1 City of Portola
AGENDA
Regular Meeting
November 12, 2025 06:00 PM
35 Third Ave, Portola, CA 96122
https://www.cityofportola.com/
https://zoom.us/j/3583067836
Mayor Jim Murphy • Mayor Pro-Tem Bill Powers • Councilmember Vacant • Councilmember Mikki Battaglia • Councilmember Pat Morton
REASONABLE ACCOMMODATIONS
The City Council welcomes you to its meetings which are regularly held the second and fourth Wednesday of each month at 6:00 p.m. at the City Hall Council Chambers. Your interest and participation is encouraged and welcome.
As a courtesy, the City Council meeting is also accessible to the public via live streaming at: https://zoom.us/j/3583067836 or by phone at: Phone Number 1.669.900.6833; Meeting ID: 358 306 7836. Online and telephonic access does not guarantee the public the ability to observe the meeting in the event there is a disruption or connectivity issues that affect broadcasting.
Members of the public who want to be assured that they have the ability to observe the meeting and make comment during the meeting, should attend the meeting in-person.
Any person desiring to address the City Council or any committee, commission or agency under the jurisdiction of the City Council, on any item not on the agenda may do so during public comment period. Public comment during the meeting will be accepted in person only.
Public Comment can be made on the online agenda by clicking on the "comment" section next to each agenda item listed below.
Meeting facilities are accessible to persons with disabilities. Reasonable efforts will be made to accommodate the participation of persons with disabilities in the City’s public meetings. If special accommodation is needed, please notify the City at 530.832.6801 at least 48 hours prior to the meeting.
1. Call to Order
A. Roll Call
B. Pledge of Allegiance
2. Public Comments
2 Discussion Comment
This section is intended to provide members of the public with an opportunity to comment on any subject that does not appear on this agenda. Please note that California law prohibits the City Council from taking action on any matter which is not on the posted agenda, unless it is determined to be an urgency item by the City Council. Any member of the public wishing to address the City Council during “PUBLIC COMMENT” shall first secure permission of the presiding officer, stand; may give his/her name and address to the Clerk for the record. Each person addressing the City Council shall be limited to five minutes ordinarily, unless the presiding officer indicates a different amount will be allotted.
3. City Communications
Discussion Comment View Item
A. City Council Communications
B. Reports: Beckwourth Peak Fire Protection District / Plumas County Sheriff / Northern Sierra Air Quality
C. Staff Communications
D. City Manager Report
4. Consent Agenda
Discussion Possible Action Comment View Item
These items are expected to be routine and non-controversial. The City Council will act upon them at one time without discussion. Any Councilmembers, staff member or interested party may request that an item be removed from the consent agenda for discussion. Additional budget appropriations will require a four/fifths roll call vote.
A. Claims:
Adopt Resolution No. 2629. The resolution authorizes payment of payroll from October 4th, 2025 through October 31st, 2025 and accounts payable from October 23rd, 2025 through November 12th, 2025
The amount of payroll to be paid is $78,279.11
The amount of accounts payable to be paid is $161,646.64 The total amount to be paid is $239,925.75
B. Minutes
Adopt the minutes of the October 22, 2025 Regular City Council Meeting.
C. State of Emergency Winter Storms January 27th, 2023
Plumas County Office of Emergency Services has confirmed that the proclamation can be discontinued.
Proclaim the termination of the local emergency.
3 D. Pay Schedules and CCR 570.5
Resolution 2628: Adopting the Pay Schedules and Job Classification in compliance with CCR 570.5
5. Fiscal Year 2024-2025 City Audit
Discussion Possible Action Comment View Item
Review the City Audit for the 2024-2025 Fiscal year
6. Adjournment
Document Name City Manager Report
Document Number F-035 Revision Letter A
Document Location SharePoint Revision Date 12/06/2024
Document Type Form Council Adoption Date Not Applicable Resolution No. Not Applicable
Page
1 | 3
City Manager Report
11/12/2025
General Updates
Gulling Street Bridge
• Request made to Caltrans on 10/08/2025 to perform an underwater dive inspection and any pertinent inspections post riprap placement • 10/15/2025: As-built documents provided to Caltrans as requested • Follow up made to Caltrans on 10/28/2025 for the anticipated schedule for inspection(s).
o Staff are waiting for confirmation from Caltrans
• Phase 2- Structural Rehabilitation Funding (Caltrans Highway Bridge Program):
o Caltrans staff turnover with main point of contact. City staff are now engaging with new Caltrans staff on application that was submitted in August.
o Caltrans has confirmed City has met Caltrans deadline of 11/30/2025 o Caltrans Next Steps:
HBP Managers review applications and prioritize
2026 Winter/Spring: List is compiled on bridges programmed into the program
City can request a meeting with HBP Managers after the list is published to discuss available options
Caltrans has indicated that they believe the bridge should be a “fairly high priority”
o Engineering team is exploring additional funding streams to increase available options for this project
Document Name City Manager Report
Document Number F-035 Revision Letter A
Document Location SharePoint Revision Date 12/06/2024
Document Type Form Council Adoption Date Not Applicable Resolution No. Not Applicable
Page
2 | 3
Caltrans Highway 70 Work
• Staff has expressed a variety of issues with the overall approach taken by Caltrans to the Project Manager
o Safety concerns over the lack of effective traffic control o Disruption to residents and businesses without advanced notice o Depositing of debris into City manholes
• Staff met with Caltrans team on 11/04/2025 to discuss the above o Staff has requested that Caltrans scope and video all the City systems potentially affected by their work
Any resulting required actions (jetting, repairs, etc.) would need to be addressed by Caltrans
Caltrans agreed to the request and will provide all supporting documents to the City to confirm full resolution to any issues identified
Public Works
Dedicated Pavement Rehabilitation Crew
• Team completed pavement rehabilitation on all three of the targeted areas this season:
o Gulling Street Bridge- Middle Section
o South Gulling Street and Commercial Street
o Gulling Street near the intersection of Gulling Street and East Riverside Ave
• Project updates have been provided on City website and a further detailed update will go out with next quarterly newsletter
General
• Water Leak Repairs
o Sierra Steet water line lateral replacement occurred week of 10/27 • ARPA Grant: Water Fountain Install at Riverwalk
o Staff began trenching the water line along the Riverwalk o Water fountains will be installed next spring
• Lake Davis Transmission Line
Document Name City Manager Report
Document Number F-035 Revision Letter A
Document Location SharePoint Revision Date 12/06/2024
Document Type Form Council Adoption Date Not Applicable Resolution No. Not Applicable
Page
3 | 3
o State is inspecting the line per City’s request as part of the potential transfer of ownership
o State will need to address any issues found during inspection Winter Season Preparations Underway
• Equipment is receiving presentative maintenance
• Water Treatment Plant has been winterized
• Supplies for the season are being ordered
• Winterization of all parks including sprinkler system is completed Public Records Requests (PRR)
October 2025 PRR Metrics
Total Number of PRR1 3
Number of submissions by Unique Requestor(s)2 3
Number of submissions by Repeat Requestor(s)3 0
1 Total PRR indicates PRR entered via the CivAssist system during the month 2 Unique Requestor(s): Individuals or entities that have submitted one request within the reporting period with each requestor counted only once 3 Repeat Requestor(s): Individuals or entities that submit multiple requests over the reporting period 20 4 5 5 5 9 2 4 2 3
0 5
10 15
20 25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2025
2025
Monthly Total PRR
Total
Resolution No. 2629 November 12th
, 2025
RESOLUTION NO. 2629
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA
AUTHORIZING PAYMENT OF CLAIMS FOR PAYROLL FOR THE PERIOD OCTOBER 4th, 2025, THROUGH OCTOBER 31
st
, 2025 AND ACCOUNTS
PAYABLE FROM
OCTOBER 23rd, 2025, THROUGH NOVEMBER 12TH, 2025
WHEREAS, the City Council of the City of Portola has been fully advised that all such claims and demands are legal obligations of the City; and, WHEREAS, the City Council has fully considered the claims and money demands and payment thereof as set forth below and in "Exhibit A" attached hereto and incorporated herein.
Check Nos: Amount
47471-47553 $161,646.64
47466-47470,47481,47523,47530 VOID
Total Accounts Payable $161,646.64
Payroll:
10/4/2025 – 10/31/2025 $78,279.11
Total Payroll $78,279.11
Total Claims $239,925.75
PASSED, APPROVED AND ADOPTED this 12
th day of November 2025, by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Jim Murphy, Mayor
ATTEST:
_______________________________
Ryan Bonk, City Manager
I, Ryan Bonk, City Manager of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council of the City of Portola at a regular meeting thereof held on November 12th, 2025.
________________________________
Ryan Bonk, City Manager
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 1
VENDOR SET: 01 City of Portola
BANK: * ALL BANKS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT C-CHECK VOID CHECK V 11/12/2025 047481
C-CHECK VOID CHECK V 11/12/2025 047523
* * T O T A L S * * NO INVOICE AMOUNT DISCOUNTS CHECK AMOUNT REGULAR CHECKS: 0 0.00 0.00 0.00
HAND CHECKS: 0 0.00 0.00 0.00
DRAFTS: 0 0.00 0.00 0.00
EFT: 0 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
VOID CHECKS: 2 VOID DEBITS 0.00
VOID CREDITS 0.00 0.00 0.00
TOTAL ERRORS: 0
NO INVOICE AMOUNT DISCOUNTS CHECK AMOUNT
VENDOR SET: 01 BANK: * TOTALS: 2 0.00 0.00 0.00
BANK: * TOTALS: 2 0.00 0.00 0.00
Exhibit A
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 2
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 1 PARODI, DENISE
I-000202510203866 US REFUND R 10/20/2025 047471
710 000-107.00 UTILITY RECEIVABLE 05-041100-00 33.31 33.31 0235 SUSAN SCARLETT
I-202510233869 SUSAN SCARLETT R 10/23/2025 047472
100 113-600.10 ACCOUNTING FEES FINANCIAL SERVICES 1,100.00 207 315-600.10 ACCOUNTING FEES FINANCIAL SERVICES 495.00 208 317-600.10 ACCOUNTING FEES FINANCIAL SERVICES 495.00 710 311-600.10 ACCOUNTING FEES FINANCIAL SERVICES 1,430.00 720 311-600.10 ACCOUNTING FEES FINANCIAL SERVICES 1,430.00 730 311-600.10 ACCOUNTING FEES FINANCIAL SERVICES 550.00 5,500.00 1 MANGHAM, MARILYN
I-000202511043871 US REFUND R 11/05/2025 047473
710 000-107.00 UTILITY RECEIVABLE 03-005800-00 375.70 375.70 1 SULLIVAN, PAULA
I-000202511043872 US REFUND R 11/05/2025 047474
710 000-107.00 UTILITY RECEIVABLE 03-019400-00 136.40 136.40 1 BACON, ERIC
I-000202511043873 US REFUND R 11/05/2025 047475
710 000-107.00 UTILITY RECEIVABLE 04-014200-98 48.66 48.66 0008 ALWAYS ANSWER
I-202511043874 ALWAYS ANSWER R 11/12/2025 047476
710 311-600.05 TELEPHONE CALL CENTER 75.82
720 311-600.05 TELEPHONE CALL CENTER 75.82 151.64
0015 AMERIGAS
I-202511043925 AMERIGAS R 11/12/2025 047477
100 311-600.04 GAS AND ELECTRIC PROPANE 477.82 477.82
0023 AT&T CALNET 3
I-202511043875 AT&T CALNET 3 R 11/12/2025 047478
710 325-600.05 TELEPHONE SCADA - LDWTP 34.90
710 311-600.05 TELEPHONE SCADA 31.41
100 111-600.05 TELEPHONE FAX 31.41 97.72
0046 EMPIRE SOUTHWEST, LLC
I-202511043882 EMPIRE SOUTHWEST, LLC R 11/12/2025 047479 710 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 1,755.01 1,755.01 11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 3
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0052 CITY OF PORTOLA
I-202511043877 CITY OF PORTOLA R 11/12/2025 047480
100 311-601.10 WATER CH 94.96
100 311-601.11 SEWER CH 45.23
100 414-601.10 WATER VARIOUS 1,746.10
100 411-601.10 WATER CP 619.91
100 411-601.11 SEWER CP 19.85
100 414-601.11 SEWER CP 6.61
100 414-601.10 WATER BP 63.52
100 413-601.10 WATER WH 98.82
100 413-601.11 SEWER WH 45.23
710 311-601.10 WATER PW 20.46
720 311-601.10 WATER PW 20.46
710 311-601.11 SEWER PW 45.23 2,826.38
0060 COSTCO
I-202511043878 COSTCO R 11/12/2025 047482
100 111-600.31 DUES/MEMBERSHIPS ANNUAL DUES 17.49
100 112-600.31 DUES/MEMBERSHIPS ANNUAL DUES 4.25
100 411-600.36 POOL FACILITY ANNUAL DUES 4.26
100 113-600.31 DUES/MEMBERSHIPS ANNUAL DUES 13.00
710 311-600.31 DUES/MEMBERSHIPS ANNUAL DUES 13.00
720 311-600.31 DUES/MEMBERSHIPS ANNUAL DUES 13.00 65.00 0069 DEPARTMENT OF TRANSPORTATION
I-202511043885 DEPARTMENT OF TRANSPORTATION R 11/12/2025 047483 207 315-600.07 EQUIPMENT REPAIR/MAINTENANCE STREET LIGHT MAINTEN 433.43 433.43 0078 ENCOMPASS
I-202511043884 ENCOMPASS R 11/12/2025 047484
100 111-600.06 MATERIALS AND SUPPLIES COPIES 80.58
100 113-600.06 MATERIALS AND SUPPLIES COPIES 80.58
710 311-600.06 MATERIALS AND SUPPLIES COPIES 53.72
720 311-600.06 MATERIALS AND SUPPLIES COPIES 53.72 268.60 0090 GRAINGER INC
I-202511043889 GRAINGER INC R 11/12/2025 047485
710 311-600.76 LINE REPAIR PARTS 35.32
710 311-600.06 MATERIALS AND SUPPLIES PARTS 27.74
720 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 465.07 720 311-600.76 LINE REPAIR PARTS 130.37 658.50
