Agenda packet — Shasta Lake City Council, April 15, 2025

CITY OF SHASTA LAKE

CITY COUNCIL

MEETING AGENDA
April 15, 2025
6:00 P.M.

Shasta Lake City Council Chambers
4488 Red Bluff Street  Shasta Lake, CA 96019
Mayor: Pamelyn Morgan
Vice Mayor: Justin Jones
Council Members: Toni Coates, Dan Ringwelski, Greg Watkins

OTHER WAYS TO PARTICIPATE IN THE MEETING
• Watch a livestream of the meeting online or view the recording any time after the meeting concludes at the following: cityofshastalake.org/meetings • Submit public comment electronically before the meeting to:
[email protected]. Public comment by email will be read into the record during consideration of the item the comment addresses. Each public comment will be limited to three minutes of reading. Include the item number you are commenting on in the subject line of the email. Once the vote has taken place on an item, no additional public comments will beaccepted.
• Submit public comment by mail addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019. Mailed comments must be received one day prior to the meeting to be included.

1.0 CALL TO ORDER – REGULAR MEETING:

1.1 Call to order (please place electronic devices on silent)

1.2 Statement for the record of Council Members present or absent

1.3 Pledge of Allegiance

1.4 Invocation

2.0 AWARDS & RECOGNITIONS:

2.1 None

3.0 PRESENTATIONS:

3.1 Matt Plummer, Board of Supervisors District 4

4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:

4.1 None
1 5.0 PUBLIC COMMENT:

This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the regular agenda, please address the Council when that item is open for public comment. Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. Speaker forms are available from the City Clerk, 4477 Main Street, Shasta Lake, on the City’s website, or at the back of the meeting hall. If you have documents to present to members of Council, please provide a minimum of seven copies. Pursuant to The Brown Act, the City Council cannot take action on Public Comment Items.

6.0 CONSENT AGENDA:

The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.

6.1 Minutes of the Regular Meeting of April 1, 2025. (pg. 5)

6.2 Payrolls: (pg. 9)
PE 3/29/2025 PD 4/04/2025 $172,684.85

6.3 Monthly Report of Investment Transactions: (pg. 11) LAIF:

March $13,543,451.23
Chandler:

March $36,174,686.49

6.4 Discussion and possible action to approve a Resolution declaring West Coast Arborists, Inc. the lowest responsive, responsible bidder, and awarding them a construction contract in the amount of $239,530.00 for the construction of the Tree Removal Project 2025. (pg. 15)

6.5 Discussion and possible action to approve a Resolution approving and adopting the Fiscal Year 2025-26 Payrate Schedule for regular full-time and regular part-time position titles and classifications. (pg. 33)

6.6 Discussion and possible action to approve a Letter of Opposition to Senator Duranzo regarding SB 634 (Perez) Homelessness: Civil and Criminal Penalties. (pg. 39)
2 7.0 PUBLIC HEARINGS:

7.1 Discussion and possible action on the first reading of an Ordinance adopting the updated Fire Hazard Severity Zones (FHSZ) as determined by CalFire Local Fire Responsibility Area. (pg.41)

7.2 Discussion and possible action to approve a Resolution adopting and implementing AB 2561 – Notice of Job Vacancies. (pg.47)

8.0 REGULAR AGENDA:

8.1 Discussion and possible action to approve a Resolution accepting the Financial Statements, Single Audit Act Report, and the Auditor’s Letter to City Council for the Fiscal Year ending June 30, 2024. (pg. 51)

9.0 STAFF COMMENTS:

10.0 CITY COUNCIL COMMENTS AND REPORTS:

This is the time set aside for Council Members, who may so desire, to give brief comments or reports concerning City matters. The City Council may not enter into discussion on matters reported. Statements made by individual Council Members should not be interpreted as a statement of the City Council. The City Council only takes action by majority vote. • Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.

ADJOURNMENT:

Meetings are broadcast on the Wednesday following the meeting at 6:00 PM and the following Friday at 2:00 PM on Charter Channel 181. Videos of meetings are also available through the City website: www.cityofshastalake.org In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call (530) 275-7407. Notification 48 hours prior to the meeting is requested to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). 3 4

CITY OF SHASTA LAKE

CITY COUNCIL MEETING MINUTES

MINUTES OF THE REGULAR MEETING
HELD TUESDAY, April 1, 2025, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA

1.0 CALL TO ORDER – REGULAR MEETING:

1.1 Vice Mayor Jones convened the regular meeting at 6:00 PM

1.2 Council Members present: Coates, Jones, Ringwelski, Watkins Mayor Morgan was not in attendance due to a family emergency

1.3 Pledge of Allegiance was led by Councilwoman Coates

1.4 Invocation was led by Vice Mayor Jones

2.0 AWARDS & RECOGNITIONS:

2.1 Proclamation: May 5th declared National Day of Awareness for Missing and Murdered Indigenous Women and People was presented to April Carmelo

3.0 PRESENTATIONS:

3.1 RABA status update, John Andoh, Transit General Manager Public Comment:

Jim Mark, Shasta Lake resident

4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:

4.1 None

5.0 PUBLIC COMMENT:

Jim Mark, Shasta Lake resident

6.0 CONSENT AGENDA:

6.1 Minutes of the Special Meeting of March 18, 2025.

6.2 Minutes of the Regular Meeting of March 18, 2025.

6.3 Payrolls:

PE 3/15/2025 PD 3/21/2025 $175,472.44

6.4 Checks, E-payments, and wires:
2/20/2025 $384,341.01
2/27/2025 $718,088.47
3/06/2025 $797,331.81
5 3/13/2025 $2,040,560.53
3/20/2025 $113,523.35

6.5 Resolution CC-2025-12 accepting the project as complete and authorizing the filing of a Notice of Completion for the Wastewater Collection System Cleaning and CCTV Phase 1 project Bid No. 2024-05.

Motion/Vote
By motion made/seconded (Coates/Watkins), and carried unanimously, the Consent Agenda was approved.

7.0 PUBLIC HEARINGS:

7.1 None

8.0 REGULAR AGENDA:

8.1 Resolution CC-2025-13 approving the term sheet with EDF, Inc., and authorizing negotiations of a Power Purchase Agreement.

Public Comment:

April Carmelo, Shasta Lake resident
Motion/Vote:

By motion made/seconded (Watkins/Ringwelski), and carried unanimously, the item was approved.

8.2 Resolution CC-2025-14 appointing Jeffrey Bowman to the Planning Commission to fill a vacancy for a term expiring February 2026.

Public Comment:

Rose Smith, Shasta Lake resident and Parks and Recreation Chair Motion/Vote:

By motion made/seconded (Watkins/Coates), and carried unanimously, the item was approved.

8.3 Resolution CC-2025-15 approving an agreement between the City of Shasta Lake and Shasta County Citizens Advocating Respect (SCCAR) Regarding The Spirit Pole Conveyance and Maintenance.

Public Comment:

Rose Smith, Shasta Lake resident
Daryl Harris, SCCAR Board Member
Motion/Vote:
6 By motion made/seconded (Coates/Ringwelski), and carried unanimously, the item was approved.

9.0 STAFF COMMENTS:
• Jessaca Lugo, City Manager, presented the April 2025 Shasta Lake Community Connection.
• The Bureau of Reclamation 80th Anniversary of Shasta Dam will be on June 20th, 2025.
• Charity Tatlow was recognized as the City Clerk for the City of Shasta Lake after receiving her City Municipal Clerk certificate.

10.0 CITY COUNCIL COMMENTS AND REPORTS:

ADJOURNMENT:

With no further business, Vice Mayor Jones adjourned the meeting at 8:00 PM. ____________________________
CHARITY TATLOW, City Clerk
7 8
4/2/2025 8:30:41 AM Page 6 of 6
Payroll Check Register
City of Shasta Lake Report Summary
Pay Period: 3/16/2025-3/29/2025
Packet: PYPKT00640 - PE 3.29.2025
Payroll Set: City of Shasta Lake - 01
Type
2 Count
0 4,353.10

0.00 Regular Checks
Manual Checks
0 0.00
0 0.00
Amount
79 168,331.75
Total 81 172,684.85
Reversals
Voided Checks
Direct Deposits
9 10
Report and Recommendations 6.3
Reviewed and Approved
City Manager

AGENDA ITEM
City Council
____________________________________________________________ TO: Mayor and City Council Members
FROM: Wendy Howard, Finance Director
Jason Peterson, Finance Manager
DATE: April 15, 2025
SUBJECT: INFORMATION ITEM – MONTHLY REPORTS OF INVESTMENT FOR THE PERIOD ENDING March 31, 2025
FILE NO.:

RECOMMENDATION
Staff recommends that the City Council receive a report of the Cash and Investment Report for the period ending March 2025.

BACKGROUND
Pursuant to the City of Shasta Lake’s Adopted Investment Policy and Government Code Section 53607, the Finance Director will submit a report of investment transactions to the City Council monthly.

Staff requests the City Council or the public to submit questions regarding the reports prior to the City Council Meeting to permit time to research the question.

FISCAL IMPACTS
There will be no fiscal impact as a result of this information item.

ATTACHMENTS
LAIF Statement
Chandler Investment Summary Report
External Link: Monthly Investment Reports (Full Report)

DISTRIBUTION
City Council
City Attorney
11 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
April 01, 2025
LAIF Home
PMIA Average Monthly
Yields

CITY OF SHASTA LAKE

FINANCE DIRECTOR
4477 MAIN STREET
SHASTA LAKE, CA 96019
Account Number: 98-45-868
March 2025 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 13,543,451.23
Total Withdrawal: 0.00 Ending Balance: 13,543,451.23
12 MONTHLY ACCOUNT STATEMENT
City of Shasta Lake | Account #10203 | As of March 31, 2025 CHANDLER ASSET MANAGEMENT | chandlerasset.com
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Custodian:

PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Performance Review
Account Summary
Maturity Distribution
Top Issuers
Credit Quality (S&P)
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (01/01/14)
City of Shasta Lake 0.44% 1.63% 1.63% 5.50% 4.67% 3.23% 1.65% 1.79% 1.77% Benchmark Return 0.47% 1.59% 1.59% 5.43% 4.19% 2.84% 1.17% 1.51% 1.44% Average Modified Duration 1.83
Average Coupon 3.67%
Average Purchase YTM 4.12%
Average Market YTM 4.19%
Average Credit Quality* AA+
Average Final Maturity 2.17
Average Life 1.89
End Values as of
02/28/2025
End Values as of
03/31/2025
Market Value 36,131,172.20 36,322,806.97
Accrued Interest 267,376.06 242,311.20
Total Market Value 36,398,548.26 36,565,118.17
Income Earned 86,179.28 131,238.55
Cont/WD 14,010.00 5,055.92
Par 36,257,336.71 36,391,532.31
Book Value 36,029,169.09 36,174,686.49
Cost Value 35,748,760.43 35,891,214.63
Government of The United States 38.42%
FHLMC 9.79%
Federal Home Loan Banks 9.70%
Farm Credit System 2.17%
First American Govt Oblig fund 2.16%
American Express Credit Master Trust 2.03%
Bank of America Credit Card Trust 1.84%
John Deere Owner Trust 1.74%
**Periods over 1 year are annualized.

Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Secondary Benchmark:
*The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 14 Report and Recommendations 6.4 Reviewed and Approved

City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Shelby Nadin, Associate Civil Engineer

DATE: April 15, 2025
SUBJECT: CONSTRUCTION CONTRACT AWARD
TREE REMOVAL PROJECT 2025 (BID NO. 2025-08)
FILE NO.: P-175-035-773
RECOMMENDATION:

Staff requests that the City Council award the Tree Removal Project 2025 to West Coast Arborists, Inc. of Anaheim, CA in the amount of $239,530.00 and approve a total of $300,000.00 to allow for approximately 25% contract contingency.

BACKGROUND:

On February 15, 2022, Council approved a resolution authorizing the City Manager to submit an application and execute any documents and subsequent agreements for the Cal Fire Wildfire Prevention Grant Program. The City‘s application was approved and funding was awarded for the purpose of fire prevention projects.

The Tree Removal Project 2025 is being constructed as part of this effort and includes removal of approximately 226 hazardous trees along Ashby Rd, Lake Blvd, and Cascade Blvd. This project also includes trimming of approximately 30 trees.

Eleven (11) bids were received on April 3, 2015, one of which was not responsive. The bids ranged from a low responsive bid of $239,530.00 to a high responsive bid of $733,700.00. The lowest responsive bid was about 357% lower than the Engineer’s Estimate of $857,250.00 and the highest responsive bid was about 116% lower than the Engineer’s Estimate. A Bid Summary is attached.

FISCAL IMPACTS:

This project is funded through currently budgeted Cal Fire grant funds (270-340-6251). 15 ATTACHMENTS:

Resolution
Bid Summary
DISTRIBUTION:

City Council
LOCTION MAP:
16 RESOLUTION CC 2025-XX
__________________________________________________________________________

A RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL TO DECLARE WEST COAST ARBORISTS, INC. THE LOWEST RESPONSIVE, RESPONSIBLE BIDDER, AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $239,530.00 TO WEST COAST ARBORISTS, INC. FOR THE CONSTRUCTION OF THE TREE REMOVAL PROJECT 2025, AND APPROVE TOTAL EXPENDITURE FOR CONSTRUCTION NOT TO EXCEED $300,000.00
__________________________________________________________________________ WHEREAS, The City advertised for competitive bids to construct the above project starting on February 28, 2025; and
WHEREAS, The City opened eleven (11) competitive bids on April 3, 2025; and WHEREAS, the lowest responsive, responsible bidder was West Coast Arborists, Inc. of Anaheim, CA with a bid of $239,530.00; and
WHEREAS, in addition to the construction contract funds, contingency funds need to be allocated, creating a construction budget of $300,000.00.

NOW, THEREFORE, BE IT RESOLVED THAT the City of Shasta Lake City Council hereby:

Declares West Coast Arborists, Inc. of Anaheim, CA, the low responsive, responsible bidder, awards a construction contract in the amount of $239,530.00 to West Coast Arborists, Inc. of Anaheim, CA for the construction of the Tree Removal Project 2025, and approves a total expenditure for construction not to exceed $300,000.00.

PASSED, APPROVED, AND ADOPTED this 15th day of April 2025, by the following vote:

AYES:

NOES:

ABSENT:
___
PAMELYN ANNE MORGAN, Mayor
ATTEST:

CHARITY TATLOW, City Clerk
17 18
Engineer's Estimate West Coast Arborists Community Tree Service California Expert Tree Solutions License No. 366764 License No. 1100816 License No. 984697 DIR No. 1000000956 DIR No. 1000007267 DIR No. 1000064115 Item # Description Est. Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Traffic Control 1 LS $100,000.00 $100,000.00 $2,000.00 $2,000.00 $19,500.00 $19,500.00 $66,105.00 $66,105.00 2 Erosion and Sediment Control 1 LS $15,000.00 $15,000.00 $2,000.00 $2,000.00 $15,500.00 $15,500.00 $5,000.00 $5,000.00 3 Tree Removal (0 - 12" DBH) 37 EA $2,000.00 $74,000.00 $250.00 $9,250.00 $571.99 $21,163.63 $335.00 $12,395.00 4 Tree Removal (12.1 - 24" DBH) 127 EA $3,000.00 $381,000.00 $690.00 $87,630.00 $1,143.98 $145,285.46 $1,200.00 $152,400.00 5 Tree Removal (24.1 - 36" DBH) 57 EA $4,000.00 $228,000.00 $1,950.00 $111,150.00 $1,715.98 $97,810.86 $1,600.00 $91,200.00 6 Tree Removal (36.1" and over DBH) 5 EA $5,250.00 $26,250.00 $4,000.00 $20,000.00 $1,715.98 $8,579.90 $2,800.00 $14,000.00 7 Tree Trimming 30 EA $1,100.00 $33,000.00 $250.00 $7,500.00 $571.99 $17,159.70 $250.00 $7,500.00 Base Bid Total: $857,250.00 $239,530.00 $324,999.55 $348,600.00 Subcontractor:

Bay Area Tree Specialists Arbor Pros A-1 Tree Service Mountain F Enterprises License No. 836837 License No. 1063954 License No. 1020617 License No. 842929 DIR No. 1000007036 DIR No. 1000582541 DIR No. 1000364373 DIR No. 1000005328 Item # Description Est. Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Traffic Control 1 LS $20,000.00 $20,000.00 $80,000.00 $80,000.00 $46,875.00 $46,875.00 $100,000.00 $100,000.00 2 Erosion and Sediment Control 1 LS $750.00 $750.00 $10,000.00 $10,000.00 $5,500.00 $5,500.00 $2,000.00 $2,000.00 3 Tree Removal (0 - 12" DBH) 37 EA $500.00 $18,500.00 $500.00 $18,500.00 $550.00 $20,350.00 $400.00 $14,800.00 4 Tree Removal (12.1 - 24" DBH) 127 EA $1,302.00 $165,354.00 $1,100.00 $139,700.00 $1,225.00 $155,575.00 $1,500.00 $190,500.00 5 Tree Removal (24.1 - 36" DBH) 57 EA $2,250.00 $128,250.00 $2,000.00 $114,000.00 $2,845.00 $162,165.00 $2,499.00 $142,443.00 6 Tree Removal (36.1" and over DBH) 5 EA $4,250.00 $21,250.00 $5,000.00 $25,000.00 $6,850.00 $34,250.00 $3,999.00 $19,995.00 7 Tree Trimming 30 EA $250.00 $7,500.00 $400.00 $12,000.00 $410.50 $12,315.00 $349.00 $10,470.00 Base Bid Total: $361,604.00 $399,200.00 $437,030.00 $480,208.00 Subcontractor:

Highway Specialty, Inc.

Tree Removal Project 2025
Bid No. 2025-08
Bid Opening Date: April 3, 2025
None None None
City Rise LLC None Warner Enterprises None
19 Anvil Power Inc. West Coast Tree Service Evergreen Enterprises Julian Tree Care Inc.

License No. 1025528 License No. 1060844 License No. 1103194 License No. xx DIR No. 1000366553 DIR No. 1000882508 DIR No. 1001151822 DIR No. xx Item # Description Est. Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Traffic Control 1 LS $221,700.00 $221,700.00 $100,000.00 $100,000.00 $63,000.00 $63,000.00 2 Erosion and Sediment Control 1 LS $17,600.00 $17,600.00 $175,000.00 $175,000.00 $12,800.00 $12,800.00 3 Tree Removal (0 - 12" DBH) 37 EA $490.00 $18,130.00 $600.00 $22,200.00 $1,000.00 $37,000.00 4 Tree Removal (12.1 - 24" DBH) 127 EA $910.00 $115,570.00 $1,600.00 $203,200.00 $2,200.00 $279,400.00 5 Tree Removal (24.1 - 36" DBH) 57 EA $3,000.00 $171,000.00 $3,200.00 $182,400.00 $5,000.00 $285,000.00 6 Tree Removal (36.1" and over DBH) 5 EA $9,100.00 $45,500.00 $5,000.00 $25,000.00 $6,500.00 $32,500.00 7 Tree Trimming 30 EA $1,200.00 $36,000.00 $235.00 $7,050.00 $800.00 $24,000.00 Base Bid Total: $625,500.00 $714,850.00 $733,700.00 $0.00 Subcontractor: None None None None
Non Responsive
20 PARK PL

SPRING ST

PALM AVE

ROSE AVE

TOYON AVE
OAK ST

PINE AVE

LASSEN ST

JANKANISH RD
FIG ST

KIRKLIE LN

BUCKEYE ST

MONTEGO RD

HILL BLVD

LAKE BLVD
mnmn
mn
mn
mn
mnmn
mnmn
mnmn
mn
mn
mn
mn
mn
mn
mnmnmn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mnmn
mn
mn
mn
mn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 1 of 11 (Lake Blvd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

Bid Item Total Quantity
Tree Removal (12” and smaller DBH) 37
Tree Removal (12.1 - 24" DBH) 127
Tree Removal (24.1 - 36" DBH) 57
Tree Removal (36.1" and over DBH) 5
Trim Only 30
Total Trees (see all maps) 256
21 LAKE BLVD

RANCHERA RD

NELLIE BELL LN

FLANAGAN RD

HILL BLVD
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mnmn
mn
mn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 2 of 11 (Lake Blvd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

LAKE BLVD
mnmn
mn
mnmnmn
mnmn
mn
mn
mn
mn
mnmn
mn
mn
mn
mn
mn
mn
mn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 3 of 11 (Lake Blvd)
1:2,400
Right-of-Entry
Authorization
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

LAKE BLVD
mnmnmnmn
mn
mn
mnmnmn
mn
mn
mn
mn
mn
mnmn
mn
mn
mn
mnmn
mn
mn
mn
mn
mn
mn mn
mn
mn
mnmn
mn
mn

CITY LIMIT
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 4 of 11 (Lake Blvd)
1:2,400
Right-of-Entry
Authorization
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

JOSEPH ST

CASCADE BLVD

PARKER ST

ELIZABETH AVE

ROSAMOND AV

ELLIOTT ST

SHASTA ST

MORNING STAR WAY
mn
mn
mnmn
mnmn
mnmn
mn
mnmn
mnmn
mn
mn
mn
mnmnmnmn
mnmnmn
mn
mn
mn
mn
mn
mn
mn
mn
mnmn mn
mn
mnmnmn
mn
mn
mn
mmnn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx §¨¦5
This is not a survey product. Locations are shown for reference only.

