be of interest to you. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities.

This report is intended solely for the information and use of the Board of Public Utilities and Management, and is not intended to be, and should not be, used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have regarding this report. We appreciate the opportunity to be of service to the Authority.

Agenda Item 2.
2 Engagement Team 3
Independence 4
Scope of Engagement 5
Summary of Audit Results 6
Auditor’s Required Communications to Those Charged with Governance 9
New Accounting Pronouncements – GASB Implementation 13
Questions 14
Contact Information 15
/ Table of Contents
Agenda Item 2.
3 / Engagement Team
Roger Martinez
Engagement Partner
Sam Tolentino
Audit Manager
Needles Public Utility Authority Engagement Team
Cristy Canieda
Quality Control Partner
Cid Conde
Engagement Director
Rachel Anne A. Francisco - Estoque
Audit Associate Manager
Jeny Felipe
Ela Lavilla
Senior Auditors Agenda Item 2.
4 / Independence
There are no relationships between any of our
representatives and the Authority that in our professional judgment may reasonably be thought to bear on
independence.

Vasquez & Company LLP meets the independence
requirements of the Government Auditing Standards as
it relates to the Authority.

Agenda Item 2.
5 / Scope of Engagement

FINANCIAL STATEMENTS AUDIT
• In accordance with Generally Accepted Government Auditing Standards • As of and for the year ended June 30, 2023
Agenda Item 2.
6 / Summary of Audit Results
Agenda Item 2.
7 / Independent Auditor’s Report
Unmodified
“Clean” Opinion
Audit performed 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
The financial statements present fairly, in all material respects, Needles Public Utility Authority:

Financial position Results of
operations
Changes in
net position Cash flows
Financial Statements Audit – UNMODIFIED OPINION – “Clean” Opinion Agenda Item 2.
8 Report on Internal Control Over Financial Reporting and on Compliance Material weakness(es) None noted
Significant deficiency
Significant
Deficiency on
Internal Controls
over Inventories
Noncompliance material to the financial statements None noted / Independent Auditor’s Report, Continued
Agenda Item 2.
9 / Auditor’s Required
Communication to Those
Charged with Governance
(AU-C 260)
Agenda Item 2.
10 Management’s
Responsibility
Management has primary responsibility for the accounting principles used, including their consistency, application, clarity and completeness.

Significant
Accounting
Policies
The Authority’s significant accounting policies are appropriate, and management has applied its policies consistently with prior periods in all material respects. The Authority implemented GASB Statement No. 96 – Subscription-Based Information Technology Arrangements (SBITAs) and GASB Statement No. 94, - Public-Private and Public-Public Partnerships (PPPs) and Availability Payment Arrangements (APAs), during the fiscal year ended June 30, 2023.

Controversial
issues
No significant or unusual transactions or accounting policies in controversial or emerging areas for which there is lack of authoritative guidance or consensus were identified.

Basis of
Accounting
The financial statements were prepared on the assumption that the Authority will continue as a going concern.
/ Required Communication to Those Charged
with Governance
Agenda Item 2.
11 Audit Adjustments Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the Authority are shown on the Summary of Recorded Audit Adjustments. The Authority's financial statements as of and for the year ended June 30, 2022 have been restated due to the change in the recognition of prepayments made in fiscal years 2020, 2012 and 2013 totaling $1,000,000 to the purchase obligation.

Disagreements
with Management
We encountered no disagreements with management on financial accounting and reporting matters as it relates to the current year financial statements.

Consultations with
Other Accountants
We are not aware of any consultations management had with other accountants about accounting and auditing matters.

Conditions of
Retention
No significant issues were discussed, or subject to correspondence, with management prior to retention.
/ Required Communication to Those Charged
with Governance, Continued
Agenda Item 2.
12 Difficulties with
Management
We did not encounter any difficulties with management while performing our audit procedures that require the attention of the Board.

Material Weakness
and Significant
Deficiency
A significant deficiency on internal controls over inventories was identified related to the controls in place in relation to withdrawal and purchases of inventories, and update of inventory unit cost. No material weaknesses in internal controls were identified. Details of the significant deficiency noted is included in the SAS114 Conclusion letter.

Irregularities,
Fraud or Illegal
Acts
No irregularities, fraud or illegal acts or that would cause a material misstatement of the financial statements, came to our attention as a result of our audit procedures.

Management
Representations
The Authority provided us with a signed copy of the management representation letter at the end of the audit and prior to our issuance of the report on financial statements. / Required Communication to Those Charged
with Governance, Continued
Agenda Item 2.
13 New Accounting
Pronouncements
– GASB
Implementation
Effective FY2024 –Applicable to the Authority’s financial statements • GASB Statement No. 100, Accounting Changes and Error
Corrections-an amendment of GASB Statement No. 62 (effective for fiscal year 2024).

Effective FY2024 – Applicable but no impact to the Authority’s financial statements
• GASB Statement No. 99, Omnibus 2022 (some components were effective in fiscal year 2022 and 2023, others were effective for fiscal years 2024); and
• GASB Statement No. 101, Compensated Absences
To be implemented in FY2025 and FY2026
• GASB Statement No. 102, Certain Risk Disclosures
(effective for fiscal year 2025)
• GASB Statement No. 103, Financial Reporting Model
Improvements
(effective for fiscal year 2026).
• GASB Statement No. 104, Disclosure of Certain Capital Assets (effective for fiscal year 2026)
Agenda Item 2.
14 QUESTIONS
Agenda Item 2.

Vasquez + Company LLP has over 50 years of
experience in performing audit, tax, accounting, and
consulting services for all types of nonprofit
organizations, governmental entities, and private
companies. We are the largest minority-controlled
accounting firm in the United States and the only
one to have global operations and certified as MBE
with the Supplier Clearinghouse for the Utility
Supplier Diversity Program of the California Public
Utilities Commission.

We are clients of the RSM Professional Services+
Practice. As a client, we have access to the
Professional Services+ Collaborative, a globally
connected community that provides access to an
ecosystem of capabilities, collaboration and
camaraderie to help professional services firms
grow and thrive in a rapidly changing business
environment. As a participant in the PS+
Collaborative, we have the opportunity to interact
and share best practices with other professional
services firms across the U.S. and Canada.
/ Contact Information
15 Roger Martinez, CPA
O: +1.213.873.1703
[email protected]
Cid Conde, CPA
O: +1.213.873.1730
[email protected]
Cristy Canieda, CPA, CGMA
O: +1.213.873.1720
[email protected]
Sam Tolentino, CPA
O: +1.213.873.1714
[email protected]
www.vasquez.cpa
Agenda Item 2.
16 Thank you for your
time and attention!
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Audited Financial Statements
As of and for the Year Ended June 30, 2023
with Independent Auditor’s Report
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Audited Financial Statements
As of and for the Year Ended June 30, 2023
with Independent Auditor’s Report
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Table of Contents
PAGE
INDEPENDENT AUDITOR'S REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) 5

BASIC FINANCIAL STATEMENTS
Statement of Net Position 11
Statement of Revenues, Expenses, and Changes in Net Position 12 Statement of Cash Flows 13
Notes to Financial Statements 14

SUPPLEMENTARY SCHEDULES
Combining Schedule of Net Position 34
Combining Schedule of Revenues, Expenses, and Changes in Net Position 35 Combining Schedule of Cash Flows 36
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 37
Agenda Item 2.
1 Independent Auditor’s Report
The Board of Public Utilities
Needles Public Utility Authority
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Needles Public Utility Authority (the Authority), a component unit of the City of Needles, California, which comprise the statement of net position as of June 30, 2023, the related statement of revenues, expenses and changes in net position, and cash flows for the year then ended, and the related notes to the financial statements, (collectively, the Authority’s basic financial statements).

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2023, and the changes in its net position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the State Controller’s Minimum Audit Requirements for California Special Districts. 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 Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Agenda Item 2.
2 Emphasis of Matters
As discussed in Note 15, the Authority’s financial statements as of and for the year ended June 30, 2022 have been restated due to the change in the recognition of prepayments made to the purchase obligation in the prior years. Our opinion is not modified with respect to this matter.

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

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

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

In performing an audit in accordance with GAAS 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.

Agenda Item 2.
3  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 Authority’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 Authority’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 management’s discussion and analysis on pages 5 through 10, be presented to supplement the basic financial statements. Such information is the responsibility of management, and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s basic financial statements. The accompanying combining schedules of net position, revenues, expenses and changes in net position, and cash flows, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.

Agenda Item 2.
4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2025, on our consideration of the Authority'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 Authority’s internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Glendale, California
February 25, 2025
Agenda Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS
(UNAUDITED)
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)
June 30, 2023
5 As Management of the Needles Public Utility Authority (the Authority), we offer readers of the Authority's financial statements this narrative overview and analysis of the Authority's financial performance during the fiscal year ended June 30, 2023. Please read it in conjunction with the Authority's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
 The total net position amounted to $17,332 thousand and $12,314 thousand, in 2023 and 2022, respectively. The increase of $5,018 thousand or 40.74% in the current year primarily due to an increase in capital contributions and adjustment of pension-related accounts.  Operating revenues amounted to $16,746 thousand and $17,346 thousand in 2023 and 2022, respectively. The decrease of $600 thousand or 3.46% in 2023 was due to lower consumption and usage.
 Operating expenses (excluding depreciation) amounted to $14,389 thousand and $14,537 thousand in 2023 and 2022, respectively. The decrease of $148 thousand or 1.01% in 2023 was primarily due to the adjustment of pension-related accounts and an increase in purchase of electric.

Overview of the Financial Statements
This annual report includes the management's discussion and analysis report, the independent auditors' report, the Authority's basic financial statements, and the supplementary schedules.

The financial statements also include notes that explain in more detail some of the information in the financial statements.

Required Financial Statements
The Authority's financial statements report information using accounting methods like those used by private sector companies. These statements offer both short-term and long-term financial information about its activities. The Statement of Net Position includes all the Authority's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, and provides information about the nature and amount of investments in resources (assets), and the obligations to creditors (liabilities). It also provides the basis for evaluation of the capital structure of the Authority and assessing the liquidity and financial flexibility of the Authority.

All the revenues and expenses for the year are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. This Statement measures the success of the Authority's operations over the past two years and can be used to determine whether the Authority has successfully recovered its costs, through its fees and other charges, profitability, and creditworthiness.

The final required financial statement is the Statement of Cash Flows. This statement reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities, and provides answers to such questions as sources of cash coming in, what expenditures cash was used for, and the change in the cash balance during the reporting periods.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2023
6 Financial Analysis of the Authority
One of the most important questions asked about the Authority's finances is "Is the Authority, as a whole, better off, or worse off as a result of the year's activities?”. The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position will help answer this question.

These two statements report the net position of the Authority, and changes in them.

One can think of these changes as indicators of whether the financial health is improving or deteriorating. However, one should also consider other factors, such as changes in the economy, population growth, and if there is any new governmental legislation.

We begin our analysis with a summary of the Authority's Statement of Net Position.

2023
2022
(As Restated)
Dollar
Change
Percent
Change
Assets
Current and other assets $ 16,467 $ 17,091 $ (624) -3.65% Capital assets 23,629 4,464 19,165 23.29%
Total assets 40,096 3,840 36,256 10.59%
Deferred outflows of resources 1,089 579 510 113.53%
Liabilities
Long-term debt 17,571 (1,171) 18,742 -6.25%
Other liabilities 6,168 1,421 4,747 29.93%
Total liabilities 23,739 250 23,489 1.06%
Deferred inflows of resources 114 (849) 963 -88.16%
Net Position
Net investment in captial and intangible assets 9,728 7,150 2,578 277.35% Restricted for debt service 6,321 (3,558) 9,879 -36.02% Unrestricted (deficit) 1,283 1,426 (143) -997.20%
Total net position $ 17,332 $ 12,314 $ 5,018 40.75%
Condensed Statement of Net Position
(000’s)
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2023
7 The $5,018 thousand increase in total net position in 2023, versus an increase of $705 thousand in 2022, reflects the combination of decrease in operating revenues and expenses, increase in capital contributions and transfers. The lower operating revenues in 2023 were due to decreased consumption and usage from FY 2023.

While the Statements of Net Position show the changes in financial position, the Statements of Revenues, Expenses and Changes in Net Position provide answers as to the nature of and source of these changes.

2023
2022
(As Restated)
Dollar
Change
Percent
Change
Revenues
Operating revenues $ 16,746 $ 17,346 $ (600) -3.46%
Nonoperating revenues 67 55 12 458.33%
Total revenues 16,813 (545) 17,358 -3.14%
Expenses
Depreciation 1,372 20 1,352 1.48%
Other operating expenses 14,389 (148) 14,537 -1.02%
Nonoperating expenses 976 (360) 1,336 -26.95%
Total expenses 16,737 (488) 17,225 -2.83%
Income before contributions and
transfers 76 (56) 132 -42.42%
Capital contributions 5,781 4,453 1,328 335.32%
Transfers (839) (84) (755) 11.13%
Changes in net position 5,018 4,313 705 611.77%
Net position at beginning of year, as
restated 12,314 705 11,609 6.07%
Net position at end of year $ 17,332 $ 12,314 $ 5,018 40.75% Condensed Statement of Revenues, Expenses, and Changes in Net Position (000’s)
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2023
8 The Authority's capital plan for the ensuing 10 years includes various capital and deferred maintenance projects, which include, but are not limited to the following:

ELECTRIC DEPARTMENT
 Cure Farms substation.
 Pole yard equipment steel building
 Advanced Metering Infrastructure (AMI) project.
 Wire trailer
 Mohave Line rehabilitation
 Park Moabi Line Upgrade
 Street light LED phase out program
 Double bucket truck
 South Hwy 95 Substation (cemetery site)
 Eagle Pass to Cemetery site Line Upgrade
 230kv line

WATER DEPARTMENT
 Well No. 11 Treatment
 1.5 MG of reservoir capacity
 Water services replacement – fourth year street paving  Water services replacement – fifth year street paving  Replace deteriorating pipe in Monterey & Arizona Avenues  Replace deteriorating pipe in Chesney’s subdivision
 Replace deteriorating pipe in Coronado Street area
 Replace deteriorating pipe in Chestnut Street area
 Replace deteriorating pipe in Casa Linda Street area
 Replace deteriorating pipe in River Road area
 Main replacement in the Vista Street area & new services  AMI meters
 Golf course maintenance yard main distribution manifold  Jet Vac / Trailer
2023 2022
Dollar
Change
Percent
Change
Costs
Land $ 3,199 $ 3,199 $ - 0.00%
Utility plant 42,588 1,099 41,489 2.65%
Right-of-use lease asset 236 86 150 57.33%
Construction in progress 5,374 4,632 742 624.26%
Total costs 51,397 5,817 45,580 Accumulated depreciation 27,768 1,353 26,415 5.12% Net capital assets $ 23,629 $ 19,165 $ 4,464 23.29%
Capital Assets
(000’s)
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2023
9  Main replacement at Verde Shores
 Extension into North Needles
 Fire hydrant replacements

WASTEWATER DEPARTMENT
 Railroad crossing at Bazoobuth
 Plant grit separator
 Upsize deficient sewer lines on T Street to Front Street  Upsize deficient sewer lines on 15 blocks of Front Street  Jet Vac trailer
 Mini excavator & tilt trailer
 Upsize effluent pump
 North Needles sewer line extension
 Manhole rehab program (ongoing)
 Manhole replacement and upsize project
 Bazoobuth lift station pump replacement
 North Needles sewer line extension
Long Term Debt
Total indebtedness (all liabilities) outstanding at June 30, 2023, and 2022 amounted to $23,739 thousand and $23,489 thousand, respectively. The increase in total liabilities was due to payments of debt and higher pension-related liabilities. More detailed information about the Authority’s long-term liabilities is presented in Note 7 of the financial statements.

Economic Factors and Power Rates
The Authority's cost for electricity is dependent upon the open market prices. Since 2008 the Authority has been purchasing its power from the Western Area Power Administration (WAPA), and energy costs decreased substantially because of this contract, from their peak in 2006 and 2007. In September 2020, the City, on behalf of the Authority, entered into Amendment No. 6 to Contract No. 00-DSR-11223 among United States Department of Energy Western Area Power Administration Desert Southwest Service Region (“WAPA”), Parker-Davis Project, SLCA Integrated Projects, Boulder Canyon Project and Yuma County Water Users’ Association and Wellton-Mohawk Irrigation and Drainage District and Eastern Arizona Preference Pooling Association and City of Needles, California for Aggregated Energy Services (“AES”) (through WAPA) that accommodates aggregation of all member resources (hydroelectric and thermal electric) subject to transmission arrangements. There is an opportunity for Needles to receive excess Wellton-Mohawk Irrigation and Drainage District Federal Energy Services (“FES”) hydro at a pre-negotiated cost, based on the FES rate (exchanges cannot be made at a rate greater than the FES rate). Those hydro deliveries will be deemed “specified” resources and will not be subject to Cap and Trade penalties.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2023
10 AES (through WAPA) accommodates aggregation of all member resources (hydroelectric and thermal electric) subject to transmission arrangements. There is an opportunity for Needles to receive excess Wellton – Mohawk Irrigation and Drainage District Federal Energy Services (“FES”) hydro at a prenegotiated cost, based on the FES rate (exchanges cannot be made at a rate greater than the FES Rate). Those hydro deliveries will be deemed “specified’ resources and will not be subject to Cap and Trade penalties.

Contacting the Authority's Financial Manager
This financial report is designed to provide our customers and creditors with a generalized overview of the Authority's finances and to demonstrate the Authority's accountability for the money it receives.

If you have questions about this report, or if additional financial information is needed, please contact the Needles Public Utility Authority, Director of Finance, 817 Third Street, Needles, California 92363.

Agenda Item 2.

BASIC FINANCIAL STATEMENTS
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Statement of Net Position
June 30, 2023
See accompanying notes to financial statements.
11 Current assets
Cash and cash equivalents $ 6,321,230 Receivables
Accounts receivables, net 2,270,237
Notes receivable, current portion 340,175 Due from City of Needles 4,116,758 Materials and supplies inventory 829,550
13,877,950
Noncurrent assets
Notes receivable, net of current portion 168,441
Capital assets, net of accumulated depreciation 23,628,702 Intangible assets, net of accumulated amortization 2,420,981 26,218,124 Total assets 40,096,074
Deferred outflows related to pensions 1,058,293 Deferred outflows related to OPEB 30,492 Total deferred outflows of resources 1,088,785 Current liabilities
Lease liabilities, current portion 48,925 Accounts payable and other current liabilities 206,656 Due to the City of Needles 19,457 Compensated absences 238,617
Customer deposits 2,747,858 Accrued interest payable 158,367 Bonds and notes payable, current portion 1,220,351
4,640,231
Noncurrent liabilities
Lease liabilities, net of current portion 120,067 Net pension liability 2,138,202 Net OPEB liability 489,392
Bonds and notes payable, net of current portion 16,351,068 Total noncurrent liabilities 19,098,729 Total liabilities 23,738,960
Deferred inflows related to pensions 114,142 Net position Net investment in capital and intangible assets 9,728,281 Restricted for debt service 6,321,230 Unrestricted 1,282,246 Total net position $ 17,331,757 DEFERRED INFLOWS OF RESOURCES

DEFERRED OUTFLOWS OF RESOURCES
Total current liabilities
ASSETS
Total current assets
Total noncurrent assets

LIABILITIES AND NET POSITION
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Statement of Revenues, Expenses and Changes in Net Position Year ended June 30, 2023
See accompanying notes to financial statements.
12 Operating revenues
Sales of electricity $ 11,043,636 Sales of water 3,593,680 Charges for wastewater system use 2,013,371 Other revenues 95,562 Total operating revenues 16,746,249 Operating expenses
Operations and maintenance 6,062,332 Electric power purchased 7,524,450 Depreciation and amortization 1,372,183
City franchise fee 803,185 Total operating expenses 15,762,150 Operating income 984,099
Nonoperating revenues (expenses)
Interest expense (976,336)
Interest and investment revenue 66,860 Net nonoperating expenses (909,476) Income before contributions and transfers 74,623
Capital Contributions 5,781,366
Operating transfers
Transfers to the City (838,570) Change in net position 5,017,419 Net position at beginning of year, as restated (Note 15) 12,314,338 Net position at end of year $ 17,331,757
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Statement of Cash Flows
Year ended June 30, 2023
See accompanying notes to financial statements.
13 Cash flows from operating activities
Receipts from customers $ 17,235,533 Payments to City of Needles:

Suppliers and other costs (15,573,252) Employee compensation and related costs (2,292,565) Net cash flows used in operating activities (630,284) Cash flows from capital and related financing activities Capital contibutions 5,781,366 Purchases of capital assets (5,773,914) Principal paid on capital debt (1,170,823) Interest paid on capital debt (992,939) Net transfers for asset replacement reserves (838,570) Cash flows used in capital and related financing activities (2,994,880) Cash flows from investing activity
Interest and investment revenue 66,860 Cash flows from investing activity 66,860 Net decrease in cash and cash equivalents (3,558,304)
Cash and cash equivalents at beginning of year 9,879,534 Cash and cash equivalents at end of year $ 6,321,230 Reconciliation of operating income to net cash flows
used in operating activities
Operating income $ 984,099 Adjustments to reconcile operating income to net cash from operating activities:

Depreciation and amortization 1,372,183 Changes in operating assets and liabilities:

Receivables 436,445 Materials and supplies inventory (65,826) Deferred outflows of resources (578,335) Deferred inflows of resources (848,402) Accounts payable and other current liabilities 36,332 Due from (to) the City of Needles (3,314,521) Compensated absences (30,096) Customer deposits 300,430 Net pension liability 1,168,501 Net OPEB liability (91,094) Net cash flows used in operating activities $ (630,284) Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements
Year ended June 30, 2023
14 NOTE 1 REPORTING ENTITY
Organization and Operations of the Reporting Entity
The financial statements of the Needles Public Utility Authority (the Authority) have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The Authority was formed by a Joint Powers Agreement, entered into on June 6, 1997, between the City of Needles, California (City) and the Redevelopment Agency of the City of Needles (Agency). Pursuant to the provisions of ABX126, the Agency was dissolved effective February 1, 2012. The City currently serves as the successor agency to the former redevelopment agency that is responsible for revenue collection, maintaining the bond reserves, disposing of excess property and fulfilling the remaining obligations of the dissolved Agency.