0101 HUNT & SONS, INC.
I-202511043890 HUNT & SONS, INC. R 11/12/2025 047486
100 413-600.04 GAS AND ELECTRIC OIL 157.20
I-202511043891 HUNT & SONS, INC. R 11/12/2025 047486
100 114-600.09 VEHICLE FUEL FUEL 183.73
100 212-600.09 VEHICLE FUEL FUEL 91.84
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 4
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0101 HUNT & SONS, INC. CONT
I-202511043891 HUNT & SONS, INC. R 11/12/2025 047486
100 414-600.09 VEHICLE FUEL FUEL 457.63
710 311-600.09 VEHICLE FUEL FUEL 905.43
720 311-600.09 VEHICLE FUEL FUEL 523.65
207 315-600.09 VEHICLE FUEL FUEL 1,510.94
208 317-600.09 VEHICLE FUEL FUEL 57.90 3,888.32
0103 IEDA
I-202511043894 IEDA R 11/12/2025 047487
100 111-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 13.69 100 113-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 6.91 100 114-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 6.07 100 311-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 13.68 207 315-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 12.42 208 317-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 15.80 710 311-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 103.81 720 311-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 80.96 730 311-510.01 PERSONNEL COSTS LABOR RELATIONS CONS 9.44 262.78 0105 INTERMOUNTAIN DISPOSAL
I-202511043893 INTERMOUNTAIN DISPOSAL R 11/12/2025 047488 720 311-600.82 SEWER POND MAINTENANCE SLUDGE 10,874.24 10,874.24 0111 JEFFERSON SUPPLY COMPANY
I-202511043892 JEFFERSON SUPPLY COMPANY R 11/12/2025 047489 710 311-600.76 LINE REPAIR PARTS 104.02 104.02
0118 KANSAS LIFE INSURANCE CO
I-202511043923 KANSAS LIFE INSURANCE CO R 11/12/2025 047490 100 111-510.01 PERSONNEL COSTS LIFE INS PREMIUM 18.03
100 113-510.01 PERSONNEL COSTS LIFE INS PREMIUM 9.54
100 114-510.01 PERSONNEL COSTS LIFE INS PREMIUM 2.12
100 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 5.30
207 315-510.01 PERSONNEL COSTS LIFE INS PREMIUM 6.36
208 317-510.01 PERSONNEL COSTS LIFE INS PREMIUM 6.36
710 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 33.94
720 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 20.15
730 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 4.25 106.05 0118 KANSAS LIFE INSURANCE CO
I-202511043924 KANSAS LIFE INSURANCE CO R 11/12/2025 047491 100 111-510.01 PERSONNEL COSTS KANSAS LIFE INSURANC 0.53 100 113-510.01 PERSONNEL COSTS KANSAS LIFE INSURANC 0.28 100 114-510.01 PERSONNEL COSTS KANSAS LIFE INSURANC 0.06 100 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 0.16
207 315-510.01 PERSONNEL COSTS LIFE INS PREMIUM 0.19
208 317-510.01 PERSONNEL COSTS LIFE INS PREMIUM 0.19
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 5
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0118 KANSAS LIFE INSURANCE CONT
I-202511043924 KANSAS LIFE INSURANCE CO R 11/12/2025 047491 710 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 1.00
720 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 0.59
730 311-510.01 PERSONNEL COSTS LIFE INS PREMIUM 0.11 3.11 0133 LIBERTY UTILITIES
I-202511053926 LIBERTY UTILITIES R 11/12/2025 047492
100 311-600.04 GAS AND ELECTRIC 200008624948 1,523.11 1,523.11 0133 LIBERTY UTILITIES
I-202511053927 LIBERTY UTILITIES R 11/12/2025 047493
100 311-600.04 GAS AND ELECTRIC 200008624237 633.83 633.83 0133 LIBERTY UTILITIES
I-202511053928 LIBERTY UTILITIES R 11/12/2025 047494
100 413-600.04 GAS AND ELECTRIC 200008624690 267.55 267.55 0133 LIBERTY UTILITIES
I-202511053929 LIBERTY UTILITIES R 11/12/2025 047495
100 414-600.04 GAS AND ELECTRIC 200008624120 116.99 116.99 0133 LIBERTY UTILITIES
I-202511053930 LIBERTY UTILITIES R 11/12/2025 047496
100 414-600.04 GAS AND ELECTRIC 200008632214 25.69 25.69 0133 LIBERTY UTILITIES
I-202511053931 LIBERTY UTILITIES R 11/12/2025 047497
100 414-600.04 GAS AND ELECTRIC 200008630606 11.80 11.80 0133 LIBERTY UTILITIES
I-202511053932 LIBERTY UTILITIES R 11/12/2025 047498
100 414-600.04 GAS AND ELECTRIC 200008624351 54.00 54.00 0133 LIBERTY UTILITIES
I-202511053933 LIBERTY UTILITIES R 11/12/2025 047499
100 414-600.04 GAS AND ELECTRIC 200008632586 54.00 54.00 0133 LIBERTY UTILITIES
I-202511053934 LIBERTY UTILITIES R 11/12/2025 047500
100 414-600.04 GAS AND ELECTRIC 200008689495 166.95 166.95 0133 LIBERTY UTILITIES
I-202511053935 LIBERTY UTILITIES R 11/12/2025 047501
100 414-600.04 GAS AND ELECTRIC 200008626109 129.17 129.17 11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 6
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0133 LIBERTY UTILITIES
I-202511053936 LIBERTY UTILITIES R 11/12/2025 047502
100 414-600.04 GAS AND ELECTRIC 200008632750 117.65 117.65 0133 LIBERTY UTILITIES
I-202511053937 LIBERTY UTILITIES R 11/12/2025 047503
100 411-600.04 GAS AND ELECTRIC 200008626315 4,971.65 4,971.65 0133 LIBERTY UTILITIES
I-202511053938 LIBERTY UTILITIES R 11/12/2025 047504
207 213-600.41 STREET LIGHTING 200008632420 27.97 27.97 0133 LIBERTY UTILITIES
I-202511053939 LIBERTY UTILITIES R 11/12/2025 047505
207 213-600.41 STREET LIGHTING 200008630895 144.42 144.42 0133 LIBERTY UTILITIES
I-202511053940 LIBERTY UTILITIES R 11/12/2025 047506
207 213-600.41 STREET LIGHTING 200008630101 11,702.41 11,702.41 0133 LIBERTY UTILITIES
I-202511053941 LIBERTY UTILITIES R 11/12/2025 047507
207 213-600.41 STREET LIGHTING 200008630721 777.63 777.63 0133 LIBERTY UTILITIES
I-202511053942 LIBERTY UTILITIES R 11/12/2025 047508
207 213-600.41 STREET LIGHTING 200008632941 16.48 16.48 0133 LIBERTY UTILITIES
I-202511053943 LIBERTY UTILITIES R 11/12/2025 047509
207 213-600.41 STREET LIGHTING 200008620763 234.39 234.39 0133 LIBERTY UTILITIES
I-202511053944 LIBERTY UTILITIES R 11/12/2025 047510
207 213-600.41 STREET LIGHTING 200008626919 584.33 584.33 0133 LIBERTY UTILITIES
I-202511053945 LIBERTY UTILITIES R 11/12/2025 047511
710 311-600.04 GAS AND ELECTRIC 200008624534 751.55 751.55 0133 LIBERTY UTILITIES
I-202511053946 LIBERTY UTILITIES R 11/12/2025 047512
710 311-600.04 GAS AND ELECTRIC 200008498392 106.18 106.18 11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 7
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0133 LIBERTY UTILITIES
I-202511053947 LIBERTY UTILITIES R 11/12/2025 047513
710 311-600.04 GAS AND ELECTRIC 200008630432 1,879.52 1,879.52 0133 LIBERTY UTILITIES
I-202511053948 LIBERTY UTILITIES R 11/12/2025 047514
720 311-600.04 GAS AND ELECTRIC 200008626455 4,281.15 4,281.15 0133 LIBERTY UTILITIES
I-202511053949 LIBERTY UTILITIES R 11/12/2025 047515
720 311-600.04 GAS AND ELECTRIC 200008626604 906.96 906.96 0136 MANHARD CONSULTING
I-202511043899 MANHARD CONSULTING R 11/12/2025 047516
100 117-600.18 PROFESSIONAL SERVICES CONTRACT PLANNING SE 5,542.50 5,542.50 0141 MCI MEGA PREFERRED
I-202511043902 MCI MEGA PREFERRED R 11/12/2025 047517
710 311-600.05 TELEPHONE LONG DISTANCE 24.61
720 311-600.05 TELEPHONE LONG DISTANCE 24.62 49.23
0146 MUELLER CO. - HERSEY METERS
I-202511043901 MUELLER CO. - HERSEY METERS R 11/12/2025 047518 710 311-600.70 WATER METERS MSW NODES 12,388.99 12,388.99 0148 NAPA SIERRA
I-202511043903 NAPA SIERRA R 11/12/2025 047519
710 311-600.08 VEHICLE REPAIR & MAINTENANCE PARTS 4.19
710 311-600.06 MATERIALS AND SUPPLIES PARTS 20.63
720 311-600.06 MATERIALS AND SUPPLIES PARTS 10.45
100 414-600.06 MATERIALS AND SUPPLIES PARTS 12.84
208 317-600.08 VEHICLE REPAIR & MAINTENANCE PARTS 118.94 167.05 0159 OFFICE DEPOT
I-202511043905 OFFICE DEPOT R 11/12/2025 047520
100 111-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 116.95 100 112-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 29.24 100 113-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 116.95 100 114-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 29.24 100 117-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 29.24 720 311-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 116.95 710 311-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 116.95 730 311-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 29.22 584.74 11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 8
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0162 OPERATING ENGINEERS _PUBLIC EM
I-202511043904 OPERATING ENGINEERS _PUBLIC EM R 11/12/2025 047521 100 113-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 349.14 100 114-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 349.14 100 311-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 872.85 207 315-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 1,047.42 208 317-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 2,094.84 710 311-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 6,633.66 720 311-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 5,237.10 730 311-510.01 PERSONNEL COSTS HEALTH INS PREMIUM - 872.85 17,457.00 0175 PLUMAS ACE HARDWARE INC
I-202511043910 PLUMAS ACE HARDWARE INC R 11/12/2025 047522 100 212-600.06 MATERIALS AND SUPPLIES PARTS 7.50
710 325-600.06 MATERIALS AND SUPPLIES PARTS 66.87
710 311-600.06 MATERIALS AND SUPPLIES PARTS 81.57
710 325-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS LINE REPAIR 33.79 207 315-600.06 MATERIALS AND SUPPLIES PARTS 84.63
100 414-600.06 MATERIALS AND SUPPLIES PARTS 49.85
100 311-700.02 BUILDING AND IMPROVEMENTS MATERIALS 86.08 710 311-700.02 BUILDING AND IMPROVEMENTS MATERIALS 75.96 720 311-700.02 BUILDING AND IMPROVEMENTS MATERIALS 75.96 730 311-700.02 BUILDING AND IMPROVEMENTS MATERIALS 15.19 211 315-600.06 MATERIALS AND SUPPLIES MATERIALS 124.36
710 311-600.06 MATERIALS AND SUPPLIES SERVICE CHARGE 3.95 720 311-600.06 MATERIALS AND SUPPLIES SERVICE CHARGE 3.95 709.66 0184 PLUMAS SIERRA RURAL ELECTRIC
I-202511043907 PLUMAS SIERRA RURAL ELECTRIC R 11/12/2025 047524 710 325-600.04 GAS AND ELECTRIC ELECTIC 1,715.41 1,715.41 0185 PLUMAS SIERRA TELECOMMUNICAT
I-202511043908 PLUMAS SIERRA TELECOMMUNICAT R 11/12/2025 047525 710 325-600.05 TELEPHONE INTERNET 109.00
710 311-600.05 TELEPHONE INTERNET 54.50
720 311-600.05 TELEPHONE INTERNET 54.50
100 113-600.05 TELEPHONE INTERNET 16.35
100 111-600.05 TELEPHONE INTERNET 31.61
710 311-600.05 TELEPHONE INTERNET 27.25
720 311-600.05 TELEPHONE INTERNET 27.25
100 413-600.05 TELEPHONE INTERNET 6.54
100 413-600.05 TELEPHONE INTERNET 109.00 436.00
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 9
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0188 PORTER SIMON CORPORATION
I-202511043909 PORTER SIMON CORPORATION R 11/12/2025 047526 100 111-600.13 LEGAL FEES GEN LEGAL FEES 5,313.55
100 117-600.13 LEGAL FEES PLANNING 1,449.15
710 311-600.13 LEGAL FEES WATER/SEWER GEN 1,449.15
720 311-600.13 LEGAL FEES WATER/SEWER GEN 1,449.15
100 111-601.16 LEGAL-OTHER 868.00
710 311-601.16 LEGAL - OTHER GLCSD 868.00 11,397.00
0235 SUSAN SCARLETT
I-202511043912 SUSAN SCARLETT R 11/12/2025 047527
207 315-600.10 ACCOUNTING FEES STREET REPORT 250.00
208 317-600.10 ACCOUNTING FEES STREET REPORT 250.00
100 113-600.32 TRAINING AND EDUCATION GFOA, GAAP, GASB 200.00 700.00 0240 THOMAS G. VALENTINO ; TGV SO
I-202511043911 THOMAS G. VALENTINO ; TGV SO R 11/12/2025 047528 730 311-600.80 POST-CLOSURE CARE COSTS LF CLOSURE 2,925.00 730 311-600.18 PROFESSIONAL SERVICES GENERAL SERVICES 360.00 3,285.00 0247 U.S. BANK CORPORATE PAYMENT SY
I-202511043918 U.S. BANK CORPORATE PAYMENT SY R 11/12/2025 047529 710 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 38.19 720 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 38.18 710 311-600.06 MATERIALS AND SUPPLIES RECORDING FEES 10.75 720 311-600.06 MATERIALS AND SUPPLIES RECORDING FEES 10.75 710 311-600.31 DUES/MEMBERSHIPS ANNUAL DUES - MANGO 475.00 720 311-600.31 DUES/MEMBERSHIPS ANNUAL DUES - MANGO 475.00 100 111-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 49.74 100 112-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 12.44 100 113-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 49.74 100 114-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 12.44 100 117-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 12.44 720 311-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 49.74 710 311-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 49.74 730 311-600.06 MATERIALS AND SUPPLIES OFFICE SUPPLIES 12.43 1,296.58 0256 USA BLUE BOOK INC
I-202511043917 USA BLUE BOOK INC R 11/12/2025 047531
710 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 1,297.20 720 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 1,297.19 710 311-600.51 TESTING PARTS 253.71 2,848.10
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 10
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 0260 VERIZON WIRELESS
I-202511043914 VERIZON WIRELESS R 11/12/2025 047532
710 325-600.05 TELEPHONE LDTWP DATA PLAN 108.05 108.05
0260 VERIZON WIRELESS
I-202511043915 VERIZON WIRELESS R 11/12/2025 047533
710 311-600.05 TELEPHONE WIRELESS 78.02
710 311-600.05 TELEPHONE WIRELESS 58.96
720 311-600.05 TELEPHONE WIRELESS 139.01
100 212-600.05 TELEPHONE WIRELESS 38.38
100 411-600.05 TELEPHONE WIRELESS 41.47 355.84
0260 VERIZON WIRELESS
I-202511043916 VERIZON WIRELESS R 11/12/2025 047534
100 411-600.36 POOL FACILITY LANDLINES 23.57
100 413-600.05 TELEPHONE LANDLINES 28.14
100 212-600.05 TELEPHONE LANDLINES 28.14
710 311-600.05 TELEPHONE LANDLINES 49.51
720 311-600.05 TELEPHONE LANDLINES 49.51
100 111-600.05 TELEPHONE LANDLINES 37.13
100 113-600.05 TELEPHONE LANDLINES 37.13
100 311-600.05 TELEPHONE LANDLINES 37.13
100 114-600.05 TELEPHONE LANDLINES 65.29 355.55
0264 WESTERN NEVADA SUPPLY
I-202511043919 WESTERN NEVADA SUPPLY R 11/12/2025 047535 710 311-600.76 LINE REPAIR PARTS 11,693.55 11,693.55
000086 ADCOCK - CRESCENT TOW AND REPA
I-202511043879 ADCOCK - CRESCENT TOW AND REPA R 11/12/2025 047536 100 212-600.95 CODE ENFORCEMENT VEHICLE TOWS 1,000.00 1,000.00 1 BRIAN ATTAMA
I-202511043922 REIMBURSEMENT R 11/12/2025 047537
100 212-600.32 TRAINING AND EDUCATION CACEO CODE CONF REIM 433.98 433.98 000113 CAPITAL BARRICADE
I-202511043876 CAPITAL BARRICADE R 11/12/2025 047538
720 311-600.06 MATERIALS AND SUPPLIES VETROFLUID 545.43 545.43 000029 COUNTRY BREEZE CLEANING
