Agenda — Susanville City Council, March 5, 2025

CALL TO ORDER

ROLL CALL

1. APPROVAL OF AGENDA: (Additions and/or Deletions)

2. PUBLIC COMMENT REGARDING CLOSED SESSION ITEMS (if any): Any person may address the Council at this time upon any subject for discussion during Closed Session.

3. CLOSED SESSION:

A. CONFERENCE WITH LABOR NEGOTIATORS - pursuant to Government Code Section §54957.6

1. Admin Unit
B. CONFERENCE WITH PUBLIC EMPLOYMENT- pursuant to Government Code Section §54957

1. City Manager - Evaluation

4. RETURN TO OPEN SESSION: (recess if necessary)
Reconvene in open session at 5:00pm
Pledge of allegiance
Invocation
Report any changes to agenda
Report any action out of Closed Session
Proclamations, awards or presentations by the City Council

5. BUSINESS FROM THE FLOOR: Any person may address the Council at this time upon any subject on the agenda or not on the agenda within the jurisdiction of the City Council. However, comments on items on the agenda may be reserved until the item is discussed and any matter not on the agenda that requires action will be referred to staff for a report and action at a subsequent meeting.

Presentations are subject to a three-minute limit.

6. CONSENT CALENDAR: All matters listed under the Consent Calendar are considered to be routine by the City Council. There will be no separate discussion on these items. Any member of the public or the City Council may request removal of an item from the Consent Calendar to be considered separately.

6.A Minutes of the City Council February 19, 2025 regular meeting.

6.B Vendor and Payroll Warrants

6.C Consider Resolution No. 25-6412, approving and authorizing the modification to the Position Classification Schedule of the memorandum of understanding with the Administrative Bargaining Unit.

CITY OF SUSANVILLE
66 N. Lassen Street • Susanville CA
Mendy Schuster, Mayor
Russ Brown, Mayor pro tem
Curtis Bortle • Patrick Parrish • Dawn Miller
Susanville City Council
Regular Council Meeting • City Council Chambers
Wednesday, March 5, 2025 – 4:30 PM
1 6.D Consider Resolution No. 25-6413, Supporting the Susanville Little League Opening Day Parade and authorizing the closure of River St. from Fairfield Dr. to the entrance of the Pat Murphy Little League Park, additional road closure of Fairfield Dr. from River St. to the Midtown South Alley on Fairfield Dr.,Â on April 5, 2025 from 7:00 A.M. to 10:00 A.M.

7. PUBLIC HEARINGS: No business.

8. COUNCIL DISCUSSION/ANNOUNCEMENTS:

9. NEW BUSINESS:

9.A Consider Resolution No. 25-6414, Accepting the City of Susanville's Audited Financial Statements for the Fiscal Year ending June 30, 2023

9.B Discussion regarding Hdl Quarter 3 (July-Sept.) 2024 reports

9.C Consider Resolution No. 25-6415, authorizing a budget amendment of $9,500.00 to the 7401 and $18,500.00 to the 7110 funds for the upgrade of the Public Works Department's Supervisory Control and Data Acquisition (SCADA) system and equipment. Further authorizes the Finance Director to make the necessary budget modifications to complete the work.

9.D Consider appointments to fill Planning Commission and Sales Tax Oversight Board

9.E Consider discussion regarding local gas pricing

10. SUSANVILLE COMMUNITY REDEVELOPMENT AGENCY: No business.

11. SUSANVILLE MUNICIPAL ENERGY CORPORATION: No business.

12. CONTINUING BUSINESS:

12.A Consider Sierra Theater Performing Arts Center Business Plan

13. CITY MANAGER'S REPORTS:

13.A Department Reports

14. FUTURE COUNCIL ITEMS:

14.A Future Council Items

15. ADJOURNMENT:

The next regular meeting of the Susanville City Council will be held on March 19, 2025 at 4:30PM.

Reports and documents relating to each agenda item are on file in the Office of the City Clerk and are available for public inspection during normal business hours and at the meeting. These reports and documents are also available at the City’s website www.cityofsusanville.net, unless there were systems problems posting to the website.

Accessibility: An interpreter for the hearing-impaired may be made available upon request to the City Clerk seventy-two hours prior to a meeting. A reader for the vision-impaired for purposes of reviewing the agenda may be made available upon request to the City Clerk. The location of this meeting is wheelchair-accessible.

I, Heidi Whitlock, certify that I caused to be posted notice of the regular meeting scheduled for March 5, 2025 in 2 the areas designated on February 28, 2025.
3 AGENDA ITEM NO. 6.A
Action Item
Submitted By: Heidi Whitlock, City Clerk
Action Date: March 5, 2025
SUBJECT: Minutes of the City Council February 19, 2025 regular meeting.

PRESENTED BY: Heidi Whitlock, City Clerk
SUMMARY: Attached for the Council’s review are the minutes of the City Council’s February 19, 2025 regular meeting.

FISCAL IMPACT: None.

ACTION REQUESTED: Motion to waive the reading of and approval to receive and file the City Council's minutes from the February 19, 2025 regular meeting.

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:
250219.cc.min.draft.pdf
4 SUSANVILLE CITY COUNCIL
Regular Council Meeting Minutes
WEDNESDAY, FEBRUARY 19, 2025 – 4:30 PM
Mayor Schuster called the meeting to order at 4:30pm.

Roll Call of Councilmembers Present: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller

1. APPROVAL OF AGENDA:

Dan Newton, City Manager, requested that item 9G and 9H be moved to before 9A.

Moved by Dawn Miller; seconded by Curtis Bortle to approve.

Motion Carried: 5 - 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

2. PUBLIC COMMENT REGARDING CLOSED SESSION ITEMS (if any): No public comment.

3. CLOSED SESSION:

The City Council convened in closed session at 4:31pm to discuss the following:

A. CONFERENCE WITH LABOR NEGOTIATORS - pursuant to Government Code Section §54957.6

1. Fire Unit

2. Miscellaneous Unit

3. Public Works unit

4. SPOA Unit

5. Department Heads:
a. City Clerk
b. Economic Development Director
c. Finance Director
d. Public Safety Chief
e. Public Works Director

4. RETURN TO OPEN SESSION: The Council reconvened in open session at 5:00pm.

The Pledge of Allegiance and Invocation were provided.

Mr. Newton stated that prior to meeting in closed session, the Council approved the agenda with the change of moving item 9G and 9H to be heard prior to 9A. He added that Council then convened in closed session to discuss the above-mentioned items where direction was provided to staff but no reportable action was taken.

5. BUSINESS FROM THE FLOOR:

Amy Holley, public, voiced her concern regarding the city's livestreaming equipment and offered suggestions for companies and other agencies that she believes the city could partner with.

6. CONSENT CALENDAR:

Moved by Curtis Bortle; seconded by Patrick Parrish to approve.

Motion Carried: 5 - 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

6.A Minutes of the City Council February 5, 2025, regular meeting. 5 Motion to waive the reading of and approval to receive and file the City Council's minutes from the February 5, 2025, regular meeting.
250205.cc.min.draft.pdf

6.B Vendor and payroll warrants Motion to receive and file 01-23-25.pdf
01-30-25.pdf
01-31-25.pdf

6.C Monthly Financial Reports July-December 2024
Motion to receive and file monthly financial reports for July-December 2024 Cash Report US Bank July.pdf
Daily Cash Report US Bank July.pdf
Fund Balances Report_2024_07.pdf
Cash Report US Bank August.pdf
Daily Cash Report US Bank August.pdf
Fund Balances Report_2024_08.pdf
Cash Report US Bank Sept.pdf
Daily Cash Report US Bank Sept.pdf
Fund Balances Report_2024_09.pdf
Cash Report US Bank Oct.pdf
Daily Cash Report US Bank Oct.pdf
Fund Balances Report_2024_10.pdf
Cash Report US Bank Nov.pdf
Daily Cash Report US Bank Nov.pdf
Fund Balances Report_2024_11.pdf
Cash Report US Bank Dec.pdf
Daily Cash Report US Bank Dec.pdf
Fund Balances Report_2024_12.pdf
Cash Report TriCounties July-Dec.pdf
Daily Cash Report TriCounties July-Dec.pdf
Income Statement 12.31.24.pdf

7. PUBLIC HEARINGS: No business.

8. COUNCIL DISCUSSION/ANNOUNCEMENTS:

Council Member Bortle offered a land acknowledgement statement.

Mayor Schuster stated that the Lassen County Transportation Commission (LCTC) held a special meeting with other agency representatives to discuss improvements to 395 between Susanville and Reno. She also wanted to provide a public thank you to former Board Supervisor, Tom Hammond, as he has been working to get that stretch of highway to four lanes for multiple years.

Mayor Schuster then provided information related to where and when the LCTC meetings are held and invited those interested to attend.

9. NEW BUSINESS:

9.A Approved Position List
Mr. Newton provided an explanation of the item and requested Council approval. 6 Mayor pro tem Brown requested additional positions within the public works department and mentioned that he will bring it up in the future items section of the agenda. 250219 Approved Position List.pdf
Motion to approve approved position list as presented in agenda.

Moved by Patrick Parrish; seconded by Dawn Miller to approve.

Motion Carried: 5- 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

9.B Consider Resolution No. 25-6406, approving the 2025-2030 Airport Capital Improvement Plan
Bob Godman, Public Works Director, provided an explanation of the item and requested approval of Resolution No. 25-6406.
25-6406.pdf
Susanville ACIP 2025-2030 Package - Amended FAA approved.docx Motion to approve Resolution No. 25-6406, approving the 2025-2030 Airport Capital Improvement Plan
Moved by Dawn Miller; seconded by Patrick Parrish to approve.

Motion Carried: 5- 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

9.C Consider Resolution No. 25-6407, authorizing the Mayor to execute an agreement with Outfront Media billboard to support the City's economic development and marketing efforts.

Tamra Spade, Economic Development Director, provided an explanation of the item and requested approval of Resolution No. 25-6407.

Maria Fregulia, public, inquired as to whether the Susanville Indian Rancheria would be reimbursing or be a part of that billboard.

Amy Holley, public, inquired as to what the billboard will look like.

Ms. Spade responded that the billboard is digital, and city staff will work with the company to create the content.

Leanne Vanderly, public, requested that small businesses also be advertised and not just the casino.

Council Member Parrish stated that it is mind-blowing that Susanville has not had billboards before, and he is in favor of it. He added that he is worried about Ms. Spade’s budget though since the ARPA funds will only cover $150,000.
25-6407.pdf
City of Susanville Outfront Contract - 4074110 - 2.12.25.pdf 7 Motion to approve Resolution No. 25-6407, authorizing the Mayor to execute an agreement with Outfront Media billboard to support the City's economic development and marketing efforts.

Moved by Patrick Parrish; seconded by Curtis Bortle to approve.

Motion Carried: 5- 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

9.D Consider Resolution No. 25-6408, approving and authorizing the City Manager to enter into a lease agreement with Yamaha Motor Finance Corporation of Yamaha Golf Cart Company and authorizing the Finance Director to increase the golf course budget to accommodate lease payments
Dave Martin, Golf Course Manager, provided an explanation of the item and requested approval of Resolution No. 25-6408.

Yamaha Proposal - Diamond Mountain.pdf
25-6408.pdf
Motion to approve Resolution No. 25-6408, approving and authorizing the City Manager to enter into a lease agreement with Yamaha Motor Finance Corporation of Yamaha Golf Cart Company and authorizing the Finance Director to increase the golf course budget to accommodate lease payments
Moved by Dawn Miller; seconded by Russ Brown to approve.

Motion Carried: 5- 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

9.E Consider Resolution No. 25-6409, Amending the Fiscal Year 2024-2025 City of Susanville Budget
Chandra Jabbs, Finance Director, provided an explanation of the item and requested approval of Resolution No. 25-6409.

Mayor pro tem Brown inquired as to whether no one was interested in serving on the board or if we were not advertising it.

Mr. Newton responded that we do have one interested person who staff will be following up with, but no additional interest.
25-6409.pdf
Exhibit A Midyear 24.25.pdf
Midyear Budget Changes 24.25.pdf
STOB Midyear Report 24.25.pdf
Exhibit A Original 24.25.pdf
Motion to approve Resolution No. 25-6409, Amending the Fiscal Year 2024-2025 City of Susanville Budget.

Moved by Patrick Parrish; seconded by Dawn Miller to approve.

A polled vote was requested.

Mendy Schuster, aye; Russ Brown, aye; Curtis Bortle, aye; Patrick Parrish, aye; and Dawn Miller, aye.

Motion carried unanimously.
8 9.F Consider purchase of Hangar #32 at the Susanville Municipal Airport Mr. Godman provided an explanation of the item and requested Council direction.

It was the consensus of the council not to move forward with the purchase of the hangar.

Doc _intent to sell hangar 32.pdf
ROI Hangar 32.pdf

9.G Consider Resolution No. 25-6410, authorizing Mayor to sign a State Master Agreement Revision with Caltrans for State funded transportation projects Erik Edholm, Assistant Director of Engineering, provided an explanation of the item and requested approval of Resolution No. 25-6410.
25-6410.pdf
02-5116S21_City of Susanville.pdf
Motion to approve Resolution No. 25-6410, authorizing Mayor to sign a State Master Agreement Revision with Caltrans for State funded transportation projects.

Moved by Patrick Parrish; seconded by Dawn Miller to approve.

Motion Carried: 5- 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

9.H Consider Resolution No. 25-6411, authorizing Mayor to sign a Program Supplement Agreement with Caltrans for the Susanville Resurfacing Project No. CRASL-5116(023) and authorize the Finance Director to adjust the budget as necessary.

Mr. Edholm provided an explanation of the item and requested approval of Resolution No. 25-6411.
25-6411.pdf
5116(023) PSA to LA.pdf
Motion to approve Resolution No. 25-6411, authorizing Mayor to sign a Program Supplement Agreement with Caltrans for the Susanville Resurfacing Project No. CRASL5116(023) and authorize the Finance Director to adjust the budget as necessary.

Moved by Curtis Bortle; seconded by Russ Brown to approve.

Motion Carried: 5- 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None

9.I Citywide Strategic Planning Discussion
Mr. Newton provided an overview of the item and stated that staff has been working on a new Mission Statement but have only had one meeting to date. He added that he is hoping to have a draft Mission Statement to present at the next meeting.

10. SUSANVILLE COMMUNITY REDEVELOPMENT AGENCY: No business. 9 11. SUSANVILLE MUNICIPAL ENERGY CORPORATION: No business.

12. CONTINUING BUSINESS: No business.

13. CITY MANAGER'S REPORTS:

13.A Department Reports
The department heads in attendance provided an update on the happenings within their departments.

14. FUTURE COUNCIL ITEMS:

14.A Future Council Items
Mr. Newton provided an explanation of the item and requested Council direction.

Mayor pro tem Brown requested a discussion item to add three Public Works positions to the approved position list. Item had support and will be added to the list. Council Member Bortle requested that a list of vacancies also be included with the item.

Council Member Miller requested a report on the status of our fire hydrants due to the recent fires down south. Item had support and will be added to the list. 250219.Future.Items.List.pdf

15. ADJOURNMENT:

Moved by Curtis Bortle; seconded by Dawn Miller to adjourn at 6:43pm.

Motion Carried: 5 - 0
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Patrick Parrish, Dawn Miller Voting Against: None
____________________________ _____________________________ Heidi Whitlock, City Clerk Mendy Schuster, Mayor
Approved on:
10 AGENDA ITEM NO. 6.B
Action Item
Submitted By: Stefanie Steward, Finance
Action Date: March 5, 2025
SUBJECT: Vendor and Payroll Warrants
PRESENTED BY: Chandra Jabbs, Finance Director
SUMMARY: Warrants dated February 5, 2025 through February 19, 2025 numbered 223463-223559.

FISCAL IMPACT: Accounts Payable vendor warrants totaling $246,673.85, plus $413,208.36 in payroll warrants, totaling $659,882.21.

ACTION REQUESTED: Motion to receive and file

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:
02-06-25.pdf
02-11-25.pdf
02-18-2025.pdf
2-13-2025.pdf
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35 AGENDA ITEM NO. 6.C
Action Item
Submitted By: Jolene Arredondo, Administrative Services Action Date: March 5, 2025
SUBJECT: Consider Resolution No. 25-6412, approving and authorizing the modification to the Position Classification Schedule of the memorandum of understanding with the Administrative Bargaining Unit.

PRESENTED BY: Dan Newton, City Manager
SUMMARY: The Administrative Bargaining Unit (UNIT) has met and conferred in good faith and the City Council of the City of Susanville has approved and adopted the Memorandum of Understanding (MOU) between the City of Susanville and the UNIT for the period of July 1, 2024, through and including June 30, 2027, at a regular city council meeting held on November 6, 2024. In section 23.A of the adopted MOU, the Account Technician II position will be reclassified as Assistant Director - Finance and details of the position will be executed through a Side Letter to the MOU.

The proposed range and step for the reclassification of the Account Technician II to Assistant Director - Finance is 154 - 157 and incorporates the existing UNIT’s incentives; and is subject to all provisions of the Administrative Unit MOU. The Assistant Director - Finance position will be a regular full-time exempt employee, and the reclassification of the position is subject to a six (6) month introductory period. The Assistant Director - Finance job description has been presented to and approved by the Administrative Bargaining Unit representatives.

The Side Letter includes changes made to Exhibit "A" and Exhibit "D" of the Administrative MOU. Those changes include addition of Certified Payroll Professional Certification which is limited to 2 employees of the unit and is worth 5%, addition of the Assistant Director - Finance position, and includes modification to the range of the Assistant Engineer position which was discussed and approved at the February 19, 2025 City Council meeting under the Approved Position List.

FISCAL IMPACT: Subject to the terms negotiated and outlined in the Administrative Unit

SUSANVILLE CITY COUNCIL AGENDA ITEM
36 MOU Side Letter
ACTION REQUESTED: Motion to approve Resolution No. 25-6412, approving and authorizing the modification to the Position Classification Schedule of the memorandum of understanding with the Administrative Bargaining Unit.

ATTACHMENTS:
25-6412.pdf
2024.2027 ADMIN MOU Side Letter No. 2.pdf
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28 RESOLUTION NO. 25-6412

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE

APPROVING AND AUTHORIZING THE SECOND MODIFICATION TO THE POSITION

CLASSIFICATION SCHEDULE OF THE MEMORANDUM OF UNDERSTANDING WITH THE

ADMINISTRATIVE BARGAINING UNIT
WHEREAS, the Administrative Bargaining Unit has met and conferred in good faith and the City Council of the City of Susanville has approved and adopted the Memorandum of Understanding (MOU) between the City of Susanville and the Administrative Unit for the period of July 1, 2024, through and including June 30, 2027; and WHEREAS, in section 23.A of the adopted MOU, the Account Technician II position will be reclassified as Assistant Director - Finance and details of the position will be executed through a Side Letter to the MOU; and
WHEREAS, the Administrative Bargaining Unit has ratified the respective agreement with the terms and conditions as outlined in the attached side letter to incorporate the changes of the Assistant to the City Manager to now be Deputy City Manager to be at Salary Matrix Range 154-157; and
WHEREAS, the Assistant Engineer position will be reclassified at Salary Matrix Range 148-157 as presented to City Council on February 19, 2025, on the Approved Position List; and WHEREAS, the representatives from the Administrative Bargaining Unit have negotiated a labor agreement according to the requirements of the Meyers-Milias-Brown Act; and
WHEREAS, the agreement has been negotiated within the parameters established by the City Council.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Susanville hereby approves and authorizes the following:

1. The Memorandum of Understanding with the Administrative Bargaining Unit will adopt the attached side letter and incorporate the changes to Exhibit A – Position Classification Schedules into the Administrative Bargaining Unit for the period of July 1, 2024, through and including June 30, 2027; and

2. Modifications to the City of Susanville Approved Position List to incorporate these changes; and

3. The Finance Director shall modify the 2024/2025 fiscal year budget as necessary to accommodate the changes to the Assistant Director - Finance reclassification and reclassification of the Assistant Engineer position as outlined in the Side Letter.

APPROVED: _______________________
Mendy Schuster, Mayor
ATTEST: _______________________
Heidi Whitlock, Clerk
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28 The foregoing Resolution was adopted at a regular meeting of the City Council for the City of Susanville held on the 5th day of March 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM: _______________________________
Margaret Long, City Attorney
39 City of Susanville
(530) 252-5100 • 66 North Lassen Street • Susanville, CA 96130-3904 Mendy Schuster Councilmembers:

Mayor Curtis Bortle
Russ Brown Dawn Miller
Mayor pro tem Patrick Parrish
www.cityofsusanville.org
March 5, 2025
To the Administrative Bargaining Unit,
The Administrative Bargaining Unit (UNIT) has met and conferred in good faith and the City Council of the City of Susanville has approved and adopted the Memorandum of Understanding (MOU) between the City of Susanville and the UNIT for the period of July 1, 2024, through and including June 30, 2027, at a regular city council meeting held on November 6, 2024. In section

23.A of the adopted MOU, the Miscellaneous Bargaining Unit’s Account Technician II position will be reclassified as Assistant Director – Finance and moved into the Administrative Bargaining Unit and details of the position will be executed through a Side Letter to the MOU.