The Authority was formed for the purpose of acquiring and operating the City’s water, sewer and electrical enterprises. The Authority is governed by a Commission, the members of which are also members of the City Council. The Authority has no employees; its day-to-day activities and operations are performed by City employees under a management agreement with the City. The Authority is a blended component unit of the City.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting and Measurement Focus
The financial statements of the Authority are prepared in accordance with U.S. GAAP issued by the GASB applicable to governmental entities that use proprietary fund accounting.

The Authority reports its activities as an enterprise fund, which is used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the Authority is that the costs of providing electricity, water and wastewater services, collection, and treatment for its service areas on a continuing basis be financed or recovered primarily through utility charges, capital grants and similar funding. Revenues and expenses are recognized on the full accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period incurred, regardless of when the related cash flows take place.

Operating revenues and expenses, such as electric, water and sewer charges, result from exchange transactions associated with the principal activity of the Authority.

Exchange transactions are those in which each party receives and gives up essentially equal values. Management, administration, and depreciation expenses are also considered operating expenses. Other revenues and expenses not included in the above categories are reported as non-operating revenues and expenses.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
15 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Implementation of New Accounting Pronouncements
During the year ended June 30, 2023, the Authority considered the following GASB statements:

GASB Statement No. 96 – Subscription-Based Information Technology Arrangements (SBITAs). The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs.

This Statement establishes standards of accounting and financial reporting for SBITAs by a government end user (a government). The requirements of this Statement apply to financial statement of all state and local governments and are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The implementation of this new accounting standards did not have an impact on the Authority’s financial statements as of June 30, 2023.

GASB Statement No. 94, "Public-Private and Public-Public Partnerships (PPPs) and Availability Payment Arrangements (APAs)." This Statement establishes the definitions of PPPs and APAs and provides uniform guidance on accounting and financial reporting for transactions that meet those definitions. A PPP is an arrangement in which a government (the transferor) contracts with an operator to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset, for a period of time in an exchange or exchange-like transaction. An APA is an arrangement in which a government compensates an operator for activities that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The implementation of this new accounting standard did not have an impact on the Authority’s financial statements.

The following recent accounting pronouncements are not yet applicable to the Authority for the year ended June 30, 2023.

GASB 100, "Accounting Changes and Error Corrections", effective for fiscal years beginning after June 15, 2023.

GASB 101, "Compensated Absences", effective for fiscal years beginning after December 15, 2023.

GASB 102, "Certain Risk Disclosures", effective for fiscal years beginning after June 15, 2024.

GASB 103, "Financial Reporting Model Improvements", effective for fiscal years beginning after June 15, 2025.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
16 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Implementation of New Accounting Pronouncements
GASB 104, " New Capital Asset Disclosures", effective for fiscal years beginning after June 15, 2025.

Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pension, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the 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. The City allocates about 39.49% of the net pension liability and pension-related transactions to the Authority based on its share in the pension contribution for the year ended June 30, 2023.

Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures 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.

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position The basic financial statements are comprised of the statement of net position, the statement of revenues, expenses, and changes in net position, the statement of cash flows, and the related notes to the financial statements.

Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and in banks, money market accounts and deposits with the Local Agency Investment Fund (LAIF), and also certificates of deposit and U.S. Treasury bills with maturities of less than 90 days when purchased. It also includes money market accounts in deposits held by the bond trustee that are not restricted.

Investments
Investments are generally reported at fair value. Investments in the LAIF are reported at amortized cost, which approximates fair value.

Accounts Receivables
The Authority extends credit to customers in the normal course of operations.

Management closely monitors outstanding balances and, based on collection experience, has determined receivables that are doubtful of collection. Allowances for doubtful accounts at June 30, 2023 were estimated at $395,125.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
17 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position (Continued)
Inventories
Inventories are recorded at average cost, which approximates net realizable value.

Inventories consist of expendable supplies held for consumption. The cost is recorded as an expense at the time individual inventory items are consumed rather than when purchased.

Capital Assets
Capital assets are defined by the Authority as assets with an initial, individual cost of more than $5,000 and with an estimated useful life in excess of one year.

Capital assets of the Authority are recorded at either their historical cost or at an allocation of the utility plant purchase price, based on appraisal values at January 1, 1997. Donated assets are valued at their estimated fair value on the date donated.

Depreciation for all exhaustible capital assets is charged as an expense against operations.

Depreciation is computed using the straight-line method over estimated useful lives of the assets as follows:

Buildings 20 – 40 years
Improvements 20 – 40 years
Plant 15 – 30 years
Equipment 3 – 10 years
Major additions and betterments are capitalized while expenditures for maintenance and repairs that do not add value to the assets and materially extend asset lives are charged to operations as incurred.

Right-of-Use Lease Assets and Lease Payable
The Authority recorded right-of-use lease assets and lease payable as a result of implementing GASB Statement No. 87, Leases. The right-of-use lease assets are initially measured at an amount equal to the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The lease assets are amortized on a straight-line basis over the term of the related leases or the useful life of the underlying assets, whichever is shorter.

Deposits
Customer deposits represent deposits held by the Authority as collateral in the event of non- payment for service rendered.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
18 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position (Continued)
Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement Nos. 63 and 65, the Authority recognizes deferred outflows and inflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net position by the government that is applicable to a future
reporting period.

Revenues and Expenses
Revenue Recognition
Charges for electricity, water and sewer use are recorded as billed to customers on a monthly cycle billing basis. At the end of each year, unbilled revenues are accrued for each cycle based on the most recent cycle billings.

Operating and Non-Operating Revenues and Expenses
Revenues and expenses are distinguished between operating and nonoperating items. The Authority defines operating revenues to be exchange transactions where a product or service is furnished and a charge collected therefrom, while operating expenses are all of the costs incurred in delivering those products or services including depreciation on capital assets. Nonoperating revenues and expenses are generally non-exchange transactions and those transactions that are capital and non-capital related financing activities or investing activities.

Compensated Absences
As discussed in Note 10, the Authority has a management agreement with the City concerning employees and their compensation.

All earned vacation, holiday, compensatory time off, and a portion of accumulated sick leave of the City’s employees payable upon termination or retirement are accrued. The liability is accrued for a portion of the sick leave balances of all employees who are currently eligible to receive a payment for sick leave upon termination, as well as for those expected to become eligible. As of June 30, 2023, the total estimated liability for all compensated absences, including sick leave, was $238,617.

Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses include amounts payable to vendors.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
19 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenues and Expenses (Continued)
Long-term Debt
Debt premiums and discounts are amortized over the life of the debt using the straightline method. Long-term debt is reported net of the applicable unamortized bond premium or discount. Debt issuance costs are expensed when incurred.

Amortization
Canal construction cost sharing is amortized using the straight-line method over 40 years. Effective July 1, 2004, the Authority discontinued amortizing its Water Rights intangible asset, as this asset has an indeterminate life and has value. Water Rights are tested annually for impairment under GASB 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. If it is determined that the asset has been impaired, the book value will be adjusted to reflect the reduced fair value of the rights. Accumulated amortization on Water Rights amounted to $490,687 prior to July 1, 2004.

Net Position
Net position represents the difference between all other elements in the statement of net position and should be displayed in the following three components:

Net Investment in Capital and Intangible Assets – This component of net position consists of capital and intangible assets, unexpended proceeds of debt restricted to the financing of capital and intangible assets, and related deferred charges on refunding, net of accumulated depreciation and amortization and reduced by any related debt outstanding against the acquisition, construction or improvement of those capital and intangible assets.

Restricted – This component of net position consists of constraints placed on net position use through external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments or restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
20 NOTE 3 CASH AND INVESTMENTS
The indenture for the 2016 Revenue Refunding Bonds (Note 7) requires the establishment of special funds to be held and administered by trustees and by the Authority. As of June 30, 2023, investments and cash held by trustees and by the Authority in these funds and accounts are as follows:

The Authority has, periodically during the year, maintained bank balances in excess of federally insured limits.

The California Government Code requires California banks and savings and loan associations to secure the Authority's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the Authority’s name.

The fair value of pledged securities must equal at least 110% of the Authority's cash deposits. California law also allows institutions to secure the Authority's deposits by pledging first trust deed mortgage notes having a value of 150% of the Authority's total cash deposits. The Authority may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.

The Authority, however, has not waived the collateralization requirements.

Investment in State Investment Pool
The Authority is a voluntary participant in LAIF that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’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, 2023, the total fair value of LAIF, including accrued interest was approximately $275 billion. The fair value of the Authority’s investment in the pool is $3,021,301 as of June 30, 2023.

Custodian
Local Agency Investment Fund $ 3,021,301 Bank 3,299,929 $ 6,321,230
Special funds balances
Operating funds $ 2,049,411 Electric asset replacement reserve 2,871,847 Utility rate stabilization fund 699,972 PCA balances 700,000 $ 6,321,230
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
21 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the Authority’s Investment Policy
The table below identifies the investment types that are authorized for the Authority by the California Government Code (or the Authority's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Authority’s investment policy, where more restrictive) that addresses interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the Authority's investment policy.

Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Authority’s investment policy. The Authority has no investment authorized by debt agreements as of June 30, 2023.

Authorized Investment Type
Maximum
Remaining
Maturity
Maximum
Specified
Percentage
of Portfolio
Minimum Quality
Requirements
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
State Obligations: CA and Others 5 years None None
CA Local Agency Obligations 5 years None None
U.S. Agency Obligations 5 years None None
Bankers' Acceptances 180 days 40% None
Commercial Paper: Non-pooled Funds 270 days 25%
Highest letter and
number rating
Commercial Paper: Pooled Funds 270 days 25%
Highest letter and
number rating
Negotiable Certificates of Deposit 5 years 30% None
Non-negotiable Certificates of Deposit 5 years None None Placement Service Deposits 5 years 30% None
Placement Service Certificates of Deposit 5 years 30% None Repurchase Agreements 1 year None None
Reverse Repurchase Agreements and Securities
Lending Agreements 92 days 20% None
Medium-term Notes 5 years 30% "A" rating or better
Mutual Funds and Money Market Mutual Funds N/A 20% Multiple Collateralized Bank Deposits 5 years None None
Mortgage Pass-through and Asset Backed Securities 5 years 20% "AA" rating or better County Pooled Investment Funds N/A None None
Joint Powers Authority Pool N/A None Multiple
Local Agency Investment Fund (LAIF) N/A None None
Voluntary Investment Program Fund N/A None None
Supranational Obligations 5 years 20% "AA" rating or better Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
22 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways to manage the 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 as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority’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 Authority’s investments by maturity as of June 30, 2023.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations (NRSROs). As of June 30, 2023, the Authority has no investments in commercial paper and corporate bonds.

Concentration of Credit Risk
The Authority’s investment policy contains no limitation on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

As of June 30, 2023, there were no investments in any one issuer (other than U.S.

Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total Authority’s investments.

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 custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Authority's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

Remaining
Maturity (in
Years)
Investment Type
Less Than 1
Year
Local Agency Investment Fund $ 3,021,301
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
23 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
The California Government 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 Authority deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2023, none of the Authority’s deposits or investments were exposed to custodial credit risk.

Fair Value Measurements
The Authority 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.

The Authority’s investment in LAIF as of June 30, 2023 is reported at the Agency’s pro-rata share of the amortized cost provided by LAIF for the entire LAIF portfolio. This valuation amount, which approximates fair value, is not categorized under the fair value hierarchy.

NOTE 4 RECEIVABLES
Accounts Receivables
As of June 30, 2023, accounts receivable consisted of the following:

Notes Receivable
As of June 30, 2023, notes receivable consisted of the following:

Electric Water AAC Wastewater Total
Accounts receivables $ 1,912,078 $ 204,923 $ 185,992 $ 362,369 $ 2,665,362 Allowance for doubtful accounts (251,788) (53,598) - (89,739) (395,125) Net receivables $ 1,660,290 $ 151,325 $ 185,992 $ 272,630 $ 2,270,237 Electric Water Total Due within one year $ 337,302 2,873 $ 340,175 Due in more than 1 year 167,019 $ 1,422 168,441 $ 504,321 $ 4,295 $ 508,616
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
24 NOTE 4 RECEIVABLES (CONTINUED)
On May 24, 2022, the City of Needles entered into a payment agreement and release with Medical Investor Holdings, LLC (MIH) for its delinquent business taxes and utilities amounting to $1,839,458. Out of this amount, $924,956 is owed to the Authority for the unpaid utilities as of the date of the agreement. MIH agrees to pay the City, by July 11, 2024, the full delinquent amount in a secured promissory note. The note is payable in 24 monthly installments. The balance of the unpaid utilities owed to the Authority as of June 30, 2023 was $508,616.

On February 15, 2024, the payment agreement and release entered into between the City and Medical Investor Holdings, LLC (MIH) was amended to extend the payment period of the promissory note until February 12, 2026 (see Note 16).

NOTE 5 CAPITAL ASSETS
Changes in capital assets for the year ended June 30, 2023 were as follows:

Beginning
Balance Additions
Transfers/
Deductions
Ending
Balance
Non depreciable Assets
Land $ 3,199,100 $ - $ - $ 3,199,100 Construction in progress 742,407 4,631,776 - 5,374,183 Total 3,941,507 4,631,776 - 8,573,283
Depreciable Assets
Utility plant 41,489,000 1,099,389 - 42,588,389 Right-of-use lease asset 150,280 85,468 - 235,748 Total 41,639,280 1,184,857 - 42,824,137 Accumulated Depreciation Utility plant (26,389,587) (1,308,432) - (27,698,019)
Right-of-use lease asset (25,156) (45,543) - (70,699) Total (26,414,743) (1,353,975) - (27,768,718) Total depreciable assets, net 15,224,537 (169,118) - 15,055,419 Capital Assets, net $ 19,166,044 $ 4,462,658 $ - $ 23,628,702 Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
25 NOTE 6 INTANGIBLE ASSETS
Changes in the intangible assets for the year ended June 30, 2023 were as follows:

NOTE 7 LONG-TERM DEBT
Long-term debt consisted of the following:
 2016 Revenue Refunding Bonds, interest at 3.86% payable each February 1st and August 1st – principal redemptions in varying annual amounts that are due through February 2031.

Purchase Obligation due to the City, $685,300 payable each February 1st, including interest imputed at 6.714% through February 2011. Starting in February 2011, the annual payment was reduced as a result of the $250,000 prepayments made in 2010.

The annual payment was further reduced to $666,436 as a result of additional prepayments made in the years 2012 and 2013 amounting to $750,000. The prepayments have resulted in lower interest charges. The annual payment will be reduced to $535,421 beginning in fiscal year 2026.

Long-term liabilities activity for the year ended June 30, 2023 was as follows:

Beginning
Balance Additions
Transfers/
Deductions
Ending
Balance
Cost
Water rights $ 2,662,807 $ - $ - $ 2,662,807 Canal construction cost sharing 728,366 - - 728,366 Total 3,391,173 - - 3,391,173 Accumulated amortization Water rights (490,687) - - (490,687) Canal construction cost sharing (461,296) (18,209) - (479,505) Total (951,983) (18,209) - (970,192)
Intangibles, net $ 2,439,190 $ (18,209) $ - $ 2,420,981 Beginning
Balance Additions Reductions
Ending
Balance
Amounts
Due Within
One Year
Revenue bonds $ 10,878,983 $ - $ (1,032,323) $ 9,846,660 $ 1,072,555 Purchase obligation 7,863,259 - (138,500) 7,724,759 147,796 $ 18,742,242 $ - $ (1,170,823) $ 17,571,419 $ 1,220,351 Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
26 NOTE 7 LONG-TERM DEBT (CONTINUED)
Annual maturities of long-term debt are as follows:

The varying long-term debt installment payments are to be made from various Authority revenues (all as defined in the applicable agreements) which are irrevocably pledged to such payments, as follows: net independent utility revenues for the 2016 Revenue Refunding Bonds; and surplus revenues for the Purchase Obligation.

If an event of default shall have occurred and be continuing and if requested by the bond owner of a majority in aggregate principal amount of outstanding bonds, the Trustee shall exercise one or more of such available remedies as the Trustee as directed by the bond owner. All amounts received by the Trustee pursuant to any right given or action taken by the Trustee under the provisions of the Indenture shall be applied by the Trustee in order upon presentation of the bonds.

Upon payment in full of all indebtedness of the Authority, title to the water, sewer, and electrical enterprises (Enterprises) shall automatically revert to the City.

NOTE 8 LEASES
The Authority has existing seven (7) leased vehicles from a car rental company during the fiscal year 2023. The lease terms of each leased vehicle are five (5) years with monthly payments ranging from $465 to $880.

Since the interest rate of the leases is not readily determinable by the Authority, the future lease payments were discounted using an estimated incremental borrowing rate should a loan be taken to pay lease amounts during the lease terms. The discount rates used to calculate the lease liability range from 2.62% to 7.50%.

The Authority recorded a right-to-use lease asset with a net book value of $165,049 and a lease liability of $168,992 for all the leases as of June 30, 2023.

Year Ending
June 30
Revenue
Refunding
Bonds
Purchase
Obligation Interest Total
2024 $ 1,072,555 $ 147,796 $ 1,200,930 $ 2,421,281 2025 1,114,355 157,719 1,133,152 2,405,226 2026 1,157,784 37,293 1,061,051 2,256,128
2027 1,202,907 39,797 993,044 2,235,748
2028 1,249,787 42,469 920,215 2,212,471
Thereafter 4,049,272 7,299,688 13,955,583 25,304,542 Total $ 9,846,660 $ 7,724,759 $ 19,263,976 $ 36,835,395 Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
27 NOTE 8 LEASES (CONTINUED)
As of June 30, 2023, the lease payable consisted of the following:

Payments of principal and interest for each of the next five (5) fiscal years and increments thereafter are as follows:

NOTE 9 RETIREMENT PLAN
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Needles’ Miscellaneous Employee Pension Plan, cost-sharing multiple employers defined benefit pension plan administered by CalPERS. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Beginning
Balance Additions Payments
Ending
Balance
Amounts
Due Within
One Year
Vehicle 23JSN6 $ 17,636 $ - $ (5,406) $ 12,230 $ 5,555 Vehicle 23MS7Z 17,385 - (5,045) 12,340 5,189 Vehicle 23JSN5 17,806 - (5,458) 12,348 5,609 Vehicle 23MS7J 28,371 - (8,043) 20,328 8,256 Vehicle 254JCC 45,076 - (8,160) 36,916 8,645 Vehicle 254JD7 - 41,827 (7,592) 34,235 7,960 Vehicle 25T9QX - 43,641 (3,046) 40,595 7,711 $ 126,274 $ 85,468 $ (42,750) $ 168,992 $ 48,925 Year Ending June 30 Principal Interest
2024 $ 48,925 $ 7,397 2025 51,101 5,222
2026 34,765 3,096
2027 28,230 1,357
2028 5,971 150 $ 168,992 $ 17,222
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
28 NOTE 9 RETIREMENT PLAN (CONTINUED)
General Information about the Pension Plans (Continued) Classic participants (defined as eligible participants prior to January 1, 2013) are required to contribute 8% of their annual covered salary. New participants (defined as eligible employees brought into CalPERS membership for the first time on or after January 1, 2013) contribute at least half the normal cost rate as determined by CalPERS. The City contributes the remaining amounts necessary to fund the benefits for its employees, using the actuarial basis adopted by the CalPERS Board of Administration.

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 fulltime employment. Classic members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

With the implementation of GASB Statement No. 68, the City allocates about 39.49% of the City’s net pension liability and pension-related transactions to the Authority based on its share in the pension contribution for the year ended June 30, 2023.

Amounts allocated in fiscal year 2022-23 were as follows:

Please refer to the City’s audited financial statements for the fiscal year ended June 30, 2023, for more information about the City’s retirement plan required financial statements note disclosures and supplementary information in accordance with GASB Statement No. 68.

Net pension liability $ 2,138,202 Deferred outflows of resources 1,058,293 Deferred inflows of resources 114,142 Pension expense 385,793 Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
29 NOTE 10 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) General Information About the OPEB Plan
Plan Description
In addition to providing pension benefits, the City provides certain healthcare benefits for retired employees. Classified and unclassified employees retiring after 20 or more years of service and after having reached age 58 or older are provided medical insurance coverage until the retiree becomes eligible for Medicare. Classified employees hired after July 1, 2007 and retiring at age 55 or later with 20 or more years of service are paid $300 per month for medical insurance coverage until the retiree becomes eligible for Medicare.

Contributions and Funding Policy
The contribution requirements of the City are established and may be amended by the City Council. While GASB Statement 75 requires that the liability for all postemployment benefits be measured, it does not require that an agency “pre-fund” the accrued liability. The City pays for the postemployment healthcare cost on a “payas-you-go” basis. The provisions of GASB Statement 75 determine the amount that must be presented as an annual expense and accrued liability on the City’s financial statements.