I-202511043880 COUNTRY BREEZE CLEANING R 11/12/2025 047539 100 111-600.45 BUILDING EXPENSE JANITORIAL SERVICE 133.33 710 311-600.45 BUILDING EXPENSE JANITORIAL SERVICE 133.33 720 311-600.45 BUILDING EXPENSE JANITORIAL SERVICE 133.34 400.00 11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 11
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 000112 ERMA
I-202511043886 ERMA R 11/12/2025 047540
100 111-601.16 LEGAL-OTHER 1Q26 YR 2025 3,966.50 3,966.50 0048 FACTUAL DATA
I-202511043887 FACTUAL DATA R 11/12/2025 047541
710 311-600.06 MATERIALS AND SUPPLIES CREDIT REPORTS 14.13 720 311-600.06 MATERIALS AND SUPPLIES CREDIT REPORTS 14.12 28.25 0091 GRANITE CONSTRUCTION, INC
I-202511043888 GRANITE CONSTRUCTION, INC R 11/12/2025 047542 710 311-600.76 LINE REPAIR PARTS 2,684.89
211 315-600.42 STREET REPAIR PARTS 7,671.08 10,355.97
000005 K & B TRANSPORTATION, LLC
I-202511043895 K & B TRANSPORTATION, LLC R 11/12/2025 047543 211 315-600.42 STREET REPAIR AC 5,002.25 5,002.25
1 KRISTEN SCHIAVONE
I-202511043881 REIMBURSEMEN R 11/12/2025 047544
100 111-600.30 CONFERENCE/TRAVEL SCORE MILEAGE REIMBU 229.60 229.60 0055 LES SCHWAB TIRE CENTER
I-202511043897 LES SCHWAB TIRE CENTER R 11/12/2025 047545 710 311-600.07 EQUIPMENT REPAIR/MAINTENANCE BATTERY 249.74 720 311-600.07 EQUIPMENT REPAIR/MAINTENANCE BATTERY 249.73 499.47 000069 MARLIN LEASING CORP - PEAC
I-202511043900 MARLIN LEASING CORP - PEAC R 11/12/2025 047546 100 111-600.48 EQUIPMENT LEASE XEROX LEASE 122.59
100 113-600.48 EQUIPMENT LEASE XEROX LEASE 122.59
710 311-600.48 EQUIPMENT LEASE XEROX LEASE 81.72
720 311-600.48 EQUIPMENT LEASE XEROX LEASE 81.72 408.62 000098 MDK,LLC WESTERN ENVIRONMENTA
I-202511043920 MDK,LLC WESTERN ENVIRONMENTA R 11/12/2025 047547 710 311-600.51 TESTING LABS 1,300.84
720 311-600.51 TESTING LABS 1,964.65 3,265.49
000072 MOTION & FLOW CONTROL PRO INC
I-202511043898 MOTION & FLOW CONTROL PRO INC R 11/12/2025 047548 710 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 225.47 720 311-600.07 EQUIPMENT REPAIR/MAINTENANCE PARTS 225.47 450.94 11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 12
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT 000102 NORTHERN TOOL COMMERCIAL ACCOU
D-202511043913 NORTHERN TOOL COMMERCIAL ACCOU R 11/12/2025 047549 710 311-600.76 LINE REPAIR PART 80.07
720 311-600.76 LINE REPAIR PART 80.06 160.13
0183 PLUMAS SANITATION, INC
I-202511043906 PLUMAS SANITATION, INC R 11/12/2025 047550 710 325-600.18 PROFESSIONAL SERVICES SEPTIC PUMP 1,360.00 1,360.00 1 RYAN BONK
I-202511043883 REIMBURSEMENT R 11/12/2025 047551
100 111-600.30 CONFERENCE/TRAVEL SCORE MILEAGE REIMBU 250.60 250.60 000033 UES
I-202511053950 UES R 11/12/2025 047552
710 311-600.51 TESTING 0332500763 / MONITOR 4,136.30 4,136.30 000094 WESTERN INDUSTRIAL PARTS, INC
I-202511043921 WESTERN INDUSTRIAL PARTS, INC R 11/12/2025 047553 710 311-600.06 MATERIALS AND SUPPLIES PARTS 170.27
720 311-600.06 MATERIALS AND SUPPLIES PARTS 170.26
208 317-600.06 MATERIALS AND SUPPLIES PARTS 170.26 510.79 * * T O T A L S * * NO INVOICE AMOUNT DISCOUNTS CHECK AMOUNT REGULAR CHECKS: 80 161,646.64 0.00 161,646.64
HAND CHECKS: 0 0.00 0.00 0.00
DRAFTS: 0 0.00 0.00 0.00
EFT: 0 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
VOID CHECKS: 0 VOID DEBITS 0.00
VOID CREDITS 0.00 0.00 0.00
TOTAL ERRORS: 0
** G/L ACCOUNT TOTALS **
G/L ACCOUNT NAME AMOUNT
---------------------------------------------------------------------- 100 111-510.01 PERSONNEL COSTS 32.25
100 111-600.05 TELEPHONE 100.15
100 111-600.06 MATERIALS AND SUPPLIES 247.27
100 111-600.13 LEGAL FEES 5,313.55
100 111-600.30 CONFERENCE/TRAVEL 480.20
100 111-600.31 DUES/MEMBERSHIPS 17.49
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 13
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
** G/L ACCOUNT TOTALS **
G/L ACCOUNT NAME AMOUNT
---------------------------------------------------------------------- 100 111-600.45 BUILDING EXPENSE 133.33
100 111-600.48 EQUIPMENT LEASE 122.59
100 111-601.16 LEGAL-OTHER 4,834.50
100 112-600.06 MATERIALS AND SUPPLIES 41.68
100 112-600.31 DUES/MEMBERSHIPS 4.25
100 113-510.01 PERSONNEL COSTS 365.87
100 113-600.05 TELEPHONE 53.48
100 113-600.06 MATERIALS AND SUPPLIES 247.27
100 113-600.10 ACCOUNTING FEES 1,100.00
100 113-600.31 DUES/MEMBERSHIPS 13.00
100 113-600.32 TRAINING AND EDUCATION 200.00
100 113-600.48 EQUIPMENT LEASE 122.59
100 114-510.01 PERSONNEL COSTS 357.39
100 114-600.05 TELEPHONE 65.29
100 114-600.06 MATERIALS AND SUPPLIES 41.68
100 114-600.09 VEHICLE FUEL 183.73
100 117-600.06 MATERIALS AND SUPPLIES 41.68
100 117-600.13 LEGAL FEES 1,449.15
100 117-600.18 PROFESSIONAL SERVICES 5,542.50
100 212-600.05 TELEPHONE 66.52
100 212-600.06 MATERIALS AND SUPPLIES 7.50
100 212-600.09 VEHICLE FUEL 91.84
100 212-600.32 TRAINING AND EDUCATION 433.98
100 212-600.95 CODE ENFORCEMENT 1,000.00
100 311-510.01 PERSONNEL COSTS 891.99
100 311-600.04 GAS AND ELECTRIC 2,634.76
100 311-600.05 TELEPHONE 37.13
100 311-601.10 WATER 94.96
100 311-601.11 SEWER 45.23
100 311-700.02 BUILDING AND IMPROVEMENTS 86.08
100 411-600.04 GAS AND ELECTRIC 4,971.65
100 411-600.05 TELEPHONE 41.47
100 411-600.36 POOL FACILITY 27.83
100 411-601.10 WATER 619.91
100 411-601.11 SEWER 19.85
100 413-600.04 GAS AND ELECTRIC 424.75
100 413-600.05 TELEPHONE 143.68
100 413-601.10 WATER 98.82
100 413-601.11 SEWER 45.23
100 414-600.04 GAS AND ELECTRIC 676.25
100 414-600.06 MATERIALS AND SUPPLIES 62.69
100 414-600.09 VEHICLE FUEL 457.63
100 414-601.10 WATER 1,809.62
100 414-601.11 SEWER 6.61
*** FUND TOTAL *** 35,906.87
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 14
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
** G/L ACCOUNT TOTALS **
G/L ACCOUNT NAME AMOUNT
---------------------------------------------------------------------- 207 213-600.41 STREET LIGHTING 13,487.63
207 315-510.01 PERSONNEL COSTS 1,066.39
207 315-600.06 MATERIALS AND SUPPLIES 84.63
207 315-600.07 EQUIPMENT REPAIR/MAINTENANCE 433.43
207 315-600.09 VEHICLE FUEL 1,510.94
207 315-600.10 ACCOUNTING FEES 745.00
*** FUND TOTAL *** 17,328.02
208 317-510.01 PERSONNEL COSTS 2,117.19
208 317-600.06 MATERIALS AND SUPPLIES 170.26
208 317-600.08 VEHICLE REPAIR & MAINTENANCE 118.94
208 317-600.09 VEHICLE FUEL 57.90
208 317-600.10 ACCOUNTING FEES 745.00
*** FUND TOTAL *** 3,209.29
211 315-600.06 MATERIALS AND SUPPLIES 124.36
211 315-600.42 STREET REPAIR 12,673.33
*** FUND TOTAL *** 12,797.69
710 000-107.00 UTILITY RECEIVABLE 594.07
710 311-510.01 PERSONNEL COSTS 6,772.41
710 311-600.04 GAS AND ELECTRIC 2,737.25
710 311-600.05 TELEPHONE 400.08
710 311-600.06 MATERIALS AND SUPPLIES 549.45
710 311-600.07 EQUIPMENT REPAIR/MAINTENANCE 3,565.61
710 311-600.08 VEHICLE REPAIR & MAINTENANCE 4.19
710 311-600.09 VEHICLE FUEL 905.43
710 311-600.10 ACCOUNTING FEES 1,430.00
710 311-600.13 LEGAL FEES 1,449.15
710 311-600.31 DUES/MEMBERSHIPS 488.00
710 311-600.45 BUILDING EXPENSE 133.33
710 311-600.48 EQUIPMENT LEASE 81.72
710 311-600.51 TESTING 5,690.85
710 311-600.70 WATER METERS 12,388.99
710 311-600.76 LINE REPAIR 14,597.85
710 311-601.10 WATER 20.46
710 311-601.11 SEWER 45.23
710 311-601.16 LEGAL - OTHER 868.00
710 311-700.02 BUILDING AND IMPROVEMENTS 75.96
710 325-600.04 GAS AND ELECTRIC 1,715.41
710 325-600.05 TELEPHONE 251.95
710 325-600.06 MATERIALS AND SUPPLIES 66.87
710 325-600.07 EQUIPMENT REPAIR/MAINTENANCE 33.79
710 325-600.18 PROFESSIONAL SERVICES 1,360.00
*** FUND TOTAL *** 56,226.05
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 15
VENDOR SET: 01 City of Portola
BANK: PC POOLED CASH - PLUMAS
DATE RANGE: 0/00/0000 THRU 99/99/9999
** G/L ACCOUNT TOTALS **
G/L ACCOUNT NAME AMOUNT
---------------------------------------------------------------------- 720 311-510.01 PERSONNEL COSTS 5,338.80
720 311-600.04 GAS AND ELECTRIC 5,188.11
720 311-600.05 TELEPHONE 370.71
720 311-600.06 MATERIALS AND SUPPLIES 975.37
720 311-600.07 EQUIPMENT REPAIR/MAINTENANCE 2,275.64
720 311-600.09 VEHICLE FUEL 523.65
720 311-600.10 ACCOUNTING FEES 1,430.00
720 311-600.13 LEGAL FEES 1,449.15
720 311-600.31 DUES/MEMBERSHIPS 488.00
720 311-600.45 BUILDING EXPENSE 133.34
720 311-600.48 EQUIPMENT LEASE 81.72
720 311-600.51 TESTING 1,964.65
720 311-600.76 LINE REPAIR 210.43
720 311-600.82 SEWER POND MAINTENANCE 10,874.24
720 311-601.10 WATER 20.46
720 311-700.02 BUILDING AND IMPROVEMENTS 75.96
*** FUND TOTAL *** 31,400.23
730 311-510.01 PERSONNEL COSTS 886.65
730 311-600.06 MATERIALS AND SUPPLIES 41.65
730 311-600.10 ACCOUNTING FEES 550.00
730 311-600.18 PROFESSIONAL SERVICES 360.00
730 311-600.80 POST-CLOSURE CARE COSTS 2,925.00
730 311-700.02 BUILDING AND IMPROVEMENTS 15.19
*** FUND TOTAL *** 4,778.49
NO INVOICE AMOUNT DISCOUNTS CHECK AMOUNT
VENDOR SET: 01 BANK: PC TOTALS: 80 161,646.64 0.00 161,646.64 BANK: PC TOTALS: 80 161,646.64 0.00 161,646.64
REPORT TOTALS: 80 161,646.64 0.00 161,646.64
11/05/2025 3:10 PM A/P HISTORY CHECK REPORT PAGE: 16
SELECTION CRITERIA
------------------------------------------------------------------------------------------------------------------------------------ VENDOR SET: 01-CITY OF PORTOLA
VENDOR: ALL
BANK CODES: All
FUNDS: All
------------------------------------------------------------------------------------------------------------------------------------
CHECK SELECTION
CHECK RANGE: 047466 THRU 047553
DATE RANGE: 0/00/0000 THRU 99/99/9999
CHECK AMOUNT RANGE: 0.00 THRU 999,999,999.99
INCLUDE ALL VOIDS: YES
------------------------------------------------------------------------------------------------------------------------------------
PRINT OPTIONS
SEQUENCE: CHECK NUMBER
PRINT TRANSACTIONS: YES
PRINT G/L: YES
UNPOSTED ONLY: NO
EXCLUDE UNPOSTED: NO
MANUAL ONLY: NO
STUB COMMENTS: NO
REPORT FOOTER: NO
CHECK STATUS: NO
PRINT STATUS: * - All
------------------------------------------------------------------------------------------------------------------------------------ 1 City of Portola
Minutes
Regular Meeting
October 22, 2025 06:00 PM
35 Third Ave, Portola, CA 96122
https://www.cityofportola.com/
1. Call to Order
The meeting was called to order at 6:00 pm by Mayor Jim Murphy.
A. Roll Call
Present: Mayor Jim Murphy, Mayor Pro-Tem Bill Powers, Councilmember Mikki Battaglia, Councilmember Pat Morton
Staff Present: City Manager Ryan Bonk, Finance Officer Susan Scarlett (Zoom), City Attorney Steve Gross (Zoom), Administrative Services Manager Kristen Schiavone B. Pledge of Allegiance
Led by Mayor Jim Murphy
2. Public Comments
Josh Hart commented
3. City Communications
A. City Council Communications
Councilmember Battaglia: Attended Fire Wise Meeting, Board of Supervisors meeting and Lost Sierra Chamber meeting.
Councilmember Morton: Attended LAFCo meeting
Mayor Pro Term Powers: Attended LAFCo meeting, Transportation Commission Meeting and Juvenile Justice Coordinating Council.
Mayor Murphy: Chaired the LAFCo meeting
B. Reports: Beckwourth Peak Fire Protection District / Plumas County Sheriff / Northern Sierra Air Quality Beckwourth Peak Fire Protection District: No Report
Plumas County Sheriff's Office: Sheriff Hermann provided information of 159 incidents in Portola made up of criminal cases, follow ups, traffic stops, medical & fire calls and public assists. Discussed several incidents of theft in Portola and reminded public to be vigilant and add more security to homes such as cameras.
2 Council and Sergeant Hermann discussed the high traffic and speeding in the A15 area.
Northern Sierra Air Quality: The free green waste disposal for City residents ends on Friday, 10/24/25.
Curbside bins will be picked up on the 29th as this marks the end of the season for this program.
Northern Sierra Air Quality district office is moving.
Intermountain Disposal ignited their green waste pile last week as there was a favorable window of northeastern winds.
C. Staff Communications
Finance Officer Scarlett discussed that the audit is complete. The audit is a clean audit. The findings will be presented at the 11/12/25 council meeting. The State Controllers Street Report is finished.
D. City Manager Report
City Manager Bonk provided an update regarding the Councilmember vacancy. Two applications have been received and that another Facebook post will be uploaded next week to encourage community members to apply. Pavement on bridge is expected to be completed this week. Trunk or Treat is taking place this Saturday.
4. Consent Agenda
A. Claims:
Adopt Resolution No. 2627. The resolution authorizes payment of payroll from September 20th, 2025 through October 3rd, 2025 and accounts payable from October 9th, 2025 through October 22nd, 2025 The amount of payroll to be paid is $33,445.84
The amount of accounts payable to be paid is $221,311.39 The total amount to be paid is $254,757.23
B. Minutes
Adopt the minutes of the October 8, 2025 Regular City Council Meeting.
Councilmember Pat Morton motioned to approve. Councilmember Mikki Battaglia seconded the motion.
The roll call vote:
Aye Mayor Jim Murphy Aye Mayor Pro-Tem Bill Powers Aye Councilmember Mikki Battaglia Aye Councilmember Pat Morton
5. Grizzly Lake CSD: Potential Intertie Project & City Participation City Manager presented staff report and provided a historical overview of previous discussions with Grizzly Lake CSD going back to 2008. City Attorney Gross and Financial Officer Scarlett also participated in discussion with Council. Grizzly Lake CSD General Manger provided report explaining the current staffing challenges. GHD Engineer Teresa Garrison, hired by the state water board, provided a brief overview of her current role with Grizzly Lake CSD. State Water Board representative Tara Ouitavon joined the discussion 3 via zoom and provided an overview of the SAFER program which focus on prioritizing failing water systems.
City Council directed staff to review draft reimbursement agreement and present findings to the Council for consideration of the project with Grizzly Lake CSD.
Mayor Pro-Tem Bill Powers motioned to approve. Councilmember Pat Morton seconded the motion.