Attached to this letter is the updated Administrative Unit Memorandum of Understanding’s Exhibit “A” Position Classification Schedule which demonstrates all UNIT members and those position ranges. Changes presented include the reclassification and addition of the Assistant Director – Finance position and modification of the Assistant Engineer range as proposed and approved on the Approved Position List by City Council at the February 19, 2025, meeting. Job descriptions for both positions have been sent to the UNIT to meet and confer. Below is a depiction of those changes.

Current
Position Title
New
Position Title
New
Reclassified
Position Range
New
Biweekly
New
Range
New
Step
Account
Technician II
Assistant
Director -
Finance
154-157 $3,525.16 157 C
Assistant City
Engineer
Assistant
Engineer 148-155 Vacant
The proposed range and step for the reclassification of the Assistant Director - Finance incorporates the existing UNIT’s incentives; and is subject to all provisions of the Administrative Unit MOU notwithstanding items identified in this Side Letter. The Assistant Director - Finance position will be a regular full-time exempt employee, and the reclassification of the position is subject to a six (6) month introductory period. The Assistant Director – Finance reclassification and job description has been presented to and approved by the Miscellaneous Bargaining Unit representatives and Administrative Bargaining Unit Representatives. The position reclassification will receive the above-listed range and step effective at the beginning of the pay period in which the City Council approves this side letter.
40 Mendy Schuster Councilmembers:

Mayor Curtis Bortle
Russ Brown Dawn Miller
Mayor pro tem Patrick Parrish
www.cityofsusanville.org
The Assistant Director – Finance will receive Administrative Leave at 15 hours credited for each three-month period remaining in the fiscal year that the employee is reclassified and prorated for the first three-month period as set forth in the MOU Section 11.

The Assistant Director – Finance will receive eight (8) hours of Supplemental Administrative Leave as subject to the provisions set forth in the Administrative MOU Section 11.

The Assistant Director – Finance shall contribute $60.00 per month towards the current plan effective the pay period in which this Side Letter is adopted by City Council and receive benefits as set forth in the Administrative MOU Section 18.

Attached to this letter is the updated Administrative Unit Memorandum of Understanding’s Exhibit “D” Incentive List which includes the addition of the Certified Payroll Professional certification. A maximum of two (2) positions within this UNIT are eligible for the 5% incentive for obtaining this certification.

This side letter and the terms outlined shall remain in effect through June 30, 2027, or until a successor MOU is reached, unless a specific provision provides for a different commencement and/or termination date.

This letter has been ratified by both the CITY and the UNIT on the 5th day of March 2025.

Signatures:
__________________________ ______________________________ Dan Newton, City Manager Victoria Estrada, Unit Representative ______________________________
Erik Edholm, Unit Representative
41 Mendy Schuster Councilmembers:

Mayor Curtis Bortle
Russ Brown Dawn Miller
Mayor pro tem Patrick Parrish
www.cityofsusanville.org
Approved:
__________________________
Mendy Schuster, Mayor
Attest:
__________________________
Heidi Whitlock, City Clerk
42 EXHIBIT “A”
Administrative Confidential Employees
Position Classification Schedule
Updated by Resolution No. 25-6412, Side Letter No. 2 on March 5, 2025 July 1, 2024 through June 30, 2027
EXEMPT POSITIONS Matrix Range Longevity 10 year
(2.5%)
Longevity 15 year
(2.5%)
Deputy City Manager1
Base
Incentive Level I
Incentive Level II
Incentive Level III
156
157
158
159
157
158
159
160
158
159
160
161
Assistant Director – Engineering
Base
Incentive Level I
Incentive Level II
Incentive Level III
BA/BS
Incentive Level I
Incentive Level II
Incentive Level III
*APCO Appointment
** APCO Appointment AND
Professional Engineer or Professional
Land Surveyor
154 / 158*/162**
155 / 159*/163**
156 / 160*/164**
157 / 161*/165**
156 / 160*/164**
157 / 161*/165**
158 / 162*/166**
159 / 163*/167**
155 / 159*/163**
156 / 160*/164**
157 / 161*/165**
158 / 162*/166**
157 / 161*/165**
158 / 162*/166**
159 / 163*/167**
160 / 164*/168**
156 / 160*/164**
157 / 161*/165**
158 / 162*/166**
159 / 163*/167**
158 / 162*/166*
159 / 163*/167**
160 / 164*/168**
161 / 165*/169**
Assistant Director - Finance2
Base
Incentive Level I
Incentive Level II
Incentive Level III
154
155
156
157
155
156
157
158
156
157
158
159
Assistant Director – Operations
Base
Incentive Level I
Incentive Level II
Incentive Level III
BA/BS
Incentive Level I
Incentive Level II
Incentive Level III
* Professional Engineer or
Professional Land Surveyor
154/158*
155/159*
156/160*
157/161*
156/160*
157/161*
158/162*
159/163*
155/159*
156/160*
157/161*
158/162*
157/161*
158/162*
159/163*
160/164*
156/160*
157/161*
158/162*
159/163*
158/162*
159/163*
160/164*
161/165*
1 Reclassified per MOU Side Letter No. 1, Resolution No. 25-6403 2 Reclassified per MOU Side Letter No. 2, Resolution No. 25-6412 43 EXEMPT POSITIONS (Cont.) Matrix Range Longevity 10 year (2.5%)
Longevity 15 year
(2.5%)
Building Official
Base
Incentive Level I
Incentive Level II
Incentive Level III
152
153
154
155
153
154
155
156
154
155
156
157
City Planner
Base
Incentive Level I
Incentive Level II
Incentive Level III
152
153
154
155
153
154
155
156
154
155
156
157
Administrative Assistant –
Police Department
Base
Incentive Level I
Incentive Level II
Incentive Level III
142
143
144
145
143
144
145
146
144
145
146
147
Pool Director
Base
Incentive Level I
Incentive Level II
Incentive Level III
138
139
140
141
139
140
141
142
140
141
142
143
NON-EXEMPT POSITIONS Matrix Range Longevity 10 year
(2.5%)
Longevity 15 year
(2.5%)
Air Quality Specialist
Base
Incentive Level I
Incentive Level II
Incentive Level III
Engineer-in-Training
Incentive Level I
Incentive Level II
Incentive Level III
Professional Engineer or
Professional Land Surveyor
Incentive Level I
Incentive Level II
Incentive Level III
140
141
142
143
144
145
146
147
150
151
152
153
141
142
143
144
145
146
147
148
151
152
153
154
142
143
144
145
146
147
148
149
152
153
154
155
44 NON-EXEMPT POSITIONS
(cont.)
Matrix Range Longevity 10 year
(2.5%)
Longevity 15 year
(2.5%)
Assistant Engineer3
Base
Incentive Level I
Incentive Level II
Incentive Level III
* Professional Engineer or
Professional Land Surveyor
148/152*
149/153*
150/154*
151/155*
149/153*
150/154*
151/155*
152/156*
150/154*
151/155*
152/156*
153/157*
Permit Technician
Base
Incentive Level I
Incentive Level II
Incentive Level III
140
141
142
143
141
142
143
144
142
143
144
145
Program Coordinator
Base
Incentive Level I
Incentive Level II
Incentive Level III
138
139
140
141
139
140
141
142
140
141
142
143
Code Enforcement Officer
Base
Incentive Level I
Incentive Level II
Incentive Level III
136
137
138
139
137
138
139
140
138
139
140
141
3 Reclassified per MOU Side Letter No. 2, Resolution No. 25-6412 45 EXHIBIT “D” Incentive List
Administrative Employee Incentive Program
Incentive License / Certification / Degrees
Updated by Resolution No. 25-6412, Side Letter No. 2 on March 5, 2025 July 1, 2024 through June 30, 2027
Incentive/Certificate/Degree
Incentive
%
Increase
Associate degree from accredited college in a field related to employee’s position (No Cap) 2.5% Baccalaureate degree from accredited college in a field related to employee’s position (No Cap)
5%
Master’s degree from accredited college in a field related to employee’s position (No Cap)
5%
Engineer in Training or Land Surveyor in Training 5%
Professional Land Surveyor (3 employee max)** 10%
Professional Engineer (3 employee max)** 10%
POST Records Supervisor Certificate (2 employee max) 5% Certified Public Infrastructure Inspector CPII (2 employee max)* 5% Certified Public Works Professional – Management CPWP-M (2 employee max) 5% Certified Planning Engineer CPE (2 employee max) 5%
AICP Planning Certification (2 employee max) 5%
Certified Employee Benefits Specialist CEBS (2 employee max) 5% Certified Payroll Professional Certification (2 employee max)4 5% Residentials Plans Examiner and Building Official Legal & Management Module (2 employee max)

2.5%
Associate Certified Planning Engineer ACPE (2 employee max)* 2.5% Human Resources Management Certified Professional Certificate SHRM-CP (2 employee max)*

2.5%
Human Resources Management Senior Certified Professional Certificate SHRM-SCP (2 employee max)*

2.5%
Certified Public Works Professional – Supervision CPWP-S (2 employee max)* 2.5% ICC Certified Permit Technician (2 employee max)* 2.5%
Certified CPR Instructor (2 employee max)* 2.5%
ESRI ArcGIS Pro Associate Certification 2025 or equivalent (2 employee max)* 2.5% *New incentives effective July 1, 2024
**Employees licensed as a professional engineer or professional land surveyor will receive a 10% pay increase on top of any other incentives earned, 7.5% cap notwithstanding. This incentive is only available to the Assistant Director - Engineering, Assistant Director – Operations, and Assistant Engineer positions. 4 Added to incentive list per MOU Side Letter No. 2, Resolution No. 25-6412 46 AGENDA ITEM NO. 6.D
Action Item
Submitted By: Marci Rojas, Public Works
Action Date: March 5, 2025
SUBJECT: Consider Resolution No. 25-6413, Supporting the Susanville Little League Opening Day Parade and authorizing the closure of River St. from Fairfield Dr. to the entrance of the Pat Murphy Little League Park, additional road closure of Fairfield Dr. from River St. to the Midtown South Alley on Fairfield Dr., on April 5, 2025 from 7:00 A.M. to 10:00 A.M.

PRESENTED BY: Bob Godman, Public Works Director
SUMMARY:

City Council's support has been requested for the Susanville Little League Opening Day Parade on April 5, 2025. The parade route proposed is River St. from Fairfield Dr. to the entrance of the Pat Murphy Little League Park, additional road closure of Fairfield Dr. from River St to the Midtown South Alley on Fairfield Dr., from 7:00 A.M. to 10:00 A.M with the anticipated Parade start time of 8:00am.

In addition to the requested street closure, Susanville Little League has requested the Susanville Fire Department's Ladder Truck to hang the American Flag at the entrance to the Pat Murphy Little League Field for Little League athletes to walk under as they enter the park from River Street.

FISCAL IMPACT:

Little League Opening Day Parade: April 5, 2025
Police Department Estimate Costs $1,004.40
Public Works Dept. Estimate Costs $ 628.35
Fire Dept. Estimate Costs $ 975.10
TOTAL ESTIMATED COST $ 2607.85
ACTION REQUESTED:

Motion to approve Resolution No. 25-6413, Supporting the Susanville Little League Opening Day Parade and authorizing the closure of River St. from Fairfield Dr. to the entrance of the Pat Murphy Little

SUSANVILLE CITY COUNCIL AGENDA ITEM
47 League Park, additional road closure of Fairfield Dr. from River St. to the Midtown South Alley on Fairfield Dr., on April 5, 2025 from 7:00 A.M. to 10:00 A.M.

ATTACHMENTS:
25-6413.pdf
2025 Susanville Little League Parade Request.pdf
48 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 RESOLUTION NO. 25-6413

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE SUPPORTING SUSANVILLE LITTLE LEAGUE’S OPENING DAY PARADE AND

AUTHORIZING THE CLOSURE OF RIVER STREET FROM FAIRFIELD DRIVE TO THE

ENTRANCE OF THE PAT MURPHY LITTLE LEAGUE PARK, ADDITIONAL ROAD

CLOSURE OF FAIRFIELD DRIVE FROM RIVER STREET TO THE MIDTOWN SOUTH ALLEY ON FAIRFIELD DRIVE, ON APRIL 5, 2025, FROM 7:00 A.M. TO 10:00 A.M.

WHEREAS, City Council support is requested for the Susanville Little League Opening Day Parade to be held on Saturday, April 5, 2025, from 7:00 A.M. to 10:00 A.M.; and WHEREAS, the parade requires the closure of River St. from Fairfield Dr. to the entrance of the Pat Murphy Little League Park for the duration of the event; and WHEREAS, the parade requires the closure of Fairfield Dr. from River St. to the Midtown South Alley for the duration of the event.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Susanville hereby approves as follows:

1. The City Council of the City of Susanville supports the Susanville Little League Opening Day Parade to be held on Saturday, April 5, 2025, from 7:00 A.M. to 10:00 A.M.; and

2. The City Council of the City of Susanville supports the closure of River Street from Fairfield Drive to the entrance of the Pat Murphy Little League Park, additional road closure of Fairfield Drive from River Street to the Midtown South Alley on Fairfield Drive, on April 5, 2025, from 7:00 A.M. to 10:00 A.M.

APPROVED: _________________________
Mendy Schuster, Mayor
ATTEST: _________________________
Heidi Whitlock, City Clerk
The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Susanville, held on the 5th day of March 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM:________________________
Margaret Long, City Attorney
49 50
AGENDA ITEM NO. 9.A
Action Item
Submitted By: Chandra Jabbs, Finance
Action Date: March 5, 2025
SUBJECT: Consider Resolution No. 25-6414, Accepting the City of Susanville's Audited Financial Statements for the Fiscal Year ending June 30, 2023
PRESENTED BY: Chandra Jabbs, Finance Director
SUMMARY:

The firm of Van Lant & Fankhanel, LLP, CPAs has completed the audit of the City’s Financial Statements for the fiscal year ended June 30, 2023. The audit included the financial statements of the governmental entities, business-type activities, each major fund, and the aggregate remaining fund information of the City, which collectively comprises the City’s basic financial statements. The audited financial statements are presented in our Annual Comprehensive Financial Report (ACFR). The ACFR not only presents the basic financial information, but also includes Management’s Discussion and Analysis (MD&A) comparing audited numbers from this year and the previous audited year. It also includes a statistical section which presents detailed information as a context for understanding what is presented in the financial statements, note disclosures and required supplemental information regarding the City’s overall financial health.

The auditor's identified one material weakness during the course of the audit in internal controls. This weakness was identified as "Timeliness and Accuracy of Accounting Records". The cause of this weakness was the delays in completing the year-end financial close process for the 2021-22 fiscal year. The recommendation for improvement was to develop a schedule for year-end closing, including a list of all tasks to be completed along with due dates. City staff agree with the auditors' comments and recommendations. The city recognizes the delays that occurred in FY21-22 were the combined result of staffing issues and prioritizing identifying additional revenues for city solvency during this period. Delays are expected to continue into FY22-23, but the City expects to return to a more appropriate timeline for FY24-25 & FY 25-26. For the full report on

SUSANVILLE CITY COUNCIL AGENDA ITEM
51 internal control, please see the internal control report attachment of this agenda item.

I am very pleased to report that we have received an unmodified opinion on these financial statements. The City of Susanville has continually received this unmodified or “clean" opinion since 2004.

Brett Van Lant will present the audit report to the City Council.

FISCAL IMPACT: None.

ACTION REQUESTED: Motion to approve Resolution No.25-6414, Accepting the City of Susanville's Audited Financial Statements for the Fiscal Year ending June 30, 2023.

ATTACHMENTS:

Susanville Audit Conclusion Letter FY 2023.pdf
Susanville Internal Control Report FY 2023.pdf
Susanville Management Letter FY 2023.pdf
Susanville Financial Statements FY 2023.pdf
Susanville Appropriations Limit Report FY 2023.pdf
25-6414.pdf
52 January 15, 2025
City Council
City of Susanville
Susanville, CA
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 Susanville for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit.

We have communicated such information in our letter to you dated February 14, 2024.

Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

No new significant accounting policies were adopted and the application of existing policies was not changed during the fiscal year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:

Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.

1 53
Management’s estimate of capital assets depreciation is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements as a whole.

Management’s estimate of the net pension liability is based on actuarial information provided by the California Public Employee Retirement System’s (CalPERS) actuarial office. We evaluated the key factors and assumptions used to develop these liabilities in determining that the estimated liabilities are reasonable in relation to the financial statements as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

The disclosure of the fair value of investments in Note 2 to the financial statements represents amounts susceptible to market fluctuation.

The disclosure of accumulated depreciation in Note 4 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosures for the net pension liability in Note 6 to the financial statements are based on assumptions for discount rates, etc., which could differ from actual experience. The notes disclose the differences in these liabilities if different assumptions are used in estimating these liabilities.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We noted misstatements detected as a result of audit procedures and corrected by management which were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 15, 2025. 2 54
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis, Schedule of Proportionate Share of the Net Pension Liability, and the Schedule of Plan Contributions, which are required supplementary information (RSI) that supplements the basic financial statements.

Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
3 55
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 City Council
City of Susanville
Susanville, 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, business-type activities, each major fund and the aggregate remaining fund information of the City of Susanville (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 15, 2025.

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) to determine the 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 preceding 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 did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as item 2023-001, that we consider to be a material weakness.
1 56
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 determination of financial statement amounts. 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 of Susanville’s Responses to Findings
The City’s responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

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 City’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 organization’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

January 15, 2025
2 57

CITY OF SUSANVILLE

SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2023
2023-001 Timeliness and Accuracy of Accounting Records
Condition:

In preparation for the annual audit, the City’s Finance staff performed significant analysis and reconciliations of various accounts in the City’s general ledger. However, when we began our year-end audit fieldwork, it became apparent that certain accounts had not yet been thoroughly analyzed and reconciled to supporting records, resulting in several adjustments being made during the audit process. Adjusting journal entries were still being made during 2024 for the 2022- 23 fiscal year. While performing audit procedures, we identified and proposed various material adjusting entries to the City’s accounting records. Statements on Auditing Standards No. 115, ”Communicating Internal Control Related Matters Identified in an Audit” states that “indicators of material weaknesses in internal control include: identification by the auditor of a material misstatement of the financial statements under audit in circumstances that indicate the misstatement would not have been detected by the entity’s internal control.” Timely reconciliation and review of all balance sheet accounts and various revenue and expenditure accounts on a recurring basis, and especially at year-end, is a vital part of maintaining the integrity of the accounting and financial reporting system. If the year-end closing process is not completed in a timely manner, the issuance of audit reports will be delayed and reporting deadlines will not be met.

Criteria:

The City’s management is responsible for establishing and maintaining effective internal controls over financial reporting to help ensure that appropriate goals and objectives are met. This responsibility includes the selection and application of accounting principles, ensuring that financial information is reliable and properly recorded, and evaluating and monitoring ongoing activities.

Cause of Condition:

Delays in completing the year-end financial close process for the 2022-23 fiscal year.

Recommendation:

In order to maintain the integrity of the accounting and financial reporting system, and to ensure timely reporting, we recommend that the City develop a schedule for the year-end closing process, including a list of all accounting tasks to be completed, along with the due dates for each task, and provision for signing off by date and initials when the procedure is complete. 3 58

CITY OF SUSANVILLE

SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2023
2023-001 Timeliness and Accuracy of Accounting Records - Continued Views of Responsible Officials:

The management team agrees with the auditors’ comments and recommendations. During FY20- 21 and FY21-22, the City had adopted deficit budgets, as CalPERS UAL repayments were scheduled to continue to ramp up in future fiscal years. The City prioritized identifying additional revenue resources and focused efforts on a new sales tax measure to increase revenues for the city. The City also adopted an Expenditure Reduction Plan in April 2022, in the event that a tax measure was not passed in June 2022. These items delayed the adoption of the FY22-23 budget to accommodate for the results of the election resulting in budget adoption taking place in September 2022. Additionally, the local area was greatly impacted by the declaration of emergency due to the Dixie Fire which occurred July-October 2021. This fire caused evacuations, rolling power outages, and loss of internet connectivity, greatly impacting our ability to complete the year-end close process and budget adoption in timely fashion.

The City also has struggled with vacancies in the entire Administration Department during this time period. These vacancies included turnover in the City Administrator and Finance Manager roles, both of which play a critical role in the audit process. Vacancies also plagued the finance division as there has been a 60% turnover rate over the last 3 years at the technician level, creating an environment where day-to-day operations were needing to be completed by senior level staff. These vacancies greatly affect the ability to complete higher level tasks timely. During the periods of deficit budget, the Finance Department operated at minimum staffing levels. These issues make it increasingly difficult to recover once timelines are delayed as budgets and audits are being completed at the same time rather than having the opportunities to complete these items during the year separately.