Project Area Map 5 of 11 (Cascade Blvd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

CASCADE BLVD

FELL ST

WASHINGTON AVE
mn
mn
mnmn
mn
mn
mnmn
mn
mn
mn
mn
mn
mnmn
mnmn
mnmn
mn
mn
mn
mn
mmnn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx §¨¦5
This is not a survey product. Locations are shown for reference only.

Project Area Map 6 of 11 (Cascade Blvd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

RIDDLE RD

ARROWHEAD AVE

CASCADE BLVD
mn
mn
mn
mnmnmn
mn
mnmnmn
mn
mn
mn
mnmn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx §¨¦5
This is not a survey product. Locations are shown for reference only.

Project Area Map 7 of 11 (Cascade Blvd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

FLOWER ST

EL PASO ST

LOS GATOS AVE

THOMAS ST
GIVAN

LAREDO ST

PLEASANT ST

SAN GORGONIO AVE

ASHBY CT

LASSEN AVE

FORT PECK ST

LOS FLORES ST

CHURCH S

LA MESA AVE

EL CAJON AVE

ASHBY RD

SHASTA DAM BLVD
mn
mnmnmnmn
Remove
7 Trees
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 8 of 11 (Ashby Rd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

VASSAR WAY

WELLINGTON PL

EL CAJON AVE

ASHBY RD

ASHBY RD
mn
mnmn
mn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 9 of 11 (Ashby Rd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

WALTON AVE

ASHBY RD

ASHBY RD
mn
mn
mn
mn
mn
mnmn
mn
mnmn
mn
mn
mn
mn mnmn
mnmn
mn
mn
mn
mn
mnmn
mn
mn
mn
mn
mnmn
mn
mn
mn
mn mn
mnmnmnmn
mnmnmnmn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 10 of 11 (Ashby Rd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

PINE GROVE AVE

DOWELL CT

D'ALENE AVE

ARLENE CT

COEUR D'ALENE AVE
mn
mn
mn
mnmnmn
mn
mn
mn
mn
mn
mn
mn
mn
mnmn
mnmnmnmn
mnmnmnmn
mn
mn
I
Map Produced: February 25, 2025
0 200
Feet
Tree Removal Project 2025
Bid No. 2025-08
P:\\GIS\Fire\FFR_TR_2025_Tree Removal Project with Bid No. 2025-08_8x11P.arpx This is not a survey product. Locations are shown for reference only.

Project Area Map 11 of 11 (Ashby Rd)
1:2,400
Activity
mn Remove
mn Trim
Note:

1. All trees to be trimmed or removed will be marked by the city.

City Manager

AGENDA ITEM
City Council
TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: April 15, 2025
SUBJECT: ADOPTION OF REVISED PAY RATE SCHEDULE FOR CITY POSITIONS (FY 2025-2026)
FILE NO.:

RECOMMENDATION:

Staff respectfully recommends that the City Council approve and adopt the Fiscal Year 2025–26 Payrate Schedule for all Regular Full-time and Regular Part-time position titles and classifications.

BACKGROUND:

CalPERS requires that each agency maintain a payrate schedule that has been duly approved and adopted by the employer’s governing body in accordance with applicable public meeting laws. In compliance with this requirement, staff is submitting the FY 2025– 26 Payrate Schedule for Council approval and adoption.

When staffing changes occur, the City evaluates the most effective and efficient path forward. This includes assessing whether to fill a position or redistribute its duties among existing staff. If duties are reassigned, corresponding pay adjustments are made to reflect the increased responsibilities.

For transparency, the following changes from the FY 2024–25 Revised Payrate Schedule (approved by Council on November 19, 2024) are noted. All modifications listed below were included in the previously adopted budget:
33 • A 3% wage adjustment for non-represented employees, excluding the City Manager (who declined wage increases for FY 2024–25 and FY 2025–26) and the Finance Director (who received a market/compaction adjustment). • Implementation of negotiated changes to the IBEW (Electric) Memorandum of Understanding (MOU).
• Implementation of negotiated changes to the Teamsters MOU. • Revised pay for the Building Official position to accommodate the phased transition of a promoted candidate.
• Addition of the City Clerk / Permit Center Manager position and removal of the Permit Center Manager and Deputy City Clerk positions.
• Job title change from Meter Reader/Service & Warehouse Worker to Meter Reader II.
• Adjustment of the Public Works Superintendent – Wastewater salary to align with that of the Public Works Superintendent – Water.

FISCAL IMPACTS:

There is no fiscal impact; all proposed changes are accounted for within the approved budget.

ATTACHMENTS:

Resolution adopting the FY2025-26 Payrate Schedule
Exhibit A – FY2025-26 Payrate Schedule effective 7/1/2025 DISTRIBUTION:

City of Shasta Lake City Council
34 RESOLUTION CC-2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING AND ADOPTING THE FISCAL YEAR 2025-26 PAY RATE SCHEDULE

FOR REGULAR FULL-TIME AND REGULAR PART-TIME POSITION TITLES AND

CLASSIFICATIONS
WHEREAS, the City of Shasta Lake maintains a pay rate schedule that identifies the base pay rate and time base (monthly and hourly) for all Regular Full-Time and Regular PartTime position titles and classifications within the City, including the effective date and dates of any revisions; and
WHEREAS, the City of Shasta Lake’s pay rate schedule includes the position title for every employee position; and
WHEREAS, the pay rate schedule is readily accessible for public review during normal business hours, is available on the City’s website, and is retained by the City for public inspection for a period of not less than five years; and WHEREAS, the California Public Employees' Retirement System (CalPERS) requires the City to adopt publicly available pay schedules.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake hereby approves and adopts the Pay Rate Schedule attached hereto as Exhibit A, effective July 1, 2025, for all Regular Full-Time and Regular Part-Time position titles and classifications.

PASSED, APPROVED, AND ADOPTED this 15th day of April, 2024, by the following vote:

AYES:

NOES:

ABSENT:

PAMELYN ANNE MORGAN, Mayor
ATTEST:

CHARITY TATLOW, City Clerk
35 36
City of Shasta Lake
Payrate ScheduleEffective 7/1/2025Approved 4/15/2025
FY24/25 and FY25/26 Mid-year changes:

Bargaining
Position Titles / Classifications Unit x Hourly Payrate x Monthly Payrate x Hourly Payrate x Monthly Payrate x Effective Date Account Clerk I T 4,692 27.07Account Clerk II T 5,101 29.43Accounting Technician - AP, UTL M 35.16 6,094Accounting Technician - PR/HR M 37.60 6,517Animal Control Officer T 4,838 27.91Animal Control Officer-Supervisor M 39.17 6,789Assistant Electric Director M 111.88 19,393Associate Civil Engineer M 64.86 11,242Building Inspector T 6,795 39.20Building Official M 51.54 8,934City Clerk / Permit Center Manager (new) M 49.74 8,622 48.29 8,370 Effective 3/30/2025 City Engineer M 83.51 14,475City Manager M 116.01 20,108Code Enforcement Officer T 5,606 32.34Community Economic Development Manager M 51.89 8,994 Deputy Building Official M 44.55 7,722Development Services Technician I T 26.58 4,607Development Services Technician II T 29.43 5,101Development Services Technician III T 32.29 5,597Electric Leadworker I 85.17 14,763 89.43 Effective 11/9/2025Electric Lineman I 79.23 13,733 83.19 Effective 11/9/2025Electric Operations Manager M 111.88 19,393Electric Troubleman I 82.92 14,373 87.07 Effective 11/9/2025Electric Utilities Director M 145.45 25,211 Engineering Technician II T 40.02 6,937
Equipment Mechanic T 35.41 6,138Equipment Mechanic Lead Worker T 39.50 6,847Executive Assistant M 34.00 5,893Finance & General Services Manager M 63.76 11,052 Finance Director M 82.76 14,345
Effective 7/1/2025
37 FY24/25 and FY25/26 Mid-year changes:

Bargaining
Position Titles / Classifications Unit x Hourly Payrate x Monthly Payrate x Hourly Payrate x Monthly Payrate x Effective Date Fuel Reduction Coordinator M 46.96 8,141GIS Program Coordinator M 56.02 9,710 Line Staking Technician I 63.38 10,986 66.55 Effective 11/9/2025 Meter Reader T 30.20 5,235Meter Reader II (formerly Meter Reader/Service & Warehouse Worker) T 33.56 5,817Operator in Training T 29.78 5,162Planning Manager M 74.24 12,868 Public Works Director / Engineer M 101.35 17,567Public Works Equipment Operator T 38.54 6,680Public Works Lead Worker T 42.32 7,335Public Works Maintenance Worker I T 30.50 5,287Public Works Maintenance Worker II T 35.00 6,067Public Works Parks Maintenance Worker I T 26.69 4,626Public Works Superintendent - Wastewater M 63.88 11,073 Public Works Superintendent - Water M 63.88 11,073
Public Works Supervisor M 58.42 10,126Senior Mechanic T 43.52 7,543Senior Planner M 52.63 9,123Senior Wastewater Treatment Plant Operator T 47.69 8,266Senior Water Treatment Plant Operator T 47.69 8,266Special Projects Building Official M 57.97 10,048 Utility Billing & Customer Service Supervisor M 41.12 7,127 Wastewater Treatment Plant Operator I T 34.65 6,006Wastewater Treatment Plant Operator II T 40.89 7,088Water Treatment Plant Operator I T 34.65 6,006Water Treatment Plant Operator II T 40.89 7,088Bargaining Units:T = TeamstersI = IBEWM = Management / Confidential 38 April 15, 2025
The Honorable Maria Elena Durazo
Chair, Senate Local Government Committee
California State Capitol, Room 407
Sacramento, CA 95814
RE: SB 634 (Pérez) Homelessness: civil and criminal penalties Notice of OPPOSITION (As Amended 03/26/25)
Dear Senator Durazo,
The City of Shasta Lake must respectfully oppose SB 634 (Pérez), which would prohibit local jurisdictions from adopting or enforcing ordinances to address homelessness. While we recognize the bill’s intent, SB 634 would severely limit cities' ability to respond to the growing homelessness crisis in communities across California.

Cities are implementing balanced approaches that protect both the rights of individuals experiencing homelessness and the broader community’s needs for clean, safe, and accessible public spaces. SB 634 hinders this progress by prohibiting local governments from adopting any regulation, policy, or guidance that imposes civil or criminal penalties on a person experiencing homelessness. By eliminating all enforcement mechanisms, SB 634 gives people the right to stand, sit, lay, sleep, or put up a tent in any public place.

The City of Shasta Lake takes great pride in its exceptional park system—one that is well-used by the public thanks to its safety and cleanliness. Recently, the City was awarded $2.5 million to replace all of its playground equipment, ensuring it is inclusive and accessible for all ages and abilities.

As a small city with just over 10,000 residents, our contracted police force is limited—there are times when only two deputies are on duty to cover an area of 10 square miles. The City also lacks dedicated park security to protect the children and families who regularly use our parks.

Individuals experiencing homelessness have direct access to numerous resources throughout Shasta County, taking up residence in our park system is simply unacceptable. SB 634 would have a direct and undeniably harmful impact on our community.

Cities have been sued by business owners for allowing encampments to block access to businesses and by disability rights advocates over encampments that have obstructed sidewalks and public spaces. Without the ability to use civil or criminal enforcement remedies, cities would face increased legal liability and more importantly, have no meaningful way to respond to urgent health and safety concerns. The City of Shasta Lake recognizes that we must remain focused on 39 connecting unhoused residents to housing and services, but cities also need basic tools to meet their legal obligations and protect public spaces.

SB 634 also directly contradicts cities’ efforts to address encampments in response to the Governor’s November 2024 executive order. The order directed state departments and agencies to adopt policies to address homeless encampments on state properties and encouraged local governments to adopt similar policies or risk losing access to state homelessness funding. Cities want to help the state to realize our shared vision of reducing homelessness and supporting our most vulnerable residents. However, SB 634 leaves cities without any enforcement tools, hindering cities' ability to carry out the Governor’s directive and jeopardizing state funding cities receive to address homelessness.

Local jurisdictions are already working within a complex and evolving legal landscape, including recent federal court decisions like Johnson v. Grants Pass, which clarified constitutional limits on how cities can address homelessness through enforcement actions. In response to the Grants Pass ruling, the Governor stated:
“Today’s ruling by the U.S. Supreme Court provides state and local officials the definitive authority to implement and enforce policies to clear unsafe encampments from our streets. This decision removes the legal ambiguities that have tied the hands of local officials for years and limited their ability to deliver on common-sense measures to protect the safety and well-being of our communities.”
SB 634 directly undermines this decision by stripping local governments of the authority to tailor enforcement strategies to their unique circumstances. It also disregards the years of legal effort cities have invested to gain the clarity now provided by the Court.

The City of Shasta Lake urges the Legislature to support policies that empower local governments to act with compassion and urgency — not tie their hands behind their backs. SB 634 does not reflect the nuanced, community-led solutions that are showing promise across the state. For these reasons, the City of Shasta Lake must oppose SB 634 (Pérez).

Very truly yours,

CITY OF SHASTA LAKE

PAMELYN ANNE MORGAN
Mayor
cc. Shasta Lake City Council and City Manager
Shasta County Sheriff Michael Johnson
Assemblywoman Heather Hadwick, District 1
Senator Megan Dahle, District 1
Charles Anderson, League of California Cities Sac Valley Region Public Affairs League of California Cities, [email protected]
40 Report and Recommendations 7.1 Reviewed and Approved

City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: April 15, 2025
SUBJECT: ADOPTION OF UPDATED FIRE HAZARD SEVERITY ZONES (FHSZ) AS DETERMINED BY CAL FIRE LOCAL

RESPONSIBILITY AREA (LRA)
FILE NO.:

RECOMMENDATION
Staff recommends that the City Council review and consider approving the first reading of an ordinance adopting the LRA Fire Hazard Severity Zones within the City of Shasta Lake, pursuant to Government Code Section 51179.

BACKGROUND
CAL FIRE has completed an update to the Fire Hazard Severity Zone maps in accordance with Public Resources Code §§ 4201–4204 and Government Code §§ 51175–51189.

These maps identify areas of moderate, high, and very high fire hazard severity based on factors such as fire history, vegetation, topography, and weather patterns.

The adoption of these updated maps is required by Government Code § 51179, which mandates local jurisdictions to adopt the FHSZ maps by reference following a public hearing process. These maps inform land use planning decisions and building standards, particularly for new construction in areas prone to wildfires.

The City of Shasta Lake, in coordination with the Shasta Lake Fire Protection District, held a public informational meeting on March 11, 2025, to reach out to the public and gather comments.

The adoption of the updated FHSZ maps ensures the City remains compliant with state regulations and continues to prioritize community safety. These maps serve several purposes:
41 • Support the implementation of wildfire-resistant building standards (such as those in Chapter 7A of the California Building Code).
• Inform insurance providers, homeowners, and developers of wildfire risks. • Guide emergency preparedness and hazard mitigation planning efforts.

The ordinance includes an amendment to the Shasta Lake Municipal Code to reflect the updated map and its location for public reference. The map will be maintained on file with the City Clerk and at the Shasta Lake Fire Protection District.

Information on the FHSZ rollout and maps can be found here:
www.cityofshastalake.org/FHSZ

FISCAL IMPACTS
Revenue generated through prioritized grant applications may offset future expenditures; however, associated building standards or mitigation requirements could increase development costs. These requirements are necessary to ensure public safety and maintain compliance with applicable state regulations.

ATTACHMENTS
Shasta Lake Fire Severity Zone Map – Published 02/10/2025 Ordinance ORD-2025-XX

DISTRIBUTION
City Attorney
Shasta Lake Fire Protection District
42 ORDINANCE CC 2025-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE

ADOPTING THE FIRE HAZARD SEVERITY ZONES (FHSZ) AS DETERMINED BY

THE CALIFORNIA DEPARTMENT OF FORESTRY AND

FIRE PROTECTION (CAL FIRE)
WHEREAS, the California Department of Forestry and Fire Protection (CAL FIRE) has completed its update of Fire Hazard Severity Zones (FHSZ) in accordance with Public Resources Code §§ 4201–4204 and Government Code §§ 51175–51189; and WHEREAS, these FHSZ maps serve to identify areas where there is a higher likelihood of wildfire occurrence and severity, in order to guide land use planning and implementation of appropriate building standards; and
WHEREAS, Government Code § 51179 requires local jurisdictions to adopt these maps by reference following a public hearing process; and
WHEREAS, the City and the Shasta Lake Fire Protection District conducted a required public meeting on March 11, 2025, to conduct public outreach and gather public comments.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SHASTA LAKE DOES ORDAIN AS FOLLOWS:

SECTION 1: Findings, Determinations, and Direction

1. After hearing testimony, considering all evidence submitted to the administrative record, and engaging in due deliberation of the matters presented, the City Council finds the above recitals to be true and correct.

2. Pursuant to Government Code Section 36933, the City Council directs the City Clerk to publish a summary of this ordinance within fifteen (15) days after its adoption in a newspaper of general circulation.

3. The City Council hereby approves amendments to the Municipal Code as outlined in Section 3 of this ordinance.

SECTION 2: Severability
If any provision of this ordinance or its application to any person or circumstance is held to be invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected and shall remain in full force and effect to the extent permitted by law.

SECTION 3: Amendment to Municipal Code
43 Section 15.01.035 – Fire Hazard Severity Zone Adopted

15.01.035 Fire hazard severity zone adopted.

The City of Shasta Lake hereby designates the Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178. The map shall be maintained on file with the office of the City Clerk, City Hall, 4477 Main Street, and at Shasta Lake Fire Protection District, 4126 Ashby Court.

SECTION 4: Effective Date
This ordinance shall become effective thirty (30) days following its second reading and posting, as provided by City Code.

PASSED, APPROVED, AND ADOPTED this 15th day of April, 2025 by the following vote:

AYES:

NOES:

ABSENT:

PAMELYN ANNE MORGAN, Mayor
ATTEST:

CHARITY TATLOW, City Clerk
44 City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:

Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency The State of California and the Department of Forestry and Fire Gavin Newsom, Governor, State of California Protection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent Federal Responsibility
Area (FRA)
Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:29,000 at 11" x 17"
Km 0 1 2
Mi 0 1
Very High High
Very High High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the State Fire Marshal
Shasta Lake
5 Shasta DamBlvd
151

UNINCORPORATED
SHASTA CO.

UNINCORPORATED SHASTA
CO.