Net OPEB Liability
The Authority’s net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021.

GASB 75 requires the total OPEB liability to be measured as of a date no earlier than the end of the employer’s prior fiscal year and no later than the end of the employer’s current fiscal year, consistently applied from period to period. The City has elected to measure liabilities as of the end of the prior fiscal year.

GASB 75 requires that the total OPEB liability should be determined by (a) an Alternative Measurement Method (AMM) valuation as of the measurement date or (b) the use of update procedures to roll forward to the measurement date amounts from an AMM valuation as of a date no more than 30 months and 1 day earlier than the employer’s most recent fiscal year-end. Liabilities were calculated as of the valuation date and rolled forward to the measurement date using standard actuarial roll forward techniques per GASB 75 option (b) mentioned above. No adjustments were made for events occurring after the measurement date.

Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022
Reporting date June 30, 2023
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
30 NOTE 10 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED) With the implementation of GASB Statement No. 75, the City allocates about 39.49% of the City’s net OPEB liability and related transactions to the Authority based on its share in the contribution for the year ended June 30, 2023. Amounts allocated in fiscal year 2022-23 were as follows:

Please refer to the City’s audited financial statements for the fiscal year ended June 30, 2023 for more information about the City’s OPEB plan required financial statements note disclosures and supplementary information in accordance with GASB Statement No. 75.

NOTE 11 ASSET REPLACEMENT FUNDS
The Authority transfers certain amounts to the City to fund future replacement of existing property and equipment and other capital expenditure requirements of the Authority. For the year ended June 30, 2023, the Authority transferred $838,570 to the City for deposit to the asset replacement funds.

As of June 30, 2023, the following asset replacement funds are under the control and custody of the City and are recorded in the City’s accounting records as restricted funds (less usage):

NOTE 12 COMMITMENTS AND CONTINGENCIES
The Authority is considered a transmission and generation-dependent electric utility, and, therefore, completely dependent on others for the supply and transmission of energy to the City’s electric system.

The Authority receives a hydroelectric allotment from the Parker-Davis Dam. The Authority’s rate structure is designed to allocate the hydroelectric allotment equally among all customers, giving 402 KWH per customer per month in winter months and 757 KWH per customer per month in summer months. The actual cost of power is analyzed every month and if a Power Cost Adjustment (PCA) is required, it is to be put into effect the following month. If the PCA has gone down, then a credit is to be calculated by KWH per bill. The new rate structure is put into place every October.

Net OPEB liability $ 489,392 Deferred outflows of resources 30,492 OPEB expense 83,847 Water $ 1,606,759 Wastewater 309,641 Electric 1,862,940 $ 3,779,340
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
31 NOTE 12 COMMITMENTS AND CONTINGENCIES (CONTINUED)
In 2008, the Authority partnered with the United States Department of Energy Western Area Power Administration (WAPA) for the management of energy costs. This partnership was effective April 1, 2008 and has allowed the Authority greater flexibility in the power purchase market. Through WAPA the Authority is able to procure longterm power supply contracts and limit risks in the spot market. Rate studies are conducted every 5 years to ensure the NPUA rates are established at the cost to provide the service. The next rate study is scheduled for fiscal year 2025.

NOTE 13 RELATED PARTY TRANSACTIONS
Section 1202 of the Needles Municipal Code states, “Each utility shall be operated as a separate unit and all accounting respecting such utility shall be on that basis. All personal services of officers or employees and all costs incurred for the joint benefit of any such utility and any other office, department or agency of the city shall be prorated between them. Charges shall be made by the utility for all service, property or other things of value supplied or rendered by it to any other office, department or agency of the city.”
The City acts as the manager and operator of the Authority’s Enterprises under a Management Agreement. The City receives a management fee equal to its actual costs and direct overhead incurred in connection with the management and operation of the Enterprises.

Such costs include, but are not limited to, salaries, insurance and retirement benefits of City employees providing services to the Enterprises. Each July 1, the Management Agreement is extended for one year, unless either party notifies the other that it does not intend to extend the term of the Agreement. Total payments made to the City for operating the Enterprises for the year ended June 30, 2023 amounted to $16,069,965.

This amount includes payment of Fair Share Allocation (FSA) and purchases of electric power and capital assets.

In exchange for the City providing rights of way and rights of access to all real property owned by the City and necessary for the Authority to operate the Enterprises, the City collected an annual franchise fee from the Authority. The amount of the franchise fee was determined by the City, the payment of which is subordinate to the Authority’s annual debt service. In August 2010, the Authority’s Board approved the increase in franchise fee from 5% of gross revenues to 7.5% of gross revenues for two years, and then 5% thereafter. In November 2012, the voters of the City of Needles approved Measure T eliminating 2.5% of the franchise fee that the City of Needles charges the Authority and established a utility user tax of up to 2.5% to be applied to electric, water and sewer charges. In FY17 the City underwent a study to determine the utilities’ actual usage of rights of way and rights of access to all real property owned by the City. After the study, the City eliminated the franchise fee and created the FSA. The FSA and utility user tax amounted to $1,139,686 for the year ended June 30, 2023.

Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
32 NOTE 13 RELATED PARTY TRANSACTIONS (CONTINUED)
In connection with the City’s 1997 sale of the Enterprises to the Authority, the Authority’s remaining unpaid purchase obligation to the City is payable annually, each February 1, through 2065. Payments are payable solely from Surplus Revenues (as defined). Purchase obligation payments amounted to $666,436 for the year ended June 30, 2023, which included interest amounting to $527,939. The unpaid purchase obligation is included in the bonds and note payable account in the Statement of Net Position.

NOTE 14 RISK MANAGEMENT
The Authority is subject to various risks in the normal course of operations. The Authority, as a component unit of the City, protects itself against such risks by the City’s participation in the California Joint Powers Insurance Authority (CJPIA), a joint power agency (risk-sharing pool) that provides an independently managed, selfinsurance program for member cities.

The City contributes its pro rata share of anticipated losses to a pool administered by CJPIA. Should actual losses among participants exceed anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro rata share of the excess.

The Authority’s allocated share of the City’s contributions to CJPIA is included in the operations and maintenance expenses paid to the City under the management agreement discussed in Note 13.

NOTE 15 RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS
The Authority's financial statements as of and for the year ended June 30, 2022 have been restated due to the change in the recognition of prepayments made in fiscal years 2020, 2012 and 2013 totaling $1,000,000 to the purchase obligation. The impact of the restatement on the previously reported financial statements as of and for the year ended June 30, 2022 is shown below:

Net Position
June 30, 2022 balance as previously reported $ 11,447,089 Prior period adjustment 867,249 June 30, 2022 balance as restated $ 12,314,338 Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2023
33 NOTE 16 SUBSEQUENT EVENTS
In preparing these financial statements, the Authority has evaluated events and transactions for potential recognition or disclosure through February 25, 2025, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that, except as noted below, no other subsequent events occurred that require recognition or additional disclosure in the financial statements.

On February 15, 2024, the payment agreement and release entered into between the City and Medical Investor Holdings, LLC (MIH) was amended to extend the payment period of the promissory note (see Note 4). MIH shall pay the City the principal and interest installment amount of $75,064 in twenty-four (24) equal monthly payments due commencing on March 12, 2024 and the same day of each month thereafter with the final payment and any remaining balance due and payable on February 12, 2026.

Agenda Item 2.

SUPPLEMENTARY SCHEDULES
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Combining Schedule of Net Position
June 30, 2023
See independent auditor’s report.
34 Electric Water
All American
Canal Wastewater Total
Current assets 72% 16% 12% 100%
Cash and cash equivalents $ 4,569,062 $ 803,535 $ - $ 948,633 $ 6,321,230 Receivables Accounts receivables, net 1,660,290 151,325 185,992 272,630 2,270,237 Notes receivable, current portion 2,873 337,302 - - 340,175 Due from City of Needles 3,381,095 235,804 239,763 260,096 4,116,758 Due from other funds 806,554 - - - 806,554 Materials and supplies inventory 772,421 21,313 - 35,816 829,550 1,214,850 11,526,724 425,755 1,517,175 14,684,504 Noncurrent assets 47% 22% 31% 100% Notes receivable, net of current portion 1,422 167,019 - - 168,441 Capital assets, net of accumulated depreciation 11,969,176 7,462,403 - 4,197,123 23,628,702 Intangible assets, net of accumulated amortization - 2,420,981 - - 2,420,981 9,884,806 12,136,195 - 4,197,123 26,218,124 Total assets 11,099,656 23,662,919 425,755 5,714,298 40,902,628 60% 27% 2% 11% 100% Deferred outflows related to pensions 597,726 321,463 30,376 108,728 1,058,293 Deferred outflows related to OPEB 18,295 8,233 610 3,354 30,492 Total deferred outflows of resources 329,696 616,021 30,986 112,082 1,088,785 Current liabilities 72% 12% 4% 12% 100% Lease liabilities, current portion 22,510 13,515 - 12,900 48,925 Accounts payable and other current liabilities 148,792 24,385 8,680 24,799 206,656 Due to the City of Needles 19,457 - - - 19,457 Due to other funds - 550,687 47,824 208,043 806,554 Compensated absences 160,063 52,182 2,280 24,092 238,617 Customer deposits 2,747,858 - - - 2,747,858 Accrued interest payable 74,432 34,841 - 49,094 158,367 Bonds and notes payable, current portion 573,565 268,477 - 378,309 1,220,351 944,087 3,746,677 58,784 697,237 5,446,785 Noncurrent liabilities 60% 27% 2% 11% 100% Lease liabilities, net of current portion 47,082 32,950 - 40,035 120,067 Net pension liability 1,287,939 572,501 41,524 236,238 2,138,202 Net OPEB liability 293,635 132,136 9,788 53,833 489,392 Bonds and notes payable, net of current portion 7,685,002 3,597,235 - 5,068,831 16,351,068 Total noncurrent liabilities 4,334,822 9,313,658 51,312 5,398,937 19,098,729 Total liabilities 5,278,909 13,060,335 110,096 6,096,174 24,545,514 Deferred inflows related to pensions 132,503 (30,578) (13,545) 25,762 114,142 Net position (deficit) Net investment in capital and intangible assets 3,710,609 6,017,672 - - 9,728,281 Restricted for debt service 4,569,062 803,535 - 948,633 6,321,230 Unrestricted 2,806,431 (640,186) 360,190 (1,244,189) 1,282,246 Total net position $ 11,086,102 $ 6,181,021 $ 360,190 $ (295,556) $ 17,331,757 Water

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOWS OF RESOURCES
Total current liabilities
ASSETS
Total current assets
Total noncurrent assets

LIABILITIES AND NET POSITION
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Combining Schedule of Revenues, Expenses and Changes in Net Position Year ended June 30, 2023
See independent auditor’s report.
35 Electric Water
All American
Canal Wastewater Total
Operating revenues
Sales of electricity $ 11,043,636 $ - $ - $ - $ 11,043,636 Sales of water - 2,591,407 1,002,273 - 3,593,680 Charges for wastewater system use - - - 2,013,371 2,013,371 Other revenues 95,562 - - - 95,562 Total operating revenues 2,591,407 11,139,198 1,002,273 2,013,371 16,746,249 Operating expenses Electric power purchased 7,524,450 - - - 7,524,450 Salaries and benefits 889,037 744,068 83,895 196,139 1,913,139 Depreciation and amortization 545,265 382,772 - 444,146 1,372,183 City franchise fee 543,739 153,349 - 106,097 803,185 Supplies 290,367 121,352 4,954 29,619 446,292 Administrative and management 440,510 319,998 18,168 163,441 942,117 Power and utilities 48,877 193,994 - 122,903 365,774 Contractual services 203,198 64,208 846,182 401,883 1,515,471 Maintenance and operations 54,988 18,369 - 32,216 105,573 Insurance 249,244 30,735 - 37,878 317,857 Conservation/solar rebates 163,143 6,083 - - 169,226 Miscellaneous 119,176 74,836 4,688 88,183 286,883 Total operating expenses 2,109,764 11,071,994 957,887 1,622,505 15,762,150 Operating income 481,643 67,204 44,386 390,866 984,099 Nonoperating revenues (expenses) 47% 22% 31% Interest expense (458,878) (214,794) - (302,664) (976,336) Interest and investment revenue 31,424 14,709 - 20,727 66,860 Net nonoperating expenses (200,085) (427,454) - (281,937) (909,476) Income (loss) before contributions and transfers 281,558 (360,250) 44,386 108,929 74,623 Capital contributions 1,818,325 3,890,314 - 72,727 5,781,366 Operating transfers Transfers to the City (511,066) (298,848) - (28,656) (838,570) Change in net position 3,873,024 947,009 44,386 153,000 5,017,419 Net position at beginning of year, as restated 2,307,997 10,139,093 315,804 (448,556) 12,314,338 Net position at end of year $ 11,086,102 $ 6,181,021 $ 360,190 $ (295,556) $ 17,331,757 Water
Agenda Item 2.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Combining Schedule of Cash Flows
Year ended June 30, 2023
See independent auditor’s report.
36 Electric Water
All American
Canal Wastewater Total
Cash flows from operating activities
Receipts from customers $ 11,704,530 $ 2,748,933 $ 836,030 $ 1,946,040 $ 17,235,533 Payments to City of Needles:

Suppliers and other costs (12,852,575) (962,488) (718,611) (1,039,578) (15,573,252) Employee compensation and related costs (1,008,822) (945,435) (117,419) (220,889) (2,292,565) Net cash flows provided by (used in) operating activities 841,010 (2,156,867) - 685,573 (630,284) Cash flows from capital and related financing activities Capital contibutions 1,818,325 3,890,314 - 72,727 5,781,366 Purchases of capital assets (1,904,561) (4,065,197) - 195,844 (5,773,914) Principal paid on capital debt (550,289) (257,582) - (362,952) (1,170,823) Interest paid on capital debt (466,682) (218,446) - (307,811) (992,939) Net transfers for asset replacement reserves (511,066) (298,848) - (28,656) (838,570) Net cash flows used in capital and related financing activities (949,759) (1,614,273) - (430,848) (2,994,880) Cash flows from investing activity Interest and investment revenue 31,424 14,709 - 20,727 66,860 Cash flows provided by investing activity 14,709 31,424 - 20,727 66,860 Net increase (decrease) in cash and cash equivalents (94,040) (3,739,716) - 275,452 (3,558,304) Cash and cash equivalents at beginning of year 8,308,778 897,575 - 673,181 9,879,534 Cash and cash equivalents at end of year $ 4,569,062 $ 803,535 $ - $ 948,633 $ 6,321,230 Reconciliation of operating income to net cash flows - 1,713,983 - - from operating activities Operating income $ 67,204 $ 481,643 $ 44,386 $ 390,866 $ 984,099 Adjustments to reconcile operating income to net cash from operating activities:

Depreciation and amortization 545,265 382,772 - 444,146 1,372,183 Changes in operating assets and liabilities:

Receivables 355,968 269,935 (166,243) (23,215) 436,445 Materials and supplies inventory (66,680) 3,555 - (2,701) (65,826) Deferred outflows of resources (309,751) (191,875) (20,777) (55,932) (578,335) Deferred inflows of resources (445,023) (290,465) (32,796) (80,118) (848,402) Accounts payable and other current liabilities 26,159 4,287 1,526 4,360 36,332 Due from (to) the City of Needles (3,085,336) (36,365) (89,687) (103,133) (3,314,521) Due from (to) other funds (243,542) - 243,542 - - Compensated absences (16,472) (5,114) (259) (8,251) (30,096) Customer deposits 363,880 (63,450) - - 300,430 Net pension liability 706,118 310,682 22,130 129,571 1,168,501 Net OPEB liability (54,657) (24,595) (1,822) (10,020) (91,094) Net cash flows provided by (used in) operating activities $ (2,156,867) $ 841,010 $ - $ 685,573 $ (630,284) Water
Agenda Item 2.
37 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 The Board of Public Utilities
Needles Public Utility Authority
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 Needles Public Utility Authority (the Authority), a component unit of the City of Needles, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated February 25, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority’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 opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Authority’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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a deficiency in internal control described in the following page as Finding FS 2023-001 that we consider to be a significant deficiency.

Agenda Item 2.
38 Authority’s Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the Authority’s response to the finding identified in our audit and described below. The Authority’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Finding FS 2023-001 Significant Deficiency on Internal Controls over Inventories Criteria
Maintaining detailed audit trails for all transactions and adjustments and ensuring all documentation is complete and readily available for audits are essential practices that are crucial for demonstrating compliance with policies, substantiating financial statements, and providing necessary documents for audits. Audit preparedness and keeping organized, accessible records are key components of a successful audit process.

Condition
We have noted that there are no controls in place in relation to withdrawal and purchase of inventories.

Based on our understanding of the process, there is no documentation and monitoring being made for every material receipt and issuance. There are no formal controls in place to verify whether the items picked from the warehouse or yard are valid and properly authorized.

In addition, during our review of inventory listings, we noted that listings are not being updated based on the recent purchase date and cost of materials and inventories. We noted non-moving materials and items that have a date of last order or receipt still from the years 1997, 1998 and 1999 up to 2005.

We also noted that the unit cost is not updated in the system based on the recent purchases.

Further, the Authority does not perform a random count of sample inventories on a regular basis to verify the existence and completeness of inventories. Inventory count is being performed only at fiscal year-end.

Lastly, based on the inventory count procedures we performed, five (5) out of eight (8) samples from the inventory listing have discrepancies against the actual count.

Cause / Effect
The above condition is attributed to the lack of proper controls and documentation which may pose a risk to the existence, accuracy, valuation, and completeness of the inventory on hand. Accordingly, the Authority is exposed to the risk of misappropriation of assets, financial reporting misstatements, and/or negative impact on its operations.

Recommendation
We recommend that management establish and strictly implement controls over receipts and withdrawals of inventory. This is to avoid unauthorized issuance of inventory supplies and materials to safeguard company assets and will also help to ensure the existence, completeness and accuracy of inventory.

We further recommend that management perform a detailed review of inventory listings and ensure that the listings are updated based on the recent purchase date and purchase cost and provide allowance for obsolescence for non-moving inventories. This is to ensure proper valuation of assets and present more fairly the status of inventory as well as to enhance the fair presentation of the financial statements in accordance with generally accepted accounting principles.

Agenda Item 2.
39 Management’s Response and Action Plan
The NPUA inventory is located at several sites and in some places, multiple locations at one site. Our goal is to relocate inventory into one area for Electric and one area for Water. Electric inventory will be relocated to the planned building on California Ave and Water will be located at Third St. After this, a formal inventory check in and out procedure will be implemented. The warehouse employee will be responsible for logging in material and checking out material into NPUA’s accounting system. All inventory will be properly recorded into NPUA’s accounting system upon receipt. Costs will also be updated. A formal inventory policy will be created, adopted, and implemented. This policy will also deal with handling obsolete inventory
Personnel Responsible:

Rainie Torrance – Utility Manager
Anticipated Completion Date:

June 30, 2026
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’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 Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Glendale, California
February 25, 2025
Agenda Item 2.
www.vasquez.cpa
655 N Central Avenue, Suite 1550 • Glendale, California 91203-1437 • +1.213.873.1700 Agenda Item 2.

City of Needles, California
Request for City Council Action
CITY COUNCIL HACN Regular Special
Meeting Date: April 8, 2025
Title: Resolution No. 2025-9-HACN of the Housing Authority of the City of Needles (HACN), Approving the Five-Year Plan and Annual Agency Plan (2025-2029) for the Housing Authority of the City of Needles (HACN) and to Accept and File Annual Public Hearing and the Civil Rights Certification with United States Department of Housing and Urban Development Background: The Housing Authority of the City of Needles (HACN) is required to submit a Five-Year Plan and Annual Agency Plan to the U.S. Department of Housing and Urban Development (HUD) by April 17, 2025. This plan, submitted on HUD Form 50075-5Y, outlines HACN’s mission, goals, and strategic priorities for serving low-income, very low-income, and extremely low-income families.

The development of this plan has been conducted in compliance with federal regulations (24 CFR Part 903) and includes engagement from the Resident Advisory Board (RAB), public housing residents, and community stakeholders. RAB meetings were held on February 14 and March 14, 2025, where feedback and recommendations were received and incorporated into the draft plan.

A public hearing was held March 26, 2025, at 4:00 PM during the regularly scheduled Housing Commission meeting at El Garces. At that meeting, the Housing Commission adopted Housing Commission Resolution No. 03-26-2025 HC, recommending that the Needles Housing Authority Board of Commissioners approve and adopt the Five-Year Plan (FY 2025–2029) for the Housing Authority of the City of Needles (HACN).

A second hearing is scheduled before the City Council on April 8, 2025, at 6:00 PM. If approved, the final plan will be submitted to HUD by the statutory deadline of April 17, 2025 The HACN Five-Year Plan and Annual Agency Plan (2025-2029) sets the following priorities:

A. Strategic Goals
• Expand Housing Opportunities:
o Maintain an open public housing waitlist.
o Increase participation in the Housing Choice Voucher (HCV) Program through landlord outreach.
o Leverage regional partnerships to address housing needs. • Promote Self-Sufficiency:
o Support workforce development and financial literacy. o Advance Family Self-Sufficiency (FSS) programming
• Preserve and Modernize Affordable Housing:
o Execute a phased modernization strategy for aging infrastructure based on the Physical Needs Assessment (PNA)
o Replace roofs, upgrade HVAC systems, resurface parking lots, and improve curb appeal. o Interior upgrades (kitchens, bathrooms) planned over 10–20 years. • Ensure Fair and Equal Access to Housing:
o Continue ADA compliance.
o Implement strategies consistent with the Violence Against Women Act (VAWA) o Prevent housing discrimination and affirmatively further fair housing.