Budget adoptions and revisions, State reporting, and the year-end close process have all started to meet the standard timelines for operations, with auditing being the last phase to bring back to acceptable standards. Staff is continuing to review duties, staffing levels and set timelines to ensure a timelier review process for the audit. Delays are expected to affect the FY23/24 audit as well, although not to such a large extent, as we work to recover from these delays and staffing issues over the last few years. Staff expects to return to a more appropriate timeline for FY24-

25. 4
59 January 15, 2025
Ms. Chandra Jabbs, Finance Manager
City of Susanville
66 N. Lassen St.

Susanville, CA 96130
Dear Ms. Jabbs:

In planning and performing our audit of the financial statements of the City for the year ended June 30, 2023, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control.

During our audit, we noted certain matters involving internal control and other operational matters that are presented for your consideration below. We will review the status of these comments during our next audit engagement.

This letter by its very nature is critical and does not highlight the many positive features of the City's internal control. These comments and recommendations are intended to improve the internal control or result in other operating efficiencies and are summarized as follows:
(1)
Building Permits
During the performance of our procedures over the City’s building permit issuance and revenue collections, we noted that the City’s Building Permit Technician issues permits, receipts payments, and calculates the fees to be charged. In addition, the Building Permit Technician runs reports from the iWorq building permit system for the month and reconciles the activity to the City’s general ledger.

The reconciliation should be done by someone independent of the building permit issuance and revenue collections. These duties are incompatible and should be segregated.

1 60
(2)
Cash Receipts
During our procedures performed over cash collections, we noted that the City has manual receipt booklets at the Fire Department, City Hall, and the Public Works Department. There does not appear to be a review of the numerical sequence of the receipts issued from the manual receipt books. In addition, the Golf Course uses a generic cash register system with a Z-tape. Individuals who take in payments and input into the cash register system have the ability to void transactions. There doesn’t appear to be any follow-up or oversight of the voided transactions to determine their validity. In addition, there is no user login to identify who voided the transaction on the register. We recommend the City only use manual receipt books in rare occasions and maintain tight controls over their use.

In addition, the City should consider implementing a more formal cash register system for the payments collected at the Golf Course.

Summation
We would like to take this opportunity to express our appreciation for the assistance extended us during the course of our audit. If we can be of further assistance, or if you have any questions regarding our recommendations, please call our office. This letter is intended solely for the information and use of management and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,
2 61
Fiscal Year Ended June 30
City of Susanville
Annual Comprehensive
Financial Report
2023
62 63

CITY OF SUSANVILLE, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
Year Ended June 30, 2023
64 65
City of Susanville
Comprehensive Annual Financial Report
Year Ended June 30, 2023

TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal i
Organization Chart vii
City Council viii
Executive Staff ix
II. FINANCIAL SECTION
Independent Auditor’s Report 1
Management’s Discussion & Analysis 4-21
Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 23
Statement of Activities 24-25
Fund Financial Statements:

Governmental Funds:

Balance Sheet 26
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 27 Statement of Revenues, Expenditures and Changes in Fund Balances 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 29 Proprietary Funds:

Statement of Net Position 30
Statement of Revenues, Expenses and Changes in Net Position 31 Statement of Cash Flows 32
Fiduciary Funds:

Statement of Fiduciary Net Position 33
Statement of Changes in Fiduciary Net Position 34
Notes to Financial Statements 35-57
Required Supplementary Information:

Schedule of the City’s Proportionate Share of the Net Pension Liability 59 Schedule of Plan Contributions 60
Budgetary Comparison Schedules - Major Governmental Funds:

General Fund 61
Gas Tax Special Revenue Fund 62
Notes to Required Supplementary Information 63
Supplementary Information:

Non-major Governmental Funds: 66 - 67
Combining Balance Sheet 68 - 71
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 72 - 75 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Local Law Enforcement Grant Special Revenue Fund 76
Street Mitigation Special Revenue Fund 77
Police Mitigation Special Revenue Fund 78
Fire Mitigation Special Revenue Fund 79
Park Land In-lieu Special Revenue Fund 80
State Revolving Loan Special Revenue Fund 81
HOME Revolving Special Revenue Fund 82
Traffic Safety Special Revenue Fund 83
Skyline Bicycle Special Revenue Fund 84
66 City of Susanville
Comprehensive Annual Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS – Continued
Supplementary Information - Continued: PAGE
Traffic Signals Special Revenue Fund 85
CDBG Special Revenue Fund 86
Road Special Revenue Fund 87
Tobacco Grant Special Revenue Fund 88
Asset Forfeiture Special Revenue Fund 89
FEMA AFG Grant Special Revenue Fund 90
LEAP Grant Special Revenue Fund 91
ABC Grant Special Revenue Fund 92
OTS Grant Special Revenue Fund 93
City Hall Debt Service Fund 94
Community Swimming Pool Debt Service Fund 95
City Hall Parking Lot Capital Projects Fund 96
Non-major Enterprise Funds 97
Combining Statement of Net Position – Nonmajor Enterprise Funds 98 Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds 99
Combining Statement of Cash Flows – Nonmajor Enterprise Funds 100 Internal Service Funds 101
Combining Statement of Net Position - Internal Service Funds 102 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 103
Combining Statement of Cash Flows - Internal Service Funds 104 Fiduciary Funds 105
Combining Statement of Fiduciary Net Position - Custodial Funds 106 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds 107 III. STATISTICAL SECTION
Description of Statistical Section Contents, Exhibit A-1 109 Financial Trends:

Net Position by Component - Last Ten Fiscal Years 110-111 Changes in Net Position - Last Ten Years 112-115
Fund Balances of Governmental Funds - Last Ten Fiscal Years 116-117 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 118-119 Revenue Capacity:

Assessed Value of Taxable Property - Last Eighteen Fiscal Years 120 Direct and Overlapping Property Tax Rates - Last Fifteen Fiscal Years 121 Principal Property Tax Payers (Top Ten) - Current Year and Nine Years Ago 122 Property Tax Levies and Collections - Last Nineteen Fiscal Years 123 Debt Capacity:

Ratios of Outstanding Debt by Type - Last Twenty Fiscal Years 124-125 Legal Debt Margin Information - Last Fifteen Fiscal Years 126-127 Direct and Overlapping Debt 128
Ratios of General Bonded Debt Outstanding 129
Pledged Revenue Coverage - Last Nineteen Fiscal Years 130-131 Demographic and Economic Information:

Demographic and Economic Statistics 132
Principal Employers - Current Year and Nine Years Ago 133 Operating Information:

Full-time and Part-time City Employees by Function - Last Twenty Fiscal Years 134 Operating Indicators by Function - Last Ten Fiscal Years 136-137 Capital Asset Statistics by Function - Last Ten Fiscal Years 138-139 Water Sold by Type of Customer – Last Fifteen Fiscal Years 140-141 67 City of Susanville
Comprehensive Annual Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS – Continued
Statistical Section - Continued:

Water Rates – Last Nineteen Fiscal Years 142
Top 10 Water Customers – Current Year and Nine Years Ago 143 Gas Sold by Type of Customer – Last Fourteen Fiscal Years 144-145 Gas Rates – Last Nineteen Fiscal Years 146
Top 10 Gas Customers - Current Year and Nine Years Ago 147 68 INTRODUCTORY SECTION
69 i
66 North Lassen Street
Susanville, California 93130
Telephone (530) 252-5112
Fax (530) 257-4725
January 15, 2025
To the Honorable Mayor, Members of the
City Council and Citizens of the City of Susanville:

The Annual Comprehensive Financial Report (ACFR) for the City of Susanville for the fiscal year ended June 30, 2023 is hereby submitted as mandated by State statutes. This report was prepared in accordance with accounting principles generally accepted in the United States of America and contains information to help readers gain a reasonable understanding of the City’s financial activities.

This report consists of the management’s representations concerning the finances of the City of Susanville. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City of Susanville’s financial statements in conformity with Generally Accepted Accounting Practices (GAAP). Because the cost of internal controls should not outweigh their benefits, the City of Susanville’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.

The City of Susanville’s financial statements have been audited by Van Lant and Fankhanel LLP, a firm of licensed certified public accountants. The goal of the audit was to provide reasonable assurance that the financial statements of the City of Susanville for the fiscal year ended June 30, 2023 are free of material misstatement. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified or clean opinion and the City’s financial statements are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

GAAP requires that the management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. 70 ii
City of Susanville Profile
The City of Susanville is a General-Law City incorporated under California law in 1900. The City is located in Northeastern California (85 miles from Reno, Nevada and 112 miles from Redding, California.) and offers a wide variety of experiences for the outdoor enthusiast. There are approximately 60 miles of developed trails for hiking, biking, cross country skiing and horseback riding that provide breathtaking views of the mountain ranges and fall colors. Numerous rivers and streams as well as the beauty of Eagle Lake provide ample
opportunities for fisherman and boating enthusiast to
experience our great outdoors. The City has over 147 acres of parks, golf course, pool, and airport, all of which host a variety of community events to bring the community together.

Form of Government
The City operates under the City
Council/City Manager form of
government. The people of
Susanville elect five Council
Members, from which the City Council
chooses the Mayor and the Mayor
Pro-Tempore. The Mayor and Mayor
Pro-Tempore are appointed for a twoyear term. Council Members are elected to serve alternating four-year
terms. The City Council appoints the
City Administrator and the City
Attorney. All municipal elections are
at large.

City Services
The City of Susanville provides a wide range of municipal services, including police and fire protection, water, natural gas and geothermal utilities, street maintenance, snow removal, parks, planning, economic vitality, grant administration, contract administration services for other government agencies, zoning, building and safety, and other general government services. Accounting, payroll, revenue collection, accounts payable, treasury, budget, financial reporting, business licensing and utility billing are the responsibility of the Administrative Services Department.

Accounting Policy and Control
The City’s accounting records are maintained on a modified accrual basis. Revenues are recorded when measurable and available and expenditures are recorded when goods or services are received and the liability incurred. The annual budget serves as the foundation for the City of Susanville’s financial planning and control. The annual budget is legally required to be adopted by July 1 of each year and is appropriated at the fund level.

City Council may appropriate, amend or transfer funds by an affirmative vote of three Council Members at any regular or special Council meeting, with the transfer of some Bizz Johnson Trail
71 iii
restricted funds requiring a 4/5ths vote. The City Administrator is authorized to transfer between departments of the General Fund and Department Heads have the authority to transfer between most line items within their respective budgets.

Factors Affecting Financial Condition
The General Fund revenues continued to recover in FY 2022-23 from the economic effects of the COVID-19 pandemic. Continued growth is expected as the recovery process is expected to continue over the next five years. On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA), was signed into law. The City of Susanville received an allocation of $3,590,711 with the first payment in July of 2021, and a second and final was received in July 2022. The COVID-19 pandemic affected our sales and use taxes considerably during FY2019-2020, seeing a drop in sales tax of 15.7% from FY2018-19.

The City began to see a recovery of these taxes during FY2020-21, increasing 7.8% over pre-COVID (FY2018-19) levels, and again saw an increase of 14.9% in FY2021-22. Sales COVID-19 also affected our room tax (TOT), dropping 15% from 18/19 to 19/20, with 2020- 21 remaining stable comparatively to 2019-20. In 2021-22 and 2022-2023, the City saw growth of 9.6% and 16.4%, respectively, in TOT.

On April 13, 2021, the California Department of Corrections and Rehabilitation (CDCR) announced their intention to close the California Correctional Center (CCC) by June 30, 2022. As the 2nd largest employer in the City, this raised considerable concerns regarding the economic impacts this would have on the community. The City of Susanville filed an injunction against CDCR, Secretary of the Department Kathleen Allison, and Governor Gavin Newsom to stop the closure of CCC, based upon the failure to conduct review under CEQA prior to making the decision to close. However, ultimately, the injunction was dissolved on September 7, 2022, and the closure completed on June 30, 2023. Despite the closure, the non-incarcerated population of Susanville only saw a decrease of 3% since 72 iv
2021 as High Desert State Prison was able to absorb many of the employees that were displaced as part of the closure.

The three major sources of General Fund revenue include Sales and Use Tax, Property Tax and Property Tax In-Lieu of Vehicle License Fees. These three revenue sources account for approximately 68% of the General Fund Revenues.

Sales and Use Tax
Sales and Use Tax is the City’s largest source of revenue, representing approximately 42% of all general fund revenues in FY 2022/23. Sales and Use Tax decreased 7.1% over Fiscal Year 2021/22. The ongoing recovery from the COVID-19 pandemic was also aided by the robust fire season that the City saw with the Dixie fire located just outside of City limits, drawing large quantities of fire personnel into our community. FY 2021-22 was a benchmark year for 1% Bradley Burns as Quarter 1 & 2 saw a 21.7% and 25% increases while the fire personnel was in our community. Removing the anomaly year, FY 2022-23 saw 8.8% increase over the FY 2020-21 levels. Preliminary calculations indicate that FY 2023-24 is reporting modest declines of 2.15% below FY 22-23 levels as customers are starting to feel the inflationary impacts on their spending habits.

The City placed a Sales and Use tax ballot measure on the June 7, 2022 ballot. The measure was passed by voters to maintain and enhance existing public safety services (police and fire) and provide funding to support street infrastructure improvements. The funds will also be used to support economic development efforts designed to increase businesses, jobs and visitors to Susanville. The collection of these taxes began October 1, 2022. In FY 2022-23, this special sales tax generated $1.6 million in revenues, with only 3 quarters of collection. FY 2023-24 collected over $2.3 million in revenues for the city. 73 v
Property Tax
Property Taxes represents approximately 12% of all general fund revenues. Property Tax revenue decreased by 12% over previous fiscal year. Although there has been an influx of pandemic related migration into Susanville in addition to wildfire related relocations, the CCC closure impacted the housing market as housing sales declined in FY 2022-23 following the announcement. However, FY 2023-24 is reporting increased property taxes of 9.45% over FY 2022-23 levels as the housing market is recovering from the uncertainty surrounding the prison closure.

Property Tax In-Lieu of Vehicle License Fees
Property Tax In-Lieu of VLF represents approximately 19% of all general fund revenues.

This revenue increased by 7.2% from the previous year due to increased assessed value of taxable properties in the city.

Long Range Planning
In the forthcoming fiscal year, the City plans to use a five-year fiscal planning forecast.

This forecast will assist in identifying important trends and understanding the long-term consequences of budget decisions.

Major Initiatives
Managing Rising Pension Costs
The City of Susanville, like many municipalities throughout the State, is facing rising CalPERS pension costs. This is primarily related to the changes in CalPERS actuarial assumptions which include changes to discount rate, amortization policies, mortality rates, and the implementation of risk mitigation strategies. The City’s FY 2021-22 contribution for the unfunded accrued liability (UAL) portions of pension costs was $1,017,592. Pending any additional changes to the actuarial assumptions, these payments would have continued to ramp up through FY 2031/32. The CalPERS Side Fund Loan was paid off in 2019/20 with reserve cash that was borrowed from the Natural Gas System. In 2021-22, the City of Susanville successfully refinanced 90% of our current CalPERS UAL obligations in the amount of $10,601,500, stabilizing our interest rate and reducing our annual payments. Total principal and interest payments on these loans is now $743,060. The recalculated UAL costs for FY 2022-23 was $301,919. Actuarial forecasts anticipated UAL payments of $1,193,256 in FY 2022-23. The refinance saved the City over $148,000 in FY 2022-23 and will continue to rise as the ramp up of payments would have continued in future fiscal years. The City is continuing to identify other ways to stabilize the City against these rising costs by creating other funding resources, such as a Section 115 trust.

Future and on-going projects

 Technology assessment and security upgrades for various city offices.  5-year plan for the General Fund
 Economic Development to bring growth and business to our community  Strategic Planning for each department to identify needs for ongoing development 74 vi
 Funding deferred capital improvements
 Federally Funded Pavement Rehabilitation projects throughout the City including programming of funds for the Gateway project to improve aesthetics and safety features along Highway 36/Main Street
 Replacing water lines throughout the City using the reserves created by the increase in water rates in 2017 and completing phase one of a water delivery project utilizing $1.7 million in state water funds to improve water infrastructure.  Establishing a Section 115 trust to protect the City against rising pension costs  Improved economic vitality through promotion of recreation activities for residents and visitors as well as attracting new businesses.
 Natural Gas Cross Bore investigations, system mapping, and video record keeping  Water rate evaluation and calculations report
 Natural Gas 5 year plan
 City Transportation Infrastructure Maintenance Plan
 Restructuring of the police and fire departments under a combined public safety department
 Rehabilitation of Memorial Park, project expanded to include a bathroom renovation  Susan River Trail Rehabilitation
 Performing arts facility purchase and renovation
 Pat Murphy Ball Field bathroom improvements
 Tennis/Pickleball Court resurfacing project
 Continued transition to online payment options for city services Acknowledgments
We wish to express our thanks and appreciation to the Mayor, Members of the City Council and Management for their leadership, interest, and continued support in planning and conducting the financial operations of the City of Susanville in a responsible and prudent manner in the best interests of the citizens of Susanville. We would also like to thank City Staff for their continued dedication to improving our wonderful City.

Respectfully submitted,

Dan Newton Chandra Jabbs
City Administrator Finance Manager
75 CITY COUNCIL

ADMINISTRATIVE

SERVICES

FINANCE

ACCOUNTING,

ACCOUNTS

PAYABLE,

ACCOUNTS

RECEIVABLE,

REVENUES,

PAYROLL,

UTILITY

BILLING
CITY
CLERK

AGENDAS,

MINUTES,
ELECTIONS, RISK

MANAGEMENT,

RECORDS

MANAGEMENT,

PERSONNEL
GOLF
COURSE
FIRE
FIRE

PREVENTION
FIRE

FIGHTERS

VOLUNTEERS
POLICE
SWORN

OFFICERS
NON‐SWORN

PERSONNEL
PUBLIC
WORKS

ENGINEERING
AIR

POLLUTION
CODE

ENFORCEMENT

COMMUNITY

DEVELOPMENT
BUILDING &

PLANNING

POOL AIRPORT OPERATIONS
PARKS,

GROUNDS,

BUILDING

MAINTENANCE

STREETS

GEOTHERMAL
WATER

NATURAL
GAS
CITY

ATTORNEY
PUBLIC
CITY ADMINISTRATOR
Organization Chart
vii
76 City Council
Fiscal Year 2022-23
_________________________________
Council Members
Quincy McCourt– Mayor
Thomas Herrera – Mayor Pro-Tempore
Kevin Stafford
Mendy Schuster

Russ Brown
viii
77 City of Susanville
Executive Staff
City Administrator Dan Newton

City Clerk Heidi Whitlock
Fire Chief James Moore
Police Chief Ryan Cochran
Public Works Director Robert Godman
Finance Manager Chandra Jabbs

ix
78 FINANCIAL SECTION
79 Independent Auditor’s Report
The Honorable City Council
City of Susanville, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Susanville (City), as of and for the year ended June 30, 2023, 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 financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Susanville, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cashflows 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 these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.

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.

1 80
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the 2 81
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 statements and budget schedules, as listed in the table of contents, 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 statements, as listed in the table of contents, 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 and statistical sections 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 15, 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 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 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.

January 15, 2025
3 82
City of Susanville
Management’s Discussion & Analysis
Year Ended June 30, 2023
This is the management’s discussion and analysis of the financial performance of the City of Susanville for the fiscal year ended June 30, 2023. Please read this in conjunction with the transmittal letter, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion.

BASIC FINANCIAL STATEMENTS
The basic financial statements, including the accompanying notes, constitute the core of the City’s financial section. The fiscal year of the City starts on July 1 and ends on June

30. This report includes a blend of fund accounting and government-wide financial reporting. The basic financial statements presented are:
 Government-wide
 Governmental funds
 Proprietary funds
 Fiduciary funds
A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives.

Government‐Wide Financial Statements
Generally accepted accounting principles (GAAP) for state and local governments prescribe two basic government-wide financial statements:
 Government-wide Statement of Net Position
 Government-wide Statement of Activities
The government-wide financial statements include all governmental and business type activities of the City, but not its fiduciary activities. 4 83
The government-wide Statement of Net Position is the basic government-wide statement of all the City’s assets, liabilities, and net position. The difference between assets and liabilities on the Statement of Net Position is referred to as net position (rather than equity).

GAAP requires that the primary government’s governmental activities be reported separately from its business-type activities. Business-type activities include enterprise funds. Internal service funds are included as part of governmental activities. GAAP requires that the government-wide Statement of Net Position provide a total column for the primary government. All internal balances (payables and receivables between governmental activities) are generally eliminated from this total column.

The government-wide Statement of Activities is used to report changes in the net position reported in the government-wide Statement of Net Position. This statement presents expenses before revenues. This is to emphasize that in the public sector, revenues are generated for the purpose of providing services rather than maximizing revenues as the ultimate goal.

Direct expenses - The first column of the government-wide Statement of Activities presents direct expenses associated with each of the City’s functional activities.

Examples of functions are general government, public safety, streets & public works, planning, community services and recreation, and community development.

Indirect expenses - GAAP does not require governments to allocate indirect expenses to their various functional activities.

Program revenues - Some programs are directly financed, in whole or in part, by resources generated by or dedicated to the program. GAAP requires that such program revenues be presented separately. Examples of program revenues include charges for services, fees, permits, licenses, fines, grants, contributions, donations, etc. that are restricted to specific programs.