REDDING
January 22, 2025
As Identified by the
State Fire Marshal
Local Responsibility Area
Fire Hazard Severity Zones
CITY OF SHASTA LAKE – SHASTA COUNTY
Fire Hazard Severity Zones in State Responsibility
Area (SRA), Effective April 1, 2024
45 46
Report and Recommendations 7.2 Reviewed and Approved

City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Wendy Howard, Finance Director
DATE: April 15, 2025
SUBJECT: ADOPTION OF RESOLUTION IMPLEMENTING AB 2561 –

NOTICE OF JOB VACANCIES
FILE NO:

RECOMMENDATION:

Staff recommends that the City Council conduct a public hearing and adopt a resolution implementing Assembly Bill (AB) 2561 to hear a report on the City’s current job vacancies.

BACKGROUND:

Assembly Bill 2561, which became effective on January 1, 2025, amends the California Government Code to require public agencies to provide current employees with notice of any job vacancies for which they may be qualified before the position is publicly advertised. The law aims to increase internal promotional opportunities and transparency in public employment.

Key Requirements for Local Public Agencies

1. Annual Public Hearing on Vacancies
• Frequency and Timing: Local public agencies must present the status of job vacancies and their recruitment and retention strategies at a public hearing before the governing board at least once per fiscal year. This presentation must take place prior to the adoption of the agency’s final budget for that fiscal year. • Content: The presentation should include a detailed summary of current vacancies, ongoing recruitment efforts, and any policies or procedures that may be affecting the agency’s ability to reduce vacancies.
47 2. Enhanced Reporting for High Vacancy Rates
• Threshold: If vacancies within a single bargaining unit reach or exceed 20% of the total number of authorized full-time positions, the agency must provide additional reporting.
• Upon Request: At the request of the recognized employee organization, the agency must provide:
o The total number of job vacancies within the bargaining unit o The total number of applicants for the vacant positions o The average time to complete the hiring process, measured from the posting date
o A description of potential improvements in compensation and working conditions that may assist in filling these positions

3. Employee Organization Participation
• Recognized employee organizations must be allowed to present their perspectives at the same public hearing in which the agency discusses vacancies and recruitment strategies.
• Notification of the public hearing was provided to the employee organizations on April 1, 2025.

FISCAL IMPACTS:

None
ATTACHMENTS:

Resolution 2025-XX
Attachment A: List of Vacancies as of 4/15/2025, and Calculation of 20% Threshold DISTRIBUTION:

City of Shasta Lake City Council
IBEW Local Union 1245
Teamsters Local 137
City of Shasta Lake Files
48 RESOLUTION CC-2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE

IMPLEMENTING A POLICY FOR NOTICE OF JOB VACANCIES IN COMPLIANCE WITH ASSEMBLY BILL 2561
WHEREAS, Assembly Bill 2561 requires local public agencies in California to present the status of job vacancies, along with their recruitment and retention strategies, at a public hearing before the governing board at least once per fiscal year; and WHEREAS, this presentation should take place prior to the adoption of the agency’s final budget for that fiscal year; and
WHEREAS, the City of Shasta Lake adopts a two-year budget, and for the second year of the budget cycle, this presentation shall occur within that second fiscal year; and WHEREAS, if vacancies within a single bargaining unit reach or exceed 20% of the total authorized full-time positions, additional reporting is required; and WHEREAS, as of this date, the City has not exceeded a 20% vacancy rate for any of its units.

NOW, THEREFORE, BE IT RESOLVED that the Shasta Lake City Council hereby accepts the report of vacancies pursuant to Assembly Bill 2561.

PASSED, APPROVED, AND ADOPTED this 15th day of April, 2025, by the following vote:

AYES:

NOES:

ABSENT:

PAMELYN ANNE MORGAN, Mayor
ATTEST:

CHARITY TATLOW, City Clerk
49 Attachment A
List of Vacancies as of 4/15/2025, and Calculation of 20% Threshold Vacancies:

Teamsters (2):
• Engineering Technician II – a recruitment has been done, and an offer made an accepted. It is anticipated that the new employee will start on 5/5/2025. • Meter Reader II (Formerly Meter Reader/Service & Warehouse Worker. A revised job description has been developed. Pay is the same. The new job title is included on the Pay Rate Schedule on this meeting’s consent agenda.) The recruitment for this position is anticipated to start within the month.

IBEW: None
Calculation of 20% Threshold:

The threshold has not been met, so no additional reporting is required. 50 Report and Recommendations 8.1 Reviewed and Approved City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Wendy Howard, Finance Director
DATE: April 15, 2025
SUBJECT: RESOLUTION ACCEPTING THE FINANCIAL STATEMENTS, SINGLE AUDIT ACT REPORTS, AND AUDITOR’S LETTER TO
COUNCIL FOR THE FISCAL YEAR ENDING JUNE 30, 2024
FILE NO:

RECOMMENDATION:

Staff recommends approval of a Resolution by the Shasta Lake City Council accepting the Financial Statements, Single Audit Act Report, and Auditor’s Letter to Council for the Fiscal Year Ending June 30, 2024 for the City of Shasta Lake.

BACKGROUND:

The financial report is an accumulation of information relating to the activities directed and approved by the City Council, along with the actions necessary by Management to carry out the desires of the City Council. This year, as in prior years, the staff records these transactions and works diligently to ensure that everything is proceeding within the guidance given by the City Council.

FISCAL IMPACTS:

No Fiscal Impact
ATTACHMENTS:
• Resolution accepting the Audited Financial Statements for the Fiscal Year Ending June 30, 2024
51 • Financial Statements Together with Independent Auditor’s Report for the Fiscal Year Ended June 30, 2024
• Single Audit Act Reports and Schedules for the Year Ended June 30, 2024 • Auditor’s Letter to Council
DISTRIBUTION:

City Manager
City Attorney
52 RESOLUTION CC-2025-XX

A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SHASTA LAKE

ACCEPTING THE AUDITED FINANCIAL STATEMENTS, SINGLE AUDIT ACT REPORT, MANAGEMENT LETTER, AND AUDITOR’S LETTER TO COUNCIL FOR FISCAL YEAR ENDING JUNE 30, 2024
WHEREAS, the Shasta Lake City Council is required by Government Code to have an Annual Audit; and
WHEREAS, the audit has been completed by Smith & Newell, Certified Public Accountants; and
WHEREAS, the audit was due to the Federal Audit Clearinghouse, and the State Controller’s Office, by March 31, 2025. It was received and submitted to both on March 24, 2025; and
NOW, THEREFORE, BE IT RESOLVED that the Financial Statements, Single Audit Act Report, Management Letter, and Auditor’s Letter to Council for the fiscal year ending June 30, 2024 is hereby accepted.

BE IT FURTHER RESOLVED that the Finance Director is hereby authorized and directed to disseminate that audited report to the appropriate recipients.

PASSED, APPROVED, AND ADOPTED this 15th day of April, 2024, by the following vote:

AYES:

NOES:

ABSENT:

PAMELYN ANNE MORGAN, Mayor
ATTEST:

CHARITY TATLOW, City Clerk
53 54
55 56
57 58

CITY OF SHASTA LAKE,

CALIFORNIA

FINANCIAL STATEMENTS

TOGETHER WITH
INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED
JUNE 30, 2024

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Annual Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

INTRODUCTORY SECTION
List of Officials..............................................................................................................................................i

FINANCIAL SECTION
Independent Auditor’s Report....................................................................................................................1-4 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .............................................................................................................5-6 Statement of Activities..................................................................................................................... 7 Fund Financial Statements:

Governmental Funds:

Balance Sheet ............................................................................................................................ 8 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position – Governmental Activities ............................ 9 Statement of Revenues, Expenditures and Changes in Fund Balances................................... 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities – Governmental Activities............................................................................... 11 Proprietary Funds:

Statement of Net Position...................................................................................................12-13 Statement of Revenues, Expenses and Changes in Net Position............................................. 14 Statement of Cash Flows....................................................................................................15-16 Fiduciary Funds:

Statement of Fiduciary Net Position........................................................................................ 17 Statement of Changes in Fiduciary Net Position..................................................................... 18 Notes to Basic Financial Statements ...............................................................................................19-55 Required Supplementary Information (Unaudited):

City Pension Plan – Schedule of Proportionate Share of the Net Pension Liability ............................ 56 City Pension Plan – Schedule of Contributions.................................................................................... 57 City Pension Plan – Notes to City Pension Plan .................................................................................. 58 City OPEB Plan – Schedule of Changes in the Net OPEB Liability and Related Ratios .................... 59 City OPEB Plan – Schedule of Contributions...................................................................................... 60 City OPEB Plan – Notes to City OPEB Plan ....................................................................................... 61 Budgetary Comparison Schedule – General Fund ............................................................................... 62 Budgetary Comparison Schedule – Grant – Major Special Revenue Fund.......................................... 63 Note to Budgetary Comparison Schedules........................................................................................... 64 Combining Nonmajor Fund Financial Statements:

Nonmajor Governmental Funds:

Combining Balance Sheet.............................................................................................................. 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances....................... 66

CITY OF SHASTA LAKE
Annual Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

FINANCIAL SECTION (CONTINUED)
Combining Nonmajor Fund Financial Statements: (Continued) Nonmajor Governmental Funds: (Continued)
Special Revenue Funds:

Combining Balance Sheet ....................................................................................................... 67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances................ 68 Debt Service Funds:

Combining Balance Sheet ....................................................................................................... 69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances................ 70 Internal Service Funds:

Combining Statement of Net Position ........................................................................................... 71 Combining Statement of Revenues, Expenses and Changes in Net Position ................................ 72 Combining Statement of Cash Flows .......................................................................................73-74

INTRODUCTORY SECTION
• List of Officials

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
List of Officials
For the Year Ended June 30, 2024
-iElected Officials
Janice Powell Mayor
Tena Eisenbeisz Vice-Mayor
Justin Jones Member
Pamelyn Morgan Member
Greg Watkins Member
Administrative Personnel
Jessaca Lugo City Manager
Vacant Assistant City Manager
John Kenny City Attorney
Wendy Howard Finance Director
Jason Peterson Finance and General Services Manager
James Takehara Electric Utility Director
William Bond City Engineer
Chris Carr Water Treatment Plant Superintendent
Steve Rickel Wastewater Treatment Superintendent
Caleb MacGregor Sheriff’s Lieutenant
Charity Tatlow Permit Center Manager/Deputy City Clerk

THIS PAGE INTENTIONALLY LEFT BLANK

FINANCIAL SECTION
• Independent Auditor’s Report
• Basic Financial Statements
• Required Supplementary Information
• Combining Nonmajor Fund Financial Statements

THIS PAGE INTENTIONALLY LEFT BLANK

CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]

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

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

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

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. -2-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
-3-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, City Pension Plan information, City OPEB Plan information, and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtain during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
-4-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 11, 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 the City’s internal control over financial reporting and compliance.

Smith & Newell CPAs
Yuba City, California
March 11, 2025
Basic Financial Statements
• Government-Wide Financial Statements

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments $ 10,979,335 $ 41,430,994 $ 52,410,329 Cash with fiscal agent 1,222,831 - 1,222,831
Receivables:

Accounts, net 98,591 6,300,617 6,399,208
Interest 106,836 449,873 556,709
Taxes 515,044 - 515,044
Intergovernmental 1,909,826 - 1,909,826
Assessments 2,002,000 515,000 2,517,000
Deposits 4,428 774,306 778,734
Prepaid costs 3,371 28,272 31,643
Inventory - 716,792 716,792
Internal balances 587,269 (587,269) -
Restricted cash and investments 292,184 - 292,184
Loans receivable 3,704,682 - 3,704,682
Land held for resale 534,984 - 534,984
Capital assets:

Non-depreciable 4,862,700 3,701,034 8,563,734
Depreciable, net 51,687,918 47,863,689 99,551,607
Total capital assets 56,550,618 51,564,723 108,115,341
Total Assets 78,511,999 101,193,308 179,705,307

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 1,539,053 3,156,850 4,695,903 Deferred OPEB adjustments 1,079,990 1,581,395 2,661,385 Total Deferred Outflows of Resources 2,619,043 4,738,245 7,357,288

LIABILITIES
Accounts payable 672,023 2,454,450 3,126,473
Retentions payable 142,246 84,366 226,612
Salaries and benefits payable 42,878 85,022 127,900
Deposits payable 543,811 10,880 554,691
Interest payable 191,897 95,879 287,776
Unearned revenues 1,704,313 - 1,704,313
Long-term liabilities:

Due within one year 664,892 824,970 1,489,862
Due in more than one year 11,678,047 15,625,710 27,303,757 Net pension liability 873,882 1,792,479 2,666,361
Net OPEB liability 906,374 1,327,176 2,233,550
Total Liabilities 17,420,363 22,300,932 39,721,295

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 603,737 1,238,366 1,842,103 Deferred OPEB adjustments 315,326 461,722 777,048
Total Deferred Inflows of Resources 919,063 1,700,088 2,619,151 The notes to the basic financial statements are an integral part of this statement. -5-
Continued (Page 1 of 2)

CITY OF SHASTA LAKE
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Totals

NET POSITION
Net investment in capital assets 52,250,843 35,479,038 87,729,881 Restricted for:

General government 1,211,390 - 1,211,390
Public safety 12,985 - 12,985
Public ways and facilities 2,569,718 - 2,569,718
Community development 5,866,262 - 5,866,262
Debt service 3,403,553 627,586 4,031,139
Unrestricted (2,523,135) 45,823,909 43,300,774
Total Net Position $ 62,791,616 $ 81,930,533 $144,722,149 The notes to the basic financial statements are an integral part of this statement. -6-
Continued (Page 2 of 2)

CITY OF SHASTA LAKE
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:

General government $ 5,338,093 $ 4,536,255 $ 2,777,493 $ - Public safety 4,262,377 292,566 - -
Public ways and facilities 2,316,580 250,138 3,372,469 41,394 Planning 967,963 - - -
Culture and recreation 504,423 1,700 - -
Community development 1,445,752 - 762,738 -
Interest on long-term debt 439,390 - - -
Total Governmental Activities 15,274,578 5,080,659 6,912,700 41,394 Business-type activities:

Water 4,739,368 3,819,989 - -
Electric 35,503,596 36,663,408 - -
Wastewater 4,765,730 3,720,996 - -
Industrial park 37,912 28,642 - -
Total Business-Type Activities 45,046,606 44,233,035 - - Total $ 60,321,184 $ 49,313,694 $ 6,912,700 $ 41,394
General revenues:

Taxes:

Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Unrestricted grants and contributions
Interest and investment earnings
Miscellaneous
Gain (loss) on disposal of capital assets
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - Ending
The notes to the basic financial statements are an integral part of this statement. -7-
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Totals
$ 1,975,655 $ - $ 1,975,655
(3,969,811) - (3,969,811)
1,347,421 - 1,347,421
(967,963) - (967,963)
(502,723) - (502,723)
(683,014) - (683,014)
(439,390) - (439,390)
(3,239,825) - (3,239,825)
- (919,379) (919,379)
- 1,159,812 1,159,812
- (1,044,734) (1,044,734)
- (9,270) (9,270)
- (813,571) (813,571)
(3,239,825) (813,571) (4,053,396)
1,657,080 - 1,657,080
785,446 - 785,446
36,867 - 36,867
232,863 - 232,863
747,705 - 747,705
1,151,412 - 1,151,412
577,081 2,034,185 2,611,266
39,700 1,503,083 1,542,783
(10,198) 13,770 3,572
5,217,956 3,551,038 8,768,994
1,978,131 2,737,467 4,715,598
60,813,485 79,193,066 140,006,551
$ 62,791,616 $ 81,930,533 $ 144,722,149
The notes to the basic financial statements are an integral part of this statement. -7-

THIS PAGE INTENTIONALLY LEFT BLANK
Basic Financial Statements
• Fund Financial Statements

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Balance Sheet
Governmental Funds
June 30, 2024
Other
Governmental
General Grant Funds Totals
ASSETS
Cash and investments $ 5,619,815 $ 898,207 $ 4,461,313 $10,979,335 Cash with fiscal agent 1,222,831 - - 1,222,831
Receivables:

Accounts, net 98,591 - - 98,591
Interest 45,800 11,746 49,290 106,836
Taxes 396,278 - 118,766 515,044
Intergovernmental - 990,397 919,429 1,909,826
Assessments - - 2,002,000 2,002,000
Deposits 4,428 - - 4,428
Prepaid costs 3,371 - - 3,371
Due from other funds 494,909 - - 494,909
Restricted cash and investments - - 292,184 292,184
Loans receivable - - 3,704,682 3,704,682
Land held for resale - - 534,984 534,984
Total Assets $ 7,886,023 $ 1,900,350 $12,082,648 $21,869,021

LIABILITIES
Accounts payable $ 468,771 $ 139,134 $ 64,118 $ 672,023 Retentions payable - 8,955 133,291 142,246
Salaries and benefits payable 42,878 - - 42,878
Deposits payable 543,811 - - 543,811
Due to other funds - - 397,332 397,332
Unearned revenues 33,939 1,670,374 - 1,704,313
Total Liabilities 1,089,399 1,818,463 594,741 3,502,603

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 990,397 919,429 1,909,826
Total Deferred Inflows of Resources - 990,397 919,429 1,909,826

FUND BALANCES
Nonspendable 3,371 - - 3,371
Restricted 688,715 - 10,811,785 11,500,500
Unassigned 6,104,538 (908,510) (243,307) 4,952,721
Total Fund Balances 6,796,624 (908,510) 10,568,478 16,456,592 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 7,886,023 $ 1,900,350 $12,082,648 $21,869,021 The notes to the basic financial statements are an integral part of this statement. -8-

CITY OF SHASTA LAKE
Reconciliation of the Governmental Funds Balance
Sheet to the Government-Wide Statement of
Net Position - Governmental Activities
June 30, 2024
Total Fund Balance - Total Governmental Funds $ 16,456,592 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 balance sheet. 56,550,618 Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable revenues in the governmental funds. 1,909,826 Interest payable on long-term debt does not require the use of current financial resources and therefore is not accrued as a liability in the governmental funds balance sheet. (191,897) Deferred outflows of resources related to pension and OPEB are not reported in the governmental funds. 2,619,043 Deferred inflows of resources related to pension and OPEB are not reported in the governmental funds. (919,063) Certain liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Revenue bonds payable (1,982,775)
Special assessment bonds payable (20,000)
Certificates of participation, less unamortized discount of $226,993 (10,150,007) Compensated absences (190,157)
Net pension liability (873,882)
Net OPEB liability (906,374)
Internal service funds are used by management to charge the cost of certain activities, such as equipment maintenance and operations, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. 489,692 Net Position of Governmental Activities $ 62,791,616
The notes to the basic financial statements are an integral part of this statement. -9-

CITY OF SHASTA LAKE
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
Other
Governmental
General Grant Funds Totals

REVENUES
Taxes and assessments $ 3,334,201 $ - $ 29,522 $ 3,363,723 Licenses and permits 309,688 - - 309,688
Fines and forfeitures 8,554 - - 8,554
Use of money and property 298,129 47,958 230,994 577,081 Intergovernmental 1,183,239 2,769,273 2,685,824 6,638,336 Charges for services 4,682,141 - 80,276 4,762,417
Other revenues 39,700 - - 39,700
Total Revenues 9,855,652 2,817,231 3,026,616 15,699,499

EXPENDITURES
Current:

General government 3,182,475 1,351,977 28,528 4,562,980 Public safety 4,042,803 - 100,000 4,142,803
Public ways and facilities 140,743 - 898,622 1,039,365
Planning 793,399 - - 793,399
Culture and recreation 388,449 - - 388,449
Community development - - 1,416,960 1,416,960
Debt service:

Principal 427,000 - 141,000 568,000
Interest and other charges 352,486 - 93,402 445,888
Capital outlay - 1,339,996 1,992,399 3,332,395
Total Expenditures 9,327,355 2,691,973 4,670,911 16,690,239 Excess of Revenues Over (Under)
Expenditures 528,297 125,258 (1,644,295) (990,740)

OTHER FINANCING SOURCES (USES)
Transfers in 4,600 - - 4,600
Transfers out - - (4,600) (4,600)
Total Other Financing Sources (Uses) 4,600 - (4,600) -
Net Change in Fund Balances 532,897 125,258 (1,648,895) (990,740) Fund Balances - Beginning 6,263,727 (1,033,768) 12,217,373 17,447,332 Fund Balances - Ending $ 6,796,624 $ (908,510) $10,568,478 $16,456,592 The notes to the basic financial statements are an integral part of this statement. -10-

CITY OF SHASTA LAKE
Net Change in Fund Balances - Total Governmental Funds $ (990,740) 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 capital outlay 3,332,395
Less current year depreciation (1,507,952)
Governmental funds only report the disposal of assets to the extent proceeds are received from the sale.