The roll call vote:
Aye Mayor Jim Murphy Aye Mayor Pro-Tem Bill Powers Aye Councilmember Mikki Battaglia Aye Councilmember Pat Morton
6. Modify the regular meeting dates for November and December City Council voted in favor of canceling the November 26th and December 24th meetings.
Councilmember Mikki Battaglia motioned to approve. Councilmember Pat Morton seconded the motion.
The motion passed with the following vote:
4 In Favor 0 Opposed
0 Abstained 0 Absent 0 Recused
7. Adjournment
The Regular Meeting of the Portola City Council adjourned at 7:51pm Proclamation of the City of Portola, County of Plumas, State of California, Proclaiming Existence of a Local Emergency by the Director of Emergency Services, Appointing an
Assistant Director of Emergency Services, Delegating
Certain Powers and Duties to the Assistant Director of
Emergency Services and Authorizing the Assistant Director of Emergency Services to Exercise such Powers and Duties to Address Impacts of the 2023 Winter Storms
WHEREAS, on or about January 27, 2023, the City of Portola began experiencing severe winter storms which have continued through the first week of March 2023 ("2023 Winter Storms"). through the week.
WHEREAS, the 2023 Winter Storms have, among other things, caused pipes to freeze, water mains to break, disruption in traffic along roadways.
WHEREAS, further conditions of extreme peril are threatened by forecasted storms due to strike the City of Portola in the next few weeks.
WHEREAS, these conditions are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the City.
WHEREAS, the City Council of the City of Portola is not in session and cannot immediately be called into session.
WHEREAS, the Mayor of the City of Portola is not available and pursuant to California Government Code Section 36802, if the Mayor is absent or unable to act, the Mayor Pro Tern shall serve until the Mayor returns or is able to act and the Mayor Pro Tcm has all of the powers and duties of the Mayor.
WHEREAS, the aforesaid conditions are of extreme peril and warrant and necessitate the proclamation of the existence of a local emergency in accordance with and as authorized by Portola Municipal Code Section 2.32.
WHEREAS, it would be prudent to appoint a person to the office of Assistant Director of Emergency Services and delegate certain powers and duties to that office.
WHEREAS, the City may proclaim a local emergency pursuant to California Government Code Sections 8630 and the City may promulgate orders and regulations necessary to provide for the (01080984,DOCX 2}
protection of life and property, including orders or regulations imposing a curfew within designated boundaries where necessary to preserve the public order and safety. Such orders and regulations and amendments and rescissions thereof shall be in writing and shall be given widespread publicity and notice.
WHEREAS, the City of Portola is not formally asking for CDAA funding at this time.
NOW, THEREFORE, IT IS HEREBY PROCLAMED that in accordance with Portola Municipal Code Section 2.32 and California Government Code Sections 8630-8634 and in my capacity as the Director of Emergency Services in the absence of the Mayor pursuant to California Government Code Section 36802, I hereby declare a local emergency due to conditions of extreme peril that the 2023 Winter Storms, their impacts and responses thereto pose to the safety of persons and property within the City of Portola.
IT IS FURTHER PROCLAMED AND ORDERED that the City of Portola is not formally asking for CDAA funding at this time.
IT IS FURTHER PROCLAMED AND ORDERED that in accordance with Portola Municipal Code Section 2.32, the City's Director of Emergency Services is authorized to use and employ any of the property, services, personnel, and resources of the City, to command the aid of as many citizens as may be necessary to help mitigate this emergency and that County and State agencies may provide mutual aid, including personnel, equipment, and other available resources as needed to assist the City of Portola during this emergency.
IT IS FURTHER PROCLAMED AND ORDERED that in accordance with Portola Municipal Code Section 2.32 and in my capacity as the Director of Emergency Services, I hereby appoint the City Manager to the office of Assistant Director of Emergency Services.
IT IS FURTHER PROCLAMED AND ORDERED that in accordance with Portola Municipal Code Section 2.32 and in my capacity as the Director of Emergency Services, I hereby delegate to the Assistant Director of Emergency Services all the powers and duties of the Director of Emergency Services set forth in Portola Municipal Code Section 2.32 during the existence of the local emergency proclaimed herein and authorize the Assistant Director of Emergency Services to exercise all such powers and duties during the existence of the local emergency proclaimed herein.
IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the emergency organization of the City of Portola shall be those prescribed by state law, by ordinances, and resolutions of the City of Portola; and that this emergency proclamation shall expire seven (7) days after issuance unless confirmed and ratified by the City Council of the City of Portola.
{01080984 DOCX 2 l
IT IS FURTHER PROCLAMED AND ORDERED that the local emergency proclaimed herein shall be reviewed by the City Council for the need to continue it at least once every sixty (60) days until the City Council terminates the local emergency and the City Council shall proclaim the termination of the local emergency at the earliest possible date that conditions warrant.
PROCLAIMED this 8
th day of March 2023
Mayor Pro Tern, City of Portola, Bill Powers
ATTEST:
Jason Shaw, Deputy City Clerk
I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Proclamation was duly proclaimed by the Mayor Pro Tern of the City of Portola in his capacity as the Director of Emergency Services on March 8, 2023.
Jason Shaw, Deputy City Clerk
(01080984,DOCX 2 l
California Code of Regulations 570.5 - Publicly Available Pay Schedule
HOURLY RATES
POSITION Step 1 Step 2 Step 3 Step 4 Step 5 L 1 L 2 L 3 City Manager (1) 71.42 0 0 0 0 74.99 78.74 82.68
Administrative Services Manager (1) 36.06 0 0 0 0 37.86 39.76 41.74 Public Works & Building Services Manager (1) 53.33 0 0 0 0 56.00 58.80 61.74 Public Engagement Officer Part-time 30.73 32.27 33.88 35.57 37.35 0.00 0.00 0.00 Water/Sewer Utility Technician (or Public Works Supervisor) (2) 32.51 34.14 35.84 37.63 39.52 41.49 43.57 45.74 Public Works Maintenance (1) 24.68 25.91 27.21 28.57 30.00 31.50 33.07 34.73 Accounting Technician (1) 30.06 31.56 33.14 34.80 36.54 38.37 40.28 42.30 Administrative Clerk (Not currently filled) 25.36 26.63 27.96 29.36 30.83 32.37 33.98 35.68 Office Clerk (1) 21.64 22.72 23.86 25.05 26.30 27.62 29.00 30.45 Management does not have steps
There are 5 Steps and are every two years
Longevity is 5% at 15, 20 and 25 years Full-time employees with continuous service measured from date of hire Effective October 14, 2025 and Adopted by the City Council November 12, 2025 Resolution 2628 October 14, 2025
RESOLUTION NO. 2628
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA
ADOPTING THE PAY SCHEDULES AND JOB CLASSIFICATIONS
EFFECTIVE OCTOBER 14, 2025
WHEREAS, the City Council shall establish by resolution, in accordance with CCR 570.5, a Pay schedule and Job Classifications plan; and, WHEREAS, said Plan will include a descriptive title, salary ranges and the number of allocated positions; and,
WHEREAS, during the Fiscal Year 2025/2026 needs may arise to amend the Pay schedule and Job Classifications; and,
WHEREAS, the City Council will review said Schedules and Classifications each year as part of the budget process and adjust accordingly by adopting a new resolution; and WHEREAS, the City Manager may hire new employees within the salary range and classifications in accordance with the schedule.
NOW THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Portola does hereby adopt the Pay Schedules and Job Classifications.
PASSED, APPROVED AND ADOPTED this 12th day of November 2025 by the following vote:
AYES: NOES:
ABSTAIN:
ABSENT:
________________________________
MAYOR, JAMES MURPHY
ATTEST:
____________________________________
Ryan Bonk, City Manager
I, Ryan Bonk, City Manager of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council of the City of Portola at a regular meeting thereof held on November 12, 2025. ____________________________________
Ryan Bonk, City Manager
1 MEETING DATE: November 12, 2025
FROM: Susan Scarlett
RE: City of Portola 2024-2025 Audit
BACKGROUND:
The annual audit for the 2024-2025 Fiscal Year was issued on October 16, 2025. An electronic copy is attached and will be posted to the City website once accepted by the City Council. Also attached is the GANN letter and the Governance Communication letter.
RECOMMENDATION:
Review of the City audit and acceptance by the City Council ATTACHMENTS:
A. FINAL 2025 FINANCIAL STATEMENTS
B. 2025 GOVERNANCE LETTER
C. 2025 CITY OF PORTOLA GANN AUP REPORT-1
CITY OF PORTOLA
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
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CITY OF PORTOLA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 4
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 13
STATEMENT OF ACTIVITIES 14
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
BALANCE SHEET 15
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION 16
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 17
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES 18
PROPRIETARY FUNDS
STATEMENT OF FUND NET POSITION 19
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 20
STATEMENT OF CASH FLOWS 21
NOTES TO FINANCIAL STATEMENTS 23
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY/(ASSET) AND RELATED RATIOS 45
SCHEDULE OF PENSION PLAN CONTRIBUTIONS 46
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL 47
CITY OF PORTOLA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
GENERAL FUND
GAS TAX 2107 FUND 48
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETS AND BUDGETARY ACCOUNTING 49
SUPPLEMENTARY INFORMATION
COMBINING NONMAJOR FUND STATEMENTS
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET 52
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 53
OTHER REPORTS
INDEPENDENT AUDITORS’ 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 54
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Council Members
City of Portola, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Portola (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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 City’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.
Honorable Mayor and Council Members
City of Portola
(2)
Auditors’ 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 auditors’ 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 City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Emphasis of Matter
Change in Fund Presentation from Major to Nonmajor
As discussed in note 15 to the financial statements, the State Transportation Improvement Plan Fund, presented as a major fund in the prior year, is now presented as a nonmajor fund as it no longer meets the criteria to be a major fund in the current year. Our opinions are not modified with respect to this matter.
Honorable Mayor and Council Members
City of Portola
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of proportionate share of the net pension liability/(asset) and related ratios, schedule of pension plan contributions, and budgetary comparison information 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 opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining nonmajor financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary 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 October 16, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Roseville, California
October 16, 2025
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MANAGEMENT’S DISCUSSION
AND ANALYSIS (MD&A)
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
(4)
This section of the City of Portola (City) annual financial report presents a discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2025. It should be read in conjunction with the City’s basic financial statements following this section.
I. FINANCIAL HIGHLIGHTS
A. Government-Wide Financial Analysis
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $21,010,179:
$13,284,538 represents the City’s investment in capital assets, less any related outstanding debt used to acquire those assets (net investment in capital assets). $1,443,851 is available for the City’s ongoing obligations related to programs with external restrictions (restricted net position).
$6,281,790 is available to fund City programs for citizens and debt obligations to creditors (unrestricted net position).
The City’s total net position increased by $1,586,226 from the prior year:
The $1,672,526 increase in net investment in capital assets represents infrastructure and other additions of $3,062,506 less depreciation of $1,194,110, and the retirement of related long-term debt of $37,000.
The $89,788 decrease in restricted net position represents the change in resources that are subject to external restrictions on their use and is detailed in the government-wide financial analysis section on page 6.
B. Financial Analysis of the City’s Funds
The City’s governmental funds combined ending fund balance of $2,808,503 was an increase of $109,728 from the prior year ending fund balance. Amounts available for spending include restricted and unassigned fund balances; these totaled $2,808,503, or 100% of ending fund balance. Of this amount, $342,823 is restricted by law or externally imposed requirements.
II. OVERVIEW OF THE FINANCIAL STATEMENTS
A. Government-Wide Financial Statements
The government-wide financial statements provide an overview of the City’s finances in a manner similar to a private sector business that is using the accrual basis of accounting. They demonstrate accountability of the City of Portola by showing the extent to which it has met operating objectives efficiently and effectively, using all resources available, and whether it can continue to do so.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
(5)
The statement of net position presents information on all of the City’s assets, deferred outflows, and deferred inflows, liabilities, with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information on expenses and revenues to show how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues are reported as soon as earned and expenses are reported as soon as incurred even though the related cash flows may not have taken place until future fiscal periods (e.g., earned but unused vacation leave).
Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, planning and community development, public safety, streets and roads, public works and parks and recreation.
The business type activities of the City include water, sewer, and solid waste services.
B. Fund Financial Statements
The fund financial statements provide evidence of accountability by demonstrating compliance with budgetary decisions made in a public forum. A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes stipulated by laws, regulations or policies. The funds of the City are divided into two categories: governmental and proprietary.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spending resources, as well as on balances of spending available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
The City maintains six individual governmental funds. On the financial statements for governmental funds, information is presented separately for the General Fund and for the Gas Tax fund. Data from nonmajor governmental funds are aggregated into a single column.
Proprietary funds consist of three enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, and solid waste services.
The Notes to Financial Statements provide additional information that is essential to a full understanding of the information provided in the financial statements.
C. Required Supplementary Information
In addition to the basic financial statements, this report presents actuarial information related to the City’s pension plans as well as budgetary comparisons for the General Fund and major special revenue funds as required supplementary information.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
(6)
III. GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City presents its financial statements under the reporting model required by the Governmental and Accounting Standards Board Statement No. 34.
Dollar Percent
2025 2024 2025 2024 2025 2024 Change Change
Current and Other Assets 3,152,587 $ 3,215,602 $ 6,889,802 $ 6,634,283 $ 10,042,389 $ 9,849,885 $ 192,504 $ 2% Capital Assets 7,510,910 8,017,431 6,379,457 4,257,690 13,890,367 12,275,121 1,615,246 13% Total Assets 10,663,497 11,233,033 13,269,259 10,891,973 23,932,756 22,125,006 1,807,750 8% Deferred Outflows of Resources 124,350 168,769 230,936 302,643 355,286 471,412 (116,126) -25% Current and Other Liabilities 153,384 210,429 123,304 100,981 276,688 311,410 (34,722) -11% Long-Term Liabilities 281,752 285,327 2,665,903 2,502,538 2,947,655 2,787,865 159,790 6% Total Liabilities 435,136 495,756 2,789,207 2,603,519 3,224,343 3,099,275 125,068 4% Deferred Inflows of Resources 18,733 26,203 34,787 46,987 53,520 73,190 (19,670) -27% Net Investment in Capital Assets 7,510,910 7,997,151 5,773,628 3,614,861 13,284,538 11,612,012 1,672,526 14% Restricted:
General Government 121,773 95,425 - - 121,773 95,425 26,348 28% Community Development 43,525 43,525 - - 43,525 43,525 - 0% Streets and Roads - 306,398 - - - 306,398 (306,398) -100% Capital Improvements 212,877 168,443 239,012 227,654 451,889 396,097 55,792 14% Debt Service - - 68,362 68,362 68,362 68,362 - 0%
Facility Improvements - - 603,171 593,832 603,171 593,832 9,339 2% Public Works 2,275 - - - 2,275 - 2,275 100%
Public Safety 1,484 - - - 1,484 - 1,484 100%
Parks and Recreation 151,372 - - - 151,372 - 151,372 100% Unrestricted 2,289,762 2,268,901 3,992,028 4,039,401 6,281,790 6,308,302 (26,512) 0% Total Net Position 10,333,978 $ 10,879,843 $ 10,676,201 $ 8,544,110 $ 21,010,179 $ 19,423,953 $ 1,586,226 $ 8% Condensed Statement of Net Position
June 30, 2025 and 2024
Governmental
Activities
Business-Type
Activities Total
Total
Net investment in capital assets reflects the City’s investment in capital assets (i.e., its land, structures and improvements, infrastructure, and equipment). The City uses the capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Restricted net position represents 6.87% of the total net position and are resources subject to external restrictions on how they may be used.