General revenues - All revenues that do not qualify as program revenues are reported as general revenues. Examples of general revenues are property taxes, sales taxes, transient lodging taxes, franchise taxes, business license taxes, and use of money and property.

Governmental Fund Financial Statements
GAAP requires two basic governmental fund financial statements:
 Governmental Funds Balance Sheet
 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances
5 84
The difference between the assets and liabilities of governmental funds is reported as fund balance. Fund balance is divided into non-spendable, restricted, committed, assigned and unassigned.

GAAP requires that each major fund be reported in a separate column. The General Fund is always considered a major fund. All other non-major governmental funds are aggregated and reported in a single column regardless of fund type. A fund is considered major if it meets both of the following criteria:

1. 10% Criterion – An individual fund reports at least 10 percent of any of the following:
 Total governmental fund assets
 Total governmental fund liabilities
 Total governmental fund revenues
 Total governmental fund expenditures
 Total governmental fund net position

2. 5% Criterion – An individual fund reports at least 5 percent of the aggregate total for both governmental funds and enterprise funds of any one of the items for which it met the 10 percent criterion.

A budgetary comparison is presented for the General Fund for which an annual budget is legally adopted. The budgetary comparison includes the original appropriated budget, the final amended budget, and actual amounts. For the purposes listed above, the major governmental funds for the City are the General Fund and the Streets and Highways fund.

For a listing of non-major governmental funds, please refer to the supplementary information in the financial statements.

Proprietary Fund Financial Statements
GAAP prescribes three basic financial statements for proprietary funds:
 Statement of Net Position
 Statement of Revenues, Expenses, and Changes in Net Position  Statement of Cash Flows
GAAP requires the same major fund reporting for enterprise funds described earlier for governmental funds. GAAP also indicates that internal service funds are never to be reported as major funds. Although internal service funds are proprietary funds (like enterprise funds) they are consolidated as part of governmental activities in the government-wide financial statements because their primary customers are typically the governmental operations. Therefore, internal service funds are reported in a separate aggregated column on the proprietary fund financial statements. The Major proprietary funds for the City are the Natural Gas fund and the Water fund. For a listing of the non-major proprietary (enterprise) funds, please refer to the Supplementary Information pages in the financial statements.
6 85
Fiduciary Fund Financial Statements
Fiduciary fund financial statements provide information about the financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong.

GAAP prescribes up to two basic financial statements for fiduciary funds:
 Statement of Fiduciary Net Position
 Statement of Changes in Fiduciary Net Position
Fiduciary funds are never reported as major funds. Therefore, the focus of reporting for the fiduciary fund financial statements is the various fund types. That is, the statement should present one column for each fund type reported. The City’s only fiduciary funds are custodial funds.

The Statement of Changes in Fiduciary Net Position is unique in that all changes in net position are classified as either additions or deletions. The City has three fiduciary funds:

Lassen County Air Pollution Control District, Integrated Regional Water Management Plan (IRWMP), and Lassen Local Agency Formation Commission.

ANALYSIS OF GOVERNMENT‐WIDE FINANCIAL STATEMENTS
Net position acts as an indicator of a government’s financial position. Overall, the net position of the City shows an increase from the prior fiscal year. Assets exceeded liabilities by $22.1 million as of June 30, 2022 ($7.6 million for governmental activities and $14.4 million for business-type activities), and by $23.6 million as of June 30, 2023 ($8.8 million for governmental activities and $14.8 million for business-type activities).

In fiscal year 2022-23, Cash and Investments increased by $1,067,485, ($335,241 in governmental activities and $729,244 in business-type activities), and restricted Cash and Investments increased by $8,746. Deferred outflows of resources decreased by $3,877,884 ($3,175,950 in governmental activities and $701,934 in business-type activities). Capital Assets increased by $1,614,160 from FY2021-22. Governmental activities included the purchase of a Brush Truck and Crew Cab Firetruck for the Fire Department, a pump track for Memorial Park, and a new police vehicle. Business-type activities included the purchase of a new vehicle and utility vehicle for the gas division, a new vehicle and hydrant adapters for the water division, and new meter reading software for the gas and water. The golf course purchased a new mower, and the airport replaced the windsock. In the fiscal year 2022-23, liabilities decreased by $4,166,322, ($1,788,975 in governmental activities and $2,377,347 in business-type activities).

Governmental activities are generally financed through taxes and intergovernmental revenues. These activities are reported in the governmental funds (General Fund, special revenue funds, capital projects funds, debt service funds) and internal service funds.

Business-type activities are generally funded through user fees and charges. These activities are reported in the proprietary funds.
7 86
Tables A-1 and A-2 on the following pages, present a summary of the City’s Statements of Net Position as of June 30, 2022, and 2023.

Table A-1
Government-wide Net Position as of June 30, 2022, and 2023 Governmental Activities
2022 2023
Cash & Investments 8,924,582 9,259,823
Capital Assets 10,479,762 12,290,554
Other Assets 571,861 2,857,184
TOTAL ASSETS $19,976,205 $24,407,561
Deferred Ouƞlows of Resources 10,631,073 7,455,123
Current liabiliƟes 1,394,975 1,396,289
Net pension liabiliƟes 6,679,535 5,421,952
Other non‐current liabiliƟes 9,467,083 8,934,377
TOTAL LIABILITIES $17,541,593 $15,752,618
Deferred Inflows of Resources 5,439,983 7,281,547
Net investment in Capital Assets 9,016,992 11,017,453
Restricted 3,580,027 2,988,762
Unrestricted (4,971,317) (5,177,696)
TOTAL NET POSITION $7,625,702 $8,828,519
8 87
Table A-2
Government-wide Net Position as of June 30, 2022, and 20233 Business‐type Activities

2022 2023
Cash & Investments 9,694,521 10,418,019
Capital Assets 31,508,033 31,311,401
Other Assets 4,434,159 2,986,466
TOTAL ASSETS $45,636,713 44,715,886
Deferred Ouƞlows of Resources 4,270,371 3,568,437
Current liabiliƟes 2,611,415 1,699,680
Net pension liabiliƟes 1,689,406 1,440,008
Other non‐current liabiliƟes 29,510,625 28,294,411
TOTAL LIABILITIES $33,811,446 31,434,099
Deferred Inflows of Resources 1,615,897 2,015,514
Net investment in Capital Assets 4,823,903 5,636,796
Restricted 0 0
Unrestricted 9,655,838 9,197,914
TOTAL NET POSITION $14,479,741 14,834,710
The Statement of Activities presents program revenues and expenses and general revenues in detail. These elements are summarized for the years ended June 30, 2022, and 2023 in Tables B-1 and B-2 on the following pages.
9 88
Table B-1
Changes in Government-wide Net Position
For the Fiscal Years Ended June 30, 2022, and 2023
Governmental Activities

2022 2023
Expenses (by FuncƟon)
General Government 668,276 2,331,966
Public Safety 4,365,037 7,199,915
Streets 1,305,474 1,521,435
ProtecƟve InspecƟons 244,339 ‐
Community services 513,650 1,198,098
Community development 236,045 247,754
Interest 245,702 409,156
TOTAL EXPENSES $7,578,523 $12,908,324

Program revenues (by major source)
Charges for services 1,326,657 1,244,112
OperaƟng grants and contribuƟons 2,677,707 2,320,511
Capital grants and contribuƟons 1,398,349 2,914,425
TOTAL PROGRAM REVENUES $5,402,713 $6,479,048

General revenues and transfers
Property Taxes 1,198,106 1,068,192
Property Tax in lieu of VLF 1,655,849 1,702,570
Sales & Use 2,309,006 3,833,632
Transient lodging taxes 503,097 594,682
Franchise taxes 13,364 11,001
Business license taxes 539,663 359,427
Other taxes 25,799 19,628
Investment earnings ‐71,740 193,180
Miscellaneous Income 0 50,000
Transfers 81,585 0
TOTAL GENERAL REVENUES AND TRANSFERS $6,254,729 $7,832,312

Change in net posiƟon 4,078,919 1,403,036
Net posiƟon, beginning of year 3,546,783 7,425,483*
Net posiƟon, end of year $7,625,702 $8,828,519
*The beginning net position of governmental activities was restated by ($200,219) to $7,425,483 and the prior period adjustment in the Gas Tax Special Revenue Fund of ($200,219) was to adjust receivables overstated in prior years.

Table B-2
10 89
Changes in Government-wide Net Position
For the Fiscal Years Ended June 30, 2022, and 2023
Business‐type Activities
2022 2023
Expenses (by FuncƟon)
Airport 281,288 278,439
Water 3,419,890 2,896,297
Geothermal 139,023 116,011
Natural Gas 4,786,890 4,820,031
Golf Course 331,085 453,728
TOTAL EXPENSES $8,958,176 $8,564,506

Program revenues (by major source)
Charges for services 8,290,086 8,731,733
OperaƟng grants and contribuƟons 0 0
Capital grants and contribuƟons 1,286,912 0
TOTAL PROGRAM REVENUES $9,576,988 $8,731,733

General revenues and transfers
Miscellaneous 0 0
Investment Income 16,538 187,742
Transfers (81,585) 0
TOTAL GENERAL REVENUES AND TRANSFERS ($65,047) $187,742

Change in net posiƟon 553,775 354,969
Net posiƟon, beginning of year 13,925,966 14,479,741
Net posiƟon, end of year $14,479,741 $14,834,710
On June 30, 2023, the total cash and investments for all funds increased by $1,058,739 (from $18,619,103 to $19,677,842). The primary reasons for this increase are:
 General Fund cash increased by $1,628,126, (from $4,367,869 to $5,995,995) during fiscal year 2022/23. The American Rescue Plan Act (ARPA) funds were received by the City during fiscal year 2022/23 in the amount of $1,029,635. This is the second and final payment to be received through the ARPA allocation. The remainder of this increase is due to increased tax receipts over the year.  General Fund taxes and assessments increased by $1,429,497 (from $6,143,124 to $7,572,621). The Measure P took effect in FY 22/23, beginning October 1, 2023, which created a sales & use tax of 1% within city limits.  General Fund Expenses increased by $5,329,801. Much of this difference is due to the CalPERS refinancing adjustments from FY 2021-22. The result of the CalPERS adjustment in FY 2021-22 had a decrease in expenses of $8,994,085. The adjustment in FY 2022-23 was to increase expenses by $3,771,864. This along 11 90
with approximately $8 million contribution to CalPERS in FY 2021-22 nets to an increase of approximately $5 million compared to the prior year just due to CalPERS contribution and actuarial activity. Other capital projects in the General Fund included the purchase of a Brush Fire Truck, Crew Cab Firetruck, police vehicle, and the completion of the Richmond Road Street Improvement Project.  The Water Fund cash and investments increased by $284,763 (from $3,871,276 to $4,156,039). This is primarily due to an increase in cash flows from operating activities.
 The Natural Gas Fund cash and investments increased by $600,858 (from $5,334,550 to $5,935,408). Receipts from customers increased by $526,896 as the City experienced another record setting usage for the gas system due to a long and cold winter. Payments to Suppliers and Contractors increased by $639,805 as compared to the prior fiscal year. In 2020, the City borrowed $ 3.2 million in cash reserves from the Natural Gas Fund to pay down a higher interest rate CalPERS Side Fund loan with Umpqua Bank. Fund repayments began in 2021, and the Natural Gas Fund received $167,952 in repayments.

Balances of this internal borrowing back to the Natural Gas Fund (including interest) are as follows: General Fund $1,821,397 (Administrative Services $346,759, Public Safety Police $1,021,012, and Public Safety Fire $453,626), Streets Fund $157,834, Water Fund $279,883 and Public Works Administration $47,578. The Natural Gas portion of this loan in the amount of $413,000 has been defeased. Repayment terms and interest rate were adopted by Resolution 20-5785.

ANALYSIS OF MAJOR GOVERNMENTAL FUNDS
Following is a brief description of the financial highlights for each of the City’s major governmental funds for fiscal year 2022-23:

General Fund
The fiscal year 2022-23 annual budget began with a continuing resolution adopted and approved on June 29, 2022, by Resolution 22-6011 and with the final operating budget adopted and approved on September 21, 2022, by Resolution 22-6045 with a budgeted surplus of $75,723. With the passage of Measure P, which increased the Sales & Use tax by 1%, the City was able to pass a balanced budget for the first time in over 5 years.

The reserve fund on June 30, 2023, currently has $1,418,078. As part of the budget policies adopted by Resolution No. 22-6045, the City will strive to maintain General Fund reserves equal to twenty percent (20%) of annual operating revenues. 12 91

BUDGET VARIANCES IN THE GENERAL FUND

Original
Budget Final Budget Difference Actual Actual vs Final Budget Revenues 7,977,382 10,618,114 2,640,732 10,838,438 220,324 Expenditures (8,667,925) (9,395,984) (728,059) (7,164,813) 2,231,171 Other Financing Sources and (uses):

Transfers In 1,560,286 1,660,655 100,369 1,029,635 (631,020) Transfers out (738,739) (738,739) - (295,080) 443,659
Net change in Fund
Balance $131,004 $2,144,046 $2,013,042 $4,408,180 $2,264,134 After the 2022-23 budget was adopted, the City Council approved several budget amendments. Changes throughout the year resulted in the final budget. Changes were as follows:

Revenues
1,795,356
689,000
ARPA funds committed to GF
Revenue Projection Increase Based on Receipts
1,000 Walmart Donation (Police 2022)
1,000 Walmart Donation (Fire 2022)
100,000 Building Department Revenue
39,382 PD Emergency Facility Repair
15,000 PD Officer Wellness Grant
2,640,732

Expenditures
40,000 Wildland Fire Truck
39,495 PD Emergency Facility Repair
13,450 Council Chambers AV Equipment
5,000 CalRecycle Grant
5,000 Abatement – Tree Removal
1,000 Walmart Donation (Fire 2022)
15,000 PD Officer Wellness Grant
17,280 Code Enforcement Abatements
1,000 Walmart Donation (Police)
1,000 Walmart Donation (Fire 2023)
5,760 IT Services
302,013 MOU Adjustments
109,200 Essential Worker Premium Pay
5,068 ARPA Garden Carryover Project
13,000 Playground Equipment
30,000 Homeless Encampments
14,425 HUSA Survey
9,999 See, Click, Fix 22-23 Portion
100,369 Capacity Transfer from Transfer to Exp for Loan Repayment $728,059
As of June 30, 2023, total General Fund revenues and other financing sources were $10,838,438 or $2,861,056 more than originally budgeted. During FY 2022-23, the City chose to use the standard allowance for the ARPA funding, moving these funds into the General Fund for revenue replacement. This budget vs actual variance is primarily due 13 92
to receiving the second payment of the ARPA funds of $1,795,356, $516,583 in legal settlement funds from PG&E from the Dixie Fire, $221,996 more in TOT tax, and $142,114 more in Business License tax. Sales and Use Taxes underperformed projections, receiving $3,813,159 of the $4,089,000 budgeted.

Actual expenditures and other financing sources were $7,164,813 or ($2,231,171) less than budgeted. This was primarily due to the fire department not participating in out-ofareas fire activities. The City annually budgets $425,000 to allow budget capacity to engage the fire department in these deployment opportunities. With the long winter season, the fire season was much less impactful to our area. Additionally, the fire department did not participate in the hazard materials training in FY22-23 ($90,000) as we did not receive the funding. Salary savings was generated throughout the general fund through vacant positions. Vacancies were identified in the Finance division (1), Administration (2), Police (1) and Fire (2). Additionally, a significant portion of savings came from the recalculation of the CalPERS costs for the City. In April 2022, the City refinanced the Unfunded Accrued Liability (UAL) portion of the City’s CalPERS pension costs. Due to the timing of the loan, the City budgeted for full pension costs as it was undetermined at the time of budget adoption if the liability would be recalculated.

The General Fund ended Fiscal Year 2022-23 with an increase in fund balance of $4,408,180 (from $3,011,617 to $7,419,797) compared to the prior year. This increase in fund balance can be primarily attributed to an increase in taxes and assessments of $1,429,497, ARPA funding of $1,795,356, increase in investment earnings of $65,249, and the receipt of the PG&E legal settlement in the amount of $516,583.

For the year, General Fund total revenues exceeded total expenditures (excluding transfers) by $3,673,625, as compared to $1,258,437 for fiscal year 2021-22.

Total General Fund revenues increased from the prior year by $3,299,923 (from $7,538,515 to $10,838,438). Of this amount, $1,429,497 is an increase in taxes and assessments, $1,217,941 is an increase in intergovernmental revenues, which includes the ARPA funds, and $516,583 in legal settlement funds. Other increases include $37,246 in license and permits, $65,249 in investment earnings, and $34,983 in charges for services. Fines and forfeitures had a decrease of $1,576 from FY21-22.

Compared to the prior year, the General Fund expenditures increased by $517,603 (from $6,647,210 to $7,164,813). Government expenses decreased by $174,705 and Public Safety expenses decreased by $31,589. Community Services now includes Protective Inspections and Community Development, and these expenses combined increased by $252,112 (from $864,471 to $1,116,583). Debt Service increased by $587,022 due to the UAL loan having the first repayments in FY22-23.

General Fund transfers out decreased from the prior year by $10,000 (from $305,080 to $295,080). This is primarily due to debt service payments to the Gas fund loan repayment.
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Gas Tax Special Revenue Fund
This fund accounts for gas tax revenue received from the State of California and is used for street purposes within the City. The Gas Tax Fund ended fiscal year 2022-23 with a decrease in fund balance of $204,549 and a prior year adjustment decrease of $200,219 due to overstated accounts receivable. Revenues increased over the previous year by $2,199,460 (from $636,191 to $2,827,134) primarily due to payments from the State of California for various STIP projects. Expenses increased over the previous year by $2,285,242, from $908,441 to $3,193,683. A major STIP project in FY22-23 was the Richmond Road Resurfacing project. The City combined a city water line improvement project with a resurfacing project along Richmond Road.

ANALYSIS OF MAJOR PROPRIETARY FUNDS
Following is a brief description of the financial highlights for each of the City’s major proprietary funds for fiscal year 2022-23:

Water Enterprise Fund
On June 30, 2023, the Water Fund ending net position shows an increase of $68,214 (from $6,181,021 to $6,249,235). Overall the assets of the water fund decreased by $61,710, excluding Deferred Outflows of Resources. This is primarily due to a decrease in cash of $289,423, a decrease in accounts receivable ($130,157), and an increase in interest receivable of $29,037. Due from Other Governments decreased by $465,102 as the payment from the IRWM program was received in FY 22-23. Total capital assets increased $215,009 over the prior fiscal year, with the completion of the Richmond Road project ($485,016.17) and the purchase of hydrant adapters ($94,827). The Water Fund also purchased $45,252 in equipment which included new meter reading equipment and a vehicle.

The total liabilities decreased by $690,303, (from $9,509,819 to $8,832,485). Current liabilities decreased by $17,358, and non-current liabilities decreased by $672,945 as payments were made on the City’s debt obligations which includes the UAL loan, real property purchase of Barry Reservoir, the Natural Gas Refunding loan, and the USDA loan.

Water Fund sales and charges for services decreased by $83,860 (from $2,989,643 to $2,905,783) from the previous year primarily due to a long winter which delayed the start of watering season, which also reduced fire suppression usage during the FY22-23 year. Interest income increased over the prior year by $74,052.

Total expenses (operating and nonoperating) decreased by $610,614 (from $3,435,214 to $2,896,297). This is primarily due to a decrease in operating expenses from the refinancing of the UAL costs and reduced CalPERS obligations.

There were approximately 3,788 water customer accounts on June 30, 2023.

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As with most cities and counties within the State of California, Susanville is not immune from experiencing drought conditions. The city, however, is located in the high desert and is accustomed to low rainfall and is not as impacted as the rest of the state. The City’s water supply is fed by two natural springs and three wells. The wells are used to meet watering demand during irrigation season, which is typically April through September.

With the exception of peak irrigation season, (June, July, August) the springs (Cady and Bagwell), supply the majority of the City’s water.

Natural Gas Enterprise Fund
The Natural Gas Fund increased its net position by $406,222 during fiscal year 2022-23 (from $2,415,395 to $2,821,617). The 2022-23 usage remained stable; however residential usage increased by 20% than the previous year while commercial usage decreased by 27%. Natural Gas sales and charges for services increased by $377,858 due to below average temperatures during the winter months which increased usage. LAIF interest allocation increased by $89,558 due to higher returns in the investment fund.