In the Statement of Activities, a gain or loss is reported for each disposal. This is the net cost of capital assets disposed. Proceeds from the sale of capital assets was $0. (10,198) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.

Principal retirements 568,000
Amortization of bond issue costs (14,187)
Some revenues reported in the Statement of Activities will not be collected for several months after the City's year end and do not provide current financial resources and therefore are not reported as revenues in the governmental funds.

Change in unavailable revenues 1,563,408
Certain changes in deferred outflows and deferred inflows of resources reported in the Statement of Activities relate to long-term liabilities and are not reported in the governmental funds.

Change in deferred outflows of resources related to pension (976,593) Change in deferred inflows of resources related to pension 459,763 Change in deferred outflows of resources related to OPEB 317,140 Change in deferred inflows of resources related to OPEB 248,535 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 the governmental funds.

Change in compensated absences payable (16,998)
Change in net pension liability (310,093)
Change in net OPEB liability (599,439)
Change in accrued interest on long-term debt 6,498
Internal service funds are used by management to charge the cost of certain activities, such as equipment maintenance and operations, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities. (91,408) Change in Net Position of Governmental Activities $ 1,978,131 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the For the Year Ended June 30, 2024
Government-Wide Statement of Activities - Governmental Activities The notes to the basic financial statements are an integral part of this statement. -11-

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park
ASSETS
Current Assets:

Cash and investments $ 3,115,735 $ 30,130,057 $ 6,437,898 $ - Receivables:

Accounts, net 561,662 5,321,626 415,069 -
Interest 39,564 318,704 68,563 -
Assessments - - - 515,000
Deposits - 774,306 - -
Prepaid costs 10,778 17,494 - -
Inventory 4,108 712,684 - -
Total Current Assets 3,731,847 37,274,871 6,921,530 515,000 Noncurrent Assets:

Capital assets:

Non-depreciable 445,323 1,167,493 695,522 1,392,696
Depreciable, net 11,860,550 9,850,254 24,821,453 -
Total capital assets 12,305,873 11,017,747 25,516,975 1,392,696 Total Noncurrent Assets 12,305,873 11,017,747 25,516,975 1,392,696 Total Assets 16,037,720 48,292,618 32,438,505 1,907,696

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 339,270 1,568,648 335,713 - Deferred OPEB adjustments 263,743 481,711 175,119 -
Total Deferred Outflows of Resources 603,013 2,050,359 510,832 - The notes to the basic financial statements are an integral part of this statement. -12-
Continued (Page 1 of 2)
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 39,683,690 $ 1,747,304
6,298,357 2,260
426,831 23,042
515,000 -
774,306 -
28,272 -
716,792 -
48,443,248 1,772,606
3,701,034 -
46,532,257 1,331,432
50,233,291 1,331,432
50,233,291 1,331,432
98,676,539 3,104,038
2,243,631 913,219
920,573 660,822
3,164,204 1,574,041
The notes to the basic financial statements are an integral part of this statement. -12-
Continued (Page 1 of 2)

CITY OF SHASTA LAKE
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park

LIABILITIES
Current Liabilities:

Accounts payable 148,381 2,191,243 72,249 1,295
Retentions payable 84,366 - - -
Salaries and benefits payable 9,602 40,281 8,807 -
Deposits payable 10,880 - - -
Due to other funds - - - 97,577
Interest payable 31,190 - 55,676 9,013
Compensated absences payable 11,302 85,280 25,420 -
Loans payable 192,590 - 404,882 -
Bonds payable - - - 45,000
Total Current Liabilities 488,311 2,316,804 567,034 152,885 Noncurrent Liabilities:

Compensated absences payable 11,303 85,279 25,420 -
Loans payable 2,277,867 - 12,695,346 -
Bonds payable - - - 470,000
Net pension liability 192,640 890,688 190,620 -
Net OPEB liability 221,345 404,272 146,968 -
Total Noncurrent Liabilities 2,703,155 1,380,239 13,058,354 470,000 Total Liabilities 3,191,466 3,697,043 13,625,388 622,885

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 133,089 615,347 131,693 -
Deferred OPEB adjustments 77,005 140,646 51,130 -
Total Deferred Inflows of Resources 210,094 755,993 182,823 -

NET POSITION
Net investment in capital assets 9,835,416 11,017,747 12,416,747 877,696 Restricted - - 627,586 -
Unrestricted 3,403,757 34,872,194 6,096,793 407,115
Total Net Position $ 13,239,173 $ 45,889,941 $ 19,141,126 $ 1,284,811 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net Position of Business-Type Activities
The notes to the basic financial statements are an integral part of this statement. -13-
Continued (Page 2 of 2)
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
2,413,168 41,282
84,366 -
58,690 26,332
10,880 -
97,577 -
95,879 -
122,002 60,496
597,472 -
45,000 -
3,525,034 128,110
122,002 60,495
14,973,213 -
470,000 -
1,273,948 518,531
772,585 554,591
17,611,748 1,133,617
21,136,782 1,261,727
880,129 358,237
268,781 192,941
1,148,910 551,178
34,147,606 1,331,432
627,586 -
44,779,859 1,533,742
79,555,051 $ 2,865,174
2,375,482
$ 81,930,533
The notes to the basic financial statements are an integral part of this statement. -13-
Continued (Page 2 of 2)

CITY OF SHASTA LAKE
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park

OPERATING REVENUES
Charges for services $ 3,819,989 $ 36,663,408 $ 3,720,996 $ - Other revenues 7,126 1,495,944 13 -
Total Operating Revenues 3,827,115 38,159,352 3,721,009 -

OPERATING EXPENSES
Salaries and benefits 2,044,203 3,320,272 1,703,044 -
Administration 668,862 3,464,547 626,075 7,444
Power and water 492,676 25,796,278 379,749 1,877
Insurance 118,150 323,543 101,460 603
Supplies 69,547 144,619 21,303 -
Repair and maintenance 252,662 961,921 197,352 -
Professional services 70,993 60,773 6,668 555
Depreciation 645,266 753,684 1,280,934 -
Other expense 31,115 597,364 26,790 -
Total Operating Expenses 4,393,474 35,423,001 4,343,375 10,479 Operating Income (Loss) (566,359) 2,736,351 (622,366) (10,479)

NON-OPERATING REVENUES (EXPENSES)
Assessment revenue - - - 28,642
Interest income 170,239 1,448,199 310,249 -
Interest expense (83,553) - (228,035) (27,433)
Gain on disposal of capital assets - - - -
Total Non-Operating Revenues (Expenses) 86,686 1,448,199 82,214 1,209 Change in Net Position (479,673) 4,184,550 (540,152) (9,270) Total Net Position - Beginning 13,718,846 41,705,391 19,681,278 1,294,081 Total Net Position - Ending $ 13,239,173 $ 45,889,941 $ 19,141,126 $ 1,284,811 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in Net Position of Business-Type Activities
The notes to the basic financial statements are an integral part of this statement. -14-
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 44,204,393 $ 3,367,046
1,503,083 16,642
45,707,476 3,383,688
7,067,519 2,615,407
4,766,928 759,838
26,670,580 -
543,756 42,521
235,469 19,468
1,411,935 269,771
138,989 23,636
2,679,884 280,817
655,269 -
44,170,329 4,011,458
1,537,147 (627,770)
28,642 -
1,928,687 105,498
(339,021) (894)
- 13,770
1,618,308 118,374
3,155,455 (509,396)
3,374,570
$ 2,865,174
(417,988)
$ 2,737,467
The notes to the basic financial statements are an integral part of this statement. -14-

CITY OF SHASTA LAKE
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 3,813,980 $ 37,865,629 $ 3,741,120 $ - Receipts from interfund services - - - -
Payments to suppliers (2,039,312) (33,434,260) (1,330,597) (9,184) Payments to employees (1,818,295) (2,468,584) (1,497,402) - Net Cash Provided by Operating Activities (43,627) 1,962,785 913,121 (9,184)

CASH FLOWS FROM NON-CAPITAL FINANCING

ACTIVITIES
Interfund loans received - - - 97,577
Interfund loans repaid (12,865) - (12,954) (91,296)
Interfund loans repayments received - 149,294 - -
Grants, assessments, and other receipts - - - 76,123
Net Cash Provided (Used) by Non-Capital
Financing Activities (12,865) 149,294 (12,954) 82,404

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (1,602,705) (383,617) (48,763) - Proceeds from disposition of capital assets - - - -
Principal paid on debt (186,926) - (398,114) (45,000)
Interest paid on debt (85,912) - (229,727) (28,220)
Net Cash Provided (Used) by Capital and Related
Financing Activities (1,875,543) (383,617) (676,604) (73,220)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 157,720 1,273,450 273,324 -
Net Cash Provided by Investing Activities 157,720 1,273,450 273,324 - Net Increase (Decrease) in Cash and Cash
Equivalents (1,774,315) 3,001,912 496,887 -
Balances - Beginning 4,890,050 27,128,145 5,941,011 -
Balances - Ending $ 3,115,735 $ 30,130,057 $ 6,437,898 $ - The notes to the basic financial statements are an integral part of this statement. -15-
Continued (Page 1 of 2)
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 45,420,729 $ 16,642
- 3,379,219
(36,813,353) (1,104,549)
(5,784,281) (2,076,979)
2,823,095 214,333
97,577 -
(117,115) (45,394)
149,294 -
76,123 -
205,879 (45,394)
(2,035,085) (589,596)
- 22,951
(630,040) -
(343,859) (894)
(3,008,984) (567,539)
1,704,494 91,856
1,704,494 91,856
1,724,484 (306,744)
37,959,206 2,054,048
$ 39,683,690 $ 1,747,304
The notes to the basic financial statements are an integral part of this statement. -15-
Continued (Page 1 of 2)

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY OPERATING

ACTIVITIES
Operating income (loss) $ (566,359) $ 2,736,351 $ (622,366) $ (10,479) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation 645,266 753,684 1,280,934 -
Decrease (increase) in:

Accounts receivable (15,735) (293,723) 20,111 -
Deposits - 79,432 - -
Prepaid costs 362 58,164 - -
Inventory - (240,592) - -
Pension adjustment - deferred outflows 336,364 906,660 297,907 - OPEB adjustment - deferred outflows (154,015) (238,334) (54,125) - Increase (decrease) in:

Accounts payable (335,669) (1,982,219) 28,800 1,295
Salaries and benefits payable 441 9,003 302 -
Deposits payable 2,600 - - -
Compensated absences (18,661) 2,417 (10,870) -
Net pension liability 41,222 335,939 48,618 -
Net OPEB liability 177,196 306,349 98,286 -
Pension adjustment - deferred inflows (152,538) (431,100) (136,173) - OPEB adjustment - deferred inflows (4,101) (39,246) (38,303) - Net Cash Provided by Operating Activities $ (43,627) $ 1,962,785 $ 913,121 $ (9,184) The notes to the basic financial statements are an integral part of this statement. -16-
Continued (Page 2 of 2)
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 1,537,147 $ (627,770)
2,679,884 280,817
(289,347) 12,173
79,432 -
58,526 -
(240,592) -
1,540,931 586,796
(446,474) (354,478)
(2,287,793) 10,685
9,746 95
2,600 -
(27,114) 1,719
425,779 182,358
581,831 431,332
(719,811) (275,901)
(81,650) (33,493)
$ 2,823,095 $ 214,333
The notes to the basic financial statements are an integral part of this statement. -16-
Continued (Page 2 of 2)

CITY OF SHASTA LAKE
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Private Custodial
Purpose Fund
Trust Fund (Community Total
(Successor Facilities Fiduciary
ASSETS Agency) District) Funds
Current Assets:

Cash and investments $ 567,768 $ 535,158 $ 1,102,926
Receivables:

Interest 3,428 5,170 8,598
Taxes - 30,128 30,128
Total Current Assets 571,196 570,456 1,141,652
Noncurrent Assets:

Land held for resale 484 - 484
Total Noncurrent Assets 484 - 484
Total Assets 571,680 570,456 1,142,136

LIABILITIES
Current Liabilities:

Accounts payable - 4,893 4,893
Interest payable 3,180 - 3,180
Unearned revenues 397,078 - 397,078
Loans payable 375,000 - 375,000
Total Current Liabilities 775,258 4,893 780,151
Noncurrent Liabilities:

Loans payable 785,000 - 785,000
Total Noncurrent Liabilities 785,000 - 785,000
Total Liabilities 1,560,258 4,893 1,565,151

NET POSITION
Restricted for:

Successor Agency to the Redevelopment Agency (988,578) - (988,578) Individuals, organizations, and other governments - 565,563 565,563 Total Net Position $ (988,578) $ 565,563 $ (423,015)
The notes to the basic financial statements are an integral part of this statement. -17-

CITY OF SHASTA LAKE
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Private Custodial
Purpose Fund
Trust Fund (Community Total
(Successor Facilities Fiduciary
Agency) District) Funds

ADDITIONS
Taxes and assessments $ 410,156 $ 127,387 $ 537,543
Interest income 15,644 23,662 39,306
Total Additions 425,800 151,049 576,849

DEDUCTIONS
Administrative expenses 4,236 - 4,236
Distribution of funds held for others - 53,680 53,680
Interest expense 45,656 - 45,656
Total Deductions 49,892 53,680 103,572
Net Increase (Decrease) in Fiduciary Net Position 375,908 97,369 473,277 Total Net Position - Beginning (1,364,486) 468,194 (896,292) Total Net Position - Ending $ (988,578) $ 565,563 $ (423,015) The notes to the basic financial statements are an integral part of this statement. -18-

THIS PAGE INTENTIONALLY LEFT BLANK
Basic Financial Statements
• Notes to Basic Financial Statements

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-19-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City operates under a Council form of government and provides the following services: sanitation, electric, water and wastewater services; the construction and maintenance of highways, streets and infrastructure; recreational activities and cultural events.

Component Units
Generally accepted accounting principles require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an organization’s governing body and is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.

Reporting for component units on the City’s financial statements can be blended or discretely presented.

Blended component units are, although legally separate entities, in substance part of the City’s operations and, therefore, data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, would be reported in a separate column in the governmentwide financial statements to emphasize it is legally separate from the government.

For financial reporting purposes, the City’s basic financial statements include all financial activities that are controlled by or are dependent upon actions taken by the City Council. The financial statements of the individual component units may be obtained by writing to the City of Shasta Lake, 4477 Main Street, Shasta Lake, CA 96019.

Blended Component Units
Shasta Lake Public Financing Authority (PFA) - The Authority, established in 1994, was created for the purpose of financing public capital improvements. The City is financially accountable for this entity.

Financial accountability is primarily demonstrated by the City Council acting as the governing board for the PFA and its ability to impose its will. The financing activity of the PFA has been included in the City’s financial statements in the major debt service fund, Wastewater Treatment Debt.

The City of Shasta Lake Housing Authority - The Authority, established in 1994, was created for the purpose of administering housing programs. The housing programs and services are clustered in two broad categories: affordable housing and special projects. Because of the nature of the programs and their intended outcomes, the categories will often overlap. The City is financially accountable for this entity.

Financial accountability is primarily demonstrated by the City Council acting as the governing board for the Authority and its ability to impose its will. As an integral part of the City, the Authority is reported as a nonmajor special revenue fund of the City.

Discretely Presented Component Units
There are no component units of the City which meet the criteria for discrete presentation.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-20-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Joint Agencies
The City is a participant in Small Cities Organized Risk Effort (SCORE), the purpose of which is for member cities to share in the administrative costs of providing liability and workers’ compensation insurance. SCORE is composed of 18 member cities and is governed by a board of directors appointed by the member cities. Complete financial information can be obtained from the SCORE offices at 2180 Harvard Street, Suite 460, Sacramento, CA 95815. The City is not financially accountable for this organization and therefore it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board.

The City is a participant in the Redding Area Bus Authority (RABA), the purpose of which is to provide a public transit system to the City of Redding, City of Anderson, City of Shasta Lake, and adjacent urbanized areas in unincorporated areas of Shasta County. The governing board of RABA is comprised of eight members, five appointed by the City of Redding and one member by the City of Anderson, City of Shasta Lake, and Shasta County. Complete financial statements for RABA can be obtained from the City of Redding Finance Division, 777 Cypress Avenue, Redding, CA 96001. The City is not financially accountable for this organization and therefore it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board.

B. Basis of Presentation
Government-Wide Financial Statements
The Statement of Net Position and Statement of Activities display information on all of the nonfiduciary activities of the City and its blended component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent, on fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions, and 3) capital grants and contributions. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories; each is displayed in a separate column. All remaining governmental and proprietary funds are separately aggregated and reported as nonmajor funds.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-21-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
The City reports the following major governmental funds:
• The General fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General fund includes such activities as general government, public protection, community development, public ways and facilities, planning, and culture and recreation services. • The Grant fund is a special revenue fund used to account for the various grant programs of the City.

Funding comes primarily from grant revenues.

The City reports the following major proprietary funds:
• The Water fund is an enterprise fund used to account for activity related to providing customers with water service and billing for water service provided by the City. • The Electric fund is an enterprise fund used to account for activity related to providing customers with electric service and billing for electric service provided by the City. • The Wastewater fund is an enterprise fund used to account for activity related to providing customers with wastewater service and billing for wastewater service provided by the City.

The City reports the following additional fund types:
• Internal Service funds (ISF) account for the City’s motor pool and public works departments, which provide services to other departments on a cost reimbursement basis. • Private-purpose trust funds are used to report all fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds and (b) are held in a trust in which the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from the creditors of the government. • Custodial funds are used to report fiduciary activities that are not required to be reported in pension trust funds, investment trust funds, or private-purpose trust funds.

C. Basis of Accounting and Measurement Focus
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales tax, grants, entitlements, and donations. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.

Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-22-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting and Measurement Focus (Continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

Property and sales taxes, interest, certain state and federal grants and charges for services are considered susceptible to accrual and are accrued when their receipt occurs within sixty days after the end of the fiscal year. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures as well as expenditures related to claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in the various functions of the governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Fiduciary funds include private-purpose trust funds and custodial funds. The fiduciary funds are reported using the accrual basis of accounting to recognize receivables and payables.

D. Non-Current Governmental Assets/Liabilities
Non-current governmental assets and liabilities, such as capital assets and long-term liabilities, are reported in the governmental activities column in the government-wide Statement of Net Position.

E. Cash and Cash Equivalents
For purposes of the accompanying Statement of Cash Flows, the City considers all highly liquid investments, including restricted cash and investments, with an original maturity of three months or less and amounts held in the City’s investment pool to be cash and cash equivalents.

F. Investments
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.

Investment transactions are recorded on the trade date. The fair value of investments is determined monthly.

Investments in nonparticipating interest-earning investment contracts are reported at cost; short term investments are reported at amortized cost, investments in the State of California Local Agency Investment Fund, an external pool, are reported at amortized cost which approximates fair value, and the fair value of all other investments are obtained by using quotations obtained from independent published sources or by the safekeeping institution. The fair value represents the amount the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-23-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Investments (Continued)
Income from pooled investments is allocated to the individual funds based on the fund or participant’s average daily cash balance at quarter end in relation to the total pool investments. Income from non-pooled investments is recorded based on the specific investments held by the fund. The interest income is recorded in the fund that earned the interest.