Unrestricted net position represents 29.90% of the total net position and may be used to meet the City’s ongoing obligations to citizens and creditors.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
(7)
The following highlights significant factors that affected the governmental and business-type activities and contributed to the change in net position:
Dollar Percent
2025 2024 2025 2024 2025 2024 Change Change
Program Revenues:
Charges for Services 108,828 $ 131,035 $ 2,099,799 $ 2,040,860 $ 2,208,627 $ 2,171,895 $ 36,732 $ 2% Operating Grants and Contributions 978,568 1,255,312 53,932 - 1,032,500 1,255,312 (222,812) -18% Capital Grants and Contributions 39,276 1,746,223 2,452,094 - 2,491,370 1,746,223 745,147 43% General Revenues:
Property Taxes 334,163 351,778 - - 334,163 351,778 (17,615) -5% Other Taxes 442,038 459,499 - - 442,038 459,499 (17,461) -4% Other Revenue 115,560 99,426 258,839 225,935 374,399 325,361 49,038 15% Total Revenues 2,018,433 4,043,273 4,864,664 2,266,795 6,883,097 6,310,068 573,029 9% Expenses:
General Government 333,638 253,654 - - 333,638 253,654 79,984 32% Planning and
Community Development 145,358 147,866 - - 145,358 147,866 (2,508) -2% Public Safety 464,357 455,915 - - 464,357 455,915 8,442 2% Streets and Roads 1,038,760 1,044,486 - - 1,038,760 1,044,486 (5,726) -1% Public Works 437,252 325,155 - - 437,252 325,155 112,097 34% Parks and Recreation 144,933 290,919 - - 144,933 290,919 (145,986) -50% Water Service - - 1,413,719 1,198,044 1,413,719 1,198,044 215,675 18% Sewer Service - - 948,993 904,398 948,993 904,398 44,595 5% Solid Waste - - 369,861 131,744 369,861 131,744 238,117 181% Total Expenses 2,564,298 2,517,995 2,732,573 2,234,186 5,296,871 4,752,181 544,690 11% Change in Net Position (545,865) 1,525,278 2,132,091 32,609 1,586,226 1,557,887 28,339 2% Net Position - July 1 10,879,843 9,354,565 8,544,110 8,511,501 19,423,953 17,866,066 1,557,887 9% Net Position - June 30 10,333,978 $ 10,879,843 $ 10,676,201 $ 8,544,110 $ 21,010,179 $ 19,423,953 $ 1,586,226 $ 8% Statement of Activities
For the Years Ended June 30, 2025 and 2024
Governmental
Activities
Business-Type
Activities Total
Total
Governmental activities reported a $545,865 decrease in net position, and business-type activities reported an increase of $2,132,091, for a net increase of $1,586,226.
IV. FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with budgetary and legal requirements.
Governmental funds. The general government functions are included in the General and Special Revenue Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, total fund balance less the nonspendable portion is a useful measure of the City’s resources available for spending at the end of the fiscal year.
At June 30, 2025, the City’s governmental funds reported combined ending fund balances of $2,808,503, 87.79% of which is available to meet the City’s ongoing general obligation to citizens and creditors.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
(8)
The General Fund is the main operating fund of the City. At June 30, 2025, total fund balance was $2,551,884, of which $2,465,680 (96.62%) was available for spending. As measures of the general fund’s liquidity, it is useful to note that available fund balance represents 164% of total fund expenditures. It is the City’s goal to maintain a minimum level of fund balance sufficient to preserve the City’s credit rating in the event that the City needs financing and to maintain sufficient working capital. It is also the City’s goal to maintain a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City therefore adopted a policy that directs management to maintain a minimum level of unassigned fund balance in the City’s General Fund as follows:
The City will strive to maintain an unassigned fund balance in the General Fund of 100% of budgeted general fund operating expenditures each fiscal year. In the event that the balance drops below the established minimum level, the City’s governing body will develop a plan to replenish the fund balance.
The following table presents the revenues from various sources as well as increases or decreases from the prior year in the governmental funds.
% of % of % of
Revenue Sources Amount Total Amount Total Amount Change Taxes 776,201 $ 36% 811,277 $ 22% (35,076) $ -4%
Licenses and Permits 72,452 3% 79,594 2% (7,142) -9%
Fines and Forfeitures 3,201 0% 13,208 0% (10,007) -76%
Use of Money and Property 111,855 5% 91,896 2% 19,959 22% Intergovernmental 1,133,542 53% 2,719,696 72% (1,586,154) -58% Charges for Services 33,175 2% 28,233 1% 4,942 18%
Other 3,705 0% 7,530 0% (3,825) -51%
Total 2,134,131 $ 100% 3,751,434 $ 100% (1,617,303) $ -43% Revenues Classified by Source
Governmental Funds
2025 2024 Change
Significant changes for major revenue sources are explained below. Secured Property Tax of $35,569 was not received in 2024-2025 in time to be recognized. There was a small decrease in Licenses and Permits. This was primarily due to a decrease in franchise fees of $17,593 offset by an increase in building permits of $13,958 and a decrease of $2,904 in business licenses. Fines and forfeitures included Abandoned Vehicle Abatement funds which decreased due to an overpayment by the County which is reflect in a payable to the County. There was an increase in the Use of Money and Property due to increased interest rates. Intergovernmental revenue includes a decrease of $83,354 in Snow Removal Funds based on the expenses from the prior year, a decrease of $64,259 in Coronavirus Relief Funds used, and a decrease of $1,439,826 in reimbursements from the State for STIP projects as the project was primarily completed in FY23/24, and a decrease in the COPS funding of $56,767 as the prior year included an adjustment. Funds from AB2766 of $39,275 and from CRRSSA funding of $21,200 were an increase.
Charges for Services increased due to an increase in swim lessons and concessions at the City pool.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
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The following table presents expenditures by function compared to prior year’s amounts in the governmental funds.
% of % of % of
Amount Total Amount Total Amount Change
General Government 297,301 $ 15% 224,317 $ 6% 72,984 $ 33% Planning and Community
Development 141,510 7% 137,913 4% 3,597 3%
Public Safety 347,081 17% 421,516 11% (74,435) -18%
Streets and Roads 432,647 21% 2,481,169 66% (2,048,522) -83% Public Works 420,070 21% 302,173 8% 117,897 39%
Parks and Recreation 385,794 19% 213,399 6% 172,395 81% Total Expenditures 2,024,403 $ 100% 3,780,487 $ 100% (1,756,084) $ -46% Expenditures by Function
Governmental Funds
2025 2024 Change
Significant changes for major functions are explained below:
• General government had an increase of $39,111 in attorney fees due to ongoing litigation and public records requests resulting in staff time of $14,213. Various other minor changes include conferences, travel, and training of new personnel.
• Planning and Community Development had a decrease in Grant expenditures of $21,316. There was a decrease in Local Agency Formation Commission (LAFCO) fees of $17,326 and an increase in Professional Services of $42,291 due to additional planning work including the Housing element and the Local Hazard mitigation plan.
• Public safety had two major changes that make up the majority of this $74,435 decrease. The Fire department is no longer under the City and is part of Beckwourth Peak Fire Protection District.
This was a decrease of $159,457. The City had an increase in law enforcement of $79,400 due to hiring a Public Engagement Office and actively working on code enforcement. • In Street and Roads, the STIP Fund construction phase for the North Loop project was completed for a decrease of $ 2,032,501 and snow removal expenses were reduced by $37,359 due to a dryer winter.
• Public works included an increase in consulting on the Gulling St. Bridge of $127,057. There was a decrease in the use of ARPA funds by $64,260. The expenditures of the AB2766 grant from Northern Sierra Air Quality were $39,276. Payroll had an increase of $6,384. • Parks and Recreation increased as overall costs of the City pool were $46,822 higher. In 2025 the City applied for the Prop 68 grant for vault toilets at the Riverwalk which was $150,222.
Excluding the grant funded project, overall park costs were down $26,754. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government wide financial statements, but in more detail. These funds include the following enterprise funds: Water Service Fund, Sewer Service Fund, and Solid Waste Fund. As of June 30, 2025, the proprietary (enterprise) funds net position was a combined $10,676,201 with a net investment in capital assets of $5,773,628 and an unrestricted net position of $3,992,028.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
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V. BUDGETARY HIGHLIGHTS
The budget documents normally represent a financial plan for the City with four central goals in mind:
(1) sustaining the level and quality of basic municipal services currently being provided our residents (2) maintaining the City’s infrastructure while implementing scheduled and unscheduled improvements determined at the time of the budget process; (3) providing for some opportunity for investment in additional tools, equipment, and programs that foster improvement in the overall aesthetics of the City as well as investment in social activities; and (4) developing plans for improved municipal services with a vision that will lead our community toward growth and tourism. This year’s budget, while keeping all four goals in mind, addressed mainly goals number (1) sustaining the level and quality of services currently being provided to our residents and (2) maintaining the City’s infrastructure. In addition to the past goals, there is a renewed emphasis on economic development, blight reduction, and code compliance.
Differences between the original budget and the final amended budget are mainly due to the revenue and expenditures from Grant funds and from Capital projects that are “reimbursed” and in many cases are not reflected in the original budget figures.
The 2024-2025 budget had projected the use of $71,687.28 of the General Fund’s fund balance to eliminate a shortfall of revenues over expenditures.
Budget amendments were done during the fiscal year which increased the budgeted revenue by $247,349.05 and budgeted expenditures by $463,718.37. The majority of these increases were unanticipated revenue and projects that were not in the original budget.
After amending the budget for the fiscal year 2024/2025 General Fund revenues were more than budget by $36,709 and General Fund expenditures were $31,995 more than budgeted. While the City had originally budgeted a decrease of $71,687.28 in fund balance the final fund balance was a use of $222,203. This difference is reflective of expenditures that were in the 2024-2025 fiscal year but the revenue was not received until the 2025-2026 year to be able to offset the decrease. Approximately $300,000 in revenue from two sources, reimbursement from Prop 68 and funding from the Transportation Commission, would have offset the decrease.
VI. CAPITAL ASSETS AND DEBT ADMINISTRATION
A. Capital Assets
The change in capital assets for the Governmental Activities totaled $506,521, net of depreciation for an ending balance of $7,510,910.
Business-type capital assets for the fiscal year ending June 30, 2025, were $6,379,457, net of depreciation. This is a increase in capital assets of $2,121,767. More detailed information about the City’s capital assets is presented in Note 5 of the basic financial statements.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
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B. Long-Term Debt
At June 30, 2025, the City had long-term debt outstanding of $605,829. This is a decrease over June 30, 2024 of $37,000. The entire long-term debt was attributable to Business-type activities. There is no long-term debt in the Governmental Activities.
More detailed information about the City’s long-term liabilities is presented in Note 6 of the basic financial statements.
VII. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Management presented a budget document that attempted to address national, state, and local economic conditions and to serve as the City’s policy document, as an operations guide, as a financial plan and as a communication document to guide the City staff and Portola residents on how the City of Portola conducts its financial business. The challenges of economic conditions, the need to comply with state regulations and the desire to be conservative with the fiscal position of the City are reflected.
For the 2025-2026 budget the process began as usual with City staff preparing draft level of services budgets for each area of the City. The budget process began in February and continued through March, April, and May with revisions to the level of services budgets, additions of “add-ons”, and discussion of what would be needed to provide a balanced budget. Step increases are every other year and will be included again in 2026-2027. The budget included a 2.44% cost of living increase for full time employees. The critical need to maintain healthy cash balances is always in the forefront of finance discussions. The City has been able to fund major projects in advance of reimbursements because of the balances that it currently maintains. This has been evident with the construction phase of the North Loop project and will be again with the Rio Grande project.
While the City always pays close attention to budget amendments and to the use of additional fund balance, some purchases are critical, and the Council has an understanding of when those are onetime expenditures. The Council is always aware of the expenses that are reimbursable by another entity including grant funding and the Caltrans reimbursement of the State Transportation Improvement Program projects (STIP).
The Gulling Street bridge is in need of scour mitigation and the City pursued funding including FEMA funding. The funding was obligated and the City worked to design countermeasures to temporarily repair the bridge. The City has applied to the Caltrans Highway Bridge Program for funding for more permanent repairs to the bridge.
The City has been setting aside Road Maintenance and Repair funding from SB1 in order to do larger maintenance and repair projects on the City streets. These efforts are ongoing and projects are now been completed with a dedicated crew to accomplish the repairs.
The City was awarded up to $177,952 through the California Drought, Parks, Climate, Coastal Protection and Outdoor Access for All Act of 2018. The City Council used the funding in 2024-2025 for two vault toilets at the Riverwalk Park. These opportunities are extremely important to utilize.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2025
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Even with no increase in staffing the General Fund supports the services necessary for the residents of Portola, including parks, planning, building, streets, snow removal, animal control, and law enforcement through a Sheriff’s contract for services. The City no longer has a Fire Department as the new consolidated Fire District, Beckwourth Peak Fire Protection District, began on July 1, 2024. The City has a contract Planner who assists the City in required documents and daily needs such as lot line adjustments. The Local Hazard Mitigation Plan, the General Plan and Housing Elements are examples of the complex processes with a multitude of regulations and compliance requirements that the contract planner performs.
In the 2025-2026 budget the City includes a Community Engagement Officer for code enforcement, abandoned vehicle abatement and other services to the community. The City continues to utilize contract services for code enforcement and abandoned vehicle abatement on a limited basis to train the new employee and to address complicated situations.
With regard to the City Enterprise Funds the effects and impacts of changing state and federal government regulation is a constant challenge, but the major challenge the Enterprise Funds face is the aging infrastructure in the City. This was never more evident than after the major storms. In the 2025- 2026 budget Water and Sewer rates were not increased. While the Council has been able to reduce the Solid Waste Administration fees over the past few years it was not able to do so in the upcoming budget due to challenges with administering the Solid Waste Franchise agreement. The Landfill closure fee is reserved for future needs at the landfill. The Enterprise Funds are “business-type” activities whose expenses need to be covered by the rate payers. The City Council will continue to review the need for any future rate increases each year during the budget process. Staff and the City Council are always looking for funding opportunities for infrastructure and have been working for quite some time toward that goal. A grant through the Clean Water State Revolving Fund is continuing to be worked on by a team that includes California State University, Pace Engineer, City Staff and the State Water Resources Control Board. There is currently no timeline for funding. The Lake Davis Water Treatment Plant was deeded to the City of Portola and was added as an asset in the water fund.
Staff keeps a watchful eye on state and federal issues as well as on the financial health of the City and continually reviews these issues and the possibility of budget adjustments with the City Council.
VIII. REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the financial activity and condition of the City of Portola to all having such an interest in the City of Portola. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Portola Finance Department, 35 Third Avenue, P.O. Box 1225, Portola, California, 96122.