B. Energy and Utility Efficiency
• Results from the Energy Audit (EA) show strong performance: LED lighting, efficient heat pumps, and water-saving fixtures already in place.

Agenda Item 5.

City of Needles, California
Request for City Council Action
• Utility allowances have been updated to reflect actual consumption and rate increases.

C. Capital Fund Program (CFP) 5-Year Action Plan
Fiscal Year Capital Investment Description
o 2025-2029 $560,000 Roofs, fencing, mailboxes, HVAC prep, continued maintenance and ADA enhancements, planning reserve for future infrastructure needs Fiscal Impact: The proposed improvements are estimated at $3.6 million over 20 years, with funding anticipated through HUD Capital Fund Program (CFP) grants. HACN will also seek additional state and federal housing grants to supplement future work.

Environmental Impact: No adverse environmental impacts are expected. Work will comply with HUD environmental review and NEPA guidelines.

Public Engagement and Legal Notice:

The public has been notified per federal requirements:
• Legal notices were published on January 15, 2025
• RAB meetings held in February and March 2025
• Public hearings held on March 26, 2025 (Housing Commission) and April 8,2025 (Board of Commissioners HACN)
Attached Exhibits:

Exhibit A: Resolution 2025-9-HACN
Exhibit B: Five-Year and Annual Agency Plan 2025-2029
Exhibit C: Civil Rights Certification Annual Certification and Board Resolution from HUD-50077-CR Exhibit D: Certification by State or Local Official of PHA Plans Consistency with the Consolidated Plan or State Consolidated Plan from HUD-50077-SL
Exhibit E: Five-Year and Annual Agency Plan PowerPoint
Recommended Action: Adopt Housing Authority of the City of Needles (HACN) Resolution No. 2025-9-HACN, adopting the Five-Year Plan and Annual Agency Plan (2025-2029) for the Housing Authority of the City of Needles (HACN) and Accept and File Annual Public Hearing and the Civil Rights Certification with United States Department of Housing and Urban Development (HUD) Submitted By: Angelica Deermer, HACN Housing Manager
City Manager Approval: ___ Date: _____
Other Department Approval (when required): ___ Date: _____ Approved: Not Approved: Tabled: Other:
04/02/25
4/3/2025
Agenda Item 5.

RESOLUTION NO. 2025-9-HACN

A RESOLUTION OF THE HOUSING AUTHORITY CITY OF NEEDLES (HACN) ADOPTING THE FIVE-YEAR PLAN AND ANNUAL AGENCY PLAN (2025–2029)

FOR THE HOUSING AUTHORITY OF THE CITY OF NEEDLES
WHEREAS, the Housing Authority of the City of Needles (HACN) is required by federal statutes and regulations to adopt certain governing and operating policies for its Public Housing and Housing Choice Voucher (HCV) Programs; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires HACN to submit a Five-Year Plan and Annual Agency Plan to outline its mission, goals, and strategic priorities for serving low-income, very low-income, and extremely lowincome families; and WHEREAS, HACN has developed the Five-Year Plan and Annual Agency Plan (2025–2029) in accordance with HUD Form 50075-5Y, ensuring compliance with federal regulations (24 CFR Part 903); and
WHEREAS, HACN has engaged with the Resident Advisory Board (RAB) and other stakeholders, incorporating feedback received from RAB meetings held on February 14, 2025, and March 14, 2025; and
WHEREAS, HACN desires to update the Five-Year Plan and Annual Agency Plan (2025–2029) as set forth in Exhibit “A” attached hereto and incorporated herein by reference; and
WHEREAS, HACN has prepared a Capital Fund Program (CFP) 5-Year Action Plan, with planned investments totaling $560,000 for the period 2025–2029, and an estimated $3.6 million over 20 years, with additional funding to be sought from federal and state sources; and
WHEREAS, the Housing Commissioners have endeavored in good faith to set forth the basis for its decision on the proposed updates; and WHEREAS, all the findings and conclusions made by the Housing Commissioners pursuant to this Resolution are based upon the oral and written evidence before it as a whole; and
WHEREAS, notice of a public hearing to be held at the March 26, 2025, regular meeting of the Housing Commission was published in the Needles Desert Star on January15, 2025 at least forty-five (45) days prior to said meeting; and WHEREAS, on March 26, 2025, the Housing Commission met at a regular meeting to consider the proposed Five-Year Plan and Annual Agency Plan (2025–2029); and WHEREAS, all other legal prerequisites to the adoption of Resolution 2025-9- HACN have occurred; and
Agenda Item 5.

WHEREAS, the Board of Commissioners of the Housing Authority of the City of Needles (HACN) has sufficiently considered all testimony, and any documentary evidence presented to it in order to make the following determination.

NOW THEREFORE, BE IT RESOLVED by the Housing Authority of the City of Needles (HACN) as follows:

SECTION 1. Recitals. The recitals above are hereby incorporated by reference as a substantive component of this Resolution.

SECTION 2. Draft Updates. The Housing Authority of the City of Needles (HACN) approve and adopt the Five-Year Plan and Annual Agency Plan (2025–2029), as set forth in Exhibit “A” attached hereto and incorporated herein by reference.

SECTION 3. Effective Date. This Resolution shall be effective immediately upon its adoption.

SECTION 4. The Housing Authority of the City of Needles (HACN) Board of Commissioners HEREBY FINDS AND DETERMINES that facts do exist to recommend approval of RESOLUTION 2025-9-HACN.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Authority of the City of Needles (HACN) on April 8, 2025, by the following roll call vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

APPROVED:
__________________________________
Mayor Janet Jernigan
ATTEST:
__________________________________
Candace Clark, Interim City Clerk
APPROVED AS TO FORM:
___________________________________
Deputy City Attorney
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Patrick J. Martinez Janet Jernigan
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Agenda Item 5.

Housing Authority of the City of Needles
5 Year Plan
FY2025-2029
Agenda Item 5.

HACN 5 Year Plan 2025
A 5-year plan is a list of professional goals, that the HACN, Resident Advisory Board(RAD), Housing
Committee and City Council collectively would like to
achieve within the next five years. It often includes
ambitions with specific timelines and
measurements. The concept of a Five-Year is to guide
economic development over a five-year period.

Agenda Item 5.

B.2 GOALS AND OBJECTIVES
 HUD Strategic Goal: Increase the availability of
decent, safe, and affordable housing. By
keeping Public Housing Waiting List Open,
Landlord Outreach for Housing Choice Voucher
Programs and Continuous Regional and
Community Partnerships.
 HUD Strategic Goal: Promote self-sufficiency
and asset development of families and
individuals
 HUD Strategic Goal: Ensure
Equal Opportunity in Housing
for all Americans
 Other HACN Goals and Objectives

SIGNIFICANT AMENDMENT OR MODIFICATION
Substantial Deviation from the 5-Year Plan and
Annual Plan The Needles Housing Authority’s
Definition of Substantial Deviation and
Significant Amendment or Modification is as
follows:
Changes to rent or admissions policies or
organization of the waiting list;
Additions of non-emergency work items (items
not intended in the current 5-Year Action Plan);
and
Any change with regard to demolition or
disposition, designation, homeownership
programs or conversion activities.

Agenda Item 5.

Management Resource Group, Inc.

February 2025

ENERGY AUDIT(EA)
Key Findings:
o All 52 units (CA 22-1 Public Housing) are individually metered for electricity, natural gas, water, and sewer.
o Heating and Cooling: Units have individual heat pumps that are wellmaintained. o Lighting: Almost all fixtures are LED, which already maximizes energy efficiency.
o Water Conservation: Flow restrictors are installed on all faucets; toilets are 1.6 gallons per flush, and hot water is regulated at 120°F. o Solar Energy: No existing solar applications, and installation is not financially feasible due to high upfront costs and long payback periods.

Conclusion: The Energy Audit found that the NHA has already implemented effective energy conservation measures, leaving no significant recommendations for additional improvements.

Agenda Item 5.

Management Resource Group, Inc.

February 2025

PHYSICAL NEEDS ASSESSMENT (PNA)
Key Findings:
o Site Conditions: Parking areas need resurfacing and sealing in coming years; gang mailboxes require replacement.
o Building Envelope: Roofs (last replaced in 2000) are aging and will need replacement within the next few years.
o Interiors: Flooring, kitchens, and bathrooms will need replacement within the next 10-20 years.
o Plumbing & Mechanical: Water and sewer lines are in fair condition and should last another 15 years; existing heat pumps (installed in 2010) will require replacements as they age.
o Electrical: Adequate site lighting; however, doorbells should be installed at front and rear entry doors for resident convenience and security.
o ADA Compliance: The development meets accessibility requirements under Section 504.

Conclusion: The Public Housing units (CA 22-1) are structurally sound and viable for the long term, but certain aging infrastructure components require phased modernization.

Agenda Item 5.

Management Resource Group, Inc.

February 2025

UTILITY ALLOWANCE ESTIMATE (UAE)
Key Findings:
o Average Monthly Utility Costs per Unit:
 1-Bedroom: $97
 2-Bedroom: $118
 3-Bedroom: $133
 4-Bedroom: $147
o Utility Rate Adjustments:
 Electricity: Base service charge is $36.22/month.
 Water: Base charge is $48.86/month.
 Sewer: Flat rate of $52.85/month.
 Trash & Recycling: Combined monthly cost is $35.02.
 Natural Gas: Rates range from $1.72 to $1.89 per therm, depending on seasonal consumption.

Conclusion: The updated utility allowances align with current consumption and utility rates for Public Housing and Section 8.

Agenda Item 5.

Capital Fund Program-5 Year Action Plan
U.S. Department of Housing and Urban Development
Capital Fund Program - Five-Year Action Plan 2577-0274
Office of Public and Indian
Housing
Status: Draft Approval Date: Approved
By:
02/28/2022
Part I: Summary
PHA Name : Housing Authority of the City of
Needles
PHA Number: CA022
Locality (City/County & State)
X Original 5-Year Plan Revised 5-Year Plan (Revision No: ) A. Development Number and Name
Work
Statement for
Year 1 2025
Work
Statement for
Year 2 2026
Work
Statement for
Year 3 2027
Work
Statement for
Year 4 2028
Work
Statement for
Year 5 2029
AUTHORITY-WIDE $112,000.00 $112,000.00 $112,000.00 $112,000.00 $32,000.00

NEEDLES HSG AUTHORITY
(CA022000001)
$80,000.00
Agenda Item 5.

Resident Advisory Board
(RAB) Capital Funds
Allocation Comments:
 1 Perimeter Fencing
 2 Curb Appeal Yards
 3 Curb Appeal Buildings
 4 Update Playground
 5 Update Kitchens
 6 Update Bathrooms
Agenda Item 5.

FINAL RECOMMENDATION AND NEXT STEPS
Short-Term Actions (0-3 years):
 Prioritize roof replacements in CA 22-1 before failures occur.
 Budget for HVAC (heat pump) replacements over the next few years.
 Improve security and resident convenience by installing doorbells.
 Resurface & seal parking areas and replace gang
mailboxes.

Considerations:
 $3.6 million in total estimated
costs over 20 years means
securing Capital Fund Program
(CFP) grants will be critical.
 Energy costs are rising—keep
monitoring potential funding for
energy-efficient upgrades to
reduce long-term operational
expenses.
 Aging HVAC Systems: Heat
pumps will require phased
replacements, so budgeting for
this now will help avoid emergency
repair costs later.
 Site Enhancements: Investing in
landscaping and parking lot
maintenance would improve
aesthetics and property value.
 Roof Replacement: Given the
2000 installation date, replacing
roofs sooner rather than later
would prevent structural issues.

Agenda Item 5.

FINAL RECOMMENDATION AND NEXT STEPS
Long-Term Actions (3-10 years):
 Plan for kitchen and bathroom replacements within the next 10-20 years
 Continue proactive maintenance to extend the life of
plumbing and mechanical systems.
 Explore funding opportunities for solar energy feasibility studies.

Considerations:
 $3.6 million in total estimated
costs over 20 years means
securing Capital Fund Program
(CFP) grants will be critical.
 Energy costs are rising—keep
monitoring potential funding for
energy-efficient upgrades to
reduce long-term operational
expenses.
 Aging HVAC Systems: Heat
pumps will require phased
replacements, so budgeting for
this now will help avoid emergency
repair costs later.
 Site Enhancements: Investing in
landscaping and parking lot
maintenance would improve
aesthetics and property value.
 Roof Replacement: Given the
2000 installation date, replacing
roofs sooner rather than later
would prevent structural issues.

Agenda Item 5.

Thank you
Angelica Deermer
Housing Manager
760-326-3222
[email protected]
Agenda Item 5.

City of Needles, California
Request for City Council Action
CITY COUNCIL HACN Regular Special
Meeting Date: April 8, 2024
Title: Housing Authority of the City of Needles financial audit report for the fiscal year ended June 30, 2024.

Background: The fiscal year 2023/24 Housing Authority audit report has been completed by Smith Marion.

Attached is the audit report for the fiscal year ended June 30, 2024 and the Auditors Communication with those Charged with Governance letter.

The audit report was approved by the Housing Commission at their March 26, 2025 meeting.

Fiscal Impact: None
Environmental Impact: N/A
Recommended Action: Accept and file the Housing Authority of the City of Needles fiscal year ended June 30, 2024 financial audit report completed by Smith Marion.

Submitted By: Barbara DiLeo, Acting Director of Finance City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:
4/3/2025
Agenda Item 6.

Auditors’ Communication with Those Charged with Governance The Governing Body of
Housing Authority of the City of Needles
We have audited the financial statements of the Housing Authority of the City of Needles (Authority) as of and for the year ended June 30, 2024, and have issued our report thereon dated March 17, 2025. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the Authority solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our findings regarding significant control deficiencies over financial reporting and material weaknesses, if applicable and material noncompliance, and other matters noted during our audit in a separate letter to you dated March 17, 2025.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

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

Agenda Item 6.

Significant Risks Identified
In planning and performing the audit we obtained an understanding of the Authority and its environment for the purpose of identifying and assessing the risks of material misstatement as a basis for designing and performing further audit procedures. Certain risks are considered inherent and significant to performing the audit. Those risks and a description of the risk are as follows:
 The risk that management will override internal controls.

Because management is primarily responsible for the design, implementation, and maintenance of internal control, the Authority is always exposed to the danger of management override of controls, whether the Authority is publicly held, private, not-for-profit, or governmental. When the opportunity to override internal control is combined with powerful incentives to meet accounting objectives, senior management may engage in fraudulent financial reporting. Thus, otherwise effective internal control cannot be relied upon to prevent, detect, or deter fraudulent financial reporting perpetrated by senior management.
 The risk that management will recognize revenue that has not been earned in accordance with GAAP.

Because management is responsible for meeting financial goals and the consequences to management for failing to meet financial goals can be significant, incentives or pressure to commit fraudulent financial reporting may exist when management is under pressure, from sources outside or inside the Authority.

Qualitative Aspects of the Authority’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the Authority is included in the notes to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Agenda Item 6.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are described below:

None noted.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the Authority’s financial statements relate to:

Capital Assets.

Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. The following significant unusual transactions identified as a result of our audit procedures were brought to the attention of management:

We noted no transactions involving complex accounting treatments and regulations, unusually large discounts or returns, circular arrangements, that occurred under contracts whose terms changed before expiration or involved a purpose outside the normal course of business.

Identified or Suspected Fraud
We have identified or have obtained information that indicates that the following fraud may have occurred:

No events or conditions were identified or communicated to us that fraud may have occurred.

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

Agenda Item 6.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.

See Adjusting Journal Entry Report.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the Authority’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report.

None.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated March 17, 2025.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters.

Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Agenda Item 6.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the Authority, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the Authority, and operational plans and strategies that may affect the risks of material misstatement.

None of the matters discussed resulted in a condition to our retention as the Authority’s auditors.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the individuals charged with governance, and management of the Authority and is not intended to be and should not be used by anyone other than these specified parties.

March 17, 2025
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HOUSING AUTHORITY OF THE CITY OF NEEDLES
Financial Statements & Independent Auditors’ Report
For the Year Ended June 30, 2024
Agenda Item 6.

Housing Authority of the City of Needles
Table of Contents
For the Year Ended June 30, 2024
Page

FINANCIAL INFORMATION
Independent Auditors’ Report 1
Management’s Discussion and Analysis i
Basic Financial Statements:

Statement of Net Position 4
Statement of Revenues, Expenses, and Changes in Net Position 5 Statement of Cash Flows 6
Notes to Financial Statements 7

SUPPLEMENTARY INFORMATION
Schedule of Expenditures of Federal Awards 16
Notes to Schedule of Expenditures of Federal Awards 16
Statement and Certification of Actual Costs 17

NON-FINANCIAL SECTION
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 18
Report on Compliance for Each Major Federal Program; and Report on Internal Control over Compliance in Accordance with the Uniform Guidance 20 Schedule of Findings and Questioned Costs 23
Summary Schedule of Prior Year Findings and Questioned Costs 26 Management’s Corrective Action Plan 27
Agenda Item 6.

The Governing Body of
Housing Authority of the City of Needles
Needles, CA
Independent Auditors’ Report
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the business-type activities of the Housing Authority of the City of Needles, as of and for the year ended June 30, 2024, and the related notes to financial statements, which collectively comprise the Housing Authority of the City of Needles’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the business-type activities of the Housing Authority of the City of Needles, 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 (GAAS) 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 Housing Authority of the City of Needles and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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 Housing Authority of the City of Needles’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Agenda Item 6.

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

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

In performing an audit in accordance with GAAS 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 Housing Authority of the City of Needles’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 Housing Authority of the City of Needles’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, on pages i - iv, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Agenda Item 6.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Housing Authority of the City of Needles’s basic financial statements. The supplemental information as shown in table of contents and the schedule of expenditures of federal awards, which is required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the financial statements.

That 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. Such 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 , that information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2025, on our consideration of the Housing Authority of the City of Needles’s internal control over financial reporting and 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 Housing Authority of the City of Needles’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standardsin considering the Housing Authority of the City of Needles’s internal control over financial reporting and compliance.

March 17, 2025
3 Agenda Item 6.
i
Housing Authority of the City of Needles
Management’s Discussion and Analysis (MD&A)
For the Year Ended June 30, 2024

MANAGEMENT'S DISCUSSION AND ANALYSIS
The Management's Discussion and Analysis (the MD&A) is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the Housing Authority of the City of Needles's, (the Authority) financial activity, (c) identify changes in the Authority's financial position (its ability to address the next and subsequent years' challenges), and (d) identify issues or concerns. This will now be presented at the front of each year's financial statements.

Since the MD&A is designed to focus on the current year's activities, resulting changes and currently known facts, please read it in conjunction with the financial statements which follow this section.

FINANCIAL HIGHLIGHTS
Net Position on June 30, 2024, increased to $1,265,525. This is an increase of $275,885 from the $989,640 amount for FYE 2023.

Unrestricted net position as of June 30, 2024, is $523,030, a decrease of $178,461 compared to $701,491 for FYE 2023. The unrestricted net position category represents the amount the Authority can use to meet the ongoing obligation of the citizens and creditors.

OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements included in this annual report are those of a special-purpose government engaged in a business-type activity. This MD&A is intended to serve as an introduction to the Authority's basic financial statements.

The following statements are included:
 Statement of Net Position - reports current financial resources (short-term expendable resources) with capital assets and long-term obligations.
 Statement of Revenue, Expenses, and Changes in Net Position - reports operating and nonoperating revenue, by major source along with operating and nonoperating expenses and capital contributions.  Statement of Cash Flows - reports cash flows from operating, investing, capital, non-capital activities.

PROGRAMS OF THE AUTHORITY
Conventional Public Housing – Under the Conventional Public Housing Program, the Authority rents units that is owns to low-income households. The Conventional Public Housing Program is operated under an Annual Contributions Contract(ACC) with HUD, and HUD provides operating subsidy and capital grant funding to enable the Authority to provide the housing at a rent that is based upon 30% of household income. The Conventional Public Housing Program also includes the Capital Fund Program, which is the primary funding source for physical and management improvements to the Authority’s properties.

Housing Choice Voucher - The objective of this program is to provide housing for eligible low-income families through Housing Assistance Payments to private landlords. In addition to this program the Authority received additional Disaster Vouchers from HUD.
4 Agenda Item 6.

Housing Authority of the City of Needles
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
ii

FINANCIAL ANALYSIS
The following tables focus on the Net Position and the change in net position of the primary government as a whole:

TABLE 1 - STATEMENT OF NET POSITION
2024 2023 Dollar Percentage
ASSETS
Current assets $ 605,932 $ 723,698 $ (117,766) -16.27%
Capital and non-current assets 706,070 288,149 417,921 145.04% Total assets 1,312,002 1,011,847 300,155 29.66%

DEFERRED OUTFLOWS OF RESOURCES - - - -

LIABILITIES
Current liabilities 39,072 22,207 16,865 75.94%
Non-current liabilities 7,405 - 7,405 100%
Total liabilities 46,477 22,207 24,270 109.29%

DEFERRED INFLOWS OF RESOURCES - - - -

NET POSITION
Investment in capital assets 706,070 288,149 417,921 145.04% Restricted net position 36,425 - 36,425 100%
Unrestricted net position 523,030 701,491 (178,461) -25.44% Total net position $ 1,265,525 $ 989,640 $ 275,885 27.88% Change

MAJOR FACTORS AFFECTING THE STATEMENT OF NET POSITION
Current assets decreased by $117,766 primarily due to a reduction in cash because of an increase in spending on capital assets.