G. Restricted Cash and Investments
Restricted assets in the governmental funds represent cash and investments held in the Wastewater Treatment Debt fund for debt service of $292,184.

H. Receivables
Receivables for governmental activities consist mainly of accounts, interest, taxes, intergovernmental revenues, and special assessments. Management records an allowance for doubtful accounts based on historical trends and the periodic aging of receivables. At June 30, 2024, the allowance for doubtful accounts was $96.

Receivables for business-type activities consist mainly of user fees, interest, taxes, intergovernmental revenues and special assessments. Management records an allowance for doubtful accounts based on historical trends and the periodic aging of receivables. At June 30, 2024, the allowance for doubtful accounts was $4,380.

I. Other Assets
Deposits
The City has recorded deposits in several funds. The General fund made payments during the year to various other agencies and the Electric fund of the City made payments during the year to Western Area Power Administration for future construction projects.

Inventory
Governmental fund inventories are recorded as expenditures at the time inventory is purchased rather than when consumed. Records are not maintained of inventory and supplies on hand, although these amounts are not considered material.

Inventories are stated at cost using the first-in, first-out method for proprietary funds. Inventory recorded by the proprietary funds includes electric power equipment. Proprietary fund inventories are recorded as expenses when consumed.

Prepaid Items
Payments made for services that will benefit periods beyond June 30, 2024, are recorded as prepaid costs in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-24-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Loans Receivable
A total of $3,704,682 was recorded as loans receivable at June 30, 2024. These represent low interest notes and related accrued interest to finance multi-family and single-family construction and rehabilitation projects and homebuyer assistance for low-income families. Loan terms are 15 to 55 years with an interest rate at 0 to 5 percent. The primary source of funding for these loans comes from grants from the Federal Community Development Block Grant (CDBG) program and Home Investment Partnerships (HOME) program and the State CalHome program. The CDBG, HOME and CalHome grants contain monitoring requirements to ensure grant compliance. These requirements are reflected in the loan agreements.

K. Land Held for Resale
Land held for resale is generally acquired under Developer Disposition Agreements in the normal course of Low and Moderate Fund activity. The Developer Disposition Agreements provide for transfer of property to developers after certain obligations have been fulfilled. This property is carried at cost until an event occurs to indicate a net realizable value.

L. Capital Assets
Capital assets, including public domain (infrastructure such as roads, bridges, sidewalks, sewer, and similar items) are defined by the City as assets with a cost greater than $5,000 for equipment, $25,000 for buildings and improvements, and $50,000 for infrastructure assets. Capital assets are recorded at historical cost or estimated historical cost if actual historical cost is unavailable. Contributed capital assets are recorded at their acquisition value at the date of donation.

Capital assets used in operations are depreciated or amortized using the straight-line method over the assets’ estimated useful lives in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:

Depreciable Asset Estimated Lives
Electric, water and wastewater system assets 20 to 50 years Other system assets 20 to 33 years
Buildings 33 years
Equipment 5 to 10 years
Infrastructure 20 to 50 years
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

M. Property Tax
Shasta County assesses properties, bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-25-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Property Tax (Continued)
Property taxes are levied on a fiscal year (July 1 - June 30). The secured property tax assessments are due on November 1 and February 1 and become delinquent after December 10 and April 10, respectively. The unsecured property tax assessments are due on August 1, and become delinquent after August 31. Property taxes become a lien on the property effective January 1 of the preceding year.

The City recognizes property taxes when the individual installments are due provided they are collected within 60 days after year-end.

N. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.

Loans reported as receivables and payables are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. 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, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide statement of activities.

Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.

All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation.

O. Unearned Revenue
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned. When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue.

P. Compensated Absences
In the government-wide financial statements, vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is recorded as an expense and related liability with the current portion estimated based on historical trends. In the governmental fund financial statements, the expenditures and liabilities related to those obligations are recognized only when they mature. Vested or accumulated vacation leave of proprietary funds and in the government-wide financial statements is recorded as an expense and liability of those funds as the benefits accrue to employees.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-26-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Compensated Absences (Continued)
Sick leave, however, does not vest to the employees and is payable only when sick leave is taken or when an individual has been employed by the City for ten years or longer. These employees receive 25 percent of their accrued sick pay, up to 100 hours, as additional termination pay.

In accordance with GASB Statement No. 16, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave benefits that is estimated to be taken as additional termination pay.

All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. In governmental funds, the cost of vacation and sick leave benefits is recognized when payments are made to employees.

Q. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pension and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
R. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-27-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. 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 position 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. These items relate to the outflows from changes in the net pension liability and the net OPEB liability and are reportable on the Statement of Net Position.

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 position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items which qualify for reporting in this category. One item, unavailable revenue, is reported only in the governmental funds Balance Sheet.

The governmental funds report unavailable revenues for receivables that have not been received within the modified accrual period. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second and third items relate to the inflows from changes in the net pension liability and the net OPEB liability and are reportable on the Statement of Net Position.

T. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

U. Implementation of Governmental Accounting Standards Board (GASB) Statements The following Governmental Accounting Standards Board (GASB) Statements have been implemented, if applicable, in the current financial statements.

Statement No. 99, Omnibus 2022. This statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature.

Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements.

Statement No. 100, Accounting Changes and Error Corrections. The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-28-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. Future Accounting Pronouncements
The following GASB Statements will be implemented, if applicable, in future financial statements:

Statement No. 101 “Compensated Absences” The requirements of this statement are effective for fiscal years beginning after December 15, 2023. (FY 24/25)
Statement No. 102 “Certain Risk Disclosures” The requirements of this statement are effective for fiscal years beginning after June 15, 2024. (FY 24/25)
Statement No. 103 “Financial Reporting Model Improvements” The requirements of this statement are effective for fiscal years beginning after June 15, 2025. (FY 25/26) Statement No. 104 “Disclosure of Certain Capital Assets” The requirements of this statement are effective for fiscal years beginning after June 15, 2025. (FY 25/26) NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balance
The following major special revenue fund had a deficit fund balance:
• The Grant fund had a fund balance deficit of $908,510, which is expected to be eliminated in future years through intergovernmental revenues.

The following nonmajor special revenue funds had deficit fund balances:
• The CDBG Project fund had a fund balance deficit of $239,629, which is expected to be eliminated in future years through grant revenues.
• The Wastewater P & FCC Charges fund had a fund balance deficit of $3,678, which is expected to be eliminated in future years through increased charges for services.

B. Rebatable Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of taxexempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. During the current year, the City performed calculations of excess investment earnings on various bonds and financing and at June 30, 2024, does not expect to incur a liability.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-29-
NOTE 3: CASH AND INVESTMENTS
A. Financial Statement Presentation
As of June 30, 2024, the City’s cash and investments are reported in the financial statements as follows:

Governmental activities $ 12,494,350
Business-type activities 41,430,994
Fiduciary funds 1,102,926
Total Cash and Investments $ 55,028,270
As of June 30, 2024, the City’s cash and investments consisted of the following:

Cash:

Cash on hand $ 2,072
Deposits (less outstanding checks) 3,735,775
Cash with fiscal agent 1,222,831
Total Cash 4,960,678
Investments:

In City’s pool 50,067,592
Total Investments 50,067,592
Total Cash and Investments $ 55,028,270
B. Cash
At year end, the carrying amount of the City’s cash deposits (including amounts in checking accounts and money market accounts) was $4,958,606 and the bank balance was $5,081,043. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit. In addition, the City had cash on hand of $2,072.

Custodial Credit Risk for Deposits - Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The City’s investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 105 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits of more than the $250,000 insured amount are collateralized.

C. Investments
Pursuant to Section 53646 of the Government Code, the City prepares an investment policy annually and presents it to the City Council for review and approval. The investment policy provides the basis for the management of a prudent, conservative investment program. Funds are invested to provide the maximum security of principal with secondary emphasis on achieving the highest return, while meeting daily cash flow needs. All investments are made in accordance with the Government Code and, in general, the investment policy is more restrictive than state law.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-30-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Under the provisions of the City’s investment policy the City may invest or deposit in the following:

Municipal Securities
U.S. Treasuries
Federal Agencies
Bankers’ Acceptances
Federally Insured Time Deposits
Collateralized Time Deposits
Certificate of Deposit Placement Service (CDARS)
Negotiable Certificates of Deposit
Repurchase Agreement
Commercial Paper
State of California Local Agency Investment Fund (LAIF) Corporate Medium-Term Notes
Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations
Money Market Mutual Funds
Supranationals
Fair Value of Investments - The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a threetiered fair value hierarchy as follows:

Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs
The City’s position in external investment pools is in itself regarded as a type of investment and looking through to the underlying investments of the pool is not appropriate. Therefore, the City’s investments in external investment pools are not recognized in the three-tiered fair value hierarchy described above.

At June 30, 2024, the City had the following recurring fair value measurements:

Fair Value Measurements Using
Investment Type Fair Value Level 1 Level 2 Level 3
Investments by Fair Value Level
Federal Agencies $ 5,496,077 $ 5,496,077 $ - $ -
U.S. Treasuries 14,056,964 14,056,964 - -
Collateralized Mortgage Obligations 2,206,318 2,206,318 - - Corporate Medium-Term Notes 8,053,327 8,053,327 - -
Asset-Backed Securities 3,439,372 3,439,372 - -
Supranationals 1,471,071 1,471,071 - -
Total Investments Measured at Fair Value 34,723,129 $34,723,129 $ - $ - Investments in External Investment Pools
Shasta County Investment Pool 292,184
LAIF 15,052,279
Total Investments $ 50,067,592

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-31-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Interest Rate Risk - Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To limit the exposure to fair value losses resulting from increases in interest rates, the City’s investment policy limits investment maturities to a term appropriate to the need for funds so as to permit the City to meet all projected obligations. Any investments that mature more than five years from the date of purchase cannot occur without prior approval of the City Council.

As of June 30, 2024, the City had the following investments, all of which had a maturity of 5 years or less:

Maturities Weighted
Average
Interest Fair Maturity
Investment Type Rates 0-1 year 1-5 years Value (Years)
Federal Agencies 0.125-4.500% $ 1,111,219 $ 4,384,858 $ 5,496,077 1.73 U.S. Treasury 0.125-3.250% 5,031,906 9,025,058 14,056,964 1.98 Collateralized Mortgage Obligations 2.745-3.850% - 2,206,318 2,206,318 3.10 Corporate Medium-Term Notes 0.350-4.600% 2,886,887 5,166,440 8,053,327 2.17 Asset-Backed Securities 0.260-3.390% - 3,439,372 3,439,372 3.64 Supranationals 0.500% 942,592 528,479 1,471,071 0.59
Shasta County Investment Pool Variable 292,184 - 292,184 - LAIF Variable 15,052,279 - 15,052,279 -
Total Investments $25,317,067 $24,750,525 $50,067,592 1.50 Credit Risk - Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy sets specific parameters by type of investment to be met at the time of purchase. Presented below is the minimum rating required (where applicable) by the California Government Code or the City’s investment policy, and the actual rating as of year-end for each investment type.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-32-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Minimum Standard &
Legal Poor’s Moody’s % of
Investment Type Rating Rating Rating Portfolio
Federal National Mortgage Association - - - 1.14%
Federal Farm Credit Bank - - - 1.90%
Federal Home Loan Bank - - - 7.94%
U.S. Treasury - - - 28.08%
Collateralized Mortgage Obligations - - - 4.41%
Corporate Medium-Term Notes A A A1 2.70%
Corporate Medium-Term Notes A A+ A1 1.41%
Corporate Medium-Term Notes A A- A1 1.74%
Corporate Medium-Term Notes A AA A1 0.44%
Corporate Medium-Term Notes A AA- A1 0.37%
Corporate Medium-Term Notes A A A2 3.24%
Corporate Medium-Term Notes A A- A2 0.78%
Corporate Medium-Term Notes A A+ A2 0.68%
Corporate Medium-Term Notes A A A3 0.68%
Corporate Medium-Term Notes A A+ A3 0.60%
Corporate Medium-Term Notes A A+ AA2 0.59%
Corporate Medium-Term Notes A AA AA2 0.66%
Corporate Medium-Term Notes A A AA3 0.49%
Corporate Medium-Term Notes A A+ AA3 0.49%
Corporate Medium-Term Notes A AA+ AAA 0.48%
Corporate Medium-Term Notes A AAA AAA 0.74%
Asset-Backed Securities A AAA AAA 0.99%
Asset-Backed Securities A NR AAA 2.54%
Asset-Backed Securities A AAA NR 3.16%
Asset-Backed Securities A (P)A AAA 0.18%
Supranationals Baa3 A A1 1.68%
Supranationals Baa3 A- A2 0.80%
Supranationals Baa3 AAA AAA 0.46%
Shasta County Investment Pool N/A NR NR 0.58%
LAIF N/A NR NR 30.05%
Total 100.00%
Custodial Credit Risk - Custodial credit risk for investments is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. To mitigate the custodial credit risk the City’s investment policy requires that all of its managed investments be held in the name of the City in safekeeping by a third-party bank trust department.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-33-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Concentration of Credit Risk - Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. The City’s investment policy contains limitations on the amount that can be invested in any one issuer. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) at June 30, 2024, that represent 5 percent or more of total City investments are as follows:

Percentage of
Investment Type Amount Invested Investments
Federal Home Loan Bank $ 3,977,609 7.94%
D. Investment in External Investment Pools
The Shasta County Pooled Investment Fund is a pooled investment fund program governed by the County which monitors and reviews the management of public funds maintained in the investment pool in accordance with the County investment policy and the California Government Code. The Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the Board of Supervisors every month. The report covers the type of investments in the pool, maturity dates, par value, actual cost and fair value. Investments in the Shasta County Pooled Investment Fund are regarded as highly liquid as deposits and withdrawals can be made at any time without penalty. The Pool does not impose a maximum investment limit. Required disclosure information regarding categorization of investments and other deposit and investment risk disclosures can be found in the County’s financial statements. The County of Shasta’s financial statements may be obtained by contacting the County of Shasta Auditor-Controller’s office at 1450 Court Street, Suite 238, Redding, CA 96001.

The City of Shasta Lake maintains an investment in the State of California Local Agency Investment Fund (LAIF), managed by the State Treasurer. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State 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, 2024, the City’s investment in LAIF valued at amortized cost was $15,052,279 and is the same as the value of the pool shares. There are no restrictions on withdrawal of funds. The total amount invested by all public agencies in LAIF on that day was $178 billion. Of that amount, 97.00 percent is invested in non-derivative financial products and 3.00 percent in structured notes and asset-backed securities.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-34-
NOTE 4: CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2024, was as follows:

Balance Transfers/ Balance
July 1, 2023 Additions Retirements Adjustments June 30, 2024 Governmental Activities
Capital Assets, Not Being Depreciated
Land, easements, and right of way $ 3,808,336 $ - $ - $ - $ 3,808,336 Construction in progress 515,780 3,332,395 ( 10,198) ( 2,783,613) 1,054,364 Total Capital Assets, Not Being
Depreciated

4,324,116 3,332,395

( 10,198) ( 2,783,613) 4,862,700
Capital Assets, Being Depreciated
Infrastructure and land improvements 59,305,145 - - 2,556,719 61,861,864 Buildings and improvements 16,153,862 - - 226,894 16,380,756 Machinery and equipment 758,063 - - - 758,063
Vehicles 34,571 - - - 34,571
Total Capital Assets, Being Depreciated 76,251,641 - - 2,783,613 79,035,254 Less Accumulated Depreciation For:

Infrastructure and land improvements ( 21,492,420) ( 1,032,522) - - ( 22,524,942) Building and improvements ( 3,643,211) ( 435,338) - - ( 4,078,549) Machinery and equipment ( 669,182) ( 40,092) - - ( 709,274) Vehicles ( 34,571) - - - ( 34,571)
Total Accumulated Depreciation ( 25,839,384) ( 1,507,952) - - ( 27,347,336) Total Capital Assets, Being Depreciated,
Net 50,412,257 ( 1,507,952) - 2,783,613 51,687,918
Governmental Activities Capital Assets,
Net $ 54,736,373 $1,824,443 ($ 10,198) $ - $ 56,550,618

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-35-
NOTE 4: CAPITAL ASSETS (CONTINUED)
Balance Transfers/ Balance
July 1, 2023 Additions Retirements Adjustments June 30, 2024 Business-Type Activities
Capital Assets, Not Being Depreciated
Land $ 1,837,377 $ - $ - $ - $ 1,837,377
Construction in progress 5,688,620 2,026,078 - ( 5,851,041) 1,863,657 Total Capital Assets, Not Being
Depreciated

7,525,997 2,026,078 - ( 5,851,041) 3,701,034
Capital Assets, Being Depreciated
General and utility plant 96,270,023 - - 3,218,933 99,488,956 Buildings and improvements 1,573,115 - - 2,632,108 4,205,223 Equipment and vehicles 4,657,867 589,596 ( 262,546) - 4,984,917 Total Capital Assets,
Being Depreciated $102,501,005 589,596 ( 262,546) 5,851,041 108,679,096 Less Accumulated Depreciation For:

General and utility plant ( 53,440,767) ( 2,592,764) - - ( 56,033,531) Building and improvements ( 861,956) ( 86,099) - - ( 948,055) Equipment and vehicles ( 3,805,347) ( 281,838) 253,364 - ( 3,833,821) Total Accumulated Depreciation ( 58,108,070) ( 2,960,701) 253,364 - ( 60,815,407) Total Capital Assets,
Being Depreciated, Net 44,392,935 ( 2,371,105) ( 9,182) 5,851,041 47,863,689 Governmental Activities
Capital Assets, Net $ 51,918,932 ($ 345,027) ($ 9,182) $ - $ 51,564,723 Depreciation
Depreciation expense was charged to governmental activities as follows:

General government $ 174,766
Public safety 7,917
Public ways and facilities 1,240,209
Culture and recreation 85,060
Total Depreciation and Expense – Governmental Activities $ 1,507,952 Depreciation expense was charged to business-type activities as follows:

Water $ 645,266
Electric 753,684
Wastewater 1,280,934
Internal Service Funds 280,817
Total Depreciation Expense – Business-Type Activities $ 2,960,701 Construction in Progress
Construction in progress for governmental activities relates primarily to work performed on road and bridge projects. Construction in progress for business-type activities relates primarily to work performed on water projects, electric projects, and the wastewater treatment plant.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-36-
NOTE 5: INTERFUND TRANSACTIONS
Due From/To Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds.

The following are due from and due to balances as of June 30, 2024:

Due From Due To
Other Funds Other Funds
General fund $ 494,909 $ -
Nonmajor governmental funds - 397,332
Nonmajor enterprise funds - 97,577
Total $ 494,909 $ 494,909
Transfers
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations and re-allocations of special revenues.

The following are the interfund transfers for fiscal year ended June 30, 2024:

Transfers Transfers
In Out
General fund $ 4,600 $ -
Nonmajor governmental funds - 4,600
Total $ 4,600 $ 4,600
NOTE 6: UNEARNED/UNAVAILABLE REVENUES
At June 30, 2024, components of unearned and unavailable revenues were as follows:

Unearned Unavailable Totals
General Fund
Utility overpayments and deposit refunds $ 33,939 $ - $ 33,939 Grant Fund
Grants receivable - 990,397 990,397
ARPA Funds 1,670,374 - 1,670,374
Nonmajor Governmental Funds
Grants receivable - 919,429 919,429
Total $ 1,704,313 $ 1,909,826 $ 3,614,139

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-37-
NOTE 7: LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2024:

Amounts
Balance Adjustments/ Balance Due Within
Type of Indebtedness July 1, 2023 Additions Retirements June 30, 2024 One Year Governmental Activities
Revenue Bonds $ 2,121,775 $ - ($ 139,000) $ 1,982,775 $ 143,000 Special Assessment Bonds 22,000 - ( 2,000) 20,000 3,000 Certificates of Participation 10,804,000 - ( 427,000) 10,377,000 438,000 Unamortized Discount ( 241,180) - 14,187 ( 226,993) ( 14,187) Certificates of Participation, Net 10,562,820 - ( 412,813) 10,150,007 385,813 Compensated Absences 173,159 186,878 ( 169,880) 190,157 95,079 Total Governmental Activities $ 12,879,754 $ 186,878 ($ 723,693) $12,342,939 $ 664,892 Business-Type Activities
Loans $ 16,155,725 $ - ($ 585,040) $15,570,685 $ 597,471 Special Assessment Bonds 560,000 - ( 45,000) 515,000 45,000 Compensated Absences 390,390 373,254 ( 398,649) 364,995 182,499 Total Business-Type Activities $ 17,106,115 $ 373,254 ($1,028,689) $16,450,680 $ 824,970 Internal service funds predominately serve the enterprise funds. Accordingly, long-term liabilities for these funds are included as part of the above totals for business-type activities.