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BASIC FINANCIAL STATEMENTS –
GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF PORTOLA
STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and Investments 2,675,202 $ 5,385,480 $ 8,060,682 $ Restricted Assets:
Restricted Cash - 910,545 910,545
Imprest Cash 375 - 375
Accounts Receivable 19,151 516,577 535,728
Interest Receivable 27,534 61,526 89,060
Due from Other Governments 342,445 15,674 358,119
Loans and Notes Receivable, Net 87,880 - 87,880
Capital Assets:
Nondepreciable 844,387 62,844 907,231
Depreciable, Net 6,666,523 6,316,613 12,983,136
Total Assets 10,663,497 13,269,259 23,932,756
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pensions 124,350 230,936 355,286
LIABILITIES
Accounts Payable 62,583 68,853 131,436
Accrued Salaries and Benefits Payable 29,872 19,402 49,274 Deposits 6,433 35,049 41,482
Unearned Revenue 54,496 - 54,496
Long-Term Liabilities:
Portion Due or Payable Within One Year:
Compensated Absences 17,591 33,631 51,222
Notes Payable - 38,000 38,000
Portion Due or Payable After One Year:
Compensated Absences 9,842 18,815 28,657
Notes Payable - 567,829 567,829
Liability for Landfill Postclosure - 1,535,320 1,535,320 Net Pension Liability 254,319 472,308 726,627
Total Liabilities 435,136 2,789,207 3,224,343
DEFERRED INFLOWS OF RESOURCES
Deferred Pensions 18,733 34,787 53,520
NET POSITION
Net Investment in Capital Assets 7,510,910 5,773,628 13,284,538 Restricted:
General Government 121,773 - 121,773
Community Development 43,525 - 43,525
Streets and Roads - - -
Capital Improvements 212,877 239,012 451,889
Facility Improvements - 603,171 603,171
Debt Service - 68,362 68,362
Public Works 2,275 - 2,275
Public Safety 1,484 - 1,484
Parks and Recreation 151,372 - 151,372
Unrestricted 2,289,762 3,992,028 6,281,790
Total Net Position 10,333,978 $ 10,676,201 $ 21,010,179 $ Primary Government
CITY OF PORTOLA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Fees, Fines, and Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary GovernmentGovernmental Activities:
General Government 333,638 $ 37,299 $ 515,791 $ - $ 219,452 $ - $ 219,452 $ Planning and Community Development 145,358 - - - (145,358) - (145,358) Public Safety 464,357 38,354 201,865 - (224,138) - (224,138) Streets and Roads 1,038,760 - 119,225 - (919,535) - (919,535) Public Works 437,252 - 141,687 39,276 (256,289) - (256,289) Parks and Recreation 144,933 33,175 - - (111,758) - (111,758) Total Governmental Activities 2,564,298 108,828 978,568 39,276 (1,437,626) - (1,437,626) Business-Type Activities:
Water Service 1,413,719 1,078,310 - 2,452,094 - 2,116,685 2,116,685 Sewer Service 948,993 758,310 53,932 - - (136,751) (136,751) Solid Waste 369,861 263,179 - - - (106,682) (106,682)
Total Business-Type Activities 2,732,573 2,099,799 53,932 2,452,094 - 1,873,252 1,873,252 Total City of Portola 5,296,871 $ 2,208,627 $ 1,032,500 $ 2,491,370 $ (1,437,626) 1,873,252 435,626 General Revenues
Taxes:
Property Taxes 334,163 - 334,163
Sales and Use Taxes 364,450 - 364,450Other - 77,588 77,588 Unrestricted Interest and Investment Earnings 111,855 258,839 370,694 Miscellaneous 3,705 - 3,705
Total General Revenues 891,761 258,839 1,150,600
Change in Net Position (545,865) 2,132,091 1,586,226
Net Position - Beginning of Year 10,879,843 8,544,110 19,423,953Net Position - End of Year 10,333,978 $ 10,676,201 $ 21,010,179 $ Primary Government
Net (Expense) Revenue and
Program Revenues Changes in Net Position
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BASIC FINANCIAL STATEMENTS –
FUND FINANCIAL STATEMENTS
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CITY OF PORTOLA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Other
Gas Tax Governmental
General 2107 Funds Total
ASSETS
Cash and Investments 2,451,934 $ 1,658 $ 221,610 $ 2,675,202 $ Imprest Cash 375 - - 375
Notes Receivable 44,355 - 43,525 87,880
Accounts Receivable 19,151 - - 19,151
Interest Receivable 25,299 - 2,235 27,534
Due from Other Governmental Agencies 327,113 5,180 10,152 342,445 Total Assets 2,868,227 $ 6,838 $ 277,522 $ 3,152,587 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE
Liabilities:
Accounts Payable 45,681 $ 5,200 $ 11,702 $ 62,583 $
Accrued Salaries and Benefits Payable 19,033 1,638 9,201 29,872 Unearned Revenue 54,496 - - 54,496
Deposits from Others 6,433 - - 6,433
Total Liabilities 125,643 6,838 20,903 153,384
Deferred Inflows of Resources:
Unavailable Revenue 190,700 - - 190,700
Total Deferred Inflows of Resources 190,700 - - 190,700 Fund Balance:
Restricted 86,204 - 256,402 342,606
Assigned - - 217 217
Unassigned 2,465,680 - - 2,465,680
Total Fund Balance 2,551,884 - 256,619 2,808,503
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance 2,868,227 $ 6,838 $ 277,522 $ 3,152,587 $
CITY OF PORTOLA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Fund Balance - Total Governmental Funds (From Previous Page) $ 2,808,503 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because:
Capital Assets Used in Governmental Activities are not Financial Resources and, therefore, are not Reported in the Governmental Funds. 7,510,910 Deferred Outflows of Resources as Reported in the Statement of Net Position 124,350 Deferred Inflows of Resources as Reported in the Statement of Net Position (18,733) Unavailable Revenues and Long-Term Assets Represent Amounts That are not Available to Fund Current Expenditures and, therefore, are not Reported in the Governmental Funds:
Unavailable Revenues 190,700
Some Liabilities are not Due and Payable in the Current Period, and therefore, are not Reported in the Governmental Funds:
Compensated Absences (27,433)
Net Pension Liability (254,319)
Net Position of Governmental Activities $ 10,333,978
CITY OF PORTOLA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
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State
Transportation Other
Improvement Gas Tax Governmental
General Plan 2107 Funds Total
REVENUES
Taxes 776,201 $ - $ - $ - $ 776,201 $
Licenses and Permits 72,452 - - - 72,452
Fines, Forfeitures, and Penalties 3,201 - - - 3,201
Use of Money and Property 103,377 - - 8,478 111,855
Intergovernmental 587,432 - 61,618 484,492 1,133,542
Charges for Services 33,175 - - - 33,175
Other Revenues 3,705 - - - 3,705
Total Revenues 1,579,543 - 61,618 492,970 2,134,131
EXPENDITURES
Current:
General Government 297,301 - - - 297,301
Planning and Community Development 133,617 - - 7,893 141,510 Public Safety 264,550 - 82,531 - 347,081
Streets and Roads - - 191,375 241,272 432,647
Public Works 420,070 - - - 420,070
Parks and Recreation 385,794 - - - 385,794
Total Expenditures 1,501,332 - 273,906 249,165 2,024,403 Excess (Deficiency) of Revenues Over
(Under) Expenditures 78,211 - (212,288) 243,805 109,728
OTHER FINANCING SOURCES (USES)
Transfers In - - 212,288 88,126 300,414
Transfers Out (300,414) - - - (300,414)
Total Other Financing Sources (Uses) (300,414) - 212,288 88,126 - Net Change in Fund Balances (222,203) - - 331,931 109,728 Fund Balances - Beginning of Year
As Originally Reported 2,774,087 (295,293) - 219,981 2,698,775 Change Within Financial Reporting Entity
(Major to Nonmajor Fund) - 295,293 - (295,293) -
Fund Balances - Beginning, as Restated 2,774,087 - - (75,312) 2,698,775 Fund Balances - End of Year 2,551,884 $ - $ - $ 256,619 $ 2,808,503 $
CITY OF PORTOLA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Net Change to Fund Balance - Total Governmental Funds $ 109,728 Amounts Reported for Governmental Activities in the
Statement of Activities are Different Because:
Governmental Funds Report Capital Outlay as Expenditures. However, in the Statement of Activities, the Cost of Those Assets is Allocated Over Their Estimated Useful Lives and Reported as Depreciation Expense.
Expenditures for General Capital Assets, Infrastructure, and Other Related Capital Assets Adjustments 327,782 $
Less: Current Year Depreciation (834,303)
(506,521)
Revenues in the Statement of Activities That do not Provide Current Financial Resources are not Reported as Revenues in the Governmental Funds. (115,698)
Some Expenses Reported in the Statement of Activities do not Require the Use of Current Financial Resources and, therefore, are not Reported as Expenditures in Governmental Funds:
Change in Compensated Absences (6,439)
Change in Net Pension Liability (26,935)
Change in Net Position of Governmental Activities $ (545,865)
CITY OF PORTOLA
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Water Sewer Solid
Service Service Waste Total
ASSETS
Current Assets:
Cash and Investments 2,493,323 $ 1,848,708 $ 1,043,449 $ 5,385,480 $ Interest Receivable 26,362 24,428 10,736 61,526
Accounts Receivable 289,898 193,817 32,862 516,577
Due from Other Governments - 15,674 - 15,674
Restricted Assets:
Restricted Cash 387,128 523,417 - 910,545
Total Current Assets 3,196,711 2,606,044 1,087,047 6,889,802 Noncurrent Assets:
Capital Assets:
Nondepreciable - 31,422 31,422 62,844
Depreciable, Net 4,478,119 1,836,798 1,696 6,316,613
Total Noncurrent Assets 4,478,119 1,868,220 33,118 6,379,457 Total Assets 7,674,830 4,474,264 1,120,165 13,269,259
DEFERRED OUTFLOWS OF RESOURCES 103,033 113,692 14,211 230,936
LIABILITIES
Current Liabilities:
Accounts Payable 34,864 25,378 8,611 68,853
Accrued Salaries and Benefits Payable 11,046 7,011 1,345 19,402 Deposits 35,049 - - 35,049
Liability for Compensated Absences 17,981 13,070 2,580 33,631 Notes Payable - Current Portion 38,000 - - 38,000
Total Current Liabilities 136,940 45,459 12,536 194,935 Noncurrent Liabilities:
Liability for Compensated Absences 10,060 7,312 1,443 18,815 Landfill Closure and Postclosure - - 1,535,320 1,535,320 Notes Payable 567,829 - - 567,829
Net Pension Liability 232,521 210,722 29,065 472,308
Total Noncurrent Liabilities 810,410 218,034 1,565,828 2,594,272 Total Liabilities 947,350 263,493 1,578,364 2,789,207
DEFERRED INFLOWS OF RESOURCES 15,521 17,125 2,141 34,787
NET POSITION
Net Investment in Capital Assets 3,872,290 1,868,220 33,118 5,773,628 Restricted:
Debt Service 68,362 - - 68,362
Facility Improvements 318,766 284,405 - 603,171
Capital Improvements - 239,012 - 239,012
Unrestricted 2,564,629 1,906,646 (479,247) 3,992,028
Total Net Position 6,824,047 $ 4,298,283 $ (446,129) $ 10,676,201 $ Business-Type Activities - Enterprise Funds
CITY OF PORTOLA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Water Sewer Solid
Service Service Waste Total
OPERATING REVENUES
Charges for Services 1,078,310 $ 758,310 $ 263,179 $ 2,099,799 $ Total Operating Revenues 1,078,310 758,310 263,179 2,099,799
OPERATING EXPENSES
Salaries and Wages 449,844 338,731 64,850 853,425
Services and Supplies 564,868 490,767 46,581 1,102,216
Landfill Closure Costs - - 258,175 258,175
Depreciation 240,436 119,116 255 359,807
Total Operating Expenses 1,255,148 948,614 369,861 2,573,623 Operating Income (Loss) (176,838) (190,304) (106,682) (473,824)
NONOPERATING REVENUE (EXPENSE)
Interest Income (Loss) 115,600 100,864 42,375 258,839
Other Revenues
Intergovernmental Revenues - 53,932 - 53,932
Gain (Loss) on Disposal of Capital Assets (126,430) (379) - (126,809) Debt Service Interest and Fiscal Charges (32,141) - - (32,141) Other Non-Operating Expense
Total Nonoperating Revenue
(Expense) (42,971) 154,417 42,375 153,821
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS (35,887) (219,809) (64,307) (320,003) Capital Contributions 2,452,094 - - 2,452,094
Changes in Net Position 2,232,285 (35,887) (64,307) 2,132,091 Net Position - Beginning of Year 4,591,762 4,334,170 (381,822) 8,544,110 Net Position - End of Year 6,824,047 $ 4,298,283 $ (446,129) $ 10,676,201 $ Business-Type Activities - Enterprise Funds
CITY OF PORTOLA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Water Sewer Solid
Service Service Waste Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Receipts from Customers 1,039,467 $ 721,890 $ 265,186 $ 2,026,543 $ Cash Paid to Suppliers for Goods
and Services (558,207) (489,599) (115,420) (1,163,226)
Cash Paid to Employees for Services (409,592) (300,263) (60,291) (770,146) Net Cash Provided (Used) by Operating Activities 71,668 (67,972) 89,475 93,171
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental Revenue Received - 53,932 - 53,932
Net Cash Provided (Used) by
Noncapital Financing Activities - 53,932 - 53,932
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal Repayments on Long-Term Debt (37,000) - - (37,000) Interest Repayments Related to
Capital Purposes (32,141) - - (32,141)
Payments Related to the Acquisition
of Capital Assets (78,144) (78,145) - (156,289)
Net Cash Provided (Used) by Capital
and Related Financing Activities (147,285) (78,145) - (225,430)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Payments Received 118,441 100,777 41,048 260,266 Net Cash Provided by Investing Activities 118,441 100,777 41,048 260,266 NET INCREASE IN CASH AND CASH EQUIVALENTS 8,592 42,824 130,523 181,939 Cash and Cash Equivalents - Beginning of Year 2,837,627 2,363,533 912,926 6,114,086 CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,372,125 2,880,451 $ 1,043,449 $ 6,296,025 $
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO THE STATEMENT OF
NET POSITION
Cash and Cash Equivalents in Current Assets 2,493,323 $ 1,848,708 $ 1,043,449 $ 5,385,480 $ Cash and Cash Equivalents in Restricted Assets 387,128 523,417 - 910,545 Total Cash and Cash Equivalents 2,880,451 $ 2,372,125 $ 1,043,449 $ 6,296,025 $ Business-Type Activities - Enterprise Funds
CITY OF PORTOLA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(22)
Water Sewer Solid
Service Service Waste Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Operating Income (Loss) (176,838) $ (190,304) $ (106,682) $ (473,824) $ Adjustments to Reconcile Operating Income
(Loss) to Cash Flows from Operating Activities:
Depreciation 240,436 119,116 255 359,807
Changes in Assets and Liabilities:
(Increase) Decrease in:
Utilities Receivable (40,594) (20,746) 2,007 (59,333)
Customer Deposits 1,751 - - 1,751
Deferred Outflows 38,573 27,076 6,058 71,707
Increase (Decrease) in:
Accounts Payable 6,661 1,168 (6,659) 1,170
Due from Other Governments - (15,674) - (15,674)
Accrued Expenses 11,046 7,011 1,345 19,402
Liability for Compensated Absences 3,110 2,119 842 6,071 Closure/Postclosure Liability - - 195,995 195,995
Net Pension Liability (5,962) 6,941 (2,680) (1,701)
Deferred Inflows (6,515) (4,679) (1,006) (12,200)
Net Cash Provided (Used) by Operating
Activities 71,668 $ (67,972) $ 89,475 $ 93,171 $
NONCASH INVESTING, CAPITAL,
AND FINANCING ACTIVITIES
Contributed Capital Assets 2,452,094 $ - $ - $ 2,452,094 $ Business-Type Activities - Enterprise Funds
(23)
NOTES TO FINANCIAL STATEMENTS
The notes provided in the Financial Section of this report are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a Summary of Significant Accounting Policies for the City, and other necessary disclosures of pertinent matter relating to the financial position of the City. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Portola is governed by an appointed City Manager and elected five-member Council, from which a mayor is elected annually.
A. Description of Reporting Entity
The accounting methods and procedures adopted by the City conform to generally accepted accounting principles as applied to governmental entities. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable.
Reporting for component units on the City’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the City and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize they are legally separate from the City.
The City had no blended or discretely presented component units as of June 30, 2025.
B. Basis of Financial Presentation
1. Government-Wide Financial Statements
The statement of net position and statement of activities display information about the City and its components. These statements include the financial activities of the overall government. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are primarily supported by fees charged to external parties.
The statement of activities presents a comparison between direct and indirect expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or a function and; therefore, are clearly identifiable to a particular function. Indirect expenses are those that are allocated to a program or a function from the City’s centralized general service function based on the cost allocation principles established by the Federal Office of Management and Budget (OMB). Program revenues include 1) charges paid by the recipients of goods or services offered by the programs, 2) fines and penalties ordered by the courts, 3) licenses and permits charged by the programs, and 4) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.
When both restricted and unrestricted net positions are available, restricted resources are used first then the unrestricted resources are depleted.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
2. Fund Financial Statements
The fund financial statements provide information about the City’s funds. Separate statements for each fund category – governmental and proprietary – are presented.
The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. The City reports all enterprise funds as major funds. All remaining governmental funds are separately aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City. It is used to account for all financial resources and transactions except those required to be accounted for in another fund.
The Gas Tax 2107 Fund is used to account for State Gas Tax Funds and transactions associated with street maintenance and repair.
The City reports all of its enterprise funds as major funds:
The Water Service Fund is used to account for water services provided to the residents of the City and for a small number of residents directly outside the City.
The Sewer Service Fund is used to account for sewer services. The Solid Waste Fund is used to account for the franchised curbside refuse and recycling collection provided to residences and businesses within the City and for the landfill post closure maintenance costs.
C. Basis of Accounting
The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) values without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donation. On the accrual basis, property tax revenues are recognized in the fiscal year for which the taxes are levied. Sales taxes are recognized when the underlying transactions take place.
Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
C. Basis of Accounting (continued)
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, expenditures are recorded when the related liability is incurred except the unmatured interest on long-term debt, and expenses related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and right-touse leases are reported as other financial sources. Revenues are recorded when they are both measurable and available to finance expenditures during the fiscal period.