Capital assets increased by $417,921 primarily due to the window and door replacement project offset by depreciation.
5 Agenda Item 6.

Housing Authority of the City of Needles
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
iii
TABLE 2 - STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN NET POSITION The following schedule compares the revenue and expenses for the current and previous fiscal years. The Authority is engaged only in business-type activities:
2024 2023 Dollar Percentage
Dwelling rent $ 237,811 $ 229,743 $ 8,068 3.51%
Government grants 870,806 429,425 441,381 102.78%
Other income 9,387 4,692 4,695 100.06%
Interest income 2,906 - 2,906 -
Gain (Loss) on disposition of capital asset (1,610) (4,175) 2,565 -61.44% TOTAL REVENUES 1,119,300 659,685 459,615 69.67%
Administration 299,180 190,680 108,500 56.90%
Tenant services 2,089 - 2,089 -
Utilities 108,396 74,306 34,090 45.88%
Maintenance and operations 234,318 194,343 39,975 20.57% Protective services 725 600 125 20.83%
Insurance 8,255 12,562 (4,307) -34.29%
Other expenses 7,152 - 7,152 -
Housing Assistance Payments 137,328 130,561 6,767 5.18% Depreciation 45,972 24,712 21,260 86.03%
TOTAL EXPENSES 843,415 627,764 215,651 34.35%
CHANGE IN NET POSITION 275,885 31,921 243,964 764.27%
BEGINNING NET POSITION 989,640 896,699
Prior Period Correction - 61,020
ENDING NET POSITION $ 1,265,525 $ 989,640
Change

MAJOR FACTORS AFFECTING THE STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION The Authority had an operating gain of $275,885 including non-cash depreciation expense of $45,972 in 2024, versus an operating gain of $31,921 including depreciation expense of $24,712 in 2023.

Total operating revenue increased by $459,615 primarily due to the increase in federal grants and subsidies received during the fiscal year ended June 30, 2024.

Total operating expenses increased by $215,651 to $843,415 due primarily to the increase in administrative, utility, and maintenance expenses during the fiscal year ended June 30, 2024. 6 Agenda Item 6.

Housing Authority of the City of Needles
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
iv

CAPITAL ASSETS
As of June 30, 2024, investment in capital assets for its business-type activities was $706,070 net of accumulated depreciation. This investment in capital assets includes land, buildings, improvements, equipment, and construction in progress.
2024 2023 Dollar Percentage
Land $ 2,381 $ 2,381 $ - 0.00%
Buildings and improvements 3,686,024 3,190,630 495,394 15.53% Equipment 81,618 81,618 - 0.00%
Construction in progress - 39,341 (39,341) -100.00%
3,770,023 3,313,970 456,053 13.76%
Accumulated depreciation (3,063,953) (3,025,821) (38,132) 1.26% Net capital assets $ 706,070 $ 288,149 $ 417,921 145.04% Change
Major capital asset purchases during the current fiscal year included the following:

Windows and doors project totaling $487,650. Part of this, $39,341, was spent in FY 23.

Major capital asset disposals during the current fiscal year included the following:

None.

DEBT AND SBITA PAYABLE
As of June 30, 2024, the Authority had a no Debt or SBITA payable.

ECONOMIC FACTORS
Significant economic factors affecting the Authority are as follows:
 Federal funding of the Department of Housing and Urban Development.  Local labor supply and demand, which can affect salary and wage rates.  Local inflation, recession, and employment trends, which can affect resident incomes and therefore the amount of rental income.
 Inflationary pressure on utility rates, supplies and other costs.

FINANCIAL CONTACT
This financial report is designed to provide a general overview of the finances for all those with an interest in the Authority’s finances. Questions concerning any of the information provided in this report or request for additional information should be addressed to Executive Director Patrick Martinez, Housing Authority of the City of Needles, 760-326-3222.
7 Agenda Item 6.

ASSETS
Current Assets
Cash and equivalents
Unrestricted $ 447,539
Restricted 46,125
Subtotal Cash 493,664
Certificates of Deposits 93,241
Accounts receivable, net 13,919
Prepaid expenses 5,108
Total Current Assets 605,932
Non-Current Assets
Capital assets not being depreciated 2,381
Capital assets, net 703,689
Total Non-Current Assets 706,070
TOTAL ASSETS 1,312,002

TOTAL DEFERRED OUTFLOWS OF RESOURCES -

LIABILITIES
Current Liabilities
Accounts payable 18,485
Accrued liabilities 5,146
Tenant security deposits 9,700
Unearned revenue 3,890
Compensated absences, current 1,851
Total Current Liabilities 39,072
Non-Current Liabilities
Compensated absences, non-current 7,405
Total Non-Current Liabilities 7,405
TOTAL LIABILITIES 46,477

TOTAL DEFERRED INFLOWS OF RESOURCES -

NET POSITION
Investment in capital assets 706,070
Restricted 36,425
Unrestricted 523,030
TOTAL NET POSITION $ 1,265,525
Housing Authority of the City of Needles
Statement of Net Position
June 30, 2024
See notes to financial statements
8 Agenda Item 6.

REVENUES
Operating Revenues
Tenant rental revenue, net of collection losses $ 237,811 Operating grants and subsidies 870,448
Other revenues 9,387
Total Operating Revenues 1,117,646

EXPENSES
Operating Expenses
Administration 299,180
Tenant services 2,089
Utilities 108,396
Ordinary maintenance and operations 234,318
Protective services 725
Insurance expense 8,255
Other general expenses 7,152
Housing Assistance Payments 137,328
Depreciation 45,972
Total Operating Expenses 843,415
NET OPERATING INCOME (LOSS) 274,231

NONOPERATING REVENUES (EXPENSES)
Interest income 2,906
Gain (Loss) on disposition of capital asset (1,610)
TOTAL NONOPERATING REVENUES (EXPENSES) 1,296
Capital grants - HUD 358
358
CHANGE IN NET POSITION 275,885
NET POSITION - BEGINNING 989,640
NET POSITION - ENDING $ 1,265,525
Housing Authority of the City of Needles
Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2024
See notes to financial statements
9 Agenda Item 6.

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from tenants for rent $ 247,226
Cash received from grantors 870,759
Cash paid for Housing Assistance Payments (137,328)
Cash paid for goods and services (282,991)
Cash paid to and on behalf of employees for services (343,660) NET CASH FLOW PROVIDED (USED) BY OPERATING ACTIVITIES 354,006

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (465,503)
Capital contributions 358
NET CASH FLOW PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (465,145)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2,906
(Purchase) or redemption of Certificates of Deposit (1,911) NET CASH FLOW PROVIDED (USED) BY INVESTING ACTIVITIES 995 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (110,144) BEGINNING CASH AND CASH EQUIVALENTS 603,808
ENDING CASH AND CASH EQUIVALENTS $ 493,664
Operating income (loss) $ 274,231
Non-Cash Adjustment
Depreciation 45,972
Change in Assets and Liabilities
Accounts/grants receivable 1,528
Prepaid expenses 8,005
Accounts payable and accrued liabilities 18,308
Compensated absences 7,151
Unearned revenue 311
Tenant security deposits (1,500)
Total Adjustments 79,775
Net Cash Provided (Used) by Operating Activities $ 354,006 Housing Authority of the City of Needles
Statement of Cash Flows
For the Year Ended June 30, 2024

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES
See notes to financial statements
10 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 01 - SUMMARY OF ORGANIZATION, SIGNIFICANT ACCOUNTING POLICES AND REPORTING ENTITY
Introduction
The financial statements of the Housing Authority of the City of Needles (the Authority), have been prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is the standard-setting body for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The Authority has previously implemented GASB Statement 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments. Certain significant changes in the statements are as follows: The financial statements will include a Management's Discussion and Analysis(MD&A) section providing an analysis of the Authority’s overall financial position and results of operations.

The Housing Authority of the City of Needles is a special-purpose government engaged only in business-type activities and, therefore, presents only the financial statements required for enterprise funds, in accordance with GASB . For these governments, basic financial statements and required supplemental information consist of:

Management’s Discussion and Analysis (MD&A)
Enterprise fund financial statements consisting of:
o Statement of Net Position
o Statement of Revenues, Expenses, and Changes in Net Position o Statement of Cash Flows
Notes to Financial Statements
Required supplemental information other than MD&A and supplemental information.

Reporting Entity
The Housing Authority of the City of Needles was established in 1942, under the U.S. Housing Act of 1937, and the State of California Housing Authority Law of 1938. The Authority is a nonprofit government agency which is chartered by the State of California to administer the development, rehabilitation or financial of affordable housing programs.

The area of jurisdiction of the Authority is the City of Needles. Under the United States Housing Act of 1937, the US Department of Housing and Urban Development (HUD) has direct responsibility for administering low-rent housing programs in the United States. Accordingly, HUD has entered into various contracts with the Authority for the purpose of constructing, owning, and operating public housing facilities.

GASB Statement No. 14 established criteria for determining the governmental reporting entity. Under provisions of this statement, the Housing Authority of the City of Needles is considered a primary government, since it is a specialpurpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state and local governments. As used in GASB 14, fiscally independent means that the Authority may, without the approval or consent of another governmental entity, determine or modify its own budget, control collection and disbursements of funds, maintain responsibility for funding deficits and operating deficiencies, and issue bonded debt. 11 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
The Authority’s primary operations comprise of a number of housing and grant programs as follows:

The Public Housing Program operates under HUD’s Annual Contribution Contract and consists of the operations of low rent public housing properties. The purpose of the program is to provide decent and affordable housing to low-income families at reduced rents. The properties are owned, maintained, and managed by the Authority. The properties are acquired, developed, and modernized under HUD’s Capital Fund Program. Funding of the program is provided by federal annual contributions and operating subsidies and tenant rentals (determined as a percentage of family income, adjusted for family composition). The agency operates its public housing units under the Asset Management Program under the New Operating Fund Rule (24 CFR 990).

The Housing Choice Voucher Program provides rental housing assistance subsidies. The purpose of the program is to provide decent and affordable housing to low-income families and elderly and handicapped persons wherein rental assistance is provided by HUD. The associated units are owned, maintained, and managed by private landlords.

The Capital Fund Program accounts for the capital and management improvement activities, primarily for the modernization and development of low-rent public housing units.

In determining how to define the reporting entity, management has considered all potential component units. The decision to include a component unit in the reporting entity was made by applying the criteria set forth in Section 2100 and 2600 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards and Statement No. 14 and No. 61 of the Government Accounting Standards Board, the Financial Reporting Entity:

The organization is legally separate (can sue and be sued in their own name), The Authority holds the corporate powers of the organization, The Authority appoints a voting majority,
The Authority is able to impose its will on the organization, The organization has the potential to impose a financial benefit/burden on the Authority, or There is fiscal dependency by the organization on the Authority.

Based on the aforementioned criteria and relationship between the Housing Authority of the City of Needles and the City of Needles, the Authority has determined to be a component unit of the City of Needles based on the following:

Although the Authority is a legally separate Special Purpose Government, it does not have a separately elected governing body from that of the City and is not fiscally independent of other state and local governments. Fiscally independent means that the Authority may, without the approval or consent of another governmental entity, determine or modify its own budget, control collection and disbursements of funds, maintain responsibility for funding deficits and operating deficiencies, and issue bonded debt.

Basis of Presentation, Basis of Accounting and Measurement Focus Basis of Accounting - The Authority uses the accrual basis of accounting in the proprietary funds. Under this method, revenues are recorded when earned, and expenses are recorded when liabilities are incurred, regardless of when the related cash flow takes place.

Basis of Presentation - The financial statements of the Authority are presented from a fund perspective. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain authority functions. The fund is a separate accounting entity with a self-balancing set of accounts.

The accounting and financial reporting method applied by a fund is determined by the fund’s measurement focus. The accounting objectives are determination of net income, financial position, and cash flows. All assets and liabilities associated with the proprietary fund’s activities are included in the statement of net position. In the statement of net position, equity is classified as net position and displayed in three components:
12 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
Net investment in capital assets - Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balance of any notes or other borrowings attributable to those capital assets.

Restricted net position - Consists of assets with constraints placed on the use either by external groups, such as grantors or laws and regulations of other governments, or law through constitutional provisions or enabling legislation.

Unrestricted net position - All other assets that do not meet the definition of “restricted” or “net investment in capital assets”.

Proprietary Fund: Enterprise fund - This type of fund is reported using an economic resources measurement focus.

Additionally, it is used to account for operations that are financed and operated in a manner similar to private businesses where a fee is charged to external users for services provided. When both restricted and unrestricted net positions are available for use, generally it is the Authority’s policy to use restricted resources first.

Interfunds
Interfund receivables and payables are all classified as either current assets or current liabilities. Cash settlements are made monthly. Receivables and payables have been eliminated in the preparation of the basic financial statements.

Budgetary Data
The Authority adopts budgets on the basis of accounting consistent with the basis of accounting for the fund to which the budget applies. The Authority prepares annual operating budgets that are formally adopted by its Governing Board of Commissioners. The budgets for programs funded by HUD form the basis of the Federal Financial Assistance received through HUD. These budgets are adopted using a HUD outline that is not consistent with generally accepted accounting principles and are used for HUD purposes only.

Board Members
Name Term Expires Position
Zachery Longacre 11/30/2028
Henry Longbrake 11/30/2026
JoAnne Pogue 11/30/2026
Tona Belt 11/30/2028
Ellen Campbell 11/30/2028
Jamie McCorkle 11/30/2026
Janet Jernigan 11/30/2024
Council Member
Mayor
Vice Mayor
Council Member
Council Member
Council Member
Council Member
Revenues and Expenses
Revenues and expenses are recognized in essentially the same manner as used in commercial accounting. Revenues relating to the Authority are operating activities including rental related income, interest income and other sources of revenues are recognized in the accounting period in which they are earned. Other major sources of revenues include the operating subsidy from HUD and other HUD funding for capital and operating expenses.

In accordance with GASB standards dwelling income has been netted with bad debt expense of $ -. Collection losses on accounts receivable are expended, in the appropriate Fund, on the specific write-off method.

Operating Revenue
Proprietary funds distinguish operating revenues and expenses from non-operating 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 Authority are charges to customers for rent. Operating expenses 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 non-operating revenues and expenses. 13 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
Subsidies received from HUD or other grantor agencies, for operating purposes, are recorded as operating revenue in the operating statement while capital grant funds are added to the net position below the non -operating revenue and expense.

Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles as applied to governmental units requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The most significant estimates relate to depreciation and useful lives, allowance for bad debt, and inventory valuation.

Cash and Cash Equivalents
The Authority’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short -term investments with an original maturity of three months or less when purchased to be cash equivalents.

Investments are stated at fair value, except for U. S. Treasury Bills, which are reported at amortized cost. Investment consists of Certificates of Deposit which have an initial maturity date greater than 90 days.

Accounts Receivable
Accounts receivable consist of all amounts earned at year end and not yet received. Allowances for uncollectible accounts are based upon historical trends and periodic aging of accounts receivable.

Accounts for which no possibility of collection is anticipated are charged to bad debts expense which is netted against dwelling rent revenues on the statement of revenues, expenses, and changes in net position.

Amounts due from other housing authorities related to Housing Choice Voucher Port In vouchers are deemed by management to be fully collectible and no allowance has been established for those types of accounts receivable.

Capital Assets and Depreciation/Amortization
Capital assets are stated at historical cost. Depreciation of exhaustible capital assets used by proprietary funds is charged as an expense against operations, and accumulated depreciation is reported on the statement of net position.

If the initial cost of a piece of equipment and/or other personal property is one thousand five hundred dollars ($1,500) or more and the anticipated life or useful value of said equipment or property is more than one (1) year, the purchased property/equipment will be capitalized and recorded as non-expendable equipment and charged as a capital expenditure.

The estimated useful lives for each major class of depreciable capital assets are as follows:

Category Useful Life
Buildings and improvements
Vehicles and other equipment
Computers
20-50 Years
5-7 Years
5 Years
Deferred Inflows/Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Authority had no deferred outflows of resources.
14 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
Also, in addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Authority had no deferred inflows of resources.

Compensated Absences
Compensated absences are absences for which employees will be paid, i.e., vacation and other approved leaves, with the exception of those employees that are terminated on grounds of gross misconduct. The Authority accrues the liability for those absences for which the employee has earned the rights to the benefits. Accrued amounts are based on the current salary rates.

Insurance
The primary technique used for risk financing is the purchase of insurance policies from commercial insurers that include a large deductible amount. The use of a large deductible clause reduces the cost of insurance, but should losses occur, the portion of the uninsured loss is not expected to be significant with respect to the financial position of the Authority. As of the date of the report, the Authority had necessary insurance coverage in force.

Fair Market Value
Accounting pronounces define fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. These pronouncements established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs that are observable or can be corroborated by observable market data.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The estimated fair value of the Authority’s financial instruments has been determined by management using available market information. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the fair values are not necessarily indicative of the amounts that the Authority could be realized in a current market exchange. The use of different market assumptions may have a material effect on the estimated fair value amounts.

The carrying amounts of cash and cash equivalents, receivables, payables, and accrued liabilities are a reasonable estimate of their fair value, due to their short-term nature and method of computation. All financial assets that are measured at fair value on a recurring basis (at least annually) have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. All of the Authority’s investments are valued using Level 1 inputs. 15 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
Investment Policy
The Housing Authority of the City of Needles’s investment policy, HUD and the California Government Code do not address legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law. 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 such deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

Subsequent Events
Events that occur after the statement of net position date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the statement of net position are recognized in the accompanying financial statements.

Subsequent events which provide evidence about conditions that existed after the statement of net position date require disclosure in the accompanying notes. Management evaluated the activity of the Authority through March 17, 2025, (the date the financial statements were available to be issued) and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to financial statement.

NOTE 02 - CASH AND CASH EQUIVALENTS
All the deposits of the Authority are either insured or collateralized by using the Dedicated Method whereby all deposits that exceed the Federal Depository Insurance coverage level are collateralized with securities held by the Authority’s agents in these units’ names.

At June 30, 2024, the Authority’s deposit amounted to $493,664. Of the bank balances held in various financial institutions, $250,000 was covered by Federal Depository Insurance and the remainder was covered by collateral held under the Dedicated Method. All deposits of the Authority are with financial institutions meeting State and Federal deposit requirements.

Types of investment, which are authorized to be made with the Authority’s funds, are controlled by the statutes ofthe State of California and by contract with HUD. Investments are limited to issues having maturities of three years or less, and may include the following:

Backed by the full faith and credit of the United States Government, or Backed by guarantee of principal and/or interest by the United States Government, or Backed by a Government-sponsored agency, or
Covered by the Federal Deposit Insurance Corporation, or Backed by full collateralization with approved securities. 16 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
Interest rate risk - As a means of limiting its exposure to market value losses arising from rising interest rates, the Authority’s typically limits its investment portfolio to maturities of 12 months or less. The Authority has no specific policy regarding interest rate risk.

Credit risk - Custodial credit risk for deposits is the risk that, in the event of bank failure, a government’s deposits may not be returned. State statute governs collateral requirements and forms of collateral under California state statues. In summary, California law states all deposits in excess of Federal Depository Insurance shall be secured by collateral.

Authorized security for deposits enumerated under law includes direct obligations of or obligations guaranteed by the United States of America having a market value not less than the amount of such monies. The Authority does not have a custodial credit risk policy that is more restrictive than state statutes.

Custodial credit risk - For an investment, the custodial risk is the risk that in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Authority has no policy on custodial credit risk.

Cash and cash equivalents were comprised of the following as of June 30, 2024:

Unrestricted
Checking and Money Market accounts $ 447,539
Subtotal 447,539
Restricted
Security deposits - tenants 9,700
Housing Assistance Payments 36,425
Subtotal 46,125
Total Cash and Equivalents $ 493,664
Unrestricted
Mutual fund - government backed securities $ 93,241
Total Investments $ 93,241
NOTE 03 - ACCOUNTS RECEIVABLE
Accounts receivable at June 30, 2024, consisted of the following:

Tenant receivables $ 15,769
Allowance for receivables (1,850)
Net receivable 13,919
Accounts Receivable, Net $ 13,919
17 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 04 - CAPITAL ASSETS
A summary of changes in capital assets were as follows:

Balance at Balance at
07/01/23 Additions Deletions 06/30/24
Land $ 2,381 $ - $ - $ 2,381
Construction in process 39,341 358 (39,699) -
41,722 358 (39,699) 2,381
Buildings and improvements 3,190,630 504,844 (9,450) 3,686,024 Furniture and equipment 81,618 - - 81,618
3,272,248 504,844 (9,450) 3,767,642
(3,025,821) (45,972) 7,840 (3,063,953)
246,427 458,872 (1,610) 703,689
Capital Assets, Net $ 288,149 $ 459,230 $ (41,309) $ 706,070 Capital assets not being depreciated
Capital assets not being depreciated
Capital assets being depreciated
Total assets being depreciated
Accumulated depreciation
Net capital assets being depreciated
For the year ended June 30, 2024, the Authority reported depreciation/amortization expense of $45,972.

NOTE 05 - COMMITMENTS AND CONTINGENCIES
Legal: The Authority is party to no pending or threatened legal actions arising from the normal course of its operations.

Grants and Contracts: The Authority participates in various federally assisted grant programs that are subject to review and audit by the grantor agencies. Entitlement to these resources is generally conditional based upon compliance with terms and conditions of grant agreements and applicable federal regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a federal audit may become a liability of the Authority. There were no such liabilities recorded as of June 30, 2024.

Capital Fund: The Authority receives capital funding each year for ongoing capital improvements and repairs and maintenance.