Compensated absences for the governmental activities are generally liquidated by the fund where the accrued liability occurred, which is primarily the General fund. Principal and interest payments for the governmental activities are generally paid by a debt service fund.

For the business-type activities, all debt is accounted for in the proprietary fund where the liability occurred.

Individual issues of debt payable outstanding at June 30, 2024, are as follows:

Governmental Activities
Revenue Bonds:
1995 Wastewater Revenue Bonds - Series A issued by the Shasta Lake Public Financing Authority to finance construction of the Wastewater Treatment Plant expansion. Principal payments, ranging from $49,000 to $210,000, are due annually on September 2, and mature September 2, 2034. Interest payments at 4.50% are due semi-annually. The bonds are secured by property assessment payments.
1995 Wastewater Revenue Bonds - Series B issued by the Shasta Lake Public Financing Authority to finance construction of the Wastewater Treatment Plant expansion. Principal payments, ranging from $6,000 to $27,000, are due annually on September 2, and mature September 2, 2034. Interest payments at 4.50% are due semi-annually. The bonds are secured by property assessment payments.

Total Revenue Bonds
1,761,000
221,775
1,982,775

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-38-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Special Assessment Bonds:

Riddle Road Assessment Bonds transferred from Shasta Dam Area Public Utility District - voter approved 1989. $64,932 issue of bonds (Farmers’ Home Administration) for the assessment district share of construction costs for the Riddle Road water system. Principal payments, ranging from $900 to $4,000, plus interest at 5%, are due annually on September 2. Final maturity of the issue is scheduled for 2029. The bonds are secured by property assessment payments.

Total Special Assessment Bonds
20,000
20,000
Certificates of Participation:
2018 Certificates of Participation issued February 15, 2018, in the amount of $2,500,000, payable in annual installments of $31,000 to $114,000, with an interest rate of 3.25% and maturity on January 1, 2058. The certificates were used to finance construction of certain improvements to the City Hall/Community Center Project and are secured by lease payments pursuant to a lease-leaseback arrangement, as well as a lien on the property. 2,297,000
2019 Certificates of Participation issued October 8, 2019, in the amount of $9,500,000, payable in annual installments of $280,000 to $645,000 with an interest rate of 2.05 to 3.70% and maturity on July 15, 2039. The certificates were used to refinance a portion of the City’s unfunded actuarial accrued liability (UAAL) with respect to its payments to CalPERS and are secured by lease payments pursuant to a lease-leaseback arrangement, as well as a lien on the property. 8,080,000 Total Certificates of Participation 10,377,000
Total Governmental Activities $ 12,379,775
Business-Type Activities
Loans:

State of California Infrastructure Bank Water Loan used to finance the Reservoir and Water System Improvement Project (Project), issued in the amount of $5,000,000, payable in annual principal payments ranging from $115,944 to $259,579 with interest payable semi-annually at an annual rate of 3.03%. The loan also consists of an annual fee ranging from $779 to $15,000. The loan is amortized over 30 years with the final payment due in 2034. The loan is secured by a lien on and pledge of the net system of revenues.

California State Water Resources Control Board Small Community Wastewater Loan, issued in the amount of $15,000,000, payable in annual installments of $249,617 with an interest rate of 1.70%. Principal payments are due annually on March 30 beginning 2021 with the final payment due March 30, 2050. The loan is being used to finance wastewater treatment plant facility upgrades. The loan is secured by a lien on and pledge of net revenues and a reserve fund.

Total Loans
$ 2,470,456
13,100,229
15,570,685

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-39-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Special Assessment Bonds:

Shasta Gateway Industrial Park Assessment Bonds transferred from Shasta Dam Area Public Utility District - voter approved 1989. $64,932 issue of bonds (Farmers’ Home Administration) for the assessment district share of construction costs for the Shasta Gateway Industrial Park water system. Principal payments, ranging from $900 to $4,000, plus interest at 5%, are due annually on September 2. Final maturity of the issue is scheduled for 2029. The bonds are secured by property assessment payments.

Total Special Assessment Bonds

Total Business-Type Activities
515,000
515,000
$ 16,085,685
Following is a schedule of debt payment requirements of governmental activities and business-type activities to maturity for long-term debt, excluding compensated absences that have indefinite maturities.

Governmental Activities
Revenue Bonds
Year Ended
June 30 Principal Interest Total
2025 $ 143,000 $ 85,972 $ 228,972
2026 152,000 79,335 231,335
2027 155,000 72,428 227,428
2028 164,000 65,250 229,250
2029 172,000 57,690 229,690
2030-2034 973,000 163,868 1,136,868
2035 223,775 5,017 228,792
Total $ 1,982,775 $ 529,560 $ 2,512,335
Special Assessment Bonds
Year Ended
June 30 Principal Interest Total
2025 $ 3,000 $ 775 $ 3,775
2026 3,000 625 3,625
2027 3,000 450 3,450
2028 4,000 250 4,250
2029 4,000 75 4,075
2030 3,000 - 3,000
Total $ 20,000 $ 2,175 $ 22,175

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-40-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Certificates of Participation
Year Ended
June 30 Principal Interest Total
2025 $ 438,000 $ 339,768 $ 777,768
2026 449,000 327,849 776,849
2027 460,000 315,218 775,218
2028 472,000 301,803 773,803
2029 488,000 287,639 775,639
2030-2034 2,672,000 1,188,423 3,860,423
2035-2039 3,173,000 678,430 3,851,430
2040-2044 971,000 293,780 1,264,780
2045-2049 384,000 179,627 563,627
2050-2054 450,000 113,099 563,099
2055-2058 420,000 34,904 454,904
Total $ 10,377,000 $ 4,060,540 $ 14,437,540
Business-Type Activities
Loans
Year Ended
June 30 Principal Interest Total
2025 $ 597,471 $ 294,641 $ 892,112
2026 610,190 281,834 892,024
2027 623,202 268,731 891,933
2028 636,516 255,323 891,839
2029 650,138 241,605 891,743
2030-2034 3,466,380 990,775 4,457,155
2035-2039 2,738,560 662,881 3,401,441
2040-2044 2,696,981 440,948 3,137,929
2045-2049 2,934,151 203,776 3,137,927
2050 617,096 10,490 627,586
Total $ 15,570,685 $ 3,651,004 $ 19,221,689
Special Assessment Bonds
Year Ended
June 30 Principal Interest Total
2025 $ 45,000 $ 25,857 $ 70,857
2026 50,000 23,363 73,363
2027 50,000 20,738 70,738
2028 55,000 17,982 72,982
2029 55,000 15,094 70,094
2030-2032 260,000 28,089 288,089
Total $ 515,000 $ 131,123 $ 646,123

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-41-
NOTE 8: NET POSITION
The government-wide and proprietary fund 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 - consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets.
• Restricted net position - consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. • Unrestricted net position - all other net position that does not meet the definition of “restricted” or “net investment in capital assets”.

Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $13,691,494 of restricted net position, of which $2,988,971 is restricted by enabling legislation.

Net Position Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted net position are available, it is considered that restricted resources are used first, followed by the unrestricted resources.

NOTE 9: FUND BALANCES
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds can be made up of the following:
• Nonspendable fund balance - amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example:
inventories and prepaid amounts.
• 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. Restrictions may effectively be changed or lifted with the consent of resource providers. • Committed fund balance - amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance commit fund balance. Once adopted, the limitation imposed remains in place until a similar action is taken to remove or revise the limitation. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-42-
NOTE 9: FUND BALANCES (CONTINUED)
• Assigned fund balance - amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established by the City Council or official or body to whom the Council has delegated its authority.
• Unassigned fund balance - the residual classification for the City’s General fund that includes all 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.

The fund balances for all major and nonmajor governmental funds as of June 30, 2024, were distributed as follows:

Other
General Grant Governmental
Fund Fund Funds Totals
Nonspendable:

Prepaid costs $ 3,371 $ - $ - $ 3,371
Subtotal 3,371 - - 3,371
Restricted for:

HOME - - 4,587,606 4,587,606
Wastewater treatment debt - - 2,685,505 2,685,505
Law enforcement fund (COPS) - - 12,985 12,985
Water P&FCC charges - - 526,900 526,900
State trafficway - - 986,971 986,971
Electric P&FCC charges - - 346,998 346,998
CDBG housing rehabilitation - - 178,244 178,244
Parks P&FCC charges - - 356,831 356,831
Former RDA low/moderate - - 1,100,412 1,100,412
Debt service 688,715 - 29,333 718,048
Subtotal 688,715 - 10,811,785 11,500,500
Unassigned 6,104,538 ( 908,510) ( 243,307) 4,952,721
Total $ 6,796,624 ($ 908,510) $ 10,568,478 $ 16,456,592 Fund Balance Flow Assumptions
When a government funds outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance), a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted fund balance are available, it is considered that restricted fund balance is depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.

Fund Balance Policy
The City Council adopted the City of Shasta Lake Fund Balance Policy in 2011. The policy establishes procedures for reporting fund balance classifications, establishes prudent reserve requirements, and establishes a hierarchy of fund balance expenditures. The policy also provides for a measure of financial protection for the City against unforeseen circumstances and to comply with GASB Statement No. 54.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-43-
NOTE 10: PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost-sharing multiple employer-defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Effective January 1, 2013, the City added retirement tiers for the Miscellaneous Rate Plan for new employees as required under the Public Employee Pension Reform Act (PEPRA). Classic employees are generally defined as employees who have been a member of any public retirement system who have had less than a six-month break in service. Applicable new hires to the City defined as classic employees as determined by PERS will be subject to the non-PEPRA tier (i.e., Miscellaneous). New non-classic employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new non-classic employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the City’s retirement costs.

Summary of Rate of Tiers and Eligible Participants
Open for New Enrollment
Miscellaneous PEPRA Miscellaneous members hired on or after January 1, 2013 Closed to New Enrollment
Miscellaneous First Tier Miscellaneous employees hired before January 1, 2013 Miscellaneous Second Tier Miscellaneous employees hired before January 1, 2013 Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. Retirement benefits are paid monthly for life. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The costof-living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law.

Each Rate Tier’s specific provisions and benefits in effect at June 30, 2024, are summarized as follows:

Monthly Benefits
Benefit Retirement as a % of
Formula Age Eligible Compensation
Miscellaneous First Tier 3.0% @ 60 50-60 2.000% - 3.000% Miscellaneous Second Tier 2.0% @ 60 50-63 1.092% - 2.418% Miscellaneous PEPRA 2.0% @ 62 52-67 1.000% - 2.500%

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-44-
NOTE 10: PENSION PLAN (CONTINUED)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for all 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.

Employer Employee Employer Paid
Contribution Contribution Member
Rates Rates Contribution Rates
Miscellaneous First Tier 17.260% 8.000% 0.000%
Miscellaneous Second Tier 10.660% 7.000% 0.000%
Miscellaneous PEPRA 7.680% 7.750% 0.000%
For the year ended June 30, 2024, the contributions recognized as part of pension expense were as follows:

Contributions-Employee
Contributions-Employer (Paid by Employer)
Miscellaneous $ 617,749 $ -
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of the June 30, 2023 and 2024 was as follows:

Proportion Proportion Change-
June 30, 2023 June 30, 2024 Increase (Decrease)
Miscellaneous 0.03736% 0.05332% 0.01596%
As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Proportionate
Share of Net
Pension Liability
Miscellaneous $ 2,666,361
Total Net Pension Liability (Asset) $ 2,666,361

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-45-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
For the year ended June 30, 2024, the City recognized pension credit of ($187,438). At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ 617,200 $ - Change in assumptions 160,980 -
Difference between expected and actual experience 136,212 ( 21,130) Difference between projected and actual earnings on
pension plan investments 431,708 -
Difference between City contributions and proportionate share of contributions. - ( 1,820,973)
Amortization due to differences in proportions 3,349,803 - Total $ 4,695,903 ($ 1,842,103)
$617,200 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal
Year Ended
June 30
2025 $ 1,261,688
2026 788,805
2027 173,719
2028 12,388
Thereafter -
Total $ 2,236,600
Actuarial Assumptions
The total pension liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions:

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

Discount Rate 6.90%
Investment Rate of Return 6.90%
Inflation 2.30%
Salary Increases Varies by entry-age and service
Mortality Rate Table Derived using CalPERS’ membership data for all funds Post-Retirement Benefit Increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power
applies

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-46-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Actuarial Assumptions (Continued)
The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80 percent of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the CalPERS 2021 experience study that can be found on the CalPERS website.

Long-Term Expected Rate of Return
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 and, combined with risk estimates, 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.

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

Assumed Real Return
Asset Years 1-10
Asset Class Allocation (1, 2)
Global Equity – Cap-Weighted 30.0% 4.54%
Global Equity – Non-Cap-Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage ( 5.0%) ( 0.59%)
Total 100.0%
(1) An expected price inflation of 2.30% used for this period (2) Figures are based on the 2021-22 Asset Liability Management Study Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-47-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Sensitivity of Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability as of the measurement date, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability (asset) would be if it were calculated using as discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase

5.90% 6.90% 7.90%
Miscellaneous $ 8,819,441 $ 2,666,361 ($ 2,398,152)
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB)
A. General Information about the OPEB Plan
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Plan Description
The City’s defined benefit OPEB plan (Plan) provides OPEB for all permanent full-time employees of the City. The Plan is an agent multiple-employer defined benefit OPEB plan administered by the California Public Employees’ Retirement System (CalPERS). The City Council has the authority to establish and amend the benefit terms of the Plan.

The City provides medical coverage for qualifying retirees. Retirees eligible for medical coverage can also elect dental and vision coverage, but the dental and vision coverage is entirely at the retiree’s own expense.

Medical coverage is currently provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This coverage requires the employee to satisfy the requirements for retirement under CalPERS, which requires attainment of age 50 (age 52, if a miscellaneous employee new to PERS on or after January 1, 2013) with 5 years of State or public agency service or approved disability retirement.

Unless covered by a PEMHCA Vesting resolution, the employee must begin his or her retirement warrant within 120 days of terminating employment with the City to be eligible to continue medical coverage through the City and be entitled to the employer subsidy.

If an eligible employee is not already enrolled in the medical plan, he or she may enroll within 60 days of retirement or during any future open enrollment period. Coverage may be continued at the retiree’s option for his or her lifetime. A surviving spouse and other eligible dependents may also continue coverage.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-48-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
Employees Covered by Benefit Terms
At the OPEB liability measurement date of June 30, 2023, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefit payments 29 Inactive employees entitled to but not yet receiving benefit payments 10 Active employees 57
Total 96
Contributions
As a condition of participation in the CalPERS medical program, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. A spouse and other eligible dependents may also continue coverage and receive the City contribution.

The City currently maintains two different types of resolutions with CalPERS defining the level of the City’s contribution. The resolutions apply to those eligible for coverages, based on the employee’s hire date and/or irrevocable election:
• Retirees hired before June 1, 2010 are covered by ‘unequal contribution’ resolutions, initially adopted in 1994. For active employees, the City contributes 100 percent of the premium for the employee and his or her dependents, subject to a maximum monthly amount. The following chart shows the maximum monthly amounts (“City Non-Vesting Caps”) for active employee medical costs for 2024:

City Non – Vesting Caps
Group Ee Only Ee + Sp Ee + Fam
Management $ 914.82 $ 1,829.64 $ 2,378.53
Teamsters 914.82 1,829.64 2,378.53
IBEW 914.82 1,829.64 2,378.53
The City’s contribution for retirees covered by these unequal contribution resolutions is determined by multiplying: (a) 5 percent times (b) the number of years the employer has been contracted with PEMHCA times (c) the contribution the employer makes towards active employee health benefits, as described above.

The maximum increase in the dollar amount of the monthly retiree contribution for anyone fiscal year is $100. In no event will the City’s total subsidy for retiree medical expenses exceed the retiree’s actual premium.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-49-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
Contributions (Continued)
Employees hired prior to June 1, 2010 were given the option to have their benefits calculated using the vesting resolution (described below) if they so desired. All current active employees hired prior to June 1, 2010 have chosen that option.
• Retirees hired on or after June 1, 2010 are covered by PEMHCA ‘Vesting’ resolutions. Under these resolutions, the City’s contribution toward retiree medical benefits is determined as the lesser of:
• 100 percent of the medical plan premiums for the retiree and his or her eligible dependents; and • The “100/90” formula maximum benefits (caps) multiplied by the vesting percent.

The cap amounts vary by coverage level and are adjusted annually. For 2022, the caps are $816 (employee), $1,548 (employee plus one) and $1,983 (employee plus family).

The vested percent is based on the retiree’s years of CalPERS membership, as shown in the table below, though a minimum of 5 years of City service is required to be vested.

Employees who retire on approved disability retirement are 100 percent vested regardless of service.

Years of
Qualifying
Service Vested Percent
Years of
Qualifying
Service Vested Percent
Less than 10
10 11
12 13
14 0%
50%
55%
60%
65%
70%
15 16
17 18
19 20 or more
75%
80%
85%
90%
95%
100%
Employees covered by the PEMHCA vesting resolution who complete at least 20 years of service with the City are entitled to these subsidized medical benefits from the City once they commence their CalPERS retirement warrant, even if they terminate employment prior to reaching age 50.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-50-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
Contributions (Continued)
Current premium rates: The 2024 CalPERS monthly medical plan rates in the Region 1 area rate group are shown in the table below, though other regional rates were also applied. The CalPERS administration fee is assumed to be expensed each year and has not been projected as an OPEB liability in this valuation.

Region 1 2024 Health Plan Rates
Activities and Pre-Med Retirees Medicare Eligible Retirees Plan Ee Only Ee & 1 Ee & 2+ Ee Only Ee & 1 Ee & 2+
Kaiser HMO $ 1,021.41 $ 2,042.82 $ 2,655.67 $ 386.55 $ 773.10 $ 1,159.65 PERS Platinum PPO 1,314.27 2,628.54 3,417.10 448.15 896.30 1,344.45 PERS Gold PPO 914.82 1,829.64 2,378.53 406.60 813.20 1,219.80 B. Net OPEB Liability
The City’s net OPEB Liability of $2,233,550 was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.

Actuarial Assumptions and Other Inputs
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2023
Funding Method Entry Age Normal Cost, level of percent of pay Asset Valuation Method Market value of assets
Discount Rates 5.65% as of June 30, 2023 and June 30, 2022 Participants Valued Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation.

Salary Increase 3.00% per year; since benefits do not depend on salary, this is used only to allocate the cost of benefits between service years and to determine the amortization payment component of the Actuarially Determined Contributions
General Inflation Rate 2.50% per year
Healthcare cost trend rates 7.00% for 2025, fluctuating down to an ultimate rate of 3.90% for 2076 and later years
Mortality rates CalPERS 2021 experience study
Demographic actuarial assumptions used in the valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-51-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) B. Net OPEB Liability (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 5.65 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

C. Changes in the Net OPEB Liability (Asset)
The table below shows the changes in the total OPEB liability, the Plan fiduciary net position (i.e. fair value of the Plan assets), and the net OPEB liability (asset) during the measurement period ending on June 30, 2023 for the City’s proportionate share.