Property and sales taxes, interest, state and federal grants, and charges for services are accrued when their receipt occurs within 60 days after the end of the accounting period so as to be both measurable and available. Revenues earned but not received within sixty days after the end of the accounting period, on the other hand, are recorded as receivables and deferred inflows.
Proprietary fund operating revenues are those that flow directly from operations of the activity such as charges for services to customers, connection fees, and service penalties. Operating expenses are those that are incurred to provide those goods or services (i.e., personnel services, materials and supplies, and transmission costs).
Nonoperating revenues and expenses are items such as investment income, interest expense, and gain or loss on disposal of capital assets that are not a result of the direct operations of the activity.
D. Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the general-purpose financial statements and the reported amount of revenue and expenditures or expenses during the reporting period. Actual results could differ from those estimates.
E. Interfund Transactions and Balances
Interfund transactions are either reflected as loans, services provided, reimbursements, or transfers. Loans are reported as receivable and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/due from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”.
Advances between funds are reported in the fund financial statements, are reported as nonspendable in the general fund to indicate that the resources are not available for appropriation, and are not available financial resources.
Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
F. Capital Assets
Capital assets (including infrastructure) are recorded at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their acquisition value. Capital assets include public domain (infrastructure) consisting of certain improvements including roads, bridges and water/sewer systems.
The City is not required to retroactively report infrastructure and therefore has elected not to do so. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets used in operations are depreciated or amortized ( right to use assets under leases) using the straight-line method over the lesser of the lease period or their estimated useful lives in the government-wide statements.
The estimated useful lives are as follows:
Buildings 50 Years
Infrastructure 15 to 30 Years
Building Improvements 10 to 30 Years
Equipment 3 to 20 Years
G. Property Tax
Plumas County assesses properties, bills, collects, and distributes property taxes to the City. For this service, the County charges the City an administration fee.
Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July 1, and are payable in two installments on December 10 and April 10. The County bills and collects property taxes and remits them to the City in installments during the year.
H. Cash and Investments
For purposes of the Statement of Cash Flows – Proprietary Funds, the City considers all short-term highly liquid investments, including restricted cash and investments, to be cash and cash equivalents. Amounts held in the City’s investment pool are available on demand; thus, they are considered highly liquid and cash equivalents for purposes of the Statement of Cash Flows – Proprietary Funds.
I. Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
I. Fair Value Measurements (continued)
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive;
Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
J. Receivables
Receivables consist of property taxes, sales taxes, grants from other governmental agencies, and billed utilities. As of June 30, 2025, no balance has been provided as an allowance for doubtful accounts because in the opinion of management all receivables are considered collectible.
K. Compensated Absences
The following is the City’s policy on compensated absences upon discontinuation of services:
Percent of Percent of
Sick Hours Vacation Hours
Employee Status Received Received
Part-Time 25 100
Full-Time 25 100
The annual leave includes vacation and sick leave. City employees have vested interests in the amount of annual leave accrued and are paid on termination.
The liability for compensated absences reported in the government-wide and proprietary fund statements consists of leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
L. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ 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.
M. Deferred Outflows/Inflows 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 assets that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items which qualify for reporting in this category. See pension disclosure Footnote 9.
In addition to liabilities, the statement of financial 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 assets that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items which qualify for reporting in this category. See pension disclosure Footnote 9. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
N. New Accounting Pronouncements
For the fiscal year ended June 30, 2025, the City implemented the following Governmental Accounting Standards Board (GASB) Statement:
GASB Statement No. 101, Compensated Absences. In June of 2022, the GASB issued GASB Statement No. 101, Compensated Absences. This Statement Requires that liabilities for compensated absences be recognized for leave that has not been used and leave that has been used but has not yet been paid. The City adopted the requirements of the guidance effective July 1, 2024, and has applied the provision of this standard to the beginning of the period of adoption. The results of this implementation are discussed in note 15.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 NET POSITION/FUND BALANCE
Net Position
The government-wide activities financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt or other liabilities that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.
Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position – This category represents net position of the City, not restricted for any project or other purpose.
Fund Equity
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
Nonspendable Fund Balance – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact.
Restricted Fund Balance – amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance – amounts that can only be used for specific purposes determined by formal action of the highest level of decision-making authority and that remain binding unless removed in the same manner.
The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.
Assigned Fund Balance – amounts that are constrained by the intent to be used for specific purposes. The intent can be established at either the highest level of decisionmaking, or by a body or an official designated for that purpose. This is also the classification for residual funds in the special revenue funds.
Unassigned Fund Balance – the residual classification for the General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
The City Council establishes, modifies, or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, followed by the unrestricted, committed, assigned and unassigned resources as they are needed.
NOTE 3 CASH AND INVESTMENTS
At June 30, 2025, total City cash and investments at fair value were as follows:
Petty Cash 375 $
Cash in Bank 842,396
LAIF 8,128,831
Total 8,971,602 $
Total cash and investments at June 30, 2025 were presented on the City’s financial statements as follows:
Cash and Investments 8,060,682 $
Imprest Cash 375
Restricted Assets:
Cash 910,545
Total 8,971,602 $
Restricted cash and investments in the enterprise fund are comprised of funds held for debt service, facility improvements, and wastewater treatment capital improvements.
Investments
At June 30, 2025, the City had the following investments:
Amortized
Par Cost Cost
Investments:
Local Agency Investment Fund (LAIF) 8,128,831 $ 8,128,831 $ 8,128,831 $ Total Investments 8,128,831 $ 8,128,831 $ 8,128,831 $
Interest Rate Risk
The City manages its exposure to declines in fair values by investing excess cash in the State’s Local Agency Investment Fund. Funds held in this account are available on demand.
Credit Risk
The City authorizes participation in the following types of investments: FDIC Insured Accounts, Local Agency Investment Fund, and United States Government Securities. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the City’s Investment Pool at June 30, 2025.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
Percent of
Moody's Portfolio
Local Agency Investment Fund (LAIF) Unrated 100.00%
Total Pooled Investments 100.00%
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of a 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. As of June 30, 2025, the recorded amount of the City’s deposits was $842,396 and the bank balance was $1,044,835. Of the bank statement balance, $250,000 was covered by federal depository insurance and $794,835 was subject to collateralization.
Local Agency Investment Fund
The City maintains an investment in the state of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the state in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company but is required to invest according to California Government Code.
The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2025, the City’s investment position in LAIF was $8,128,831 which approximates fair value and is the same as value of the pool shares. The total amount invested by all public agencies in PMIA on that day was $178,130,508. Of that amount, 80.57% was invested in structured notes and asset-backed securities with the remaining 19.43% invested in other nonderivative financial reports.
Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. LAIF is the City’s only investment, and it is measured on amortized cost basis as of June 30, 2025.
NOTE 4 LOANS AND NOTES RECEIVABLE
During the fiscal year ended June 30, 2012, the City extended a loan to Eastern Plumas Health Care District in the amount of $348,000. The loan bears initial interest of 1.48% per year to be adjusted annually to reflect LAIF interest rate plus 1%. The term of the loan is 168 months. As of June 30, 2025, the outstanding balance was $44,355. The City also issued Community Development Block Grant (CDBG) loans in the amount of $43,525. The total loans and notes receivable at June 30, 2025 is $87,880.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Balance Transfers and Balance
Governmental Activities July 01, 2024 Additions Retirements June 30, 2025 Capital Assets, Not Being Depreciated:
Land 764,927 $ - $ - $ 764,927 $
Construction in Progress 2,847,304 77,529 (2,845,373) 79,460 Total Capital Assets, Not Being
Depreciated 3,612,231 77,529 (2,845,373) 844,387
Capital Assets, Being Depreciated:
Infrastructure 13,713,793 - 2,845,373 16,559,166
Buildings and Improvements 1,711,614 307,555 (42,146) 1,977,023 Machinery and Equipment 1,608,138 69,039 (884,157) 793,020 Intangible Assets 58,297 - - 58,297
Total Capital Assets, Being
Depreciated 17,091,842 376,594 1,919,070 19,387,506
Less: Accumulated Depreciation for:
Infrastructure (9,713,872) (737,665) - (10,451,537)
Buildings and Improvements (1,478,373) (34,659) 32,663 (1,480,369) Machinery and Equipment (1,453,913) (44,166) 767,299 (730,780) Intangible Assets (40,484) (17,813) - (58,297)
Total Accumulated Depreciation (12,686,642) (834,303) 799,962 (12,720,983) Total Capital Assets, Being
Depreciated, Net 4,405,200 (457,709) 2,719,032 6,666,523 Governmental Activities
Capital Assets, Net 8,017,431 $ (380,180) $ (126,341) $ 7,510,910 $
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
Balance Transfers and Balance
Business-Type Activities July 01, 2024 Additions Retirements June 30, 2025 Capital Assets, Not Being Depreciated:
Land 62,844 $ - $ - $ 62,844 $
Construction in Progress 126,052 - (126,052) -
Total Capital Assets, Not Being
Depreciated 188,896 - (126,052) 62,844
Capital Assets, Being Depreciated:
Buildings and Improvements 8,653,299 2,452,094 - 11,105,393 Machinery and Equipment 1,355,094 156,289 (3,824) 1,507,559 Total Capital Assets, Being
Depreciated 10,008,393 2,608,383 (3,824) 12,612,952
Less: Accumulated Depreciation for:
Buildings and Improvements (4,716,370) (285,466) - (5,001,836) Machinery and Equipment (1,223,229) (74,341) 3,067 (1,294,503) Total Accumulated Depreciation (5,939,599) (359,807) 3,067 (6,296,339) Total Capital Assets, Being
Depreciated, Net 4,068,794 2,248,576 (757) 6,316,613
Business-Type Activities, Net 4,257,690 $ 2,248,576 $ (126,809) $ 6,379,457 $ Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government 29,179 $
Public Protection -
Public Ways and Facilities 1,124
Streets and Roads 737,306
Recreation and Culture 66,694
Total Depreciation Expense -
Governmental Activities 834,303 $
Business-Type Activities:
Water Fund 240,436 $
Sewer Fund 119,116
Solid Waste Fund 255
Total Depreciation Expense -
Business-Type Activities 359,807 $
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 LONG-TERM LIABILITIES
Long-term liabilities at June 30, 2025 consisted of the following:
Annual Original
Date of Date of Interest Principal Issue Outstanding at Business-Type Activities Issue Maturity Rates Installments Amount June 30, 2025 1997 Special Assessment
Water Improvement
Note Payable from Direct Borrowing 1997 5/1/2037 5.00% $5,000-$25,000 1,173,000 $ 605,829 $ (to Finance Improvements to
the City's Water System)
Total Business-Type Activities $ 605,829 1,173,000 $
The following is a summary of long-term liabilities transactions for the year ended June 30, 2025:
Amounts
Balance Balance Due Within
July 1, 2024 Additions (1) Deletions June 30, 2025 One Year Governmental Activities:
Compensated Absences 20,994 $ 6,439 $ 27,433 $ 17,591 $ Total 20,994 $ 6,439 $ - $ 27,433 $ 17,591 $
Business-Type Activities:
Notes Payable from
Direct Borrowing 642,829 $ - $ (37,000) $ 605,829 $ 38,000 $ Postclosure Costs 1,339,325 258,175 (62,180) 1,535,320 - Compensated Absences 46,375 6,071 52,446 33,631
Total 2,093,918 $ 264,246 $ (99,180) $ 2,193,595 $ 71,631 $ (1) The change in the compensated absence liability is presented as a net change.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
The City’s outstanding note payable for business-type activities is secured by water service revenue. As of June 30, 2025, annual debt service requirements of business-type activities to maturity are as follows:
Year Ending June 30, Principal Interest
2026 38,000 $ 30,300 $
2027 40,000 38,400
2028 42,000 36,400
2029 44,000 24,300
2030 47,000 22,100
2031-2035 269,000 73,100
2036-2037 125,829 9,500
Total 605,829 $ 234,100 $
Notes Payable from Direct Borrowing
Business-Type Activities
NOTE 7 INTERFUND TRANSACTIONS AND BALANCES
Transfers:
Transfers are used to subsidize various City operations. The following schedule briefly summarizes the City’s transfer activity for the fiscal year ended June 30, 2025:
Transfer from Transfer to Amount
General Fund Gax Tax 2107 212,288 $
Non-Major Governmental Funds 88,126
$ 300,414
NOTE 8 FUND DISCLOSURES
The following funds had a net position/fund balance deficit at the end of the fiscal year:
Enterprise Funds:
Solid Waste Fund (446,129) $
The Solid Waste Fund has incurred a deficit net position balance as a result of recognition of the estimated liability for the landfill post closure care costs. The City has established a solid waste surcharge included in its utility billings to reduce the deficit in this fund.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plans
1. Plan Description
The City of Portola provides pension benefits to eligible employees through cost sharing multiple-employer defined benefit pension plans (pension plans) administered by the California Public Employees Retirement System (PERS), a public employee retirement system which acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees are eligible to participate in the City’s pension plans. The City’s Miscellaneous Plans (Tier I and Tier II) and PEPRA Miscellaneous Plan are cost-sharing multiple-employer defined benefit plans. Benefit provisions and other requirements are established by state statute and City resolution. The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and their beneficiaries. The City selects optional benefit provisions by contract with PERS and adopts those benefits through City ordinance. Copies of PERS annual financial reports which include required supplementary information (RSI) for each plan may be obtained from PERS Executive Offices, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811.
2. Benefits Provided
All pension plans provide benefits, upon retirement, disability, or death of members.
Retirement benefits are based on years of service, final average compensation, and retirement age. Employees terminating before accruing five years of retirement service credit forfeit the right to receive retirement benefits unless they establish reciprocity with another public agency within a prescribed time period. Nonvested employees who terminate service are entitled to withdraw their accumulated contributions plus accrued interest. Employees who terminate service after earning five years of retirement service credit may leave their contributions on deposit and elect to take a deferred retirement. Differences between expected and actual experience for vested and nonvested benefits may result in an increase or decrease to pension expense and net pension liability.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
Nonservice related disability benefits are provided to miscellaneous members. The benefit is based on final compensation, multiplied by service, which is determined as follows:
Service is CalPERS credited service, for members with less than 10 years of service or greater than 18.518 years of service; or
Service is CalPERS credited service plus the additional number of years that the member would have worked until age 60, for members with at least 10 years but not more than 18.518 years of service. Death benefits are based upon a variety of factors including whether the participant was retired or not.
Annual cost-of-living adjustments (COLAs) after retirement are provided in all plans.
COLAs are granted to retired members each May based upon the Bureau of Labor Statistics Average Consumer Price Index for All Urban Consumers for the previous calendar year and is subject to a maximum of 2% per annum.
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:
Miscellaneous Miscellaneous
Tier I Tier II PEPRA
Hire Date Prior to On or After On or After
July 1, 2012 July 1, 2012 January 2, 2013
Benefit Formula 2.7% at 55 2.0% at 60 2.0% at 62
Benefit Vesting Schedule 5 Years of 5 Years of 5 Years of Credited Service Credited Service Credited Service
Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 50 52
Monthly Benefits, as % of
Eligible Compensation 2.0%-2.7% 1.1%-2.4% 1.0%-2.5%
Required Employee
Contribution Rates 8.0% 6.93% 7.75%
Required Employer
Contribution Rates 15.170% 8.630% 7.680%
Status Open Open Open
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
3. Contributions
Section 20814 of the California Public Employees’ Retirement Law requires the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. During the year ended June 30, 2025, the City made contributions totaling $148,226 to the Plan.
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
1. Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous PEPRA
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
Projected Salary Increase
Investment Rate of Return 6.80% 6.80%
Mortality
(1) Net of Pension Plan Investment Expenses, Including Inflation.
Entry-Age Normal
Varies by Entry Age and Service
Derived Using CalPERS'
Membership Data for All Funds
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of a 2021 actuarial experience study for the period 2000 to 2019. Further details of the Experience Study can be found on the CalPERS website.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
2. Change of Assumption
Demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
3. Discount Rate
Effective with the June 30, 2023 valuation date (2024 measurement date), the accounting discount rate remained the same at 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
Any changes to the discount rate will require Board action and proper stakeholder outreach. CalPERS will continue to check the materiality of the difference in calculation until there is a change in methodology.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension investment expense and inflation) are developed for each major asset class.