NOTE 06 - RISK MANAGEMENT
The Authority is exposed to all common perils associated with the ownership and rental of real estate properties. A risk management program has been established to minimize loss occurrence and to transfer risk through various levels of insurance. Property, casualty, employee dishonesty and public official's liability forms are used to cover the respective perils. The Authority is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three fiscal years. Additionally, there have been no significant reductions in insurance coverage from the prior year.

As of June 30, 2024, the Authority was a participating member of the Housing Authorities Risk Retention Pool (HARRP), a risk-management pool, which provides the following coverage: property; general liability; official’s liability; auto liability; employee liability for dishonesty or forgery; and employee liability for theft, disappearance and destruction.

NOTE 07 - ECONOMIC DEPENDENCE
The Authority receives approximately 78% of funds used for affordable housing activities from HUD. 18 Agenda Item 6.

Housing Authority of the City of Needles
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 08 - NON-CURRENT LIABILTIES
Balance at Balance at Due within
07/01/23 Additions Deletions 06/30/24 One Year
Compensated absences $ 2,105 $ 7,151 $ - $ 9,256 $ 1,851 Total $ 2,105 $ 7,151 $ - $ 9,256 $ 1,851
NOTE 09 - PENSION PLAN
Plan Description – All qualified permanent and probationary employees are eligible to participate in the City of Needles’ Employee Pension Plan, a cost sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). 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.

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

The Authority reimburses the City of Needles for payments made to the employees of the Authority. All required disclosures for the defined benefit plan are included in the City of Needles’ audit report. Detailed information can be found in the Notes to the Financial Statements of the City of Needles. The Authority has made all required contributions for the year ended June 30, 2024. There are no liabilities related to the pension contributions.

NOTE 10 - NET POSITION
The Authority has the following net positions as June 30, 2024:

Capital assets not being depreciated $ 2,381
Capital assets, net 703,689
Investment in Capital Assets $ 706,070
Restricted cash $ 46,125
Security deposit liability (9,700)
Restricted Net Position $ 36,425
19 Agenda Item 6.

Assistance
Listing
Number(s)
Award
Type Expenditures
Housing Choice Vouchers 14.871 Direct $ 195,290
Total Housing Voucher Center Cluster 195,290
Low Rent Public Housing 14.850 Direct 299,182
Public Housing Capital Fund Program 14.872 Direct 376,334 Totals U.S. Department of HUD 870,806
Total Expenditures of Federal Awards $ 870,806
Award Type
Direct $ 870,806
Indirect $ -
NOTE 1: SCOPE OF PRESENTATION
NOTE 2: BASIS OF ACCOUNTING
NOTE 3: 10% DE MINIMIS INDIRECT COST RATE
Housing Authority of the City of Needles
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
U.S. Department of HUD
The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the City of Needles (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. This schedule also only includes the amounts expended by the Authority, none of the amount expended, if any, by the blended or discretely present component units have been included.

The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.

The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

See Auditors' report on supplementary information
20 Agenda Item 6.

1. The Actual Costs of the Authority was as follows:

Grant Funds Approved Funds Disbursed Funds Expended Balance Unspent CA16P022501-18 $ 119,358 $ 119,358 $ 119,358 $ -
CA16P022501-19 $ 123,997 $ 123,997 $ 123,997 $ -
CA16P022501-20 $ 133,733 $ 133,733 $ 133,733 $ -
CA16P022501-21 $ 139,371 $ 138,738 $ 138,738 $ 633
CA16P022501-22 $ 170,410 $ 169,829 $ 169,829 $ 581
CA16P022501-23 $ 175,309 $ 22,317 $ 22,317 $ 152,992
CA16P022501-24 $ 164,765 $ - $ - $ 164,765

2. 3.

Housing Authority of the City of Needles
Statement and Certification of Actual Costs
For the Year Ended June 30, 2024
The distribution of costs as shown on the Financial Statement of Costs accompanying the Actual Cost Certificate submitted to HUD for approval, is in agreement with the Authority's records.

For the above completed grants, all costs have been paid and all related liabilities have been discharged through payment.
21 Agenda Item 6.

Board of Commissioners
Housing Authority of the City of Needles
Needles, CA
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors’ Report
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the business-type activities of the Housing Authority of the City of Needles as of and for the year ended June 30, 2024, and the related notes to financial statements, which collectively comprise the Housing Authority of the City of Needles’s basic financial statements, and have issued our report thereon dated March 17, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit, we considered the Housing Authority of the City of Needles’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 opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Housing Authority of the City of Needles’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Housing Authority of the City of Needles’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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Housing Authority of the City of Needles’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weakness and significant deficiencies may exist that have not been identified.
22 Agenda Item 6.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Housing Authority of the City of Needles’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 disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

March 17, 2025
23 Agenda Item 6.

Board of Commissioners
Housing Authority of the City of Needles
Needles, CA
Report on Compliance for Each Major Federal Program; and Report on Internal Control over Compliance in Accordance with the Uniform Guidance
Independent Auditors’ Report
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Housing Authority of the City of Needles’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Housing Authority of the City of Needles’s major federal programs for the year ended June 30, 2024. The Housing Authority of the City of Needles’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

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

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

We are required to be independent of the Housing Authority of the City of Needles and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Housing Authority of the City of Needles’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Housing Authority of the City of Needles’s federal programs.
24 Agenda Item 6.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Housing Authority of the City of Needles’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists.

The risk of not detecting material noncompliance resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit proceduresresponsive to those risks. Such proceduresinclude examining, on a test basis, evidence regarding the Housing Authority of the City of Needles’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

Obtain an understanding of the Housing Authority of the City of Needles’s internal control over compliance relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Housing Authority of the City of Needles’s internal control over compliance. Accordingly, no such opinion is expressed.

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

Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2024-002. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on the Housing Authority of the City of Needles’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The Housing Authority of the City of Needles’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies.
25 Agenda Item 6.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2024-001, to be significant deficiencies.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on the Housing Authority of the City of Needles’s response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs.

The Housing Authority of the City of Needles’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

March 17, 2025
26 Agenda Item 6.

Section I Summary of Auditors' Results
Financial Statements
Type of auditors' report issued Unmodified
Internal controls over financial reporting:

Material weakness(es) identified No
Significant deficiency(ies) identified None Reported
Noncompliance material to financial statements noted No Federal Awards
Internal control over major federal programs
Material weakness(es) identified No
Significant deficiency(ies) identified Yes
Type of auditors' report issued on compliance for major federal programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) Yes Identification of major federal programs:

Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualified as a low-risk auditee No
Section II Financial Statement Findings
No findings.

14.872 Public Housing Capital Fund Program
Housing Authority of the City of Needles
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
ALN(s) Name of Federal Program or Cluster
27 Agenda Item 6.

Housing Authority of the City of Needles
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
Section III Federal Awards Findings
Direct Award
Internal Control
Significant
Deficiency

14.872
2024-001 Obligation of Funds
Questioned Costs None
Effect
Recommendations The Authority should implement internal controls to ensure all funds are obligated within the correct period of time.

Management Views Management Agrees. See Corrective Action Plan.

Condition
Context
Cause
Criteria Unless an extension is approved by HUD, a PHA must obligate at least 90 percent of each Capital Fund grant, including formula grants, DDTF, RHF, and natural disaster grants within 24 months of the funds of becoming available to the PHA for obligation. For emergency grants, including Safety and Security Grants the PHA must obligate at least 90 percent within 12 months of the funds becoming available.

The funds become available when the HUD executes the ACC Amendment (24 CFR section 905.306).

The Authority did not obligate the funds within the time frame above for CFP Grant Year 2019.

The 2019 CFP grant was not obligated within the 24 month allowable period.

Due to changes in staff the funds were not obligated properly.

The Authority is not in compliance with the CFP grant contract.

US Department of Housing and Urban Development
Program Name Public Housing Capital Fund
ALN Number H
Period of
Performance
28 Agenda Item 6.

Housing Authority of the City of Needles
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
Section III Federal Awards Findings
Direct Award
Non-Compliance
Significant
Deficiency

14.872
2024-002 Submission of Required Forms
Questioned Costs None
US Department of Housing and Urban Development
Program Name Public Housing Capital Fund
L Reporting ALN Number
Criteria For modernization projects, the PHA shall submit the AMCC within 90 days after Expenditure End Date. To initiate the closeout process, the PHA shall submit the AMCC which details actual costs incurred between the DOFA date and the completion of the modernization project.

Condition During the audit, we noted that the HUD-53001 form was not completed or filed with HUD as required.

Context Multiple grants CFP grants were closed during the year and the required HUD form was not filed.

Cause The Authority was unaware of the requirement.

Effect The Authority was in violation of the Federal Regulation relating to report submissions.

Recommendations We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to all federal awards.

Management Views Management Agrees. See Corrective Action Plan. 29 Agenda Item 6.

Financial Statement Findings
Prior Year Findings
Number Findings Title
Status/Current Year
Findings Number
2023-001 Prior Period Restatement to Accumulated Depreciation Resolved Federal Award Findings and Questioned Costs
Prior Year Findings
Number Findings Title
Status/Current Year
Findings Number
N/A There were no prior findings reported N/A
Housing Authority of the City of Needles
Summary Schedule of Prior Year Findings and Questioned Costs For the Year Ended June 30, 2024
30 Agenda Item 6.
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M I N U T E S

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES

CITY OF NEEDLES, CALIFORNIA
EL GARCES – 950 FRONT STREET, NEEDLES
TUESDAY, MARCH 25, 2025 - COUNCIL EXECUTIVE SESSION – 5:30 PM - CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:31 pm

ROLL CALL

PRESENT
Council Member Jamie McCorkle
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member Tona Belt
Council Member Henry Longbrake
ABSENT
Council Member JoAnne Pogue
Council Member Zachery Longacre
Council Member Longacre recused due to a conflict of interest because he works in the cannabis industry and Council Member Pogue recused due to a conflict of interest because her son lives with her and works for the party in question.

Also present were City Manager Patrick Martinez, Deputy City Attorney Lena Wade, City Planner Irene Romero, and Interim City Clerk Candace Clark.

RECESSED THE CITY COUNCIL MEETING AND CONVENED A JOINT COUNCIL MEETING PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION – None RECESSED TO EXECUTIVE SESSION - 5:32 PM

EXECUTIVE SESSION
a. Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4). One potential Case.

No reportable action
CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:05 pm

ROLL CALL

PRESENT
Council Member Zachery Longacre
Council Member Jamie McCorkle
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
Council Member Henry Longbrake
EXECUTIVE SESSION REPORT – Deputy City Attorney Lena Wade stated that there was no reportable action on Executive Session Item a, as noted above.

PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - led by Vice Mayor Campbell

APPROVAL OF AGENDA
Vice Mayor Campbell made a motion, second by Council Member Pogue to approve the agenda.

Motion carried by the following roll call vote:

Agenda Item 8.
032525 CCNPUAHACN 2 | P a g e
Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
CONFLICT OF INTEREST - None
CORRESPONDENCE – Email received from Terry Campbell on Item 7 and distributed to Council Members INTRODUCTIONS - Mayor Jernigan acknowledged former Council Members Tim Terral and Shawn Gudmundson in attendance.

CITY ATTORNEY – Parliamentary Procedures given by Deputy City Attorney Lena Wade.

PUBLIC APPEARANCE - None

PRESENTATION

1. Ashley Brooksher, Children’s Network Officer, spoke about Child Abuse Prevention efforts and Mayor Jernigan presented a Proclamation declaring April 2025 Child Abuse Prevention Month

INTERVIEWS

2. Interviews / appointments to fill the vacancy on the Board of Public Utilities due to the retirement of Mike Schneider.

City Manager Patrick Martinez gave staff report. Applicants were Mark Walters and James Jones.

Mark Walters introduced himself to Council and expressed why he wanted to serve on the Board of Public Utilities. Council asked minimal questions.

James Jones introduced himself to Council and expressed why he wanted to serve on the Board of Public Utilities. Council asked if there was a conflict of interest because of Pastor Jones’ receipt of funding and donations from the City. Deputy City Attorney Wade indicated that there would be a conflict if Pastor Jones served on any Board or Commission. Pastor Jones withdrew his application and congratulated Mark Walters.

Vice Mayor Campbell made a motion, second by Council Member McCorkle to appoint Mark Walters to the Board of Public Utilities. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

PUBLIC HEARING

3. Public Hearing for Annual Account of Development Impact Fees for FY 24 City Manager Patrick Martinez gave staff report.

Council had no questions of staff.

Mayor Jernigan opened the public hearing at 6:21 pm
No public comments.

Mayor Jernigan closed the public hearing at 6:21 pm
Vice Mayor Campbell made a motion, second by Council Member McCorkle to approve the Annual Accounting for Development Impact Fees FY 24 report. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
Agenda Item 8.
032525 CCNPUAHACN 3 | P a g e

4. Adopt Resolution 2025-16 approving a Conditional Use Permit, for the construction of a new 185- foot wireless telecommunication facility (monopole) for Verizon Wireless, located south of National Old Trails Highway and north of I-40 (APN: 0660-162-07-0000), within the Highway Commercial (C-3) Land Use Zoning Designation.

City Planner Irene Romero gave staff report.

Council had no questions of staff.

Mayor Jernigan opened the public hearing at 6:27 pm
No public comments.

Applicant spoke briefly about the project and answered questions from Council.

Mayor Jernigan closed the public hearing at 6:29 pm
Council Member Belt made a motion, second by Council Member Longbrake to adopt Resolution 2025-16 approving a Conditional Use Permit, for the construction of a new 185-foot wireless telecommunication facility (monopole) for Verizon Wireless, located south of National Old Trails Highway and north of I-40 (APN: 0660-162-07-0000), within the Highway Commercial (C-3) Land Use Zoning Designation. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
PUBLIC COMMENTS PERTAINING TO THE NPUA/COUNCIL ITEMS - None

NPUA / COUNCIL CONSENT CALENDAR
Vice Mayor Campbell made a motion, second by Council Member Pogue to approve Items 5 through 10 on the Consent Calendar, Motion carried by the following roll call vote:

Ayes: Members/Council Members Longacre, McCorkle, Member/Vice Mayor Campbell, Member/Mayor Jernigan, Members/Council Members Pogue, Belt, Longbrake Noes: None

Absent: None
Abstain: None

5. Authorized the City Manager to execute the 2025 California Forbearance Agreement on behalf of the City of Needles along with Coachella Valley Water District, Imperial Irrigation District, The Metropolitan Water District of Southern California, Palo Verde Irrigation District

6. Authorized Phillips Construction to replace six (6) water meters not to exceed $59,600 utilizing Water Asset Replacement Funds

7. Authorized the purchase of 60 - 36” Decorative Holiday Wreaths from Holiday Outdoor Décor not to exceed $26,000 utilizing the adopted FY25 electric budget

8. Awarded Bid to Shipley Construction and Plumbing for the Purchase and Install Metal Building Project in the amount of $585,697 plus 15% contingency of $87,855 for a total project cost NTE $673,552 and authorized staff to execute a Public Works Agreement with Shipley Construction and move forward with the Notice of Award and Notice to Proceed.

9. Approved change order increasing the FY 23 NPUA audit fees by $20,000. New total amount not to exceed $55,353.

10. Accepted Change Order #1 to the Public Works Agreement with Phillips Excavating, Inc. for the Well 11 to Well 15 Intertie project resulting in an increase to the contract in the amount of $143,200 for a new total contract amount of $578,265; and authorized staff to execute said Change Order.

END OF NPUA CONSENT CALENDAR

ADJOURNED THE JOINT NPUA/COUNCIL MEETING AND RECONVENED THE COUNCIL MEETING Agenda Item 8.
032525 CCNPUAHACN 4 | P a g e
PUBLIC COMMENTS PERTAINING TO COUNCIL ITEMS - None

COUNCIL CONSENT CALENDAR
Mayor Jernigan pulled item 13.

13. Award bid to S. Christensen Engineering, Inc. for the Phase IV-B Street Improvements Project in the amount of $1,156,400.60 plus 20% contingency for a total project cost of $1,387,680.72 and authorize staff to execute a Public Works Agreement with S. Christensen Engineering, Inc. and move forward with the Notice of Award and Notice to Proceed.

City Manager Patrick Martinez gave staff report.

Vice Mayor Campbell made a motion, second by Council Member Longacre to award bid to S.

Christensen Engineering, Inc. for the Phase IV-B Street Improvements Project in the amount of $1,156,400.60 plus 20% contingency for a total project cost of $1,387,680.72 and authorize staff to execute a Public Works Agreement with S. Christensen Engineering, Inc. and move forward with the Notice of Award and Notice to Proceed. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
Council Member McCorkle pulled item 17.

17. Accept the Proposal from Kimley-Horn and Associates, Inc. to Provide Consultant Professional Services for an Active Transportation Plan for a Not to Exceed amount of $266,995 and authorize staff to execute the Consultant Professional Services Agreement City Manager Patrick Martinez gave staff report.

Council Member McCorkle made a motion, second by Vice Mayor Campbell to accept the Proposal from Kimley-Horn and Associates, Inc. to Provide Consultant Professional Services for an Active Transportation Plan for a Not to Exceed amount of $266,995 and authorize staff to execute the Consultant Professional Services Agreement. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
Vice Mayor Campbell made a motion, second by Council Member Pogue to approve Items 11, 12, 14, 15, 16 on the Consent Calendar. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

11. Approved the Warrants Register through March 25, 2025

12. Approved the Minutes of March 11, 2025

14. Accepted Change Order No. 1 (final) and the work completed by Superior Paving Company dba United Paving Company for the Obernolte Street Improvement Project for a total project amount of $1,018,298.29 and authorized staff to issue a NOTICE OF COMPLETION to be recorded with the San Bernardino County Recorder’s Office.

15. Extended the contract with HdL Companies to perform Cannabis Tax Audits for Calendar years 2023 and 2024 at a cost not to exceed $462,000
Agenda Item 8.
032525 CCNPUAHACN 5 | P a g e

16. Waived the Reading and Adopted Resolution No. 2025-15 authorizing the City Manager or his designee, the Community Services Manager, to purchase one (1) Nine Passenger Transit Vehicle for use by the Dial-a-Ride (Specialized Transportation) Transit Services

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

18. Provide Staff Direction - Pickleball Courts Discussion City Manager Patrick Martinez gave staff report.

Council Discussion ensued. Council agreed on the concept but would like to explore other location options – suggesting Jack Smith Park.

Mayor Jernigan opened Public Comment
Shawn Gudmundson encouraged City to invest in current amenities and expand hours of operation.

James Jones asked about using existing Basketball Court as a multi-use space.

Council Member Longbrake made a motion, second by Vice Mayor Campbell, to authorize staff to pursue funding options and bring back to council if sufficient funding is obtained.

Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Belt, Longbrake
Noes: Council Member Pogue

Absent: None
Abstain: None

19. Provide staff recommendations on awarding the 2025 Edible Food Recovery Grant of $6,000, an increase of $1,000 from the prior year. The awarded non-profit(s) will be required to report the annual tonnage of edible food recovered in the community. Staff will utilize the reporting for annual compliance with CalRecycle.

City Manager Patrick Martinez gave staff report.

Pastor James Jones from Firehouse Ministries, Pastor Marty Souter from Set Free, and George DeLeon from Saint Vincent DePaul spoke about their respective organizations, how they serve the community, and how they would utilize funds.

Council engaged in discussion.

Mayor Jernigan opened public comment.

Shawn Gudmundson suggested splitting the funding evenly between the three applicants.

Vice Mayor Campbell made a motion, second by Council Member Pogue to award the 2025 Edible Food Recovery Grant of $6,000, split evenly between Firehouse Ministries, Set Free Church, and St.

Vincent DePaul. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt Noes: Council Member Longbrake

Absent: None
Abstain: None

20. Assign a member to the Visitor Center Committee to fill the seat vacated by former Vice Mayor Kirsten Merritt.

City Manager Patrick Martinez gave staff report.

Mayor Jernigan expressed an interest in serving on the Visitor Center Committee.

Council Member Longbrake made a motion, second by Council Member Pogue to assign Mayor Jernigan to the Visitor Center Committee. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Agenda Item 8.
032525 CCNPUAHACN 6 | P a g e
Noes: None

Absent: None
Abstain: None

21. Authorize those interested to attend the Inland Empire Tourism Regional Summit 2025 in Barstow on May 22, 2025
City Manager Patrick Martinez gave staff report.

Mayor Jernigan, Vice Mayor Campbell, and Council Member Belt expressed interest in attending the Inland Empire Tourism Regional Summit 2025 in Barstow on May 22, 2025.

Vice Mayor Campbell made a motion, second by Council Member Pogue to authorize Mayor Jernigan, Vice Mayor Campbell, and Council Member Belt to attend the Inland Empire Tourism Regional Summit 2025 in Barstow on May 22, 2025. Motion carried by the following roll call vote:

Ayes: Council Member Longacre, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

22. Consideration of an Ordinance Regulating Animals in City Parks City Manager Patrick Martinez gave staff report.

Considerable Council Discussion ensued.

Mayor Jernigan opened Public Comment
Wayne Colburn expressed concern that staff would have difficulty differentiating between service and non-service dogs when trying to enforce any restrictions.

Nancy Greenwood asked why Council is addressing this issue, stating ADA compliance is real concern.

Shawn Gudmundson stated this issue is a waste of time and urged council to not be divisive.

Council agreed to increase signage on existing rules and monitor the situation. No other action taken.