Expenses including interest expense and transfers out decreased from the previous year by $96,377 (from $4,793,372 to $4,696,995. This is primarily due to the increasing purchasing of natural gas offsetting with the decreased administrative costs of the lower CalPERS obligations and increased interest revenues.
‐
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CF of Water Billed
Water Billed By Year
2019 2020 2021 2022 2023
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 3,417,382 4,603,729 3,244,971 3,131,247 4,877,267 11,587,246 8,016,150 14,975,945 13,633,111 7,026,196 4,917,216 3,605,538 2020 3,600,914 3,475,925 3,265,473 3,535,686 5,879,174 11,873,358 6,861,175 13,517,417 12,253,797 10,603,348 6,609,334 3,218,653 2021 4,970,835 4,048,837 2,464,758 3,832,124 7,881,677 10,318,122 14,150,912 12,195,343 12,874,427 10,090,881 5,733,122 5,481,787 2022 2,565,590 5,618,243 1,625,579 4,207,241 5,813,649 13,588,579 8,689,178 10,508,887 14,312,179 14,945,123 2,718,397 766,477 2023 3,458,573 3,291,224 3,130,076 3,810,330 4,126,043 8,691,759 11,032,879 9,210,285 12,193,262 7,933,482 5,344,796 4,101,521 16 95
Total Assets excluding Deferred Outflows, increased by $124,576 (from $24,580,635 to $24,705,2115), primarily due to an increase in cash and investments of $604,944 and interest receivable of $32,800, a decrease in accounts receivable ($75,190), a decrease in depreciable assets of ($113,424) and a decrease in other noncurrent assets of ($176,262).

Total liabilities decreased by $835,787 (from $23,645,088 to $22,809,301), primarily due to payments made on debt obligations as noncurrent liabilities decreased by $813,044.

During fiscal year 2022-23, short-term natural gas prices were relatively high leading into Winter, then reached a peak average price in December 2022 of $30.17 per MMBtu, driven by cold temperatures and gas supply concerns. Fortunately, the City purchased most of its winter supply prior to the winter price spike avoiding the extremely high prices. The fist long-term purchase done in May 2018 at $2.54 per MMBtu covered approximately 50 percent of the City’s wintertime supply. The second long-term purchase done in July 2022 at $5.99 per MMBtu covered an additional 27 percent of the City’s wintertime supply. These combined fixed-price purchases covered 77 percent of the 2022-23 winter requirement. The remaining 23 percent was purchased strategically within each month between price spikes driven by the freezing weather. The prices for the balance of the supply ranged between the peak of $30.17 per MMBTU in December 2022 to $3.50 per MMBtu in April 2023.
0 5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
JulAugSepOctNovDecJanFebMarAprMayJun
DTh/Mo
Susanville FY22/23 Gas Supply Portfolio
Monthly Market
Prices
$6.00 Fixed Price
Gas
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The city continues to strategically purchase winter gas in advance to avoid wholesale price volatility and to assure price stability for residents. In fact, following the cold 2022- 23 winter, the Susanville City Council approved by Resolution 23-6164 a formal gas purchase policy requiring 100 percent of average winter gas requirements to be purchased each year by November 1st preceding the winter. The policy further requires annual reporting each year by August to the City Council the status of the City’s natural gas portfolio, ongoing compliance with the gas purchase strategy, and any need to adjust customer gas rates.

Beyond wholesale natural gas purchases representing 29% of the expenses for FY 2022- 23, operations, and debt service each represent 23% of the expenses. The pie chart below illustrates the cost component proportions within the Natural Gas Fund.

The City continues to benefit from the refunding of the 2010 natural gas bonds through the 2019 bond refinance. This refunding lowered the interest rate, maintained the defeasance date of 2045, and is saving an estimated $522,000 per year.

The City utilizes the services of Interstate Gas Services, Inc. (IGS), a consulting firm specializing in natural gas. IGS evaluates and monitors the natural gas system operations and its performance, and periodically advises the City on industry changes.

CAPITAL ASSET AND LONG‐TERM DEBT ACTIVITY
For more detailed information, please read this in conjunction with the City’s basic financial statements and related notes, which follow this discussion.

Capital Assets Activity
Capital assets are reported at historical cost. The cost of capital assets includes capitalized interest and ancillary charges necessary to place the asset in its intended Personnel
16%
Debt Service
23%
Depreciation
9%
Gas Purchase
29%
Operations
23%
Natural Gas Expenses FY 2022‐23
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location and condition for use. Ancillary charges include costs that are directly attributable to asset acquisition, such as freight and transportation charges, site preparation costs, and professional fees. Donated capital assets are reported at their estimated fair value at the time of acquisition plus ancillary charges if any.

Capital assets include land, improvements to land, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, all other tangible, and intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.

Infrastructure assets are long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water systems, dams, and lighting systems.

The City depreciates its capital assets according to their estimated useful lives and uses a straight-line depreciation method.

The City’s primary capital projects in 2022-23 was the completion of the resurfacing of Taxiway A at the airport, STIP FD project of Richmond Rd, Bunyan and Spring Ridge which includes the water services project on Richmond Road, and the purchase of a brush fire truck.

Long‐term Debt Activity
The principal amount of the City’s outstanding debt on June 30, 2023, was as follows:
2019 Refunding Revenue Bonds $18,485,000 Secured by natural gas revenues.

Series 2022A & 2022B Lease $10,160,801 Secured by leased certain real property. (UAL Pension Refunding)

Water Refunding Project $5,635,600 Secured by water revenues.

City Hall Bonds $565,101 Secured by 2013 lease financing agreement with Compass Bank.

USDA Note $697,000 Secured by Water Fund Infrastructure Community Pool Debt Service $708,000 Secured by General Fund gross revenues On May 1, 2022, the City entered into Series 2022A and Series 2022B lease agreements in the aggregate amount of $10,601,500 to provide funds to pay a portion of the City’s UAL with CalPERS relating to the City’s pension benefits. Proceeds from the obligations, less costs of issuances were immediately transferred to CalPERS to pay a portion of the UAL. Repayment of these agreements began on October 1, 2022, with the final lease payments to be made in 2042.
19 98

Scheduled principal repayments of $1,695,192 were made during fiscal year 2022-23.

The 2013 CalPERS Refunding loan outstanding principal balance of $3,390,000 was paid in full in June of 2020. The City used reserve cash funds from the Natural Gas System to repay this loan through an internal borrowing from the General Fund, Water Fund, Streets Fund and Public Works Administration Fund. All debt service principal and interest payments are current. For more detailed information, please refer to the notes to the financial statements for long-term debt.

SUMMARY OF KNOWN FACTS, DECISIONS AND CONDITIONS
The City of Susanville, like most cities, is facing skyrocketing CalPERS costs. Our revenue growth is low compared to our increasing expenses and the City was working on an economic development plan before the complete shut down of the State of California in March 2020 due to COVID 19. The City saw Sales and Use Tax and TOT tax decreases of approximately 15% from 18-19 to 19-20. Fiscal year 2020-21 saw gains in our Sales Tax of 7.8%, and again in Fiscal Year 2021-22 we saw gains of 14.9%. TOT remained level from 19-20 to 20-21, but we had significant growth in 21-22 and 22-23 of 9.6% and

16.4%, respectively.

One of the primary goals during 21-22 was to refinance our CalPERS Unfunded Accrued Liability in order to maintain a more manageable payment during the CalPERS ramp up period. We were able to successfully complete this project in May of 2022. In 23-24, savings of over $140,000 was realized through this refinancing, and is expected to grow over the coming years.

The winter of 22-23 proved to be one of the wettest winters on record and 23-24 saw above normal precipitation as well. The water utility is monitoring revenues and is pursuing a rate increase in FY 24-25 to help offset the losses due to lessened demand from the wet seasons as well as decreased usage as customers have become accustomed to drought regulations.

The city asked voters in June 2022 for a 1% Sales and Use Tax increase to be a general tax. The measure passed along with advisory measure Q which stipulated that the usage of funds be used primarily to maintain and enhance existing public safety services (police and fire) and provide funding to support street infrastructure improvements, and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville. The City began receiving the additional sales tax in October of 2022. This tax measure generated $1.6 million in general fund revenue for 22-23, and over $2 million for 23-24, which provided necessary stability for the general fund departments to continue to provide services at the levels expected by the community.
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On September 5, 2019, the city issued the 2019 Refunding Natural Gas Bonds, defeasing the 2010 Series A and Series B Bonds. The water portion of these bonds was refinanced with a bank loan. This bond issuance and refinancing reduced the interest rate, maintained the current maturity dates, reduced rate stabilization funds, and gave the Water Fund an estimated annual savings of $118,307 and the Natural Gas Fund a savings of $521,619.

The City Council adopted the fiscal year 2023-24 budget on June 16, 2023. The budget reflects Council priorities and maintains the same level of services provided in fiscal year 2022-23. In 22-23, the Council sought to make salaries and wages more competitive and equitable for our staff and salary negotiations saw increases of 10-20% across the various staffing MOUs. General Fund expenditures budget for fiscal year 2023-24 is $1,166,005, 12% more than the prior fiscal year due to these increases as well as inflationary impacts. The increase (from $8,548,545 in fiscal year 2022-23 to $9,714,550 in fiscal year 2023-24) reflects funding all approved positions within the budget, increases in negotiated salaries are part of unit salary negotiations, increases to Public Safety spending for dispatch/animal control contract increases and grant matches.

General Fund budgeted revenues are projected to increase 16%, (from $7,913,975 to $9,421,499) with increases in Sales and Use Tax, Property Tax.

CONTACTING CITY MANAGEMENT
This annual financial report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the Administrative Services Department, at 66 North Lassen Street, Susanville, California 96130.
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BASIC FINANCIAL STATEMENTS
22 101
City of Susanville
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments 9,259,823 $ 10,193,985 $ 19,453,808 $ Restricted Cash and Investments - 224,034 224,034
Accounts Receivable 3,635,669 686,913 4,322,582
Interest Receivable 64,779 80,412 145,191
Prepaid Items 147,888 16,801 164,689
Prepaid Bond Insurance - 84,482 84,482
Internal Balances (2,026,811) 2,026,811 -
Inventory 44,765 91,047 135,812
Due From Other Governments - - -
Leases Receivable 172,071 - 172,071
Loans Receivable 818,823 - 818,823
Capital Assets, Not Depreciated 3,743,500 4,023,604 7,767,104 Capital Assets, Depreciated, Net 8,547,054 27,287,797 35,834,851 Total Assets 24,407,561 44,715,886 69,123,447

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding - 1,577,206 1,577,206
Deferred Outflows Related to Pensions 7,455,123 1,991,231 9,446,354 Total Deferred Outflows of Resources 7,455,123 3,568,437 11,023,560

LIABILITIES
Accounts Payable 387,883 108,450 496,333
Accrued Liabilities 203,567 5,500 209,067
Interest Payable 103,212 91,228 194,440
Deposits Payable 27,215 224,034 251,249
Unearned Revenue - 28,346 28,346
Long-Term Liabilities:

Due Within One Year 674,412 1,242,122 1,916,534
Due in More Than One Year 14,356,329 29,734,419 44,090,748 Total Liabilities 15,752,618 31,434,099 47,186,717

DEFERRED INFLOWS OF RESOURCES
Lease Related 172,071 - 172,071
Deferred Inflows Related to Pensions 7,109,476 2,015,514 9,124,990 Total Deferred Inflows of Resources 7,281,547 2,015,514 9,297,061

NET POSITION
Net Investment in Capital Assets 11,017,453 5,636,796 16,654,249 Restricted for:

Public Safety 252,383 - 252,383
Parks & Recreation 156,186 - 156,186
Housing and Economic Development 725,837 - 725,837
HOME Program 779,845 - 779,845
Traffic Safety 46,235 - 46,235
Traffic Signals 86,694 - 86,694
Streets and Roads 941,582 - 941,582
Unrestricted (5,177,696) 9,197,914 4,020,218
Total Net Position $ 8,828,519 $ 14,834,710 $ 23,663,229 The accompanying notes are an integral part of this statement. 23 102
City of Susanville
Statement of Activities
Year Ended June 30, 2023
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Governmental Activities:

General Government 2,331,966 $ 530,620 $ 1,795,356 $ - $ Public Safety 7,199,915 259,801 322,958 2,303
Streets 1,521,435 - - 2,912,122
Protective Inspections - - - -
Community Services 1,198,098 285,246 - -
Community Development 247,754 168,445 202,197 -
Interest Expense & Issuance Costs 409,156 - - -
Total Governmental Activities 12,908,324 1,244,112 2,320,511 2,914,425 Business-type Activities:

Water 2,896,297 2,905,783 - -
Natural Gas 4,820,031 5,103,217 - -
Airport 278,439 134,614 - -
Golf Course 453,728 496,902 - -
Geothermal 116,011 91,217 - -
Total Business-type Activities 8,564,506 8,731,733 - -
Total Primary Government 21,472,830 $ 9,975,845 $ 2,320,511 $ 2,914,425 $ General Revenues:

Taxes:

Property
Sales and Use
Transient Occupancy Taxes
Business License Taxes
Franchise
Other Taxes
Investment Income
Miscellaneous Income
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year, Restated
Net Position - End of Year
Functions/Programs
Program Revenues
The accompanying notes are an integral part of this statement. 24 103
Governmental Business-type
Activities Activities Total
$ (5,990) $ - $ (5,990)
(6,614,853) (6,614,853) -
1,390,687 1,390,687 -
- - 0
(912,852) (912,852) -
122,888 - 122,888
(409,156) (409,156) -
(6,429,276) (6,429,276) -
- 9,486 9,486
- 283,186 283,186
(143,825) - (143,825)
- 43,174 43,174
- (24,794) (24,794)
- 167,227 167,227
(6,429,276) 167,227 (6,262,049)
2,770,762 2,770,762 -
3,833,632 3,833,632 -
594,682 - 594,682
359,427 - 359,427
11,001 - 11,001
19,628 - 19,628
193,180 187,742 380,922
50,000 - 50,000
- - -
7,832,312 187,742 8,020,054
1,403,036 354,969 1,758,005
7,425,483 14,479,741 21,905,224
$ 8,828,519 $ 14,834,710 $ 23,663,229
Net (Expense) Revenue and Changes in Net Position
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City of Susanville
Balance Sheet
Governmental Funds
June 30, 2023
Gas Tax ARPA Non-major
General Special Special Governmental
Fund Revenue Fund Revenue Fund Funds Total
ASSETS
Cash and Investments 5,995,995 $ - $ - $ 2, $ 8, 505,023 $ 501,018 Accounts Receivable 1,265,328 2,183,291 - 180,049 3,628,668 Interest Receivable 37,395 - - 19,312 56,707
Prepaid Expenditures 133,793 2,962 - - 136,755
Inventory 44,765 - - - 44,765
Due From Other Funds 2,136,789 - - - 2, 136,789
Leases Receivable 172,071 - - - 172,071
Loans Receivable 52,136 - - 766,687 818,823
Total Assets 9,838,272 $ 2, $ - 186,253 $ 3, $ 15, 471,071 $ 495,596

LIABILITIES
Accounts Payable 204,847 $ 73,861 $ - $ 75,466 $ $ 354,174 Accrued Liabilities 198,917 - - - 198,917
Deposits 20,247 6,968 - - 27,215
Due to Other Funds - 2, - 125,068 11,721 2, 136,789
Advances from Other Funds 1,821,414 - 157,826 - 1,979,240 Total Liabilities 2,245,425 2,363,723 - 87,187 4,696,335

DEFERRED INFLOWS OF RESOURCES
Lease Related 172,071 - - - 172,071
Unavailable Revenues - Grants 979 39,009 - 67,154 107,142 Total Deferred Inflows of Resources 173,050 39,009 - 67,154 279,213

FUND BALANCES
Nonspendable 230,694 - - - 230,694
Restricted 19,555 - 3, - 263,232 3,282,787
Assigned 267,302 - - 66,859 334,161
Unassigned 6,902,246 (216,479) (13, - 361) 6,672,406
Total Fund Balances 7,419,797 (216,479) 3, - 316,730 10,520,048 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 9,838,272 $ $ 2,186,253 $ 3, - $ 471,071 $ 15,495,596 The accompanying notes are an integral part of this statement. 26 105
City of Susanville
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Fund Balances for Governmental Funds $ 10,520,048
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 funds.

Capital Assets 21,605,858
Accumulated Depreciation (9,315,304)
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position. Balances at June 30, 2023:

Compensated Absences (378,553)
Net Pension Liability (5,421,952)
Lease Financing (City Hall Project) (565,101)
Community Swimming Pool Loan (708,000)
Series 2022A & B Lease Agreement (7,925,138)
Interest Payable on Long-term Debt (103,212)
Amounts for deferred outflows and deferred inflows related to the City's Net Pension Liabililty are not reported in the funds:

Deferred Outflows Related to Pensions 7,455,123
Deferred Inflows Related to Pensions (7,109,476)
Other long-term receivables are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. 107,142 The internal service funds are used by management to charge the costs of operations to individual funds. The assets and liabilities of the internal service funds are included in Governmental Activities in the Statement of Net Position. 667,084
Net Position of Governmental Activities $ 8,828,519
The accompanying notes are an integral part of this statement. 27 106
City of Susanville
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
Gas Tax ARPA Non-major
General Special Special Governmental
Fund Revenue Fund Revenue Fund Funds Total

REVENUES
Taxes and Assessments 7,572,621 $ - $ - $ - $ 7,572,621 $ Licenses and Permits 152,029 - - - 152,029
Fines and Forfeitures 29,106 - - 4,273 33,379
Investment Earnings 64,130 782 - 128,260 193,172
Intergovernmental 1,987,421 2,754,036 - 734,715 5,476,172 Charges for Services 516,548 72,316 - 2,500 591,364
Other - - - 50,000 50,000
Legal Settlement 516,583 - - - 516,583
Total Revenues 10,838,438 2,827,134 - 919,748 14,585,320

EXPENDITURES
Current:

General Government 462,940 - - - 462,940
Public Safety 4,908,434 - - 180,073 5,088,507
Streets - 912,778 - 195,289 1,108,067
Community Services 1,116,583 - - 295 1,116,878
Community Development - - - 247,754 247,754
Capital Outlay 89,834 2,253,969 - 189,988 2,533,791
Debt Service:

Principal 332,170 13,151 - 198,722 544,043
Interest and Fiscal Charges 254,852 13,785 - 53,509 322,146 Total Expenditures 7,164,813 3,193,683 - 1,065,630 11,424,126 Excess of Revenues Over (Under)
Expenditures 3,673,625 (366,549) - (145,882) 3,161,194

OTHER FINANCING SOURCES (USES)
Transfers In 1,029,635 162,000 - 435,080 1,626,715
Transfers Out (295,080) - (1,029,635) (302,000) (1,626,715) Total Other Financing Sources (Uses) 734,555 162,000 (1,029,635) 133,080 - Net Change in Fund Balances 4,408,180 (204,549) (1,029,635) (12,802) 3,161,194 Fund Balances, Beginning of Year 3,011,617 188,289 1,029,635 3,329,532 7,559,073 Prior Period Adjustments (200,219) - - (200,219) -
Fund Balances, End of Year $ 7,419,797 $ (216,479) $ 3,316,730 - $ $ 10,520,048 The accompanying notes are an integral part of this statement. 28 107
City of Susanville
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds $ 3,161,194 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 the estimated useful lives as depreciation expense.