The long-term expected rate of return includes both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of 1%.
The long-term expected real rates by asset class can be found in CalPERS’ Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
4. Proportionate Share of the Net Pension Liability
The Miscellaneous plans are part of a Risk Pool, which is part of the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan. The City’s net pension liability for the Miscellaneous Plan was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all plan participants, actuarially determined. The City’s net pension liability and related Plan proportion for the Miscellaneous Plan is as follows:
Miscellaneous
Proportion - June 30, 2024 0.01477%
Proportion - June 30, 2025 0.01502%
Change - Increase/(Decrease) 0.00025%
C. Changes in the Net Pension Liability
1. Sensitivity of the Net Pension Liability to Change in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage points lower or 1-percentage point higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
5.90% 6.90% 7.90%
Net Pension Liability 1,354,349 $ 726,627 $ 209,919 $
2. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
D. Pension Revenue and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City recognized pension expense of $263,976.
Pension expense represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences Between Expected and Actual
Experience 62,824 $ 2,451 $
Changes in Assumptions 18,676 -
Differences Between Employer's Contributions
and Proportionate Share of Contributions - 51,069
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 41,831 -
Change in Employer's Proportion 83,729 -
City Contribution Subsequent to the -
Measurement Date 148,226
Total 355,286 $ 53,520 $
$148,226 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Outflows/(Inflows)
Year Ending June 30, of Resources
2026 74,913 $
2027 91,234
2028 1,727
2029 (14,334)
Total 153,540 $
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS
The City does not offer health insurance benefits to its retirees. By resolution number 2071 the City has confirmed that retirees are only eligible to receive those benefits offered to them by participation in the state of California Public Employees Retirement System (PERS), as well as those that they may be eligible for under the federal Medicare program.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 11 LANDFILL CLOSURE AND POST CLOSURE CARE COST
The City is responsible for one closed landfill site. State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and perform certain maintenance and monitoring functions at the site for 30 years after closure.
GASB Statement No. 18 requires a portion of these closure and post closure care costs be reported as an operating expense in each period based on landfill capacity used as of each statement of net position date. Since the landfill is no longer accepting waste, the entire estimated expense and related liability have been reported.
As of June 30, 2025, based on a study dated April 30, 2025 prepared by TGV Solid Waste, Inc., the City’s estimated liability for post closure maintenance costs for the landfill was $1,535,320. This estimate is based on the amount that would be paid if all equipment, facilities, and services required to close and/or monitor the landfills were acquired as of the balance sheet date. The costs for landfill post closure maintenance costs are based on yearly estimates, reviewed by the California Integrated Waste Management Board, as prepared by TGV Solid Waste, Inc. Actual costs may be higher due to inflation, change in technology, or changes in regulations. The City has applied the annual inflation factor to the liability each year and has reduced the liability by actual expenses incurred.
The City is required by the California Code of Regulations to demonstrate financial responsibility for post closure maintenance costs. The City has met this requirement for the Portola landfill through a pledge of revenue.
NOTE 12 RISK MANAGEMENT
The City of Portola is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; error and omissions; injuries to employees; and natural disasters.
The City participates in joint powers agreements through the Small Cities Organized Risk Effort (SCORE) and California Joint Powers Risk Management Authority (CJPRMA). The relationship between the City and the JPAs is such that the JPAs are not considered a component unit of the City for financial reporting purposes.
The JPAs arrange for and provide liability coverage for members. Each JPA is governed by a board consisting of a representative from each member. The Board controls the operations of the JPA including selection of management and approval of operating budgets, independent of any influence by the members beyond their representation on the board. Each member pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionate to their participation in the JPA.
The City participates in a Banking Plan for the first $25,000 of loss. The portion of loss greater than $25,000 but less than $500,000 is shared among the Member Cities in the Shared Risk Pool. The City participates in the CJPRMA for the portion of losses greater than $500,000 to a maximum of $10,000,000. The liability related to the Banking Plan was deemed immaterial.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
The Authority establishes claims liabilities based on estimates of the ultimate cost of claims (including future claim adjustment expenses that have been reported but not settled, and of claims that have been incurred but not reported (IBNR)). The length of time for which such costs must be estimated varies in the coverage involved. Estimated amounts of salvage and subrogation and excess-insurance recoverable on unpaid claims are deducted from the liability for unpaid claims.
NOTE 13 COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to various lawsuits, inverse condemnation cases, personnel actions, and other actions incidental to the ordinary course of City operations. In the opinion of the City attorney, the total potential claims against the City covered by insurance resulting from litigation would not materially affect the financial statements of the City at June 30, 2025.
NOTE 14 EXCESS EXPENDITURES OVER BUDGET
The City had expenditures that exceeded its budget in the General Fund by $31,995 and in the Gas Tax Fund by 23,357.
NOTE 15 ACCOUNTING CHANGES
A. Changes to or within Financial Reporting Entity
Change in Fund Presentation from Major to Nonmajor
The State Transportation Improvement Plan fund previously met the criteria to be reported as a major governmental fund. However, effective July 1, 2024, the fund no longer met the criteria to be reported as a major fund and is reported as a nonmajor governmental fund for the fiscal year ended June 30, 2025. The effect of this change within the financial reporting entity is shown in the table below.
State
Transportation Other
Improvement Governmental
Plan Funds
Fund Balances - Beginning of Year
As Originally Reported (295,293) 219,981
Change Within Financial Reporting Entity
(Major to Nonmajor Fund) 295,293 (295,293)
Fund Balances - Beginning, as Restated - (75,312)
B. Change in Accounting Principle
Effective July 1, 2024, the City implemented GASB Statement No. 101, Compensated Absences. This statement updated the recognition and measurement guidance for compensated absences and associated salary-related payments and amended certain previously required disclosures. The implementation of this standard did not affect beginning net position.
REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF PORTOLA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY/ (ASSET) AND RELATED RATIOS
YEAR ENDED JUNE 30, 2025
(45)
Miscellaneous Plans – Cost-Sharing Multiple-Employer Defined Benefit Pension Plans Last 10 Fiscal Years 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Proportionate Share of the Net Pension Liability 726,627 $ 738,342 $ 652,972 $ 22,269 $ 483,829 $ 391,142 $ 709,707 $ 708,789 $ 577,890 $ 394,917 $ Proportion of the Net Pension Liability 0.015% 0.014% 0.014% 0.001% 0.011% 0.010% 0.019% 0.018% 0.017% 0.014%Covered Payroll 174,623 $ 169,537 $ 164,599 $ 152,062 $ 167,300 $ 194,362 $ 181,423 $ 259,958 $ 317,876 $ 337,555 $ Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 416.1% 435.5% 396.7% 14.6% 289.2% 201.2% 391.2% 272.7% 181.8% 117.0%Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 77.97% 77.97% 78.19% 90.49% 77.71% 77.73% 77.69% 75.39% 75.87% 79.89% Reporting Date
Measurement Date
CITY OF PORTOLA
SCHEDULE OF PENSION PLAN CONTRIBUTIONS
YEAR ENDED JUNE 30, 2025
(46)
Miscellaneous Plans – Cost-Sharing Multiple-Employer Defined Benefit Pension Plans Last 10 Fiscal Years 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Actuarially Determined Contribution 59,998 $ 43,753 $ 48,375 $ 40,650 $ 35,384 $ 29,604 $ 48,061 $ 48,041 $ 52,222 $ 24,089 $ Contributions in Relation to the Actuarially Determined Contributions 148,226 120,338 118,141 112,052 97,709 94,059 471,085 64,595 45,970 43,236 Contributions Deficiency (Excess) (88,228) $ (76,585) $ (69,766) $ (71,402) $ (62,325) $ (64,455) $ (423,024) $ (16,554) $ 6,252 $ (19,147) $ Covered Payroll 179,862 $ 174,623 $ 169,537 $ 164,599 $ 152,062 $ 167,300 $ 194,362 $ 181,423 $ 259,958 $ 317,876 $ Contributions as a Percentage of Covered Payroll 82.41% 68.91% 69.68% 68.08% 64.26% 56.22% 242.37% 35.60% 17.68% 13.60%
CITY OF PORTOLA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2025
(47)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 692,200 $ 752,200 $ 776,201 $ 24,001 $
Licenses and Permits 77,850 77,850 72,452 (5,398)
Fines, Forfeitures, and Penalties 5,100 5,100 3,201 (1,899) Use of Money and Property 67,507 97,507 103,377 5,870
Intergovernmental 453,400 594,676 587,432 (7,244)
Charges for Services 15,500 15,500 33,175 17,675
Other Revenues - - 3,705 3,705
Total Revenues 1,311,557 1,542,833 1,579,543 36,710
EXPENDITURES
Current:
General Government 257,251 302,251 297,301 4,950
Planning and Community Development 100,097 115,097 133,617 (18,520) Public Safety 248,367 263,367 264,550 (1,183)
Public Works 191,520 430,238 420,070 10,168
Parks and Recreation 208,384 358,384 385,794 (27,410)
Total Expenditures 1,005,619 1,469,337 1,501,332 (31,995) Excess (Deficiency) of Revenues
Over Expenditures 305,938 73,496 78,211 4,715
OTHER FINANCING SOURCES (USES)
Transfers Out (377,624) (377,624) (300,414) 77,210
Total Other Financing Sources (Uses) (377,624) (377,624) (300,414) 77,210 Net Change in Fund Balances (71,686) (304,128) (222,203) 81,925 Fund Balances - Beginning of Year 2,774,087 2,774,087 2,774,087 - Fund Balances - End of Year 2,702,401 $ 2,469,959 $ 2,551,884 $ 81,925 $ Budgeted Amounts
CITY OF PORTOLA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
GAS TAX 2107 FUND
YEAR ENDED JUNE 30, 2025
(48)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 57,298 $ 57,298 $ 61,618 $ 4,320 $
Total Revenues 57,298 57,298 61,618 4,320
EXPENDITURES
Current:
Public Safety 65,000 65,000 82,531 (17,531)
Streets and Roads 185,549 185,549 191,375 (5,826)
Total Expenditures 250,549 250,549 273,906 (23,357)
Excess (Deficiency) of Revenues
Over Expenditures (193,251) (193,251) (212,288) (19,037)
OTHER FINANCING SOURCES (USES)
Transfers In 193,251 193,251 212,288 19,037
Total Other Financing Sources (Uses) 193,251 193,251 212,288 19,037 Net Change in Fund Balances - - - -
Fund Balances - Beginning of Year - - - -
Fund Balances - End of Year - $ - $ - $ - $
Budgeted Amounts
CITY OF PORTOLA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(49)
BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Budget adjustments from reserves and between funds are approved by the City Council and budget transfers within fund or department are approved by the City Manager. Expenditures may not legally exceed budgeted appropriations at the fund level for all funds without the City Council’s approval.
5. Budgets are adopted for the General Fund and Special Revenue Funds.
6. Formal budgetary integration is employed as a management control device during the year in all funds.
Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all funds.
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SUPPLEMENTARY INFORMATION
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NONMAJOR SPECIAL REVENUE FUNDS
CITY OF PORTOLA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2025
(52)
Road
State Maintenance Community
Transportation and Development
Improvement Snow Rehabilitation Block
Plan Removal Account Grant Total
ASSETS
Cash and Investments 1,800 $ 2,553 $ 217,042 $ 215 $ 221,610 $ Due from Other Governments - - 10,152 - 10,152
Interest Receivable - - 2,233 2 2,235
Prepaid Expenses - - - - -
Notes Receivable, Net - - - 43,525 43,525
Total Assets 1,800 $ 2,553 $ 229,427 $ 43,742 $ 277,522 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable - $ 1,332 $ 10,370 $ - $ 11,702 $
Accrued Salaries and Benefits Payable 1,221 - 7,980 - 9,201 Accrued Expenses - - - - -
Total Liabilities - 2,553 18,350 - 20,903
Fund Balance:
Restricted 1,800 - 211,077 43,525 256,402
Assigned - - - 217 217
Total Fund Balance 1,800 - 211,077 43,742 256,619
Total Liabilities and Fund Balance 1,800 $ 2,553 $ 229,427 $ 43,742 $ 277,522 $
CITY OF PORTOLA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2025
(53)
Road
State Maintenance Community
Transportation and Development
Improvement Snow Rehabilitation Block
Plan Removal Account Grant Total
REVENUES
Use of Money and Property - - $ 8,381 $ 97 $ 8,478 $
Intergovernmental 306,398 120,487 57,607 - 484,492
Total Revenues 306,398 120,487 65,988 97 492,970
EXPENDITURES
Current:
Streets and Roads 9,305 208,613 23,354 - 241,272
Planning and Community
Development - - - 7,893 7,893
Total Expenditures 9,305 208,613 23,354 7,893 249,165
OTHER FINANCING SOURCES (USES)
Transfers In - 88,126 - - 88,126
Total Other Financing Sources (Uses) 88,126 - - 88,126
Net Change in Fund Balances 297,093 - 42,634 (7,796) 331,931 Fund Balances - Beginning of Year
As Originally Reported - - 168,443 51,538 219,981
Change Within Financial Reporting Entity
(Major to Nonmajor Fund) (295,293) - - - (295,293)
Fund Balances - Beginning of Year, as Restated (295,293) - 168,443 51,538 (75,312) Fund Balances - End of Year 1,800 $ - $ 211,077 $ 43,742 $ 256,619 $
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OTHER REPORTS
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(54)
INDEPENDENT AUDITORS’ 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
Honorable Mayor and Council Members
Portola, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Portola (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 16, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and Council Members
City of Portola
(55)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’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 entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Roseville, California
October 16, 2025
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
To the Honorable Members of the
City Council of Portola
City of Portola
Portola, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Portola as of and for the year ended June 30, 2025, and have issued our report thereon dated October 16, 2025. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our statement of work dated June 23, 2025.
Professional standards also require that we communicate to you the following information related to our audit.
Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Portola are described in Note 1 to the financial statements.
As described in Note 15, the entity changed accounting policies by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 101, Compensated Absences Fiscal Year 2025.
Accordingly, the adoption of this statement resulted in changes in the financial statement presentation and note disclosures.
We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was:
Management’s estimate of the landfill liability is based on an engineering estimate. We evaluated the key factors and assumptions used to develop the landfill liability in determining that it is reasonable in relation to the financial statements taken as a whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
City Council
City of Portola
Significant unusual transactions
We identified no significant unusual transactions.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has determined that the effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The following summarizes uncorrected misstatements of the financial statements:
o Receivables in the amount of $18,765, $11,404, and $3,753 for the water, sewer, and solid waste funds, respectively, were not recorded. These are for unbilled utility receivables and this is a known nonGAAP policy.
Uncorrected misstatements or the matters underlying uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even if management has concluded that the uncorrected misstatements are immaterial to the financial statements under audit.
Corrected misstatements
Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures.
Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the management representation letter dated October 16, 2025.
Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants City Council
City of Portola
Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.
Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.
Supplementary information in relation to the financial statements as a whole With respect to the Combining Nonmajor Fund Statements (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated October 16, 2025. * * *
This communication is intended solely for the information and use of the City Council and management of City of Portola and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Roseville, CA
October 16, 2025
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CliftonLarsonAllen LLP
CLAconnect.com
1 INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
Honorable Mayor and Council Members
City of Portola, California
We have performed the procedures enumerated below on the Appropriations Limit calculation of the City of Portola as of and for the year ended June 30, 2025. The City of Portola management is responsible for the Appropriations Limit calculation.
The City of Portola has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of presenting the Appropriation Limit calculation in accordance with the requirements of Section 1.5 of Article XIII-B of the California Constitution.
This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed Appropriations Limit Calculation, and compared the limit and annual adjustment factors in those calculation to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned calculation to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. We computed current year adjustments based on the selected population and inflation option, using information provided by Department of Finance.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the prior year appropriations limit presented in the Appropriations Limit Calculation to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
Honorable Mayor and Council Members
City of Portola, California
2 4. We added the results of step two (2) to the prior year Appropriations Limit, and compared the resulting amount to the current year approved limit.
Finding: No exceptions were noted as a result of our procedures.
We were engaged by the City of Portola to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on Appropriations Limit calculation of the City of Portola. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City of Portola and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of City of Portola and management of the City of Portola and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Roseville, California
August 19, 2025