CITY ATTORNEY REPORT – given by Deputy City Attorney Lena Wade CITY CLERK REPORT – Given by Interim City Clerk Candace Clark CITY MANAGER REPORT – for the weeks of March 7 and 14, 2025 - given by City Manager Patrick Martinez

COUNCIL REQUESTS
Council Member Longacre – asked staff to finish cleaning up J Street in front of Aquatic center; cemetery hedge not complete; reported on the upcoming clean up on San Clemente on March 29 at 9am Council Member McCorkle – reported that Pickleball court at the marina is free and open to public.

Vice Mayor Campbell – spoke about the success of the Job Resource Fair.

Council Member Pogue – reported palm trees are in utility wires at motel on D Street (Econolodge).

Council Member Belt – no requests.

Council Member Longbrake – stated that the trash cans at Santa Fe Park and other parks are being used for commercial purposes – house remodeling debris; reported that the Chamber of Commerce office hours are 9-2 and stated that they need to be open longer to accommodate tourists.

Mayor Jernigan – reported on the upcoming Veteran’s Pancake Breakfast in Santa Fe Park; reported that the Rodeo store is opening Monday; Deco Foods and the Hartwick family are primary donors for Run For the Wall, and Deco Foods is accepting donations; Rodeo is next weekend.

ADJOURNMENT – Mayor Jernigan adjourned the meeting at 7:43 pm ________________________________________ _________________________________________ Mayor Janet Jernigan Interim City Clerk Candace Clark
Agenda Item 8.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: April 8, 2025
Title: Ordinance to Update and Enforce Anti-Camping Rules in Response to Public Health and Legal Mandates
Background: On March 25, 2025, the City Council directed staff to address unauthorized camping at the El Garces. This action follows recent legal and executive developments that have reshaped how municipalities can manage public spaces impacted by homeless encampments.

Notably, the U.S. Supreme Court ruling in Grants Pass v. Johnson (2024) affirmed that cities may enforce camping ordinances, provided basic shelter options are available. In response, Governor Gavin Newsom issued an executive order on July 25, 2024, mandating that local governments adopt and enforce policies to address the increasing public health and safety concerns related to encampments across California.

Since then, numerous cities have adopted updated anti-camping ordinances—some as recently as last week—restricting camping in all public areas. The City of Needles currently has a camping ordinance on the books, but it is outdated and does not reflect the authority or expectations set forth in the Governor’s order or recent case law.

In recent months, City staff have coordinated with the San Bernardino County Sheriff’s Department to respond to several incidents requiring intervention. These efforts have highlighted the need for a clear, enforceable ordinance that both protects public spaces and connects unsheltered individuals with available resources.

This ordinance is intended to protect the integrity of our public spaces while ensuring humane engagement with individuals experiencing homelessness.

Fiscal Impact: Drafting the updated ordinance will incur minimal costs, limited to signage and legal review by the City Attorney’s Office. No new staff or additional funding is anticipated, as the ordinance will enhance current efforts using existing resources.

Recommended Action: Provide Staff Direction
Submitted By: Bernard Hatz II, Senior Code Enforcement Officer

City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
4/3/2025
Agenda Item 9.
15A-5 Camping, Picnicking, And Day Use Of Areas
(a) Camping. The City Manager may issue permits for individual or family camping in Jack Smith Memorial Park, Jack Smith Memorial Park Boat Launch Facility and Manny Morris Beachside Park for periods not to exceed seventy-two consecutive hours. Only the City Manager may issue permits for group camping in Duke Watkins Park. Said permits may contain conditions for the use of said areas, including the arrival and departure times and the maximum number of persons, allowed, not inconsistent with this chapter.
(b) It shall be unlawful for any person to day or overnight camp, picnic, or otherwise similarly use the Jack Smith Memorial Park and Boat Launch Facility areas, inclusive of that portion of beach area generally east of the boat launch ramps without a permit issued by the city. (c) Picnicking. The City Manager may issue permits for group picnics in any park where adequate facilities exist. Said permits shall be a reservation of space in said park. The City Manager may establish reasonable regulations in said permit not inconsistent with this chapter. (d) Day Use. The City Manager may issue permits for the day use of recreational facilities to groups such as the Boy Scouts, Girl Scouts, YMCA, and other similar organizations and may attach reasonable conditions to said permits. Said permits shall allow said group the exclusive use of the area designated.
(e) Fees. The city council may, by resolution, establish the fees for the issuance of camping and picnicking permits.
(f) Parking. The Jack Smith Memorial Park designated park area and cul-de-sac is for park use only. Vehicles pulling watercraft trailers are required to park outside of this area. If a violation occurs, the Code Enforcement Officer shall issue a civil citation in the amount of $50.00 and/or have the vehicle towed at the owner's expense. (Ord. No. 65-AC; Ord. No. 385-AC; Resolution No. 10-23-07; Ord. No. 514-AC, January 2010; Ord. No. 617-AC) Agenda Item 9.

Hermosa Beach camping ban is
extended to all public areas
By Anthony Solorzano
Following the lead of several other Southern California cities, the Hermosa Beach City Council has voted to adopt an anti-camping policy for all public areas in an attempt to keep the city a “safe and sanitary environment for all.” The policy repeals the previous code, which banned camping only at parks and the beach. To address the homeless crisis, cities around Southern California recently adopted policies banning camping in all public areas after last year’s U.S. Supreme Court decision that gives cities more authority to regulate homeless encampments.

Since the decision, Long Beach, Indio, Palm Springs and other Southern California cities have adopted similar rules.

The ordinance in Hermosa Beach will work with a program implemented by the city meant to help anyone who is experiencing homelessness find shelter instead of sleeping at the beach or in parks, according to the city.

Breaking the new policy will result in a fine not exceeding $100 for the first violation, $200 for the second and $500 for any additional violation.

Homeless advocates say that such policies drain city resources and that fines against camping on the streets make it harder for homeless people to afford housing.
“No community in the country has enough resources to serve everybody Agenda Item 9.
who’s experiencing homelessness,” Ann Oliva, chief executive of the National Alliance to End Homelessness, told NPR last year.

Across most of Los Angeles County, the unsheltered homeless population is projected to continue declining for a second consecutive year, according to a recent report by the Los Angeles Homeless Services Authority. The agency expects a decrease of 5% to 10% when a statistical analysis is finished in the coming months.
“The resulting final ordinance not only prohibits camping in all public places but also has more enforcement options to ensure Hermosa Beach remains a safe and sanitary environment for all,” Mayor Dean Francois said.

Under the new law, the city manager may dismiss a citation upon the offender’s completion of a diversion program.

Agenda Item 9.

City of Needles 817 Third Street, Needles, California 92363 (760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Zachery Longacre
City Manager Patrick J. Martinez

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: March 21, 2025

1. The Needles Women’s Club will host its Annual Spring Spaghetti Dinner tomorrow, Saturday, March 22, 2025, from 3:00 PM to 7:00 PM. Meals are just $10 each, offering a delicious and affordable way to support a group that gives back so much to our community. The City of Needles thanks the Women’s Club for their ongoing efforts and valuable contributions that help strengthen and uplift our city. Don’t miss the chance to enjoy a great meal and support this dedicated local organization. To reserve your meal, visit the Spaghetti Dinner RSVP Form.

2. The wait is over — the new splash pad at Duke Watkins Park opens tomorrow, Saturday, March 22, at 6 a.m. This vibrant, interactive water feature is the centerpiece of the City’s $3.96 million park improvement project and a perfect way to kick off spring break. The splash pad is open daily from 5 a.m. to 10 p.m. and is designed for kids 12 and under (children 7 and under must be accompanied by an adult). Per Ordinance 670-AC, proper swimwear is required, and swim diapers are mandatory for non-toilet-trained children. No rough play, running, glass, pets, bikes, soap products, or drinking the water is allowed. The splash pad is unsupervised — please enjoy responsibly.

Come out, bring the family, and make some memories. We’ll see you at the splash pad!

3. The Needles Pride Program continues to drive actual results as residents and businesses step up to improve our community. A big thank you to Big O Tires for repainting their Broadway location—proof that when local businesses reinvest, they help make Needles more vibrant and welcoming. This week, Public Works crews repaired potholes on Parkway, N K Street, and Front Street and cleared dead vegetation at J Street and Broadway as part of ongoing fire abatement efforts. We also thank Dollar General for doing their part by cleaning up their overgrown landscaping, reinforcing our shared commitment to safety and property upkeep. In response to reports of buckled sidewalks, the City has hired a contractor to begin repairs and improve

pedestrian safety citywide. We're also proud to share a code enforcement success on the 100 block of Walnut Street, where the City Attorney's Office secured a court-appointed receiver to take over a long-neglected property.

Today, it's under responsible ownership and undergoing full rehabilitation— bringing new life to the neighborhood while supporting the City Council's goals of improving housing, infrastructure, and overall livability. Mark your calendars: Councilmember Longacre leads the next community cleanup on Saturday, March 29, at 9:00 a.m. along San Clemente. Join us in keeping Needles clean and beautiful. To report issues like potholes, sidewalk damage, or vegetation overgrowth, call 760-326-2115 (press #9) or use the Needles Connect app, available on Google Play Store and the Apple Store.

Scan the QR code on the new flyer to get started. Together, we're building a cleaner, safer, and stronger Needles.

4. On March 19, 2025, the City of Needles hosted two high-impact events that delivered vital services to our community. The 3rd Annual Job & Resource Fair at the El Garces Historic Train Depot connected residents with job opportunities, vital records, expungement services, veterans’ benefits, and healthcare resources, with support from agencies like the County Workforce Development Board, EDD, and Palo Verde College. Refer to the attached image for a glimpse into the event. At the same time, Assemblyman Jeff Gonzalez’s Mobile Office at the Needles Tourism Office provided direct assistance on state services, legislation, and government programs. These events align with the City Council’s goals to expand workforce development, enhance community access to services, and strengthen regional partnerships. Special thanks to Supervisor Dawn Rowe and Assemblymember Gonzalez for their ongoing support in building a stronger, more resilient Needles.

5. The City of Needles and Chamber of Commerce officially restarted the Good Morning Needles breakfast series, and this week, Mayor Janet Jernigan and City Manager Patrick Martinez hosted business owners at the Chamber and Visitor Center. The event spotlighted the city's strong financial position and efforts to attract investment, support business growth, and plan for the future.

With a balanced $13.5 million budget, over $22 million in secured grants, and significant investments in public safety, street improvements, and parks, Needles continues to grow into a vibrant city in the region. Since 2018, city revenues have grown by $8 million, property values have increased 81%, and tourism-related revenues such as hotel and sales tax continue to climb— clear signals of a community on the rise. This firm financial footing encourages businesses to invest locally and expand their reach to more customers. The cannabis industry, which has generated $26.5 million in tax revenue and supports over 600 jobs, remains a key economic engine. Importantly, 10% of cannabis tax revenue is reinvested into non-cannabis small business development, helping to diversify the local economy. City leaders also emphasized the need for new housing to support the growing workforce and ensure long-term community growth. As Needles looks ahead to opportunities like the Route 66 Centennial, OHV tourism expansion, and ongoing

beautification projects, the city continues to build its identity as a welcoming, pro-business gateway to California. Needles is open for business— financially strong, future-focused, and ready to grow. For more details, refer to the attached City of Needles: A Growing Business-Friendly Community presentation. Don't miss the next Good Morning Needles, held on the third Thursday of each month at 7:30 AM at the Needles Chamber and Visitor Center at 950 Front St., Needles, CA. To attend, RSVP by calling 760-326- 2050 and stay connected with what's happening in NEEDLES!

6. In January, the Needles City Council adopted Resolution No. 2025-08, urging Palo Verde Community College (PVCC) to invest in the Needles campus, which continues to face major challenges — including no in-person counseling, frequent course cancellations, and a lack of long-term vision, despite an $18 million local bond investment. The PVCC Board of Trustees will meet in Needles on Tuesday, April 8, 2025, at 5:00 PM at the PVCC Needles Center (725 W. Broadway). This is a rare opportunity for residents to show up and advocate for better services, stronger workforce programs, and educational equity. A copy of the resolution and meeting agenda is attached.

For more info, contact the City Manager’s Office at (760) 326-2113.

Also, don’t miss the PVCC Foundation 5K Color Run & Walk on Saturday, April 12 at 9:00 AM (check-in at 7:30 AM) at the Needles Center. Entry is $25 and includes a T-shirt and meal, with proceeds supporting local students.

Register to run, walk, or volunteer (free) by clicking here. Team sponsors welcome. See the flyer for details or contact Shivam Bhakta at [email protected] or (760) 326-5056.

7. Rivers Edge Golf Course continues to excel as a destination for competitive play, youth development, and recreational golf. The course is in excellent condition and preparing for its seasonal transition to Bermuda grass. The Chamber of Commerce recently hosted a successful tournament with 12 teams, highlighted by a hole-in-one by Jason Parnell Coach of NUSD High School Goal and a win by Needles High School golf students. Upcoming events include the Flip Mendez Youth Fundraiser Tournament on May 3, and the 2025 Twilight League, starting April 1, featuring 5-person teams, weekly format changes, and handicap scoring. Space is limited to 10 teams; cost is $25 per player weekly.

Youth access remains a priority — students play free (just a $7 cart fee with valid ID). A 12-week Summer Golf Camp for ages 5–17 begins in June for $60.

High school students can join the golf team at no cost, with equipment available if needed. Touchstone Golf has merged with KemperSports, becoming a wholly owned subsidiary of a nationally recognized golf management company.

KemperSports brings strong industry expertise, managing more “Top 100” courses than any other firm. No immediate changes are planned for Rivers Edge — staff, systems, and benefits remain unchanged through 2024, with a smooth transition to KemperSports operations expected in 2025. Visit the Rivers Edge Golf Course website or call (760) 326-3931 for more information.

8. I'm proud to share that San Bernardino County Sheriff's Department members— assigned to the Colorado River Station—were formally recognized at today's

Exceptional Service Awards Ceremony for their outstanding acts of heroism and commitment to public safety. This prestigious recognition, hosted by the Sheriff's Department, celebrates our local deputies' courage and dedication, who go above and beyond the call of duty to protect and serve the Needles community. Among those honored were Captain Ross Tarangle, Lt. Jacob Gault, Sgt. William Busto, Sgt. Cole Raynolds, Cpl. Brandon Abell, Deputy Bryant Moore, Deputy Jeff Dean, Deputy Edward Olmos, Deputy Brad Whitmer, and Deputy Michelle Bush. Their actions reflect the highest standards of service and exemplify what it means to be genuinely committed to the safety and well-being of our residents. On behalf of the City of Needles, I want to extend our heartfelt appreciation and sincere congratulations to these deputies. Their bravery and professionalism make our city stronger and safer every day. Please join me in recognizing and celebrating this incredible achievement.

9. IMPORTANT UPCOMING DATES:
• City staff has carefully curated a comprehensive community events calendar to keep residents informed about Needles’ diverse activities and happenings. The community events calendar can now be found on the Needles Connect App! Organizations are encouraged to collaborate with the City Clerk's Office to add or update events, ensuring a vibrant and inclusive calendar for all. For contributions or modifications, please contact Candace Clark at [email protected]. Your active participation helps strengthen our community and enrich local experiences. Check the attached calendar for the remaining 2025 events and stay engaged with all that Needles has to offer!

3. CITY BEAUTIFICATION

3. CITY BEAUTIFICATION

3. CITY BEAUTIFICATION

3. CITY BEAUTIFICATION

3. CITY BEAUTIFICATION

3. CITY BEAUTIFICATION

4. 3RD ANNUAL JOB & RESOURCE FAIR
Needles Chamber of Commerce
Thursday, March 20, 2025
CityofNeedles.com
City of Needles;
A Growing BusinessFriendly Community

5. CHAMBER BREAKFAST EVENT
Foster Economic
Growth by
Creating a ProBusiness
Environment
Enhance
Infrastructure and
Public Spaces
Through
Reinvestment into
our community.

Enhance
Community
Engagement
Through Diverse
Cultural Events
Provide Familyfriendly Amenities
and Athletic
Tourism to Boost
Needles' Identity
as the Gateway to
California on Route
66 The City of Needles envisions a vibrant, secure desert paradise nestled along the Colorado River that embodies:
• Progressive, clean, and family-oriented
• A vibrant community to live, work, and enjoy recreation along the beautiful Colorado River • A deep pride in its rich heritage, including Route 66, railroad, and cultural legacy • A committed to enhancing infrastructure, driving economic growth, and fostering the arts, culture, and athletic tourism
• The welcoming gateway to California where families and businesses thrive.

Presentation can be found on the City Website www.cityofneedles.com The City is dedicated to enhancing the quality of life for its residents, as we:

COUNCIL GOALS
Budget Highlights
Fiscal Year 2025
 Revenues: $13.5 Mil.
 Expenditures: $11.8Mil.
 Emphasis on:
• Public Safety - $4.6 Mil.
• Street Projects-$3.6 Mil.
• Public Works - $1 Mil.

City Attorney
1%
City Manager
2%
Finance
12%
City Clerk
3%
Planning
3%
Engineering
4%
Community
Promotions
1%
Senior Center
2%
Sheriff Dept
33%
Animal Control
3%
Building & Safety
3%
Code Enforcement
6%
Public Works
8%
Sanitation
1%
Aquatics
2%
Parks
7%
Jack Smith Park
1%
Recreation
4%
Transfers
5%

GENERAL FUND EXPENDITURES
Update 3/20/2025
THE CITY’S ECONOMIC HEALTH
(2018 vs. 2025)
Fiscal Year 2018
Revenues: $5.5 Mil.
Expenditures: $5.1 Mil.

Proposed FY 2025 Mid-Year
Revenues: $13.5 Mil.
Expenditures: $11.8 Mil.
Revenues: $8 Mil. increase from 2018
Expenditures: $6.7 Mil. increase from 2018
Update 3/20/2025
The 2024 City of Needles Total Property to be Valued at $563 Million Increased by 81% ($252 mil.) from the 2017 Assessment Roll and 5% from 2023 ($27 mil.) Jack Smith Park Boat Launch
$5,891,663
$5,915,118
$6,425,092
$8,891,322
$8,719,109
$8,634,353
$8,835,894
$9,377,098
$9,836,748
$12,161,692
$10,835,958
$6,730,538
Needles, CA Total Hotel Revenue (Transient Occupancy Tax) FY 14 FY 15 FY16 FY17 FY 18 FY19 FY20 FY 21 FY 22 FY 23 FY24 FY25 Needles Hotel's Overall Annual Revenues have Grown Over the Last Ten(10) Years, Increasing 86% and 23% since 2017
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$204,851$210,622
$187,731$217,874
$296,435
$267,182$254,862$246,370
$99,358
Jack Smith Boat Launch
2017 2018 2019 2020 2021 2022 2023 2024 2025
Jack Smith Park Revenues have Increased by 20% in the last 7 Years

$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$372,438$396,822$354,827
$440,709
$503,819
$424,467
$596,108$740,382
$880,049
$796,068
$710,255
$430,326
Needles, CA Sales Tax Comparison
FY 14 FY 15 FY16 FY17 FY 18 FY19 FY20 FY21 FY 22 FY 23 FY 24 FY 25 Needles Overall Annual Sales Tax has Grown Over the Last Ten (10) Years Increasing by $531,246 or

90.7%
Cannabis Industry
Cannabis Business Economic Indicators
The City of Needles has a permanent population of about 5,100 93 Land Use Entitlements Issued by the City Council for Cannabis Businesses  278,823 Sq. Ft. of Cannabis Industry Operational Today  79,758 Sq. Ft. of Cannabis Industry Operational within Next Six Months  488,855 Sq. Ft. of Potential New Cannabis Industry to the City 917,721 Sq. Ft. Total Permitted Cannabis Businesses
605 Actively Working Jobs
 124 Needles Residents
 328 Arizona Residents
 22 Nevada
 131 Other
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$33,463 $31,372
$39,022 $39,856 $38,037
$42,122 $42,220 $40,022
Needles, CA Median Household Income
2017 2018 2019 2020 2021 2022 2023 2024
Needles Overall Medium Household Income has Grown $6,559 or 20% from 2017 $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$14,920$56,520$87,357$96,716$150,495
$267,615
$1,249,445
$2,513,268
$4,573,688
$4,821,895
$4,115,018
$4,569,299
$4,158,749
Needles, CA Cannabis Tax Revenues
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Needles has received $26.7 Million in Tax Revenues since Measure S was approved by the voters.

2. ROUTE 66 PHARMACY

Infrastructure Grants
Project Title Funding Amount
Well 11 Treatment Plant $ 6,098,077
Advanced Metering Infrastructure (AMI) Project $ 212,826 Lilly Hill Booster Station Replacement/Relocation $ 2,119,295 Intertie Transmition Main $ 930,000
L Street Pump Station Project $ 940,000
Well No. 15 Backup Generator $ 367,645
Maintenance Yard Manifold/Waterline Project $ 1,828,730 New 1.5 MG Storage Tank $ 2,380,608
Total $ 14,877,181

Parks Grants
Project Title Funding Amount
Jack Smith Walking Trail $ 181,116
Rivers Edge Golf Course Irrigation $ 715,000
Bob Belt’s Beach Park $ 2,179,702
Duke Watkins Park $ 3,965,400
Total $ 7,041,218

RECEIVERSHIP PROGRAM

COMMUNITY CLEAN-UP

COMMUNITY CLEAN-UP

3. COMMUNITY BEAUTIFICATION

NEEDLES RODEO
Image Source: SBCSD

June 13, 2023 HCD Awarded $445,000 to the City of Needles

7. PALO VERDE COLLEGE

RESOLUTION NO. 2025-8

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES SUPPORTING

ENHANCED INVESTMENTS, EQUITABLE SERVICES, AND WORKFORCE DEVELOPMENT

PROGRAMS BY PALO VERDE COMMUNITY COLLEGE IN THE NEEDLES COMMUNITY WHEREAS, Palo Verde Community College (PVCC) is a critical partner in providing education, workforce development, and economic opportunities for the Needles community; and WHEREAS, the Needles campus faces significant challenges, including:

1. Lack of In-Person Counseling Services for Students.

2. Course Cancellations: Classes have been withdrawn before school begins, resulting in students losing FAFSA eligibility and disrupting education.