Capital Expenditures 2,634,893
Depreciation Expense (824,101)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. The following represent differences in the treatment of long-term debt and related items:

Principal payment on Lease Financing 112,669
Principal payment on Community Swimming Pool Loan 77,000 Principal payment on Series 2022A and B Lease Agreement 354,374 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, as follows:

Compensated Absences (75,113)
Net Pension Liability 1,257,583
Accrued Interest Payable (87,010)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds. This is the net change in these deferred outflows and inflows:

Deferred Outflows Related to Pensions (3,175,950)
Deferred Inflows Related to Pensions (1,853,497)
Some revenues reported in the Statement of Activities are not considered to be available to finance current expenditures and, therefore, are not reported as revenues in the governmental funds. (273,962)
The change in net position of the internal service funds is reported with governmental activities. 94,956
Change in Net Position of Governmental Activities $ 1,403,036 The accompanying notes are an integral part of this statement. 29 108
City of Susanville
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Internal Service
Water Natural Gas Airport Nonmajor Totals Funds
ASSETS
Current Assets:

Cash and Investments 4,108,155 $ 5,759,258 $ 27,987 $ 298,585 $ 10,193,985 $ 758,805 $ Accounts Receivable 303,174 281,630 6,603 95,506 686,913 7,001 Interest Receivable 36,513 42,484 528 887 80,412 8,072
Prepaid Expenses 5,524 10,704 35 538 16,801 11,133
Inventory 16,901 70,885 - 3,261 91,047 -
Total Current Assets 4,470,267 6,164,961 35,153 398,777 11,069,158 785,011 Noncurrent Assets:

Restricted Cash and Investments 47,884 176,150 - - 224,034 - Advances to Other Funds - 2,306,697 - - 2,306,697 -
Prepaid Bond Insurance - 84,482 - - 84,482 -
Capital Assets:

Non-depreciable 1,563,184 - 43,189 2,417,231 4,023,604 - Depreciable, net 8,373,169 15,972,921 2,694,704 247,003 27,287,797 - Total Capital Assets 9,936,353 15,972,921 2,737,893 2,664,234 31,311,401 - Total Noncurrent Assets 9,984,237 18,540,250 2,737,893 2,664,234 33,926,614 - Total Assets 14,454,504 24,705,211 2,773,046 3,063,011 44,995,772 785,011

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refundings 639,198 938,008 - 1,577,206 - - Pension Actuarial Amounts 982,529 1,008,702 - 1,991,231 - - Total Deferred Outflows of Resources 1,621,727 1,946,710 - 3,568,437 - -

LIABILITIES
Current Liabilities:

Accounts Payable 34,420 30,177 14,294 29,559 108,450 33,709 Accrued Liabilities 5,500 - - - 5,500 4,650
Interest Payable 25,900 65,328 - - 91,228 -
Deposits Payable 47,884 176,150 - 224,034 - -
Unearned Revenue - - - 28,346 28,346 -
Current Portion of Compensated Absences 3,018 7,709 - - 10,727 6,257 Current Portion of Long-term Debt 527,898 703,497 - 1,231,395 - - Total Current Liabilities 644,620 982,861 14,294 57,905 1,699,680 44,616 Noncurrent Liabilities:

Advances from Other Funds 279,886 - - 279,886 - 47,571
Compensated Absences 2,594 35,738 - - 38,332 25,740
Net Pension Liability 710,540 729,468 - 1,440,008 - -
Notes Payable 870,859 - - - 870,859 -
Bonds Payable 6,323,986 21,061,234 - - 27,385,220 -
Total Noncurrent Liabilities 8,187,865 21,826,440 - - 30,014,305 73,311 Total Liabilities 8,832,485 22,809,301 14,294 57,905 31,713,985 117,927

DEFERRED INFLOWS OF RESOURCES
Pension Actuarial Amounts 994,511 1,021,003 - - 2,015,514 - Total Deferred Inflows of Resources 994,511 1,021,003 - - 2,015,514 -

NET POSITION
Net Investment In Capital Assets 3,957,397 (3,722,728) 2,737,893 2,664,234 5,636,796 - Unrestricted 2,291,838 6,544,345 20,859 340,872 9,197,914 667,084 Total Net Position 6,249,235 $ 2,821,617 $ 2,758,752 $ 3,005,106 $ 14,834,710 $ 667,084 $ Enterprise Funds
Business-type Activities
The accompanying notes are an integral part of this statement. 30 109
City of Susanville
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities
Internal Service
Water Natural Gas Airport Nonmajor Totals Funds

OPERATING REVENUES
Sales and Charges for Services 2,905,783 $ 5,103,217 $ 134,614 $ 477,023 $ 8,620,637 $ 2,183,006 $ Total Operating Revenues 2,905,783 5,103,217 134,614 477,023 8,620,637 2,183,006

OPERATING EXPENSES
Purchases of Natural Gas - 1,569,971 - - 1,569,971 -
Administration 2,175,198 2,085,120 120,119 553,576 4,934,013 1,412,358 Insurance Costs and Claims - - - - - 686,582
Depreciation and Amortization 410,085 441,071 158,225 16,130 1,025,511 - Total Operating Expenses 2,585,283 4,096,162 278,344 569,706 7,529,495 2,098,940 Operating Income (Loss) 320,500 1,007,055 (143,730) (92,683) 1,091,142 84,066

NONOPERATING REVENUES (EXPENSES)
Interest Income 58,728 123,036 1,418 4,560 187,742 10,890 Interest Expense (311,014) (723,869) (95) (33) (1,035,011) - Other Revenues - - - 111,096 111,096 -
Total Nonoperating Revenues (Expenses) (252,286) (600,833) 1,323 115,623 (736,173) 10,890 Income Before Capital Contributions
and Transfers 68,214 406,222 (142,407) 22,940 354,969 94,956 Capital Contributions - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Change in Net Position 68,214 406,222 (142,407) 22,940 354,969 94,956 Net Position, Beginning of Year 6,181,021 2,415,395 2,901,159 2,982,166 14,479,741 572,128 Net Position, End of Year 6,249,235 $ 2,821,617 $ 2,758,752 $ 3,005,106 $ 14,834,710 $ 667,084 $ Business-type Activities
Enterprise Funds
The accompanying notes are an integral part of this statement. 31 110
City of Susanville
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities
Internal Service
Water Natural Gas Airport Nonmajor Totals Funds
Cash Flows from Operating Activities
Receipts from Customers and Users 3,031,280 $ 5,174,321 $ $ 197,996 $ 472,559 $ 8,876,156 $ 2,246,075 Payments to Suppliers and Contractors (1,427,303) (2,841,216) (150,781) (441,973) (4,861,273) (1,261,914) Payments to Employees (409,945) (483,343) (26,721) (110,873) (1,030,882) (965,896) Net Cash Flows from Operating Activities 1,194,032 1,849,762 20,494 (80,287) 2,984,001 18,265 Cash Flows from Noncapital Financing Activities
Transfers from (To) Other Funds - - - - - -
Payments on Long-term Debt (42,640) (43,685) - - (86,325) - Payments Received from (Paid to) Other Funds (20,377) 167,952 - - 147,575 (3,471) Net Cash Flows from Noncapital Financing Activities (63,017) 124,267 - 61,250 - (3,471) Cash Flows from Capital Financing Activites
Acquisition of Capital Assets (625,094) (151,385) (854,294) (20,989) (1,651,762) - Capital Grants 465,102 - 746,324 1, - 211,426 -
Interest Paid (253,033) (767,022) (95) (1, (33) 020,183) - Proceeds from Insurance Reimbursement - - 21,341 - 21,341 Payments on Long-term Debt (462,918) (545,000) - (1, - 007,918) - Net Cash Flows from Capital Financing Activities (875,943) (1,463,407) (108,065) (2, 319 447,096) - Cash Flows from Investing Activities
Interest Received 29,691 90,236 1,087 4,329 125,343 4,595 Net Increase (Decrease) in Cash and Cash Equivalents 284,763 600,858 (86,484) (75,639) 723,498 19,389 Cash and Cash Equivalents - Beginning of Year 3,871,276 5,334,550 114,471 374,224 9,694,521 739,416 Cash and Cash Equivalents - End of Year $ 4,156,039 $ 5,935,408 $ 27,987 $ 298,585 $ 10,418,019 $ 758,805 Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:

Operating Income (Loss) $ 320,500 $ 1,007,055 $ (143,730) $ (92,683) $ 1,091,142 $ 84,066 Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:

Depreciation 410,085 441,071 158,225 16,130 1,025,511 - Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 130,157 75,190 63,382 1,790 270,519 63,069 (Increase) Decrease in Prepaids (4,487) (6,540) (8) (447) (11,482) 3,134 (Increase) Decrease in Inventory (253) (21,430) - (728) (22,411) - (Increase) Decrease in Deferred Outflows - Pensions 301,051 309,070 - - - 610,121 Increase (Decrease) in Accounts Payable ( (22,509) ( 37,993) 1,905 57,328) ( 982 115,925) Increase (Decrease) in Accrued Liabilities (3,012) (47) - - (3,059) (133,726) Increase (Decrease) in Deposits Payable (4,660) (4,086) - - (8,746) Increase (Decrease) in Unearned Revenue - - - (6,254) (6,254) Increase (Decrease) in Compenstated Absences (6,962) 11,328 - - 4,366 740 Increase (Decrease) in Net Pension Liability (123,060) (126,338) - - (249,398) - Increase (Decrease) in Deferred Inflows - Pensions 197,182 202,435- - 399,617 - Net Cash Provided by Operating Activities $ 1,194,032 $ 1,849,762 $ 20,494 $ (80,287) $ 2,984,001 $ 18,265 Noncash Capital and Related Financing Activities
Amortization Related to Long-term Debt $ 49,177 $ 42,637 $ - $ - $ 91,814 $ - Business-type Activities
Enterprise Funds
The accompanying notes are an integral part of this statement. 32 111
City of Susanville
Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
Custodial Funds
ASSETS
Cash and Investments 276,250 $
Accounts Receivable 79,640
Interest Receivable 392
Total Assets 356,282

LIABILITIES
Accounts Payable 60,623
Due to City of Susanville -
Total Liabilities 60,623

NET POSITION
Restricted
Held for the Benefit of Others 295,659
Total Net Position 295,659 $
The accompanying notes are an integral part of this statement. 33 112
City of Susanville
Statement of Changes in Fiduciary Net Position
Custodial Funds
Year Ended June 30, 2023
Custodial Funds

ADDITIONS
Contributions:

Donations and Other Charges 1,293,665 $
Investment Earnings:

Interest Income 10,018
Total Additions 1,303,683

DEDUCTIONS
General and Administrative 1,650,501
Total Deductions 1,650,501
Net Increase (Decrease) in Net Position (346,818)
Net Position, Beginning of Year (Restated) 642,477
Net Position, End of Year $ 295,659
The accompanying notes are an integral part of this statement. 34 113
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Susanville, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Susanville was incorporated in 1900, under the laws of the State of California.

The accompanying basic financial statements present the financial activities of the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City’s operations and data from these units are combined with data of the City. The City has no discretely presented component units. The blended component units have a June 30 year end. The following entity is reported as blended component unit:

The City of Susanville Public Financing Authority (Authority) was established solely to assist the City in the issuance of certain revenue bonds. It is controlled by and financially dependent on the City; its financial activities are accounted for in respective enterprise funds.

B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information about the reporting government as a whole, except for its fiduciary activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government (including its blended component units) is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units.

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

The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Certain eliminations have been made regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.

Separate financial statements for the City's governmental and proprietary funds are presented after the Government-wide Financial Statements. These statements display information about major funds individually and other governmental funds in the aggregate for governmental and enterprise funds. 35 114
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the economic resources measurement focus, all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements have been satisfied.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources". Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. However, special reporting treatments are used to indicate that they should not be considered "available spendable resources" since they do not represent net current assets. Recognition of governmental fund type revenue represented by noncurrent receivables is deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by nonspendable fund balance accounts.

Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on general long-term liabilities, claims and judgments, and compensated absences that are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds.

Proceeds of general long-term liabilities are reported as other financing sources.

Property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, franchise taxes, etc.), grant revenues and earnings on investments are all considered to be susceptible to accrual, and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are charges between the government’s proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
36 115
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Fund Classifications
The City reports the following funds as major governmental funds:

General Fund - this is the City's primary operating fund and accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Gas Tax Special Revenue Fund - accounts for the receipt and expenditure of gas tax revenues received from the State of California.

ARPA Special Revenue Fund – accounts for the funds received from the State of California for Coronavirus Relief Funds (CRF) provided in the Federal ARPA Act.

The City reports the following major proprietary funds:

Water Fund - accounts for the activities of providing water to the residents of the City.

Natural Gas Fund - accounts for the activities of providing natural gas to the residents of the City.

Airport Fund – accounts for the activities of the City’s airport.

Additionally, the City reports the following fund types:

Internal Service Funds are used to account for the financing of goods and services provided by one City department to other departments on a cost-reimbursement basis. The City uses internal service funds to account for Public Works administration, risk administration, and retirement benefits.

Fiduciary Funds - The City reports Custodial Funds in the Statement of Fiduciary Net Position. Custodial Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governmental units. The City maintains three Custodial Funds: LAFCO, Air Pollution District and IRWMG. Custodial funds are accounted for using the accrual basis of accounting and economic resources measurement focus.

D. Cash, Cash Equivalents, and Investments
In order to maximize investment return, the City pools its available cash for investment purposes. The cash management pool is used essentially as a demand deposit account by the participating funds. The City has defined cash and cash equivalents, for purposes of the statement of cash flows, as all deposits and investments purchased with a maturity date of 90 days or less. Investments are stated at fair value (the value at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale).

E. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. Restricted cash and investments are also reported for customer deposits in the enterprise funds, as applicable.

F. Compensated Absences
In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued compensatory and vacation time in relevant funds. All vacation is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is established for the current employees at the current rates of pay. If compensatory and vacation time are not used by the employee during the term of employment, compensation is payable to the employee at the time of retirement. Such compensation is calculated 37 116
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued at the employee's prevailing rate at the time of retirement or termination. The General Fund is primarily responsible for the repayment of the governmental activities portion of compensated absences.

G. Property Taxes
California Constitution Article XIII A, limits the combined property tax rate to one percent of a property's assessed valuation Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs.

The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions. Property tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixty days of fiscal year end.

The following are significant dates relating to the City’s property taxes:

H) Inventories
Inventories of the enterprise funds, consisting primarily of materials and supplies, are stated at cost determined by the first-in, first-out method. Inventories of the governmental funds are recorded as expenditures when purchased.

I. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, traffic lights and signals, street lights, and similar items), are reported in the applicable government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 ($100,000 for infrastructure) or more and an estimated useful life in excess of one year. Such capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets received prior to the implementation of GASB 72 were recorded at fair value on the date of donation. Donated capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received. The cost of normal maintenance and repairs that do not add to the value of the capital asset or materially extend capital asset lives are not capitalized.

Land and Construction in Progress are not depreciated. Other capital assets of the City are depreciated using the straight-line method over the following estimated useful lives:

J. Unavailable and unearned revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. In the governmental fund financial statements, unavailable revenue is recorded when transactions have not met the revenue recognition Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates November 1 and February 1 August 1
Delinquency dates December 10 and April 10 August 31
Capital Assets Years
Buildings 20 - 40
Machinery and Equipment 2 - 15
Infrastructure 30 - 50
Other Improvements 10 - 45
38 117
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued criteria based on the modified accrual basis of accounting. The City records unavailable and unearned revenues for transactions for which revenues have not been earned, or for which funds are not available to meet current financial obligations. Typical transactions for which unearned and unavailable revenues are recorded are grants received but not yet earned or available.

K. Claims and Judgments
When it is probable that a claim liability has been incurred at year-end, and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program.

The short-term and long-term workers’ compensation and general liability claims payable are reported in an Internal Service Fund.

L. Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America, as prescribed by the GASB and American Institute of Certified Public Accountants (AICPA), requires management to make assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates.

M. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.

N. Fund Balance Flow Assumptions
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied.

It is the government’s policy to consider restricted fund balance to have been 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.

O. Fund Balance Policies
Non-spendable Fund Balances
These include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact; e.g., the principal of an endowment fund. Examples of “not in spendable form” include inventory, prepaid amounts, property held for resale and other items not expected to be converted to cash. However, if the proceeds from the eventual sale or liquidation of the items would be considered restricted, committed or assigned (as defined further on) then these amounts would be classified as restricted, committed or assigned rather than non-spendable. A debt service reserve fund held by a trustee is an example of fund balance in non-spendable form that is classified as restricted instead of non-spendable since the reserve is eventually liquidated to make the final debt service principal payment. 39 118
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Restricted Fund Balances
Restricted fund balances have externally enforceable limitations on use. The limitations on use can be imposed by creditors, grantors, or contributors as well as by constitutional provisions, City charter, enabling legislation, laws and government regulations.

Committed Fund Balances
Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (Ordinance) of the City Council are classified as committed fund balances.

Assigned Fund Balances
Fund balance amounts for which the City Council has expressed intent for use but not taken formal action to commit are reported as assigned under GASB 54.

Unassigned Fund Balance
The residual classification for the General Fund is unassigned fund balance. The General Fund is the only fund that may report a positive unassigned fund balance. Negative fund balance reported in Special Revenue Funds is classified as unassigned fund balance.

P. 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 represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows related to pensions and for a deferred loss on a debt refunding.

In addition to liabilities, the statement of financial position and balance sheet for the governmental funds 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(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has certain items, which arise only under the modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the City reports deferred inflows as a result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, which qualify for reporting in this category.

Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Susanville’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. 40 119
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued R. Leases
Lessor: The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially the same amount as the beginning lease receivable.

The deferred inflow of resources is reduced as revenue on a straight-line basis over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

The City has entered into a lease with a tenant to allow the utilization of a cellular tower on City property. The lease term continues until 2043. Annual lease payments of $12,600 are to be made. At June 30, 2023 the balances of the lease receivable and deferred inflow of resources were $172,071.

2. CASH AND INVESTMENTS
A. Summary of Cash and Investments
Cash and investments are reported within the basic financial statements as follows:

Cash and investments as of June 30, 2023, consist of the following:

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments $ 9,259,823 $ 10,193,985 $ 276,250 $ 19,730,058 Restricted Cash and Investments 224,034 - 224,034 -
Total Cash and Investments $ 9,259,823 $ 10,418,019 $ 276,250 $ 19,954,092 Government-wide
Statement of Net Position
Cash on Hand $ 1,650
Deposits with Financial Institutions 741,023
Local Agency Investment Fund 19,211,419
Total Cash and Investments $ 19,954,092
41 120
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

2. CASH AND INVESTMENTS – Continued
B. Deposits
The carrying amount of the City’s deposits was $741,023 at June 30, 2023. Bank balances before reconciling items amounted to $1,107,023 at June 30, 2023. The City has not waived the collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. Amounts are collateralized with securities held by the pledging financial institution in the City’s name.

The California Government Code (Code) requires California banks and savings and loan associations to secure the City’s deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City’s deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

C. Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City of Susanville by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary, to provide the cash flows and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Maximum Maximum
Maximum Percentage/Amount Investment in
Authorized Investment Type Maturity of Portfolio One Issuer Local Agency Investment Fund (LAIF) N/A $50 million $50 million U.S. Treasury Obligations 5 years None None
U.S. Government Agency Issues 5 years None None
Bankers' Acceptances 6 months 30% None
Commercial Paper 6 months 15% None
Negotiable Certificates of Deposits 6 months 30% None
Non-negotiable Certificates of Deposits 1 year 20% None Federally Insured Time Deposits 1 year 20% None
42 121
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

2. CASH AND INVESTMENTS – Continued
E. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City’s investments (including investments held by bond trustees) do not include any investments that are highly sensitive to interest rate fluctuations.

F. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

G. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer. The City has no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments by reporting unit (primary government, governmental activities, business type activities, fiduciary funds, major funds, non-major funds in the aggregate).

H. Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.

I. External Investment Pools
The California Local Agency Investment Fund (LAIF) is a special fund of the California State Treasury through which local governments may pool investments. The City may invest up to $75,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. All investments with the LAIF are secured by the full faith and credit of the state of California. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations.

12 Months 13 to 36 37 to 60 More than
Investment Type Total Or Less Months Months 60 Months
LAIF 19,211,419 $ 19,211,419 $ - $ - $ - $
$ 19,211,419 19,211,419 $ - $ - $ - $
Remaining Maturity (in Months)
Minimum Exempt from
Investment Type Total Legal Rating Rating
LAIF 19,211,419 $ N/A 19,211,419 $
Total Pooled Investments 19,211,419 $ 19,211,419 $
43 122
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

2. CASH AND INVESTMENTS – Continued
The LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee, comprised of California State officials and various participants, provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's Office. The City is a voluntary participant in the investment pool. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

J. Investment Valuation
Investments (except for money market accounts, time deposits, and commercial paper) are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

None of the City’s investments as of June 30, 2023 are subject to the fair value hierarchy measurements (LAIF only).

3. LOANS RECEIVABLE
As of June 30, 2023, total Loans Receivable of $818,823 consisted of the following:

EDBG Business Assistance Program: The Economic Development Block Grant (EDBG) business assistance loan program provides loans for small businesses. These loans are reported in the City’s General Fund, with outstanding balances of $52,136 as of June 30, 2023.

State Revolving Loan Program: This program provides loans to eligible low-income qualifying residents. Loans include first-time homebuyer loans and loans for housing rehabilitation. Loan repayment funds are restricted for the program. Each loan is secured by a lien against the borrower’s property and repayment is deferred until the resident moves out of the property, sells the property, or otherwise violates the loan provisions. These loans are reported in nonmajor governmental funds, with outstanding balances of $608,687 as of June 30, 2023.

HOME Revolving Loan Program: This program provides housing rehabilitation loans to eligible low-income qualifying residents. Funding is provided through the State of California HOME program and loan repayment funds are restricted for the program. Each loan is secured by a lien against the borrower’s property and repayment is deferred until the resident moves out of the property, sells the property, or otherwise violates the loan provisions.

These loans are reported in nonmajor governmental funds, with balances of $158,000 owed as of June 30, 2023.