Increases (Decreases)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balances at Fiscal Year Ending June 30, 2023 $ 9,117,062 $ 8,496,114 $ 620,948 Changes for the year:

Service cost 407,610 - 407,610
Interest 527,592 - 527,592
Difference between expected and actual experience 445,027 - 445,027 Change of assumptions 905,994 - 905,994
Contributions – employer - 373,513 ( 373,513)
Net investment income - 302,542 ( 302,542)
Benefit payments, ( 373,513) ( 373,513) -
Administrative expense - ( 2,434) 2,434
Net Changes 1,912,710 300,108 1,612,602
Balances at Fiscal Year Ending June 30, 2024 $ 11,029,772 $ 8,796,222 $ 2,233,550 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
1% Decrease Discount Rate 1% Increase

4.65% 5.65% 6.65%
Net OPEB liability (asset) $ 3,925,371 $ 2,233,550 $ 857,979

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-52-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) C. Changes in the Net OPEB Liability (Asset) (Continued) Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates:

Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB liability (asset) $ 674,881 $ 2,233,550 $ 4,199,916 OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued CalPERS financial report.

D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City recognized OPEB expense of $572,137. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions made subsequent to the measurement date $ 441,306 $ - Changes of assumptions 1,037,605 ( 93,587)
Difference between expected and actual experience 387,530 ( 683,461) Net differences between projected and actual earnings
on OPEB plan investments 794,944 -
Total $ 2,661,385 ($ 777,048)
$441,306 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended June 30, 2025.

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

Fiscal
Year Ended
June 30
2025 $ 119,170
2026 87,599
2027 508,265
2028 238,798
2029 185,479
Thereafter 303,720
Total $ 1,443,031

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-53-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Payable to the OPEB Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the Plan required for the year.

NOTE 12: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disaster. The City maintains insurance coverage from a commercial carrier for its medical, short-term and long-term disability, and dental and vision plan.

There is no claims liability to be reported based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

There are no significant reductions in insurance coverage from prior years and there have been no settlements exceeding the insurance coverages for each of the past three fiscal years.

The City is a member of the Small Cities Organized Risk Effort joint powers authority (SCORE), which provides the City with liability coverage with limits of $40,000,000 for each occurrence, workers’ compensation coverage with limits to $5,000,000 for each occurrence and property coverage for replacement. SCORE provides these limits and coverage by participating in the California Joint Powers Risk Management Authority (CJPRMA) for excess liability and Local City Workers’ Compensation Excess Liability joint powers authority (LAWCX) for excess workers’ compensation. Property coverage is obtained by a group purchase from insurance companies with the City’s deductible being $10,000 each claim for vehicles and property.

NOTE 13: JOINT VENTURES
A. NCPA
Northern California Power Agency
The City is a member of Northern California Power Agency (NCPA), a joint powers agency which operates under a joint powers agreement among sixteen public agencies. NCPA Commission is the agency’s governing board with each member appointing one Commission Representative. The purpose of NCPA is to provide its members cost effective wholesale power, energy-related services, and advocacy on behalf of public power consumers through joint action. NCPA provides services to its members through a set of programs, such as the Legislative & Regulatory Program and Power Management Program. NCPA owns generation projects and its Generation Services division operates and maintains these resources on behalf of participating members. Members are only obligated for agency costs related to programs and services expressly selected by members. Members are empowered to opt in to programs and projects and agree to fund a pro rata share allocation associated with selected programs and projects. As a member of NCPA, the City participates in the Legislative & Regulatory Affairs Program.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-54-
NOTE 13: JOINT VENTURES (CONTINUED)
A. NCPA (Continued)
Northern California Power Agency (Continued)
NCPA’s Legislative & Regulatory Affairs Program is primarily focused on advocacy efforts at Federal and State levels dealing with matters of legislation and regulation that affect electric ratepayers. NCPA engages in policy discussions in forums that include but are not limited to Congress, California State Legislature, Federal Energy Regulatory Commission, California Energy Commission, and California Air Resources Board. The Legislative & Regulatory Affairs Program allows NCPA members to interact with key policy makers with a single coordinated voice. The L&R team also assists NCPA members in addressing numerous energy and environmental reporting obligations and developing capabilities in marketing customer-oriented energy-saving programs.

B. Balancing Authority of Northern California
The Balancing Authority of Northern California (BANC) is a joint powers agency consisting of the Sacramento Municipal Utility District (SMUD), Modesto Irrigation District (MID), City of Roseville, City of Redding (REU) and the City of Shasta Lake as its founding members. On June 26, 2013, BANC members voted to accept Trinity Public Utilities District (TPUD) as a new member. BANC assumed the balancing authority responsibilities from SMUD on May 1, 2011, and is responsible for the matching of generation to load and coordinating system operations with neighboring Balancing Authorities. The resources within the BANC footprint include but are not limited to the Central Valley project (CVP) generation, owned by the Bureau of Reclamation; the CVP transmission network, owned by the Western Area Power Administration (WAPA); and the 500-kV California Oregon Transmission Project (COTP), which is jointly owned by several parties including WAPA and the Transmission Agency of Northern California (TANC). BANC members contract for about 40 percent of the CVP hydroelectric resource.

BANC offers its members cost savings and greater influence through joint action. BANC is engaged in several external policy forums focused on balancing authority matters and allows its members to speak with a unified voice. BANC’s structure provides flexibility to jointly develop and expand operational capabilities at significant cost savings relative to individual development costs. BANC is governed by its members and clarifies roles and responsibilities of the members regarding reliability standard compliance.

The members’ rights and expense-sharing are based on the participation percentages in most BANC activities. BANC members’ participation percentages are based on each members’ retail sales, which are approximately 68.8 percent, 16.5 percent, 7.8 percent, 5.0 percent, 1.2 percent and 0.7 percent for SMUD, MID, Roseville, REU, Shasta Lake and TPUD respectively. These participation percentages can be updated as the need requires.

Complete separate financial statements for each of the joint ventures in which the City participants may be obtained from the City of Shasta Lake Finance Department, 447 Main Street, Shasta Lake, California 96019.

NOTE 14: OTHER INFORMATION
A. Commitments and Contingencies
At June 30, 2024, the City had construction commitments outstanding of approximately $299,038.

CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-55-
NOTE 14: OTHER INFORMATION (CONTINUED)
A. Commitments and Contingencies (Continued)
The City is a defendant in various lawsuits. Management and Counsel believe the suits will not have a material adverse effect on the City’s financial condition.

B. Successor Agency Trust for Assets of Former Redevelopment Agency In accordance with Assembly Bill 1X26 and Assembly Bill 1434, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. The activity of the Successor Agency Trust for Assets of Former Redevelopment Agency (Successor Agency) is recorded in a private purpose trust.

The following is a summary of changes in long-term liabilities for the year ended June 30, 2024:

Amounts
Balance Additions/ Balance Due Within
Type of Indebtedness July 1, 2023 Adjustments Retirements June 30, 2024 One Year Tax Allocation Bonds $ 1,520,000 $ - ($ 360,000) $ 1,160,000 $ 375,000 Total $ 1,520,000 $ - ($ 360,000) $ 1,160,000 $ 375,000 Individual issues of debt payable outstanding at June 30, 2024, are as follows:

Tax Allocation Bonds:

Tax Allocation Revenue Refunding Bonds, Series 2014, issued by the Shasta Lake Public Financing Authority in the amount of $3,900,000 and payable in annual installments of $265,000 to $400,000, with an interest rate of 2.00% to 5.00% and maturity on December 1, 2026. The bonds were used to refund the 2006 Tax Allocation Revenue Bonds.

Total Tax Allocation Bonds
$ 1,160,000
$ 1,160,000
Following is a schedule of debt payment requirements to maturity for long-term debt:

Tax Allocation Bonds
Year Ended
June 30 Principal Interest Total
2025 $ 375,000 $ 33,703 $ 408,703
2026 385,000 19,625 404,625
2027 400,000 5,000 405,000
Total $ 1,160,000 $ 58,328 $ 1,218,328
C. Subsequent Events
Management has evaluated events subsequent to June 30, 2024 through March 11, 2025, the date on which the financial statements were available for issuance and has determined no other subsequent events requiring disclosure have occurred.

THIS PAGE INTENTIONALLY LEFT BLANK
Required Supplementary Information
(Unaudited)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Required Supplementary Information
City Pension Plan
Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2024
Last 10 Years
Measurement Date 2013/2014 2014/2015 2015/2016 2016/2017 Miscellaneous Plan
Proportion of the net pension liability 0.17774% 0.17492% 0.18668% 0.19250% Proportionate share of the net pension
liability $ 4,392,836 $ 4,798,851 $ 6,485,096 $ 7,588,576 Covered payroll 3,288,389 3,191,503 3,310,634 3,655,228 Proportionate share of the net pension
liability as a percentage of covered payroll 133.59% 150.36% 195.89% 207.61% Plan fiduciary net position as a percentage
of the total pension liability 83.80% 82.80% 78.07% 76.44% -56-
2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023

0.19678% 0.20417% 0.00547% -0.29722% 0.03736% 0.05332%
$ 7,416,000 $ 8,175,847 $ 230,682 $ (5,643,653) $ 1,748,131 $ 2,666,361 3,897,624 3,931,301 4,292,114 4,698,897 4,874,966 5,166,506 190.27% 207.97% 5.37% -120.11% 35.86% 51.61%

78.08% 77.37% 99.39% 114.18% 95.98% 94.14%
-56-

CITY OF SHASTA LAKE
Required Supplementary Information
City Pension Plan
Schedule of Contributions
For the Year Ended June 30, 2024
Last 10 Years
Fiscal Year 2014/2015 2015/2016 2016/2017 2017/2018
Miscellaneous Plan
Contractually required contribution
(actuarially determined) $ 539,884 $ 373,644 $ 405,356 $ 414,691 Contributions in relation to the actuarially
determined contributions (2,502,238) (604,944) (670,799) (723,724) Contribution deficiency (excess) $ (1,962,354) $ (231,300) $ (265,443) $ (309,033) Covered payroll $ 3,191,503 $ 3,310,634 $ 3,655,228 $ 3,897,624 Contributions as a percentage of covered
payroll 78.40% 18.27% 18.35% 18.57%
-57-
2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 $ 425,624 $ 472,300 $ 563,348 $ 571,048 $ 617,749 $ 617,200 (817,880) (9,341,569) (563,348) (571,048) (617,749) (617,200) $ (392,256) $ (8,869,269) $ - $ - $ - $ -
$ 3,931,301 $ 4,292,114 $ 4,698,897 $ 4,874,966 $ 5,166,506 $ 5,420,836

20.80% 217.64% 11.99% 11.71% 11.96% 11.39%
-57-

CITY OF SHASTA LAKE
Required Supplementary Information
City Pension Plan
Notes to City Pension Plan
For the Year Ended June 30, 2024
-58-
NOTE 1: SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Change of Assumptions and Methods
Benefit Changes: None
Changes of Assumptions: None
NOTE 2: SCHEDULE OF CONTRIBUTIONS
Methods and assumptions used to determine the contribution rates were as follows:

Valuation Date June 30, 2021
Actuarial cost method Individual Entry Age Normal
Amortization method Level Percentage of Payroll and Direct Rate Smoothing Remaining Amortization Period Differs by employer rate plan but no more than 30 years Asset valuation method Fair value
Discount Rate 6.80%
Inflation 2.30%
Salary increases Varies based on entry age and service
Investment rate of return 6.80%

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Required Supplementary Information
City OPEB Plan
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Last 10 Year Fiscal Years*
Measurement Date 2016/2017 2017/2018 2018/2019 2019/2020 Total OPEB Liability
Service cost $ 291,008 $ 326,791 $ 361,837 $ 333,816
Interest 566,870 551,780 582,324 484,815
Differences between expected and actual experience (1,046,313) - (1,835,068) - Changes of assumptions 244,005 351,325 (297,932) -
Benefit payments (303,321) (327,846) (402,009) (328,882) Net Change in Total OPEB Liability (247,751) 902,050 (1,590,848) 489,749 Total OPEB Liability - Beginning 8,283,687 8,035,936 8,937,986 7,347,138 Total OPEB Liability - Ending (a) $ 8,035,936 $ 8,937,986 $ 7,347,138 $ 7,836,887 Plan Fiduciary Net Position
Contributions - employer $ 473,437 $ 472,498 $ 445,979 $ 328,882 Net investment income 435,349 406,313 503,091 414,776
Benefit payments (303,321) (327,846) (402,009) (328,882) Administrative expenses (3,167) (3,480) (1,535) (3,782) Other expenses - (8,704) - -
Net Change in Plan Fiduciary Net Position 602,298 538,781 545,526 410,994 Plan Fiduciary Net Position - Beginning 5,978,934 6,581,232 7,120,013 7,665,539 Plan Fiduciary Net Position - Ending (b) $ 6,581,232 $ 7,120,013 $ 7,665,539 $ 8,076,533 Net OPEB Liability (Asset) - Ending (a) - (b) $ 1,454,704 $ 1,817,973 $ (318,401) $ (239,646) Plan fiduciary net position as a percentage of the total OPEB liability 81.90% 79.66% 104.33% 103.06%
Covered employee payroll $ 3,655,228 $ 3,897,624 $ 3,928,111 $ 4,292,114 Net OPEB liability as a percentage of covered employee payroll 39.80% 46.64% -8.11% -5.58% * The City implemented GASB 75 for the fiscal year June 30, 2018, therefore only seven years are shown. -59-
2020/2021 2021/2022 2022/2023
$ 343,830 $ 395,738 $ 407,610
517,584 497,581 527,592
(180,309) - 445,027
392,586 - 905,994
(312,321) (374,514) (373,513)
761,370 518,805 1,912,710
7,836,887 8,598,257 9,117,062
$ 8,598,257 $ 9,117,062 $ 11,029,772
$ 372,321 $ 374,514 $ 373,513
1,587,391 (1,222,414) 302,542
(312,321) (374,514) (373,513)
(2,940) (2,456) (2,434)
- - -
1,644,451 (1,224,870) 300,108
8,076,533 9,720,984 8,496,114
$ 9,720,984 $ 8,496,114 $ 8,796,222
$ (1,122,727) $ 620,948 $ 2,233,550
113.06% 93.19% 79.75%
$ 4,420,877 $ 4,766,358 $ 5,154,429
-25.40% 13.03% 43.33%
-59-

CITY OF SHASTA LAKE
Required Supplementary Information
City OPEB Plan
Schedule of Contributions
For the Year Ended June 30, 2024
Last 10 Fiscal Years*
Fiscal Year 2017/2018 2018/2019 2019/2020 2020/2021
Actuarially determined contribution $ 505,772 $ 487,373 $ 346,279 $ 358,770 Contributions in relation to the actuarially determined contribution (472,498) (445,979) (328,882) (372,321) Contribution deficiency (excess) $ 33,274 $ 41,394 $ 17,397 $ (13,551) Covered employee payroll $ 3,897,624 $ 3,928,111 $ 4,292,114 $ 4,420,877 Contributions as a percentage of covered employee payroll 12.12% 11.35% 7.66% 8.42% * The City implemented GASB 75 for the fiscal year June 30, 2018, therefore only seven years are shown. -60-
2021/2022 2022/2023 2023/2024
$ 367,955 $ 342,178 $ 355,771
(374,514) (373,513) (441,306)
$ (6,559) $ (31,335) $ (85,535)
$ 4,766,358 $ 5,154,429 $ 5,283,935

7.86% 7.25% 8.35%
-60-

CITY OF SHASTA LAKE
Required Supplementary Information
City OPEB Plan
Notes to City OPEB Plan
For the Year Ended June 30, 2024
-61-
NOTE 1: SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
There were no changes reflected during the current measurement period.

NOTE 2: SCHEDULE OF CONTRIBUTIONS
The actuarially determined contribution (ADC) developed for the City’s fiscal year ending June 30, 2024 was determined and presented in the June 30, 2021 Actuarial Valuation report.

Methods and Assumptions Used to Determine Contributions:

Actuarial cost method Entry Age Normal Level % of Pay
Amortization method Level dollar Open 30 years
Amortization period 30 years
Asset valuation method Market value
Inflation 2.50%
Healthcare cost trend rates 5.80% in 2023, fluctuating down to 3.90% by 2076 Salary increases 3.00%
Investment rate of return 5.65%
Retirement age From 50 to 75
Mortality CalPERS 2017 Experience Study
Mortality improvement MW Scale 2022 generationally

CITY OF SHASTA LAKE
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Taxes and assessments $ 2,949,659 $ 2,949,659 $ 3,334,201 $ 384,542 Licenses and permits 201,600 201,600 309,688 108,088
Fines and forfeitures 9,250 43,250 8,554 (34,696)
Use of money and property 75,000 75,000 298,129 223,129 Intergovernmental 1,082,500 1,082,500 1,183,239 100,739 Charges for services 4,717,269 4,717,269 4,682,141 (35,128) Other revenues 447,830 447,830 39,700 (408,130)
Total Revenues 9,483,108 9,517,108 9,855,652 338,544

EXPENDITURES
Current:

General government 3,717,925 3,758,925 3,182,475 576,450 Public safety 4,921,478 4,960,339 4,042,803 917,536
Public ways and facilities 264,651 264,651 140,743 123,908 Planning 859,971 893,971 793,399 100,572
Culture and recreation 454,795 454,795 388,449 66,346
Debt service:

Principal 427,000 427,000 427,000 -
Interest 350,948 350,948 352,486 (1,538)
Capital outlay 25,000 25,000 - 25,000
Total Expenditures 11,021,768 11,135,629 9,327,355 1,808,274 Excess of Revenues Over (Under) Expenditures (1,538,660) (1,618,521) 528,297 2,146,818

OTHER FINANCING SOURCES (USES)
Transfers in - - 4,600 4,600
Total Other Financing Sources (Uses) - - 4,600 4,600
Net Change in Fund Balances (1,538,660) (1,618,521) 532,897 2,151,418 Fund Balances - Beginning 6,263,727 6,263,727 6,263,727 - Fund Balances - Ending $ 4,725,067 $ 4,645,206 $ 6,796,624 $ 2,151,418 -62-

CITY OF SHASTA LAKE
Required Supplementary Information
Budgetary Comparison Schedule
Grant Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Use of money and property $ - $ - $ 47,958 $ 47,958
Intergovernmental 1,477,418 1,477,418 2,769,273 1,291,855 Total Revenues 1,477,418 1,477,418 2,817,231 1,339,813

EXPENDITURES
Current:

General government - 1,874,950 1,351,977 522,973
Capital outlay 1,477,418 7,906,598 1,339,996 6,566,602
Total Expenditures 1,477,418 9,781,548 2,691,973 7,089,575 Net Change in Fund Balances - (8,304,130) 125,258 8,429,388 Fund Balances - Beginning (1,033,768) (1,033,768) (1,033,768) - Fund Balances - Ending $ (1,033,768) $ (9,337,898) $ (908,510) $ 8,429,388 -63-

CITY OF SHASTA LAKE
Required Supplementary Information
Note to Budgetary Comparison Schedule
For the Year Ended June 30, 2024
-64-
NOTE 1: BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the General fund and Special Revenue funds, and is controlled at the department level for the City. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant adjustments.

The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:
(1) The two-year operating budget of the City is adopted by the City of Shasta Lake City Council prior to July 1 on even numbered years, primarily on the cash basis. (2) The City manager is authorized to transfer budget amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund requires City Council resolution
The City does not use encumbrance accounting under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.