3. Lack of Dedicated Budget and Data: Needles does not receive equitable funding.

4. There are no clear goals or vision for the campus.

WHEREAS, substantial grant funds, including Adult Education and Career Technical Education (GTE) funds, totaling $1.5 million have been allocated to programs like HVAC, vehicle maintenance, and the computer information systems programs but these resources have not adequately benefited Needles; and
WHEREAS, Needles property owners have contributed significantly to PVCC through two General Obligation (GO) Bond Measures:

1. The 2004 bond in the amount of $6 million.

2. The 2014 bond in the amount of $12 million.

These bonds are repaid through property taxes levied on parcels, with property owners contributing based on assessed parcel values, demonstrating the community's ongoing financial support for the college; and
WHEREAS, Needles is positioned for growth with access to a larger student base, unlike Blythe, Needles is positioned to serve as a hub for workforce training programs such as:
• Nursing, Plumbing, Electrical Trades, Home Building, Lineman Training, and Water Treatment;
WHEREAS, PVCC's potential declining enrollment due to the loss of incarcerated student programs and fire training programs jeopardizes the college's financial stability, with reserves projected to be depleted within three years; and
WHEREAS, PVCC must prioritize efforts to diversify its student population and concentrate on expanding educational opportunities in underserved communities such as Needles, which present significant potential for enrollment growth and community impact; and WHEREAS, the City of Needles advocates for equitable investment to bolster CTE programs and establish Needles as a driver of enrollment growth, workforce development, and economic opportunity for the region; and
WHEREAS, the community has identified the urgent need for a Child Care Facility to serve 40 children, create jobs, and remove barriers to education and workforce participation;

6. PALO VERDE BOARD MEETING
ONE COLLEGE DRIVE, BLYTHE, CA 92225 | 725 W. BROADWAY, NEEDLES, CA 92363 February 18, 2025

To Whom it May Concern –
Since 1986, Palo Verde College Foundation has sought the support of generous businesses such as you to assist our students with the completion of their educational goals. Will you or your business consider becoming a featured partner of Palo Verde College Foundation for our annual Needles Center Scholarship 5k Color Walk/Run Event scheduled for Saturday, April 12, 2025? Pirate Corporate Sponsorships*
BOOTY - $1000 and above: 2 runners or walkers, 2 T-shirts, individual banner, incl. in Pirate promotions
AHOY - $500-999: 2 runners or walkers, 2 T-shirts, individual banner, incl. in Pirate promotions BUCCANEER - $250-$499: 2 runners or walkers, 2 T-shirts, group listed on banner, incl. in Pirate promotions
JOLLY ROGER - $100-$249: 2 runners or walkers, 1 T-shirt, group listed on banner, incl. in Pirate promotions
*Included in public advertising
Pirate Individual Sponsorship
MATEY - Up to $100: 1 runner or walker, 1 T-shirt, group listed on banner, Pirate bag All donations go to Palo Verde College Foundation exclusively for students at the Needles Center.

Here is a link to the donor guide for your review and hope that you are able to make a contribution to help our students. Palo Verde College Foundation is designated as a 501(c)3, therefore charitable donations are considered tax deductible (EIN: 33-0078920). Donations may be made online by visiting the Palo Verde College Foundation donation portal or can be sent to the Needles Center, 725 W.

Broadway St., Needles, CA, 92363. Include “For PVC Foundation Needles Scholarships” in the Additional Comments section online or in the Memo space if submitting a check.

Sincerely,
Stephanie Slagan, MPA
Executive Director
Palo Verde College Foundation
March 2025
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 
  

     
     
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COMMUNITY CLEANUP
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SANTA FE PARK 9AM

9. COMMUNITY CALENDAR

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4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

CITY COUNCIL
6 PM

HOUSING

COMMISSION
4 PM

PARKS &

RECREATION
4 PM
WELL 11

TREATMENT PLANT
9AM
 
May 2025
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4 PM

PARKS &

RECREATION
4 PM

PLANNING

COMMISSION
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM
17 June 2025
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BOARD OF

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4 PM

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PUBLIC UTILITIES
4 PM

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City of Needles 817 Third Street, Needles, California 92363 (760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Zachery Longacre
City Manager Patrick J. Martinez

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: March 28, 2025

1. The Needles Pride Program continues to unite residents, property owners, and businesses in a shared effort to beautify neighborhoods, promote civic pride, and improve property maintenance. The next community clean-up will be held on Saturday, March 29th, at 9:00 a.m. on Clary Drive near the Rodeo Grounds. Volunteers will help remove illegal dumping and litter. Bags, gloves, and pickers will be provided. As part of ongoing fire abatement, Public Works crews focused tree trimming efforts this week at the Needles Cemetery to enhance public safety and aesthetics. Today, crews from the Public Works, Electric, and Water Departments began cleanup efforts in the San Clemente neighborhood, collecting half a dozen bags of trash. This work will continue as time allows, contributing to improved neighborhood appearance and overall public safety. I also want to thank the residents who took advantage of Republic Services’ free bulky item pickup program. The attached photos show recently collected items from K Street. Residents can call 1-800-364-3754 to request up to three free bulky item pickups per year.

In addition to these community-driven efforts, the City remains committed to investing in critical infrastructure. This week, the Wastewater Department installed two new pumps at the Bazoobuth Lift Station, significantly boosting system efficiency and ensuring long-term reliability. New fencing was also installed along Pete Rodriguez III Memorial Field to prevent youth from chasing balls into Flip Mendez Parkway, and an ADA-compliant fence was completed at the Rodeo Grounds box office gate, just in time for the upcoming rodeo. Refer to the attached images for a peek at the new fencing.

To report issues such as potholes, sidewalk damage, or vegetation overgrowth, please call 760-326-2115 (press #9) or use the Needles Connect app on Google Play Store and the Apple Store. These efforts reflect our ongoing commitment to public safety, service reliability, and community pride.

2. The City of Needles remains The City of Needles remains committed to improving its aging street infrastructure through a 15-year Pavement

Management Plan funded by cannabis tax revenues. Since the program's launch in 2020, the City has invested over $10 million to resurface or reconstruct approximately 45% of its 45-mile roadway network, replacing water service laterals where needed. Last month, Phillips Excavating began the Water Service Lateral Replacement Project. It has already made progress through the Vistas neighborhood and is now working in the Downtown streets.

Look at their progress in the attached photo.

In the second half of Year 4, the City Council allocated $3.6 million this fiscal year to support critical street and waterline improvements outlined in Exhibit 2 – Phase IV-B. On Tuesday, the Council approved the $1.39 million Phase IV-B Street Improvement Project, which includes Desoto Street, El Monte Street, Carty Way, Carty Circle, Carty Place, I Street, G Street, H Street, Crestview Drive, and La Mesa Way. A ribbon-cutting ceremony is scheduled for late April to mark the start of construction. Refer to the attached exhibit for additional details on the Phase IV-B project plan. We appreciate the community's patience and support as we continue making Needles an even better place to live, work, and visit! For more information about the Pavement Management Plan, please contact Development Services Director Kathy Raasch at (760) 326-2115 ext. 126 or [email protected].

3. This week, City staff met with the regional Codes & Standards Administrator from the California Department of Housing & Community Development (HCD) to establish a stronger working relationship and ensure access to state support for mobile home and RV park oversight. HCD’s Mobilehome and Special Occupancy Parks Program enforces health and safety regulations for privately owned parks throughout California. Given the number of RV parks in Needles—including Santiago Estates, Fenders, Desert View, Needles Marina, Rainbo Beach, Calizona, The Palms River Resort, and KOA Journey—this partnership is vital to protecting the welfare of residents and visitors alike. HCD remains the lead agency for ensuring compliance and supporting park tenants. Residents with concerns related to park conditions, lease disputes, or health and safety issues are encouraged to contact the HCD Mobilehome Assistance Center. The center can assist directly or help connect individuals to the appropriate agencies. They can be reached by phone at 1-800-952-5275 (toll-free) or 1-916-323-9801 (Sacramento area), by email at [email protected], or online at www.hcd.ca.gov.

4. As a reminder, the Pancakes in the Park event will take place this tomorrow Saturday, March 29, 2025, from 9 AM to 12 PM at Santa Fe Park (950 Front Street, Needles). Organized by Billet Health, the event is being held to honor Vietnam Veterans. It features a meaningful program, including a JROTC opening ceremony and rifle spinning performance, a “Welcome Home Vietnam Veterans” address by Commander George DeLeon (Post 404), a POW/MIA remembrance, and a 13-Folds Flag Ceremony. A complimentary pancake breakfast will be provided for all veterans and community members in attendance. Councilmembers and residents are encouraged to participate in this important event, which supports the City Council’s goals of community

engagement and family support by honoring our veterans and bringing people together in a show of civic pride. For more information, please get in touch with event organizer Maria Bower at 928-444-7401 or refer to the attached flyer.

5. Mayor Jan Jernigan attended the Grand Re-Opening of the Route 66 Mother Road Museum on March 22, 2025, in Barstow, joining communities from across the region to celebrate the historic corridor's legacy and future. The City of Needles hosted a booth at the event to showcase recent accomplishments and invite travelers to visit and explore Needles. The display highlighted the city's economic growth, job creation, infrastructure improvements, and upcoming plans for the Route 66 Centennial in 2026.

Attendees responded positively to Needles' progress, noting the community's ongoing beautification efforts and renewed energy. The event supported the City Council's goals to boost tourism, strengthen regional partnerships, and promote Needles as a welcoming and vibrant destination on the Route 66 corridor. Refer to the attached image for a glimpse of our booth.

6. Caltrans has issued a Public Notice of Intent to adopt a Mitigated Negative Declaration for the I-40 Bridge Replacements and Rock Slope Protection project near Needles. The project includes replacing four bridges and stabilizing slopes to improve safety and roadway reliability. The public review period is open through April 21, 2025, and construction is anticipated to begin in March 2026. While the work may cause temporary lane closures or detours along I-40, potential impacts to Needles are expected to be minimal and manageable. City staff has voiced concerns regarding potential construction setbacks for the community, and Caltrans has hired a dedicated outreach team to inform the public and keep the entire community apprised throughout the duration of the project. Staff is reviewing the environmental documents and will continue coordinating with Caltrans to address any construction-related concerns. For more information, see the attached notice.

7. The City of Needles is proud to share the continued momentum at Rivers Edge Golf Course. In 2020, the City Council awarded management services to Touchstone Golf, LLC, which began with Pro Shop operations and expanded to full-course maintenance in 2021. Since then, Touchstone has transformed course conditions—enhancing turf coverage, improving playability, and elevating the golf experience. These improvements have led to a noticeable increase in rounds played and a surge in regional interest in Needles as a golf destination. This week marks an exciting development: Touchstone has merged with KemperSports, a national leader in golf, sports, and hospitality.

Together, they oversee more than 200 properties nationwide, bringing new resources, enhanced guest services, and expanded growth opportunities. This strategic partnership is expected to raise the course’s profile, attract more events, and contribute to local economic development.

Under the leadership of JJ DeLeon, Rivers Edge continues to thrive. The 26th Annual Flip Mendez Youth Fundraiser is officially sold out, a testament to

strong community support. Sponsorship opportunities are still available for those looking to contribute. All proceeds benefit the Flip Mendez Youth Foundation, a nonprofit dedicated to providing recreational sports opportunities for underprivileged youth who otherwise may be unable to participate due to financial constraints. Whole hole sponsors will have their name or business promoted on a tee box, visible to every golfer.

Contact JJ DeLeon directly at (760) 326-3931 to sponsor this important fundraiser. Looking ahead, the 2025 Twilight League kicks off on April 1, featuring 5-person teams, weekly formats, and prize payouts. (See the attached flyer for complete details.) With top-tier management, growing community engagement, and dynamic programming, Rivers Edge Golf Course is wellpositioned for long-term success. Call (760) 326-3931 to reserve your tee time or contact JJ DeLeon for tournament coordination. For more information, visit the Rivers Edge Golf Course website.

8. IMPORTANT UPCOMING DATES:
• City staff has carefully curated a comprehensive community events calendar to keep residents informed about Needles’ diverse activities and happenings. The community events calendar can now be found on the Needles Connect App! Organizations are encouraged to collaborate with the City Clerk's Office to add or update events, ensuring a vibrant and inclusive calendar for all. For contributions or modifications, please contact Candace Clark at [email protected]. Your active participation helps strengthen our community and enrich local experiences. Check the attached calendar for the remaining 2025 events and stay engaged with all that Needles has to offer!

1. CITY BEAUTIFICATION

1. CITY BEAUTIFICATION

1. CITY BEAUTIFICATION

1. CITY BEAUTIFICATION

1. CITY BEAUTIFICATION
Needles residents care about their community and so should you! The Needles Pride initiative is a neighborhood focus program aimed at improving the community by working in partnership with property owners, area residents, and local businesses to clean up neighborhoods and maintain compliance with City Codes.

Please take the time to evaluate your property and correct any violations you may have.

How to Participate in the City-Wide Clean-Up
Maintain landscape in healthy condition by
proper irrigating, trimming, edging, and
removing weeds, and dead plants
Maintain Landscaping
Clear Storage
Outside storage including but not limited to
furniture, household items, yard equipment,
building material, vehicle parts, and
appliacnces must be kept out of public eye.

Park in Designated Areas
Vehicles are required to be parked on
existing driveways or approved surfaces.

Parking is not allowed on dirt, vacant lots,
front yards, or decorative landscapes.

CODE VIOLATIONS
Inoperative Vehicles
Vehicles that are unlicensed,
wrecked, damaged, or in disrepair
may not be stored in public view.

Trash Containers
Trash containers shall not be
stored in front yards or on
sidewalks except when placed in
areas of collection at the time
permitted.

Bulky Items
Keep sidewalks clear of discarded
households items such as furniture,
appliances, electronics, and more.

You may schedule up to three (3)
bulky item pick ups per year by
calling Republic Services at 928-
758-9135.

BEAUTIFICATION

2. PAVEMENT MANAGEMENT IV-B
City of Needles Capital Projects
Street Improvements & Water Service Replacement
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Do you have any of these questions or concerns?
• Are you concerned about possible
health or safety issues in your
mobilehome park like unsafe sewer,
water, electrical, or gas conditions?
• Do you need assistance with the
installation, inspection, maintenance,
or alteration of manufactured homes,
accessory structures, or park
grounds?
• Do you suspect unlawful or
unlicensed mobilehome sales
practices by dealers or salespersons?
• Do you need information on the
Mobilehome Residency Law and
where to obtain assistance for lease
or rent disputes with park
management?
• Do you need assistance with your
mobilehome ownership documents?
• Are you seeking compensation for a
fraudulent mobilehome sale?
• Do you need information on local
resources available to you?
If you've answered "yes" to any of the above,
or have similar questions, we can help!
Even if we can't help you directly,
we can point you in the right direction.

Contact the Mobilehome Assistance Center:

Call us:

Email us:

1.916.263.4742 (Sacramento area)

1.800.952.5275 (Toll Free)

1.800. 735.2929 (TTD Number)
[email protected]
Find us online: www.hcd.ca.gov
Write to us at: The Office of the Mobilehome Ombudsman
Mobilehome Assistance Center
Department of Housing and Community Development
PO Box 278690; Sacramento, CA 95827-8690
The Mobilehome Assistance Center cannot mediate or offer any legal advice on these matters.

You should seek or obtain legal advice from a licensed attorney. legal aid, or contact your local government officials for further assistance.

HCO MAC 200A (Rev. 07 /191

3. HCD RV PARK ENFORCEMENT

4. BILLET HEALTH VETERANS EVENT

5. ROUTE 66 MUSEUM RE-OPENING
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PUBLIC NOTICE
Notice of Intent to Adopt a Mitigated Negative Declaration Announcement of Opportunity for Public Hearing
1-40 Bridge Replacements and Rock Slope Protection
Replacements near Needles, CA
Located in San Bernardino County
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A
The California Department of Transportation (Caltrans) proposes to restore rock slope protection (RSP) at Ardis Ditch Bridges, Tank Tower Ditch Bridges, and Homer Wash Bridges, and to replace Woods Wash Bridges on Interstate 40 (1- 40) west of the City of Needles in San Bernardino County. The project purpose is to preserve the structural integrity of the identified bridges. Caltrans is the lead agency under the California Environmental Quality Act (CEQA) and National Environmental Policv Act (NEPA).

Caltrans has studied the effects this project may have on the environment. The studies show the project will not significantly affect the quality of the environment. The report which explains why is called an Initial Study with Proposed Mitigated Negative Declaration (ISMND). This notice is to tell you of the preparation of the ISMND, of its availability for vou to read, and to offer the onnortunitv for a oublic hearing.

The Proposed ISMND and other project information such as associated maps and technical studies are available for review and copying at the Caltrans District 8 Office (address below) on weekdays from 8am-5pm, or by email upon reauest to Vivian.Hoin)dot.ca.aov
Do you have any comments about processing the project with an ISMND or disagree with the findings of the study? Would you care to make any other comments on the project? Would you like a public hearing? Please submit your comments or request for a public hearing in writing no later than April 21, 2025, to:

Vivian Ho, Acting Senior Environmental Planner
California Department of Transportation
464 West Fourth Street, Mail Station 827
San Bernardino, CA 92401-1400
or via e-mail to: [email protected]
Please include "1-40 Bridge and RSP Replacements" in the subject line.

The date we will begin accepting comments is March 21, 2025. If there are no major comments or requests for a public hearing, Caltrans will proceed with the project's design.

For more information about this study or any transportation matter, contact the Caltrans District 8 Office of Public Affairs at (909) 383-4631. For individuals with sensory disabilities, this document can be made available in Braille, in large print, on audiocassette, or on computer disk. To obtain a copy in one of these alternate formats, call or write to Vivian Ho, Acting Senior Environmental Planner, 464 W. 4th Street, 6th Floor MS-827, San Bernardino, CA 92401; (909) 292-6694; or use the California Relay Service 1 (800) 735-2929 (TTY to Voice), 1 (800) 735-2922 (Voice to TTY), 1 (800) 854-7784 (Spanish and English Speech to Speech), or dial 711.

6. CALTRANS PROJECT MND

7. RIVERS EDGE GOLF COURSE
March 2025
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 3456 7 8
9 10 11 12 13 14 15
16 17 18 20 21 22
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WOMEN'S CLUB

LUNCHEON

COMMUNITY CLEANUP
SAN CLEMENTE ST.

HONORING

VIETAM VETERANS

PANCAKES IN THE PARK
SANTA FE PARK 9AM
GOOD

MORNING

NEEDLES

CHAMBER OF COMMERCE
& VISITOR CENTER

BREAKFAST
9-11AM EL GARCES
950 FRONT ST., STE A 9-11

CITY COUNCIL
6 PM

CITY COUNCIL
6 PM
11 April 2025
Sunday Monday Wednesday Thursday Friday Saturday
1 2 3 4 5
6 7 9 12
13 14 15 16 18 19
20 21 22 23 25 26
27 28 29 30
Tuesday








 

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83'$7('3/14

CITY COUNCIL
6 PM

WOMEN'S CLUB LUNCH

PLANNING

COMMISSION
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

CITY COUNCIL
6 PM

HOUSING

COMMISSION
4 PM

PARKS &

RECREATION
4 PM
WELL 11

TREATMENT PLANT
9AM
8 10
CITY

COUNCIL

TRAINING &

GOVERNANCE

SESSION
4-7PM EL GARCES

OTHER EVENTS IN APRIL
CEMETERY COMM. - 3 PM
17 May 2025
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3
4 5 6 7 8 9 10
11 12 13 16
18 19 20 21 22 23 24
25 26 27 28 29 30 31
14 83'$7('3/14

CITY COUNCIL
6 PM

CITY COUNCIL
6 PM

WOMEN'S

CLUB LUNCH

HOUSING

COMMISSION
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

PARKS &

RECREATION
4 PM

PLANNING

COMMISSION
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM
GOOD 17 MORNING

NEEDLES

CHAMBER OF COMMERCE
& VISITOR CENTER

BREAKFAST
9-11AM EL GARCES
950 FRONT ST., STE A 9-11
15 June 2025
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 20 2122 23 24 25 26 27 28
29 30 1 2 3 4 5
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 83'$7('3/14

CITY COUNCIL
6 PM

CITY COUNCIL
6 PM

WOMEN'S

CLUB LUNCH

HOUSING

COMMISSION
4 PM

PLANNING

COMMISSION
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

PARKS &

RECREATION
4 PM
GOOD

MORNING

NEEDLES

CHAMBER OF COMMERCE
& VISITOR CENTER

BREAKFAST
9-11AM EL GARCES
950 FRONT ST., STE A 9-11
19 31
July 2025
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 18 1920 21 22 23 24 25 26
27 28 29 30
83'$7('3/14

CITY COUNCIL
6 PM

CITY COUNCIL
6 PM

WOMEN'S

CLUB LUNCH

HOUSING

COMMISSION
4 PM

PLANNING

COMMISSION
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

BOARD OF

PUBLIC UTILITIES
4 PM

PARKS &

RECREATION
4 PM
CEMETERY COMM. - 3 PM
17