4. CAPITAL ASSETS
The following represents capital asset activity for the fiscal year ended June 30, 2023:

44 123
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

4. CAPITAL ASSETS – Continued
Beginning Ending
Governmental Activities: Balance Increases Decreases Balance Capital Assets, Not Depreciated:

Land $ 3,585,211 $ - $ 3,585,211 - $
Construction in Progress 158,289 - 158,289 -
Total Capital Assets Not Depreciated 3,743,500 - 3,743,500 - Capital Assets, Being Depreciated:

Infrastructure 6,379,407 2,253,971 8,633,378 -
Buildings 1,092,436 - 1,092,436 -
Machinery and Equipment 4,644,418 312,724 4,957,142 -
Other Improvements 3,111,204 68,198 3,179,402 -
Total Capital Assets Being Depreciated 15,227,465 2,634,893 17,862,358 - Less Accumulated Depreciation:

Infrastructure (1,843,863) (435,326) (2,279,189) -
Buildings (1,071,540) (5,364) (1,076,904) -
Machinery and Equipment (3,061,520) (305,954) (3,367,474) - Other Improvements (2,514,280) (77,457) (2,591,737) -
Total Accumulated Depreciation (8,491,203) (824,101) (9,315,304) - Net Capital Assets Being Depreciated 6,736,262 1,810,792 8,547,054 - Total Capital Assets $ 10,479,762 $ 1,810,792 $ 12,290,554 - $ Beginning Ending
Business-type Activities: Balance Increases Decreases Balance Capital Assets, Not Depreciated:

Land 4,023,604 $ - $ - $ 4,023,604 $
Construction in Progress 1,371,190 - 1,371,190 -
Total Capital Assets Not Depreciated 5,394,794 - 1,371,190 4,023,604 Capital Assets, Being Depreciated:

Infrastructure 29,330,488 77,162 - 29,407,650
Buildings 862,483 - - 862,483
Machinery and Equipment 5,400,744 147,882 - 5,548,626
Other Improvements 11,575,799 1,975,025 - 13,550,824
Total Capital Assets Being Depreciated 47,169,514 2,200,069 - 49,369,583 Less Accumulated Depreciation:

Infrastructure (8,450,479) (537,612) - (8,988,091)
Buildings (580,760) (22,158) - (602,918)
Machinery and Equipment (4,885,193) (90,040) - (4,975,233) Other Improvements (7,139,843) (375,701) - (7,515,544)
Total Accumulated Depreciation (21,056,275) (1,025,511) - (22,081,786) Net Capital Assets Being Depreciated 26,113,239 1,174,558 - 27,287,797 Total Capital Assets 31,508,033 $ 1,174,558 $ 1,371,190 $ 31,311,401 $ 45 124
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

4. CAPITAL ASSETS – Continued
Depreciation expense was allocated to the various functions as follows:

5. LONG-TERM DEBT ACTIVITY AND BALANCES
For governmental activities, compensated absences and the net pension liability are generally liquidated by the General Fund.

Direct Borrowings:

Lease Financing (2012 City Hall Refunding Project)
On June 1, 2012, the City entered into a lease agreement with Compass Bank in the amount of $1,581,555, with interest and principal payable each September 1 and March 1, at an interest rate of 3.5%. The lease ends on September 1, 2027. The City has leased five properties, including improvements on those properties to Compass Bank in exchange for an advance rental payment of $1,581,555 from Compass Bank. Compass Bank has leased back the five properties, including improvements on those properties, to the City, in exchange for future monthly lease payments. The purpose of the lease financing was to defease the 2002 City Hall Revenue Bonds. If an event of default occurs, the Bank at its option may terminate this lease agreement and re-lease all or any portion of the leased property.

Future debt service requirements are as follows:

Govnernmental Activities
General Government 2,937 $
Public Safety 225,476
Streets 514,468
Community Services 81,220
Total Depreciation Expense 824,101 $
Business-type Activities
Water 410,085 $
Natural Gas 441,071
Airport 149,876
Golf Course 13,994
Geothermal 2,136
Total Depreciation Expense 1,017,162 $
Beginning Ending Due in
Governmental Activities Balance Additions Retirements Balance One Year Compensated Absences $ 334,697 $ 173,251 $ (97,398) $ 410,550 $ 123,715 Net Pension Liability 6,679,535 (1,257,583) - 5,421,952 - Direct Borrowings:

Lease Financing (City Hall Project) 677,770 (112,669) - 565,101 117,638 Community Swimming Pool Loan 785,000 - (77,000) 708,000 80,000 Series 2022A & B Lease Agreement 8,279,512 (354,374) - 7,925,138 353,059 Total Government Activities $ 16,756,514 $ 173,251 $ (1,899,024) $ 15,030,741 $ 674,412 46 125
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

5. LONG-TERM DEBT ACTIVITY AND BALANCES – Continued
Community Swimming Pool Loan
On September 1, 2015, the City entered into a loan agreement with Umpqua Bank in the amount of $1,200,000, with interest and principal payable each March 31and September 30, at an interest rate of 3.17%. Final payment is due on September 1, 2030. The proceeds of the loan were used to provide financing to Honey Lake Valley Recreation Authority. The City has leased the City's police department building in exchange for an advance rental payment of $1,200,000 from Umpqua Bank. Umpqua Bank has leased back the property to the City in exchange for future monthly lease payments. Future debt service requirements are as follows:

Series 2022A and 2022B Lease Agreements
On May 1, 2022, the City entered into Series 2022A and Series 2022B lease agreements with First Foundation Bank (Bank) in the aggregate principal amounts of $9,577,000 and $1,024,500, respectively, to provide funds to pay a portion of the City’s unfunded accrued liability (UAL) with CalPERS relating to the City’s pension benefits.

Proceeds from the obligations, less costs of issuance, were immediately transferred to CalPERS to pay a portion of the UAL.

In accordance with the agreements, the City has leased certain real property to the Bank, and the Bank has leased the property back to the City, in exchange for lease payment to be made by the City, including interest at 3.5%, commencing on October 1, 2022, with the final lease payments to be made in 2042. The City’s Water and Gas enterprise funds are responsible for paying a portion of the lease payments due on the Series 2022A lease obligation, and, therefore, those funds are reporting liabilities for the lease agreement.

Future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2024 117,638 $ 18,750 $ 136,388 $
2025 120,783 14,613 135,396
2026 126,685 10,403 137,088
2027 133,386 5,864 139,250
2028 66,609 1,184 67,793
Totals $ 565,101 $ 50,814 $ 615,915
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 80,000 $ 21,176 $ 101,176
2025 82,000 18,608 100,608
2026 85,000 15,961 100,961
2027 87,000 13,235 100,235
2028 89,000 10,445 99,445
2029 92,000 7,576 99,576
2030 95,000 4,612 99,612
2031 98,000 1,553 99,553
Totals $ 708,000 $ 93,166 $ 801,166
47 126
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

5. LONG-TERM DEBT ACTIVITY AND BALANCES – Continued
2019 Natural Gas Revenue Refunding Bonds
The City issued $20,470,000 in Series 2019 Natural Gas Revenue Refunding Bonds, to refund the 2010 Refunding Revenue Bonds, Series B. Proceeds from the 2019 Bonds were placed in escrow to refund in full the 2010 Refunding Revenue Bonds, Series B, to purchase a municipal bond insurance policy, purchase a debt reserve insurance policy, and pay issuance costs. As a result, the 2010 Series B Bonds are considered defeased and the liability has been removed from these financial statements. The 2010 Series B Bonds were issued to refund the Natural Gas Certificates of Participation, which were issued to finance improvements in the City’s Natural Gas Enterprise. Interest rates range from 2% to 4.0%, with interest payments due on June 1 and December 1 of each year. Principal is due on June 1 of each year, with the final payment due in 2045.

All revenues from the City’s Natural Gas Enterprise are generally pledged to repayment of the 2019 Natural Gas Revenue Refunding Bonds. Annual revenues approximate $4.7 million per year. For the 2022-23 fiscal year, net revenues were approximately $1.9 million, while total principal and interest payments totaled approximately $1.3 million. The bond indenture contains a provision that, in an event of default, outstanding amounts may become immediately due and payable.

The liability for the 2019 Natural Gas Revenue Refunding Bonds is reported in the Natural Gas Enterprise Fund.

The Bonds are secured by revenues received from the operation of the Natural Gas Enterprise Fund. The City has covenanted to set rates and charges for the service and facilities of the Natural Gas Enterprise sufficient to provide net revenues each fiscal year equal to 125% of the aggregated annual amount of principal and interest due on all parity obligations for such fiscal year and sufficient to provide 100% of the aggregate amount of principal and interest due on all parity obligations and subordinate obligations for such fiscal year. The future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 452,039 $ 356,553 $ 808,592
2025 467,860 343,025 810,885
2026 484,235 329,024 813,259
2027 501,184 314,533 815,717
2028 518,725 299,534 818,259
2029 - 2033 2,879,003 1,253,665 4,132,668
2034 - 2038 3,148,762 791,650 3,940,412
2039 - 2042 1,708,990 242,925 1,951,915
Totals $ 10,160,798 $ 3,930,909 $ 14,091,707
Beginning Ending Due in
Business-type Actvities Balance Additions Retirements Balance One Year Compensated Absences $ 44,693 $ 14,381 $ (10,015) $ 49,059 $ 10,727 Net Pension Liability 1,689,406 (249,398) - 1,440,008 - 2019 Natural Gas Revenue Refunding Bonds 19,030,000 (545,000) - 18,485,000 560,000 Premium on Bonds 2,242,077 - (93,420) 2,148,657 93,420
2019 Water Revenue Refunding Bonds 5,992,900 (357,300) - 5,635,600 367,300 Direct Borrowings:

USDA Note Payable 718,000 - (21,000) 697,000 22,000
Note Payable (Land Purchase) 370,172 - (84,618) 285,554 89,695 Series 2022A & B Lease Agreement 2,321,988 - (86,325) 2,235,663 98,980 Total Business-type Activities $ 32,409,236 $ 14,381 $ (1,447,076) $ 30,976,541 $ 1,242,122 48 127
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

5. LONG-TERM DEBT ACTIVITY AND BALANCES – Continued
2019 Water Revenue Refunding Bonds
The City issued $6,946,300 in Series 2019 Water Revenue Refunding Bonds, to refund the 2010 Refunding Revenue Bonds, Series A. Proceeds from the 2019 Water Bonds were placed in escrow to refund the 2010 Refunding Revenue Bonds, Series A and to pay issuance costs. As a result, the 2010 Bonds are considered defeased and the liability has been removed from these financial statements. The 2010 Series A bonds were issued, in part, to finance improvements in the City’s water enterprise system. The interest rate on the bonds is

2.75% and principal and interest payments are due on the 1st of each month.

The City refunded the Series A Revenue Bonds to decrease total debt service payments by approximately $4.2 million and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $3.8 million. All revenues from the City’s Water Enterprise are generally pledged to repayment of the 2019 Water Revenue Refunding Bonds. Annual revenues approximate $3.0 million per year. For the 2022- 23 fiscal year, net revenues were approximately $1.4 million, while total principal and interest payments totaled approximately $518,000. The bond indenture contains a provision that, in an event of default, outstanding amounts may become immediately due and payable.

The liability for the 2019 Water Revenue Refunding Bonds is reported in the Water Enterprise Fund. The Bonds are secured by revenues received from the operation of the Water Enterprise Fund. The City has covenanted to set rates and charges for the service and facilities of the Water Enterprise sufficient to provide net revenues each fiscal year equal to the aggregated annual amount of principal and interest due on all parity obligations for such fiscal year and sufficient to provide 100% of the aggregate amount of principal and interest due on all parity obligations and subordinate obligations for such fiscal year. The future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2024 560,000 $ 716,000 $ 1,276,000 $
2025 575,000 699,200 1,274,200
2026 595,000 681,950 1,276,950
2027 610,000 664,100 1,274,100
2028 630,000 645,800 1,275,800
2029 - 2033 3,545,000 2,830,400 6,375,400
2034 - 2038 4,310,000 2,062,600 6,372,600
2039 - 2043 5,255,000 1,128,000 6,383,000
2044 - 2045 2,405,000 145,200 2,550,200
Totals 18,485,000 $ 9,573,250 $ 28,058,250 $
Fiscal Year Ending
June 30, Principal Interest Total
2024 367,300 $ 151,022 $ 518,322 $
2025 377,500 140,793 518,293
2026 387,900 130,281 518,181
2027 398,800 119,478 518,278
2028 409,900 108,371 518,271
2029 - 2033 2,227,100 364,145 2,591,245
2034 - 2036 1,467,100 64,041 1,531,141
Totals 5,635,600 $ 1,078,131 $ 6,713,731 $
49 128
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

5. LONG-TERM DEBT ACTIVITY AND BALANCES – Continued
Direct Borrowings - USDA Loan
The City entered into a loan agreement with the United States Department of Agriculture in 2003 to help finance a water transmission line project. The outstanding balance of $697,000 at June 30, 2023 is reported in the water enterprise fund. Interest is payable semiannually each March and September until 2043, at 4.25%. Principal is payable annually on September 23. Future debt service requirements are as follows:

Direct Borrowing - Note Payable (Land Purchase)
In October 2021, the City financed the purchase of certain property by executing and delivering to the seller at closing a payment of $150,000 and a five-year promissory note on the property in the amount of $450,000, with interest at 6% per annum. The property was acquired for the purpose of water surface storage, development and recreation to benefit the citizens of Susanville.

Principal and interest payments are due on January 30 for five years, commencing on January 30, 2022. Future debt service requirements are as follows:

6. DEFINED BENEFIT PENSION PLAN
General Information about the Defined Benefit Pension Plan Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool and a miscellaneous risk pool. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors five rate plans (two miscellaneous and three safety). 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 Fiscal Year Ending
June 30, Principal Interest Total
2024 22,000 $ 29,155 $ 51,155 $
2025 23,000 28,199 51,199
2026 24,000 27,200 51,200
2027 25,000 26,159 51,159
2028 26,000 25,075 51,075
2029 - 2033 147,000 107,547 254,547
2034 - 2038 181,000 72,780 253,780
2039 - 2043 225,000 29,856 254,856
2044 24,000 510 24,510
Totals $ 697,000 $ 346,481 $ 1,043,481
Fiscal Year Ending
June 30, Principal Interest Total
2024 89,695 $ 17,133 $ 106,828 $
2025 95,077 11,752 106,829
2026 100,782 6,047 106,829
Totals 285,554 $ 34,932 $ 320,486 $
50 129
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

6. DEFINED BENEFIT PENSION PLAN - Continued
information that can be found on the CalPERS website.

Benefits Provided – The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2021 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2021 actuarial valuation report. This report is a publicly available valuation report that can be obtained at the CalPERS’ website under Forms and Publications. The rate plan provisions and benefits in effect at June 30, 2023, are summarized as follows:

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

Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $1,193,256 in fiscal year 2023. The City’s contributions to the Plan for the year ended June 30, 2023 were $849,564.

Miscellaneous
Miscellaneous PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3.0% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 55 to 60 62
Monthly benefits, as a % of eligible compensation 2% to 3% 2% Required employee contribution rates 8% 6.75%
Required employer contribution rates 15.25% + $515,039 7.47% + $4,358 Safety
Safety PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 57
Monthly benefits, as a % of eligible compensation 3% 2.7% Required employee contribution rates 9% 13%
Required employer contribution rates 23.75% + $665,866 12.78% + $7,993 51 130
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

6. DEFINED BENEFIT PENSION PLAN - Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a liability of $6,861,960 for its proportionate share of the net pension liability.

The City’s net pension liability for the Plan is measured as of June 30, 2022, 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, 2021 rolled forward to June 30, 2022 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 Plan’s net pension liability as of June 30, 2022 and 2023 was as follows:

For the year ended June 30, 2023, the City recognized pension expense of $5,381,767. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The $849,564 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 ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions – The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Proportion - June 30, 2022 0.15474%
Proportion - June 30, 2023 0.05941%
Change - Increase (Decrease) -0.09533%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 849,564 $ - $ Differences between actual and expected experience 219,985 82,299 Changes in assumptions 696,822 -
Change in employer's proportion 183,640 8,601,047
Differences between the employer's contributions and
the employer's proportionate share of contributions 6,336,854 441,644 Net differences between projected and actual
earnings on plan investments 1,159,489 -
Total 9,446,354 $ 9,124,990 $
Year Ending
June 30,
2024 $ (441,270)
2025 (460,518)
2026 (334,608)
2027 708,196
2028 -
Thereafter -
52 131
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

6. DEFINED BENEFIT PENSION PLAN - Continued
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

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

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

Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Payroll Growth 2.75%
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds.

New Strategic
Asset Class Allocation Real Return (1,2)
Global Equity - Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021 Asset Liability Management study. 53 132
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

6. DEFINED BENEFIT PENSION PLAN – Continued
Discount Rate – The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position – Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan - At June 30, 2023, the City reported no payables to the pension plan, for outstanding contributions required for the year ended June 30, 2023.

7. 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; and natural disasters, for which the City is a member of the Small Cities Organized Risk Effort (SCORE) through a joint powers agreement. SCORE provides liability and workers’ compensation coverage for its members by pooling risk.

Member cities participate in a Banking Plan for the first $25,000 of loss. The portion of loss greater than $25,000 but less than $250,000 is shared among the Member cities in the Shared Risk Pool. The JPA participates in the California Joint Powers Risk Management Authority (CJPRMA) for the portion of losses greater than $250,000. The JPA is comprised of twenty-one small cities located in Northern and Central California. Upon review of the application, a new member may be admitted by a three-quarters (3/4) vote of the board. Members may be expelled by a two-thirds (2/3) vote. Upon entry into the JPA, members may not voluntarily withdraw for a period of three years and in no case before the JPA's commitment to CJPRMA is satisfied. Members must submit six months written notice prior to voluntarily withdrawing. After withdrawal, a member may not re-enter the JPA for a period of three years.

The City makes payments to SCORE based on actuarial estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophic losses. Claims liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and pay-out amounts), and other economic and social factors. 1% Decrease 5.90%
Net Pension Liability 14,455,926 $
Current Discount Rate 6.90%
Net Pension Liability 6,861,960 $
1% Increase 7.90%
Net Pension Liability $ 637,861
54 133
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

7. RISK MANAGEMENT - Continued
No claims liabilities have been reported in the City’s financial statements for the past three years. Settlements have not exceeded coverage for each of the past three fiscal years. The City’s claims activity is reported in internal service funds.

8. FUND BALANCES
The details of fund balances as of June 30, 2023 are as follows:

9. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund Transfers
The details of the interfund transfers are as follows:

The General Fund transferred $235,080 to the Non-major Governmental Funds for debt service payments, and $60,000 to the Gas Tax Special Revenue Fund to pay for project costs. The ARPA Special Revenue Fund transferred $1,029,635 to the General Fund for public safety costs. The non-major governmental funds transferred $102,000 to the Gas Tax Special Revenue Fund for project costs. The non-major governmental State Revolving Fund transferred $200,000 to the non-major governmental CDBG Fund for CDBG project costs.

Nonmajor
General Gas Tax Governmental
Fund Fund Funds Total
Nonspendable:

Prepaid Items 133,793 $ - $ - $ 133,793 $
Inventory 44,765 - - 44,765
Loans Receivable 52,136 - - 52,136
Restricted for:

General Government - - - -
Public Safety - - 176,564 176,564
Parks - - 156,186 156,186
Housing - - 1,505,682 1,505,682
Streets and Transportation - - 1,424,800 1,424,800
Capital Projects 19,555 - - 19,555
Assigned for:

Debt Service - - 53,011 53,011
Capital Projects 267,302 - 13,848 281,150
Unassigned 6,902,246 (216,479) (13,361) 6,672,406
Total Fund Balances 7,419,797 $ (216,479) $ 3,316,730 $ 10,520,048 $ Gas Tax Non-major
General Special Revenue Governmental
Transfers Out Fund Fund Funds Total
General Fund - $ 60,000 $ 235,080 $ 295,080 $
ARPA Special Revenue Fund 1,029,635 - - 1,029,635
Non-major Governmental Funds - 102,000 200,000 302,000
Total 1,029,635 $ 162,000 $ 435,080 $ 1,626,715 $
Transfers In
55 134
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

9. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS - Continued Due to/From Other Funds
The General Fund loaned $2,125,068 to the Gas Tax Special Revenue Fund and $11,721 to non-major governmental funds to cover temporary cash deficits at year-end. This will be repaid in the following year.

Advances From/To Other Funds
Interfund advances as of June 30, 2023 are as follows:

The Natural Gas Enterprise Fund advanced $2,306,697 to the General Fund, Gas Tax, Water, and Internal Service Funds to provide funding to pay-off each fund’s portion of the CalPERS side fund loan. Payments on these advances, including interest are being made each year, through the 2034-35 fiscal year.

10. JOINTLY GOVERNED AND RELATED ORGANIZATIONS
Honey Lake Valley Recreation Authority
The Honey Lake Recreation Authority (HLVRA) was created by a joint powers agreement between the County of Lassen and the City of Susanville on November 18, 2013 under the provisions of California Government Code 6500 et. Seq. HLVRA is an entity separate from its member agencies created for the purpose of owning and operating public recreation facilities, including a swimming pool. HLVRA has a five-member board of directors comprised of two representatives from each member agency and one member at large.

Lassen Regional Solid Waste Management Authority
In 1999, the Lassen Regional Solid Waste Management Authority (Authority') was created under a joint powers agreement between the County of Lassen and the City of Susanville. It was formed to fund, plan, operate, administer, and maintain solid waste facilities, sites and services, including all mandated costs for planning, waste diversion, and both closure and post-closure of sites, as well as public education, waste transfer, material recovery, recycling, household hazardous waste programs, and other AB939 programs. The Authority has a board of directors, which consists of five persons, two from the County and two from the City, and one public member atlarge who is appointed by the City and County members. The members have no share of the Authority's debts, liabilities, and obligations.