THIS PAGE INTENTIONALLY LEFT BLANK
Combining Nonmajor Fund Financial Statements

THIS PAGE INTENTIONALLY LEFT BLANK
Nonmajor Governmental Funds

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Debt
Revenue Service
Funds Funds Totals
ASSETS
Cash and investments $ 4,049,598 $ 411,715 $ 4,461,313
Receivables:

Interest 42,599 6,691 49,290
Taxes 116,518 2,248 118,766
Intergovernmental 919,429 - 919,429
Assessments - 2,002,000 2,002,000
Restricted cash and investments - 292,184 292,184
Loans receivable 3,704,682 - 3,704,682
Land held for resale 534,984 - 534,984
Total Assets $ 9,367,810 $ 2,714,838 $12,082,648

LIABILITIES
Accounts payable $ 64,118 $ - $ 64,118
Retentions payable 133,291 - 133,291
Due to other funds 397,332 - 397,332
Total Liabilities 594,741 - 594,741

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 919,429 - 919,429
Total Deferred Inflows of Resources 919,429 - 919,429

FUND BALANCES
Restricted 8,096,947 2,714,838 10,811,785
Unassigned (243,307) - (243,307)
Total Fund Balances 7,853,640 2,714,838 10,568,478
Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 9,367,810 $ 2,714,838 $12,082,648 -65-

CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Debt
Revenue Service
Funds Funds Totals

REVENUES
Taxes and assessments $ - $ 29,522 $ 29,522
Use of money and property 198,971 32,023 230,994
Intergovernmental 2,685,824 - 2,685,824
Charges for services 80,276 - 80,276
Total Revenues 2,965,071 61,545 3,026,616

EXPENDITURES
Current:

General government 28,528 - 28,528
Public safety 100,000 - 100,000
Public ways and facilities 898,622 - 898,622
Community development 1,407,124 9,836 1,416,960
Debt service:

Principal - 141,000 141,000
Interest - 93,402 93,402
Capital outlay 1,992,399 - 1,992,399
Total Expenditures 4,426,673 244,238 4,670,911
Excess of Revenues Over (Under) Expenditures (1,461,602) (182,693) (1,644,295)

OTHER FINANCING SOURCES (USES)
Transfers out (4,600) - (4,600)
Total Other Financing Sources (Uses) (4,600) - (4,600)
Net Change in Fund Balances (1,466,202) (182,693) (1,648,895) Fund Balances - Beginning 9,319,842 2,897,531 12,217,373 Fund Balances - Ending $ 7,853,640 $ 2,714,838 $10,568,478 -66-
Nonmajor Governmental Funds
• Special Revenue Funds

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2024
Law Water Electric CDBG
Enforcement P&FCC P&FCC Housing
(COPS) Charges Charges HOME Rehabilitation
ASSETS
Cash and investments $ 20,981 $ 521,617 $ 343,401 $ 1,779,902 $ 104,371 Receivables:

Interest 337 5,283 3,597 17,646 1,068
Taxes - - - - -
Intergovernmental - - - - -
Loans receivable - - - 2,790,058 72,805
Land held for resale - - - - -
Total Assets $ 21,318 $ 526,900 $ 346,998 $ 4,587,606 $ 178,244

LIABILITIES
Accounts payable $ 8,333 $ - $ - $ - $ -
Retentions payable - - - - -
Due to other funds - - - - -
Total Liabilities 8,333 - - - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -
Total Deferred Inflows of Resources - - - - -

FUND BALANCES (DEFICIT)
Restricted 12,985 526,900 346,998 4,587,606 178,244
Unassigned - - - - -
Total Fund Balances (Deficit) 12,985 526,900 346,998 4,587,606 178,244 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 21,318 $ 526,900 $ 346,998 $ 4,587,606 $ 178,244 -67-
Wastewater Parks
CDBG P&FCC P&FCC Housing State
Project Charges Charges Authority Trafficway Totals
$ - $ - $ 353,234 $ 58,992 $ 867,100 $ 4,049,598
- - 3,597 618 10,453 42,599
- - - - 116,518 116,518
408,385 - - - 511,044 919,429
336,001 - - 505,818 - 3,704,682
- - - 534,984 - 534,984
$ 744,386 $ - $ 356,831 $ 1,100,412 $ 1,505,115 $ 9,367,810 $ 48,629 $ 56 $ - $ - $ 7,100 $ 64,118
133,291 - - - - 133,291
393,710 3,622 - - - 397,332
575,630 3,678 - - 7,100 594,741
408,385 - - - 511,044 919,429
408,385 - - - 511,044 919,429
- - 356,831 1,100,412 986,971 8,096,947
(239,629) (3,678) - - - (243,307)
(239,629) (3,678) 356,831 1,100,412 986,971 7,853,640
$ 744,386 $ - $ 356,831 $ 1,100,412 $ 1,505,115 $ 9,367,810 -67-

CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2024
Law Water Electric CDBG
Enforcement P&FCC P&FCC Housing
(COPS) Charges Charges HOME Rehabilitation

REVENUES
Use of money and property $ 1,494 $ 24,005 $ 16,297 $ 90,888 $ 5,002 Intergovernmental 100,000 - - - -
Charges for services - 35,307 - - -
Total Revenues 101,494 59,312 16,297 90,888 5,002

EXPENDITURES
Current:

General government - 9,924 2,016 - -
Public safety 100,000 - - - -
Public ways and facilities - - - - -
Community development - - - 1,600 -
Capital outlay - - - - -
Total Expenditures 100,000 9,924 2,016 1,600 -
Excess of Revenues Over (Under)
Expenditures 1,494 49,388 14,281 89,288 5,002

OTHER FINANCING SOURCES (USES)
Transfers out - - - - (4,600)
Change in Net Position 1,494 49,388 14,281 89,288 402
Fund Balances (Deficit) - Beginning 11,491 477,512 332,717 4,498,318 177,842 Fund Balances (Deficit) - Ending $ 12,985 $ 526,900 $ 346,998 $ 4,587,606 $ 178,244 -68-
Wastewater Parks
CDBG P&FCC P&FCC Housing State
Project Charges Charges Authority Trafficway Totals
$ - $ (386) $ 16,350 $ 2,787 $ 42,534 $ 198,971
1,242,709 - - - 1,343,115 2,685,824
- 22,400 15,845 - 6,724 80,276
1,242,709 22,014 32,195 2,787 1,392,373 2,965,071
- 13,252 3,336 - - 28,528
- - - - - 100,000
- - - - 898,622 898,622
1,404,024 - - 1,500 - 1,407,124
234,983 - - - 1,757,416 1,992,399
1,639,007 13,252 3,336 1,500 2,656,038 4,426,673
(396,298) 8,762 28,859 1,287 (1,263,665) (1,461,602)
- - - - - (4,600)
(396,298) 8,762 28,859 1,287 (1,263,665) (1,466,202)
156,669 (12,440) 327,972 1,099,125 2,250,636 9,319,842
$ (239,629) $ (3,678) $ 356,831 $ 1,100,412 $ 986,971 $ 7,853,640 -68-

THIS PAGE INTENTIONALLY LEFT BLANK
Nonmajor Governmental Funds
• Debt Service Funds

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2024
Wastewater Riddle
Treatment Road
Debt Water Bond Totals
ASSETS
Cash and investments $ 402,886 $ 8,829 $ 411,715
Receivables:

Interest 6,635 56 6,691
Taxes 1,800 448 2,248
Assessments 1,982,000 20,000 2,002,000
Restricted cash and investments 292,184 - 292,184
Total Assets $ 2,685,505 $ 29,333 $ 2,714,838

LIABILITIES
Accounts payable $ - $ - $ -
Total Liabilities - - -

FUND BALANCES
Restricted 2,685,505 29,333 2,714,838
Total Fund Balances 2,685,505 29,333 2,714,838
Total Liabilities and Fund Balances $ 2,685,505 $ 29,333 $ 2,714,838 -69-

CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended June 30, 2024
Wastewater Riddle
Treatment Road
Debt Water Bond Totals

REVENUES
Taxes and assessments $ 27,369 $ 2,153 $ 29,522
Use of money and property 31,770 253 32,023
Total Revenues 59,139 2,406 61,545

EXPENDITURES
Community development
Debt service: 9,836 - 9,836
Principal 139,000 2,000 141,000
Interest 92,352 1,050 93,402
Total Expenditures 241,188 3,050 244,238
Net Change in Fund Balances (182,049) (644) (182,693)
Fund Balances - Beginning 2,867,554 29,977 2,897,531
Fund Balances - Ending $ 2,685,505 $ 29,333 $ 2,714,838 -70-
Internal Service Funds

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Combining Statement of Net Position
Internal Service Funds
June 30, 2024

Motor Public
Pool Works Totals
ASSETS
Current Assets:

Cash and investments $ 146,291 $ 1,601,013 $ 1,747,304
Receivables:

Accounts 2,260 - 2,260
Interest 5,564 17,478 23,042
Total Current Assets 154,115 1,618,491 1,772,606
Noncurrent Assets:

Capital assets:

Depreciable, net 1,166,130 165,302 1,331,432
Total capital assets 1,166,130 165,302 1,331,432
Total Noncurrent Assets 1,166,130 165,302 1,331,432
Total Assets 1,320,245 1,783,793 3,104,038

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 147,492 765,727 913,219
Deferred OPEB adjustments 97,141 563,681 660,822
Total Deferred Outflows of Resources 244,633 1,329,408 1,574,041

LIABILITIES
Current Liabilities:

Accounts payable 34,094 7,188 41,282
Salaries and benefits payable 3,346 22,986 26,332
Compensated absences payable 10,019 50,477 60,496
Total Current Liabilities 47,459 80,651 128,110
Noncurrent Liabilities:

Compensated absences payable 10,018 50,477 60,495
Net pension liability 83,747 434,784 518,531
Net OPEB liability 81,525 473,066 554,591
Total Noncurrent Liabilities 175,290 958,327 1,133,617
Total Liabilities 222,749 1,038,978 1,261,727

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 57,858 300,379 358,237
Deferred OPEB adjustments 28,362 164,579 192,941
Total Deferred Inflows of Resources 86,220 464,958 551,178

NET POSITION
Investment in capital assets 1,166,130 165,302 1,331,432 Unrestricted 89,779 1,443,963 1,533,742
Total Net Position $ 1,255,909 $ 1,609,265 $ 2,865,174
-71-

CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2024
Motor Public
Pool Works Totals

OPERATING REVENUES
Charges for services $ 883,768 $ 2,483,278 $ 3,367,046
Other revenue 14,433 2,209 16,642
Total Operating Revenues 898,201 2,485,487 3,383,688

OPERATING EXPENSES
Salaries and benefits 357,086 2,258,321 2,615,407
Administration 246,654 513,184 759,838
Insurance 16,970 25,551 42,521
Supplies 5,585 13,883 19,468
Repairs and maintenance 217,266 52,505 269,771
Professional services 10,256 13,380 23,636
Depreciation 269,899 10,918 280,817
Total Operating Expenses 1,123,716 2,887,742 4,011,458
Operating Income (Loss) (225,515) (402,255) (627,770)

NON-OPERATING REVENUES (EXPENSES)
Interest income 26,590 78,908 105,498
Interest expense (70) (824) (894)
Gain on disposal of capital assets 13,770 - 13,770
Total Non-Operating Revenues (Expenses) 40,290 78,084 118,374 Change in Net Position (185,225) (324,171) (509,396)
Total Net Position - Beginning 1,441,134 1,933,436 3,374,570 Total Net Position - Ending $ 1,255,909 $ 1,609,265 $ 2,865,174 -72-

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Motor Public
Pool Works Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 14,433 $ 2,209 $ 16,642
Receipts from interfund services 895,941 2,483,278 3,379,219 Payments to suppliers (481,642) (622,907) (1,104,549)
Payments to employees (268,067) (1,808,912) (2,076,979) Net Cash Provided (Used) by Operating Activities 160,665 53,668 214,333

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Interfund loans repaid (3,564) (41,830) (45,394)
Net Cash Provided (Used) by Non-Capital Financing Activities (3,564) (41,830) (45,394)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Acquisition of capital assets (589,596) - (589,596)
Proceeds from disposition of capital assets 22,951 - 22,951 Interest paid on debt (70) (824) (894)
Net Cash Provided (Used) by Capital and Related Financing Activities (566,715) (824) (567,539)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 22,181 69,675 91,856
Net Cash Provided by Investing Activities 22,181 69,675 91,856 Net Increase (Decrease) in Cash and Cash Equivalents (387,433) 80,689 (306,744) Balances - Beginning 533,724 1,520,324 2,054,048
Balances - Ending $ 146,291 $ 1,601,013 $ 1,747,304
-73-
Continued (Page 1 of 2)

CITY OF SHASTA LAKE
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Motor Public
Pool Works Totals

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ (225,515) $ (402,255) $ (627,770) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 269,899 10,918 280,817
Decrease (increase) in:

Accounts receivable 12,173 - 12,173
Pension adjustment - deferred outflows 101,307 485,489 586,796 OPEB adjustment - deferred outflows (45,595) (308,883) (354,478) Increase (decrease) in:

Accounts payable 15,089 (4,404) 10,685
Salaries and benefits payable 66 29 95
Compensated absences 1,529 190 1,719
Net pension liability 27,988 154,370 182,358
Net OPEB liability 60,785 370,547 431,332
Pension adjustment - deferred inflows (47,323) (228,578) (275,901) OPEB adjustment - deferred inflows (9,738) (23,755) (33,493) Net Cash Provided (Used) by Operating Activities $ 160,665 $ 53,668 $ 214,333 -74-
Continued (Page 2 of 2)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE,

CALIFORNIA

SINGLE AUDIT ACT

REPORTS AND SCHEDULES

FOR THE YEAR ENDED
JUNE 30, 2024

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Single Audit Act
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................................................................1-2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance.................................................3-5 Schedule of Expenditures of Federal Awards for the Year Ended June 30, 2024 ........................................ 6 Notes to Schedule of Expenditures of Federal Awards .............................................................................7-8 Schedule of Findings and Questioned Costs............................................................................................9-10 Schedule of Prior Year Findings and Questioned Costs............................................................................. 11 Management’s Corrective Action Plan ....................................................................................................... 12

THIS PAGE INTENTIONALLY LEFT BLANK

CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]

SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Shasta Lake, (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 11, 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 the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2024-001 that we consider to be a material weakness.
-2-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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.

City’s Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying management’s corrective action plan. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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.

Smith & Newell CPAs
Yuba City, California
March 11, 2025

CERTIFIED PUBLIC ACCOUNTANTS
-3-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]

SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY

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

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

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

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

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
-4-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. -5-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

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

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

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Shasta Lake, California, (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated March 11, 2025, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Smith & Newell CPAs
Yuba City, California
March 11, 2025

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
Pass-Through
Assistance Entity Passed Total
Federal Grantor/Pass-Through Listing Identifying Through to Federal Grantor/Program Title Number Number Subrecipients Expenditures U.S. Department of Housing and Urban Development
State Department of Housing and Community Development:

Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 18-CDBG-12918 $ - $ 21,486 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 18-DRINFRA-18008 - 234,983 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-CV-TRIB-0004 - 45,450 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-CV-TRIB-0006 - 58,203 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-CV-TRIB-0008 - 58,640 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-CV-TRIB-0010 - 36,041 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-DR-MHP-21002 - 1,331,634 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 - - 399,997 Subtotal 14.228 - 2,186,434
Home Investment Partnerships Program 14.239 - - 1,600
Home Investment Partnerships Program 14.239 - - 2,275,732 Subtotal 14.239 - 2,277,332
Total U.S. Department of Housing and Urban Development - 4,463,766 U.S. Department of Transportation
State Department of Transportation:

Highway Planning and Construction 20.205 BRLS-5474 (015) - 6,631 Highway Planning and Construction 20.205 HSISPL-5474 (020) - 176,447 Subtotal 20.205 - 183,078
Total U.S. Department of Transportation - 183,078
U.S. Department of the Treasury
Direct Program:

Coronavirus State and Local Fiscal Recovery Funds 21.027 - - 720,498 Total U.S. Department of the Treasury - 720,498
Total $ - $ 5,367,342
See the accompanying Notes to Schedule of Expenditures of Federal Awards -6-

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
-7-

1. REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Shasta Lake, California (City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.

2. BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The accompanying Schedule of Expenditures of Federal Awards, is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in the notes to the City financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursements. In addition, the outstanding balance of prior years’ loans that have significant continuing compliance requirements have been included in total federal expenditures.

3. INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

4. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the related federal financial assistance reports.

5. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the City’s basic financial statements.

6. PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

CITY OF SHASTA LAKE
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
-8-

7. LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
The City participates in certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs require servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. In accordance with Section 200.510 of the Uniform Guidance, the City has reported the outstanding balance of loans from previous years that have significant continuing compliance requirements as of June 30, 2024, along with the value of total outstanding and new loans made during the current year.

The programs listed below had the following aggregate, federally funded loans outstanding at June 30, 2024:

Assistance Amount Outstanding
Listing
Number Program Title July 1, 2023 June 30, 2024

14.228 Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii $ 399,997 $ 408,806

14.239 Home Investment Partnerships Program 2,275,732 2,208,167 Total Loans Outstanding $ 2,675,729 $ 2,616,973

CITY OF SHASTA LAKE
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
-9-
SECTION I - SUMMARY OF AUDITOR’S RESULTS
Financial Statements Status

1. Type of auditor’s report issued Unmodified

2. Internal controls over financial reporting:
a. Material weaknesses identified? Yes
b. Significant deficiencies identified and not considered to be material weaknesses? No

3. Noncompliance material to financial statements noted? No Federal Awards

1. Internal control over major programs:
a. Material weaknesses identified? No
b. Significant deficiencies identified and not considered to be material weaknesses? No

2. Type of auditor’s report issued on compliance for major programs: Unmodified

3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? No

4. Identification of major programs:

14.228 Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii

21.027 Coronavirus State and Local Fiscal Recovery Fund

5. Dollar threshold used to distinguish between Type A and Type B programs? $750,000

6. Auditee qualified as a low-risk auditee under 2 CFR Section 200.520? No

SECTION II - FINANCIAL STATEMENT FINDINGS
Reconciliation of Cash and Investments of the City 2024-001

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None

CITY OF SHASTA LAKE
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
-10-
2024-001 Reconciliation of Cash and Investments of the City (Material Weakness) Criteria
Governmental Accounting Principles require that the cash and investments accounts be reconciled to the cash held in the various bank accounts.

Condition
We noted that there was a difference of approximately $95,000 between the cash reported on the general ledger and the bank reconciliation.

Cause
The City changed the accounting software for the year 2020-21, which resulted in a unidentified difference in the cash balance between the prior year and the current year.

Effect
There is an unidentified difference of approximately $95,000 between the cash balance on the general ledger and the cash reconciliation of the City.

Questioned Cost
No questioned costs were identified as a result of our procedures.

Context
We examined the year-end bank reconciliations of the City.

Repeat Finding
This is a repeat finding of prior year finding 2023-001.

Recommendation
We recommend that all cash and investment accounts on the City’s records be reconciled to the cash in the bank in a timely manner.

Views of Responsible Officials and Planned Corrective Action Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.

PO BOX 777 | 4477 Main Street
Shasta Lake, CA 96019
(530) 275-7400
www.cityofshastalake.org

CITY OF SHASTA LAKE, CALIFORNIA
Schedule of Prior Year Findings and Questioned Costs
And
Corrective Action Plan
For the Year Ended June 30, 2024

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF SHASTA LAKE
Schedule of Prior Year Findings and Questioned Costs
For the Year Ended June 30, 2024
-11-
Audit Reference
2023-001
Status of Prior Year Recommendation
Reconciliation of Cash and Investments of the City
Recommendation
We recommend that all cash and investment accounts on the City’s records be reconciled to the cash in the bank in a timely manner.

Status
In progress

CITY OF SHASTA LAKE
Management’s Corrective Action Plan
For the Year Ended June 30, 2024
-12-
2024-001 Reconciliation of Cash and Investments of the City (Material Weakness) We recommend that all cash and investment accounts on the City’s records be reconciled to the cash in the bank in a timely manner.

Management’s Response: The City agrees, and all cash and investment accounts have been reconciled in a timely manner.

Responsible Individual: Finance Director
Corrective Action Plan: The $95,000 difference from prior year is currently being analyzed by an independent forensic auditing firm, and we anticipate having a resolution by May 2025. All subsequent bank reconciliations have been completed in a timely manner and are currently up-to-date. Going forward, they will continue to be completed by the end of the following month.

Anticipated Completion Date: 5/31/2025

Shasta Lake City CouncilApril 15, 2025

Shasta Lake City Council
April 15, 2025