Lassen Transit Service Agency
The Lassen Transit Service Agency (Agency) was created through a joint powers agreement between the County of Lassen and the City of Susanville on July 17, 2002, under the provisions of Article 1, Chapter 5, Division 7, Title 1 of the California Government Code Section 6500. The Agency is charged with the administration and operation Advance From Advance To
Natural Gas Enterprise Fund 2,306,697 $ - $
General Fund - 1,821,414
Gas Tax Special Revenue Fund 157,826 -
Water Enterprise Fund 279,886 -
Internal Service Funds 47,571 -
Total $ 2,306,697 $ 2,306,697
56 135
City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2023

10. JOINTLY GOVERNED AND RELATED ORGANIZATIONS - Continued of the Lassen Rural Bus (LRB) public transportation services within Lassen County under the jurisdiction of the Lassen County. The Commission is comprised of three members of the Lassen County Board of Supervisors and three members of the City of Susanville City Council. The Agency allocates and distributes the Transportation Development Act (TDA) funding for LRB service operations. In addition to TDA funds, the Agency receives funding from several sources including the federal government and the State of California.

Lassen County Air Pollution Control District
The Lassen County Air Pollution Control District (District) is a local air district governing the Lassen County region.

The District Board has six members comprised of three members from the Lassen County Board of Supervisors and three members from the Susanville City Council.

11. COMMITMENTS AND CONTINGENCIES
A. Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by grantors cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

B. Other Commitments and Contingencies
At June 30, 2023, the City had outstanding construction contracts of approximately $390,000. In addition, the City is a defendant in various pending lawsuits of a nature common to many similar jurisdictions. City management and legal counsel estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the City’s financial statements.

12. RESTATEMENT OF BEGINNING NET POSITION AND PRIOR PERIOD ADJUSTMENT The beginning net position of governmental activities was restated by ($200,219) to $7,425,483 and the prior period adjustment in the Gas Tax Special Revenue Fund of ($200,219) was to adjust receivables overstated in prior years. 57 136

REQUIRED SUPPLEMENTARY INFORMATION
58 137
City of Susanville
Required Supplementary Information
Year Ended June 30, 2023
*Fiscal year 2015 was the first year of implementation; therefore, 10 years of information are not yet available.

Notes to the Schedule of the City’s Proportionate Share of the Net Pension Liability Benefit Changes: None
Changes in Assumptions: In 2017, the accounting discount rate changed from 7.65% to 7.15%, and to 6.90% in 2022.

Proportionate Plan Fiduciary
Proportion of Proportionate Share of the Net Net Position as the Net Pension Share of Net Covered Pension Liability a % of the Total Measurement Date Liability Pension Liability Payroll as a % of Payroll Pension Liability 2022 0.059410% 6,861,960 $ $ 3,970,887 172.81% 87.59%
2021 0.154740% 8,368,941 3,657,003 228.85% 84.06%
2020 0.125600% 13,665,461 3,705,758 368.76% 73.27%
2019 0.121720% 12,472,688 3,331,464 374.39% 74.92%
2018 0.118440% 11,413,410 3,144,855 362.92% 76.50%
2017 0.115290% 11,433,943 3,167,033 361.03% 73.31%
2016 0.113640% 9,833,346 3,342,599 294.18% 74.06%
2015 0.106160% 7,287,061 3,234,445 225.30% 78.40%
2014 0.109380% 6,657,753 2,953,546 225.42% 79.82%
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 Years*
59 138
City of Susanville
Required Supplementary Information
Year Ended June 30, 2023
*Fiscal year 2015 was the first year of implementation; therefore, 10 years of information are not yet available.

Notes to the Schedule of Plan Contributions
Valuation Date: 6/30/13, 6/30/14, 6/30/15, 6/30/16, 6/30/17, 6/30/18, 6/30/19, 6/30/20 and 6/30/21

Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2023 849,561 $ (849,561) $ - $ 4,442,297 $ 19.12%
2022 1,546,929 (11,606,929) (10,060,000) 3,970,887 292.30% 2021 1,387,761 (1,387,761) 3,657,003 - 37.95%
2020 1,233,427 (1,233,427) 3,705,758 - 33.28%
2019 1,030,749 (1,030,749) 3,331,464 - 30.94%
2018 865,752 (865,752) 3,144,855 - 27.53%
2017 848,437 (848,437) 3,167,033 - 26.79%
2016 749,220 (749,220) 3,342,599 - 22.41%
2015 601,837 (601,837) 3,237,445 - 18.59%
Schedule of Pension Plan Contributions
Last 10 Years*
60 139
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances General Fund
Year Ended June 30, 2023
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes and Assessments 6,804,000 $ 7,493,000 $ 7,572,621 $ 79,621 $ Licenses and Permits 26,000 116,000 152,029 36,029
Fines and Forfeitures 18,750 18,750 29,106 10,356
Investment Earnings 4,222 4,222 64,130 59,908
Intergovernmental 2,418,815 2,433,815 1,987,421 (446,394) Charges for Services 500,941 552,317 516,548 (35,769)
Other - - 516,583 516,583
Total Revenues 9,772,728 10,618,104 10,838,438 220,334

EXPENDITURES
Current:

General Government 3,328,937 3,509,339 462,940 3,046,399 Public Safety 5,906,777 6,196,448 4,908,434 1,288,014
Protective Inspections - - - -
Community Services 1,356,229 1,427,236 1,116,583 310,653 Community Development - - - -
Capital Outlay 13,000 99,610 89,834 9,776
Debt Service:

Principal 7,357 36,420 332,170 (295,750)
Interest 31,273 102,579 254,852 (152,273)
Total Expenditures 10,643,573 11,371,632 7,164,813 4,206,819 Excess (Deficiency) of Revenues
over Expenditures (870,845) (753,528) 3,673,625 4,427,153

OTHER FINANCING SOURCES (USES)
Transfers In 35,000 35,000 1,029,635 994,635
Transfers Out (428,715) (428,715) (295,080) 133,635
Total Other Financing Sources (Uses) (393,715) (393,715) 734,555 1,128,270 Net Change in Fund Balances (1,264,560) (1,147,243) 4,408,180 5,555,423 Fund Balance, Beginning of Year 3,011,617 3,011,617 3,011,617 - Fund Balance, End of Year 1,747,057 $ 1,864,374 $ 7,419,797 $ 5,555,423 $ Budgeted Amounts
61 140
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2023
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ 782 $ 782 $
Intergovernmental 613,477 645,477 2,754,036 2,108,559
Charges for Services 69,488 69,488 72,316 2,828
Other - - - -
Total Revenues 682,965 714,965 2,827,134 2,112,169

EXPENDITURES
Current:

Streets 875,376 1,051,589 912,778 138,811
Capital Outlay 2,646,854 2,646,854 2,253,969 392,885
Debt Service:

Principal 11,492 11,492 13,151 (1,659)
Interest and Fiscal Charges 3,347 3,347 13,785 (10,438) Total Expenditures 3,537,069 3,713,282 3,193,683 519,599 Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,854,104) (2,998,317) (366,549) 2,631,768

OTHER FINANCING SOURCES (USES)
Transfers In 60,000 162,000 162,000 -
Transfers Out - - - -
Total Other Financing Sources (Uses) 60,000 162,000 162,000 - Net Change in Fund Balances (2,794,104) (2,836,317) (204,549) 2,631,768 Fund Balance, Beginning of Year 188,289 188,289 188,289 - Prior Period Adjustments - - (200,219) (200,219)
Fund Balance, End of Year (2,605,815) $ (2,648,028) $ (216,479) $ 2,431,549 $ Budgeted Amounts
62 141
City of Susanville
Required Supplementary Information
Year Ended June 30, 2023

1. BUDGETS AND BUDGETARY ACCOUNTING
Budgetary Control and Budgetary Accounting
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The City’s budget ordinance requires that in June of each year the City Administrator must submit a preliminary budget that includes projected expenditures and the means of financing them to the City Council for the fiscal year commencing the following July 1. As modified during public hearing sessions, the preliminary budget becomes the proposed budget. Following public hearings on the proposed budget, the final annual budget is adopted by the City Council in June of the fiscal year. After adoption of the budget, transfers of appropriations within the general fund departments may be done by the City Administrator. Budget transfers within a department/fund may be done by department heads. Budget modifications between funds and increases in appropriations for expenditures to a fund’s overall budget must be approved by the City Council or Agency Board.

Revenues can be increased at any time without Council approval. Approval has to be made to spend it. Numerous properly authorized amendments are made during the fiscal year. The budget is modified again at mid-year, usually in February with updated revenue projections.

At fiscal year-end, all operating budget appropriations lapse with the exception of encumbered and continuing appropriations.
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64 143

SUPPLEMENTARY INFORMATION
65 144
City of Susanville
Non-major Governmental Funds
Year Ended June 30, 2023
Special Revenue Funds
Local Law Enforcement Block Grant Fund - accounts for a State grant used to fund a Police Sergeant's position to supplement the number of personnel assigned to provide law enforcement services to the City.

Street, Police and Fire Mitigation Funds - account for fees collected from new developments within the City used for the purchase and maintenance of vehicles, equipment, and various facilities.

Park Land In-lieu Fund - accounts for fees collected from new developments within the City which are used to purchase necessary equipment and land to maintain and expand the City's parks.

State Revolving Loan Fund - accounts for program income received from Community Development Block Grant loans given for Housing Rehabilitation, Façade Improvement, Business Assistance, and First-Time Home Buyers loan that are then re-issued in the form of new loans.

HOME Revolving Loan Fund - accounts for program income received from the Façade Improvement, Business Assistance, and First-Time Home Buyers loan re-payments which are re-issued in the form of new loans.

Traffic Safety Fund - accounts for a portion of fines and forfeitures received by the City for any arrests by a City Officer under VC 42200 that is used for the purchase and maintenance of equipment associated with Traffic Law Enforcement.

Skyline Bicycle Fund - accounts for fees collected from new development within the Skyline area to be used for the installation and maintenance of traffic signals, parks and parkways.

Traffic Signals Fund - accounts for fees collected from new developments within the Barry Creek and Chestnut Street areas used to repay the City for installation of the culverts.

CDBG Fund – accounts for amounts restricted for the City’s Community Development Block Grant programs.

Road Fund – accounts for amounts set aside for basic road maintenance, rehabilitation and safety projects on the local streets and road system.

Tobacco Grant Fund – accounts for a State grant used to fund tobacco enforcement education to reduce illegal sales and marketing of cigarettes and tobacco products to minors.

Asset Forfeiture Fund – accounts for asset forfeiture funds seized by the Police Department. These funds can only be used to purchase supplies and equipment for public safety.

FEMA AFG Grant Fund - accounts for the funds received from FEMA for assistance to firefighters.

LEAP Grant Fund – accounts for Local Early Action Planning grant funds received from the California Department of Housing and Community Development.

ABC Grant Fund – accounts for Alcohol Beverage Control grant funds received from the State of California.

OTS Grant Fund – accounts for OTS grant funds received from the California Office of Traffic Safety.

Debt Service Funds
City Hall Debt Service Fund - accounts for debt service payments on bond issued to remodel the City Hall.

Community Swimming Pool Debt Service Fund - accounts for the debt service payments on the Community Swimming Pool Loan that was used to finance a portion of the costs of the construction of a community swimming pool and related costs and improvements there to by the Honey Lake Valley Recreational Authority. 66 145
City of Susanville
Non-major Governmental Funds - Continued
Year Ended June 30, 2023
Capital Project Funds
City Hall Parking Lot Project Fund - accounts for amounts set aside for the City's City Hall Parking Lot Project. 67 146
City of Susanville
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
Local Law
Enforcement Street Police Fire Park Land
Block Grant Mitigation Mitigation Mitigation In-lieu
ASSETS
Cash and Investments 114,209 $ 51,063 $ 46,860 $ 47,800 $ 155,070 $ Accounts Receivable 44,362 - - - -
Interest Receivable 694 482 337 341 1,116
Loans Receivable - - - - -
Total Assets 159,265 $ 51,545 $ 47,197 $ 48,141 $ 156,186 $

LIABILITIES
Accounts Payable 2,220 $ - $ - $ - $ - $
Due to Other Funds - - - - -
Total Liabilities 2,220 - - - -

DEFERRED INFLOWS
Unavailable Revenues - Grants - - - - -

FUND BALANCES
Nonspendable - - - - -
Restricted 157,045 51,545 47,197 48,141 156,186
Assigned - - - - -
Unassigned - - - - -
Total Fund Balances 157,045 51,545 47,197 48,141 156,186 Total Liabilities, Deferred Inflows
and Fund Balances $ 159,265 $ 51,545 $ 47,197 $ 48,141 $ 156,186 Special Revenue
68 147
State HOME Skyline
Revolving Revolving Traffic Bicycle Traffic Tobacco
Loan Loan Safety Lane Signals CDBG Road Grant
$ 102,590 $ 617,410 $ 45,906 $ 10,389 $ 86,076 $ 59,845 $ 1,065,959 $ 31,008 - - - - 70,507 - 63,001 -
2,174 4,435 329 75 618 - 8,707 -
608,687 158,000 - - - - - -
$ 713,451 $ 779,845 $ 46,235 $ 10,464 $ 86,694 $ 130,352 $ 1,137,667 $ 31,008 $ - $ - $ - $ - $ 50,164 - $ $ 18,615 $ -
- - - - - 648 - -
- - - - 50,812 - 18,615 -
- - - - 67,154 - - -
- - - - - - - -
713,451 779,845 46,235 10,464 86,694 12,386 1,119,052 31,008 - - - - - - - -
- - - - - - - -
713,451 779,845 46,235 10,464 86,694 12,386 1,119,052 31,008 $ 713,451 $ 779,845 $ 46,235 $ 10,464 $ 86,694 $ 130,352 $ 1,137,667 $ 31,008 Continued
Special Revenue
69 148
City of Susanville
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2023
Asset FEMA LEAP ABC OTS
Forfeiture AFG Grant Grant Grant Grant
ASSETS
Cash and Investments 3,408 $ 571 $ - $ - $ - $
Accounts Receivable - - - - 2,179
Interest Receivable - 4 - - -
Loans Receivable - - - - -
Total Assets 3,408 $ 575 $ - $ - $ 2,179 $

LIABILITIES
Accounts Payable - $ - $ 4,467 $ - $ - $
Due to Other Funds - - 7,973 - 3,100
Total Liabilities - - 12,440 - 3,100

DEFERRED INFLOWS
Unavailable Revenues - Grants - - - - -

FUND BALANCES
Nonspendable - - - - -
Restricted 3,408 575 - - -
Assigned - - - - -
Unassigned - (12,440) - - (921)
Total Fund Balances 3,408 575 (12,440) - (921)
Total Liabilities, Deferred Inflows
and Fund Balances $ 3,408 $ 575 $ - $ 2,179 - $
Special Revenue
70 149
Capital
Projects
Community
Swimming City Hall
City Hall Pool Parking Lot Total
$ 2,101 50,910 $ 13,848 $ 2,505,023 $
- - - 180,049
- - - 19,312
- - - 766,687
$ 2,101 50,910 $ 13,848 $ 3,471,071 $
$ - - $ - $ 75,466 $
- - - 11,721
- - - 87,187
- - - 67,154
- - - -
- - - 3,263,232
2,101 50,910 13,848 66,859
- - - (13,361)
50,910 2,101 13,848 3,316,730
$ 2,101 50,910 $ 13,848 $ 3,471,071 $
Debt Service
71 150
City of Susanville
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2023
Local Law
Enforcement Street Police Fire Park Land
Block Grant Mitigation Mitigation Mitigation In-lieu

REVENUES
Fines and Forfeitures - $ - $ - $ - $ - $
Investment Earnings 1,774 1,131 646 870 2,163
Intergovernmental 161,285 - - - -
Charges for Services - 197 253 2,050 -
Other Revenues - - - - -
Total Revenues 163,059 1,328 899 2,920 2,163

EXPENDITURES
Current:

General Government - - - - -
Public Safety 168,693 - - - -
Streets - - - - -
Community Services - - - - 295
Community Development - - - - -
Capital Outlay - - - - -
Debt Service:

Principal - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 168,693 - - - 295
Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,634) 1,328 899 2,920 1,868

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - (32,000) - - -
Total Other Financing Sources (Uses) (32,000) - - - -
Net Change in Fund Balances (5,634) (30,672) 899 2,920 1,868 Fund Balances, Beginning of Year 162,679 82,217 46,298 45,221 154,318 Fund Balances, End of Year $ 157,045 $ 51,545 $ 47,197 $ 48,141 $ 156,186 Special Revenue
72 151
State HOME Skyline
Revolving Revolving Traffic Bicycle Traffic Tobacco
Loan Loan Safety Lane Signals CDBG Road Grant
$ - $ 4,183 - $ $ - $ - $ - $ - $ -
95,355 8,580 553 144 1,196 15,848 - -
- - - - 202,199 - 359,535 -
- - - - - - - -
- - - - 50,000 - - -
95,355 8,580 4,736 144 1,196 252,199 375,383 -
- - - - - - - -
- - - - - - - -
- - - - - 195,289 - -
- - - - - - - -
- - - - 238,852 - - -
- - - - 154,351 - 35,637 -
- - - - - 9,053 - -
- - - - - 7,185 - -
- - - - 393,203 - 247,164 -
95,355 8,580 4,736 144 1,196 (141,004) 128,219 -
- - - - 200,000 - - -
(200,000) - - - - (70,000) - -
(200,000) - - - 200,000 - (70,000) -
(104,645) 8,580 4,736 144 1,196 58,996 58,219 -
818,096 771,265 41,499 10,320 85,498 (46,610) 1,060,833 31,008 $ 713,451 $ 779,845 $ 46,235 $ 10,464 $ 86,694 $ 12,386 $ 1,119,052 $ 31,008 Continued
Special Revenue
73 152
City of Susanville
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2023
Asset FEMA LEAP ABC OTS
Forfeiture AFG Grant Grant Grant Grant

REVENUES
Fines and Forfeitures 90$ -$ -$ -$ -$
Investment Earnings - - - - -
Intergovernmental - - - 1,084 10,612
Charges for Services - - - - -
Other Revenues - - - - -
Total Revenues 90 - - 1,084 10,612

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - - - 11,380
Streets - - - - -
Community Services - - - - -
Community Development - - 8,902 - -
Capital Outlay - - - - -
Debt Service:

Principal - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures - - 8,902 - 11,380
Excess (Deficiency) of Revenues
Over (Under) Expenditures 90 - (8,902) 1,084 (768)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 90 - (8,902) 1,084 (768)
Fund Balances, Beginning of Year 3,318 575 (3,538) (1,084) (153) Fund Balances, End of Year $ 3,408 $ (12,440) 575 $ $ (921) - $ Special Revenue
74 153
Capital
Projects
Community
Swimming City Hall
City Hall Pool Parking Lot Total
-$ $ - $ - $ 4,273
- - 128,260 -
- - 734,715 -
- - - 2,500
- - 50,000 -
- - 919,748 -
- - - -
- - 180,073 -
- - 195,289 -
- - - 295
- - 247,754 -
- - 189,988 -
112,669 77,000 198,722 -
22,660 23,664 53,509 -
135,329 100,664 1,065,630 -
(135,329) (100,664) (145,882) -
134,004 101,076 435,080 -
- - (302,000) -
134,004 101,076 133,080 -
(1,325) 412 (12,802) -
52,235 1,689 13,848 3,329,532
$ 50,910 $ 2,101 $ 13,848 $ 3,316,730
Debt Service
75 154
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ 1,774 $ 1,774 $
Intergovernmental 173,377 161,285 (12,092)
Total Revenues 173,377 163,059 (10,318)

EXPENDITURES
Current:

Public Safety 183,248 168,693 14,555
Total Expenditures 183,248 168,693 14,555
Excess (Deficiency) of Revenues
Over (Under) Expenditures (9,871) (5,634) 4,237

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances (9,871) (5,634) 4,237
Fund Balance, Beginning of Year 162,679 162,679 -
Fund Balance, End of Year 152,808 $ 157,045 $ 4,237 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Local Law Enforcement Block Grant Fund Year Ended June 30, 2023
76 155
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ 1,131 $ 1,131 $
Charges for Services 9,800 197 (9,603)
Total Revenues 9,800 1,328 (8,472)

EXPENDITURES
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 9,800 1,328 (8,472)

OTHER FINANCING SOURCES (USES)
Transfers Out (32,000) (32,000) -
Total Other Financing Sources (Uses) (32,000) (32,000) - Net Change in Fund Balances (22,200) (30,672) (8,472)
Fund Balance, Beginning of Year 82,217 82,217 -
Fund Balance, End of Year 60,017 $ 51,545 $ (8,472) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Street Mitigation Fund
Year Ended June 30, 2023
77 156
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings 131 $ 646 $ 515 $
Charges for Services 12,600 253 (12,347)
Total Revenues 12,731 899 (11,832)

EXPENDITURES
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 12,731 899 (11,832)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 12,731 899 (11,832)
Fund Balance, Beginning of Year 46,298 46,298 -
Fund Balance, End of Year 59,029 $ 47,197 $ (11,832) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Police Mitigation Fund
Year Ended June 30, 2023
78 157
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings 131 $ 870 $ 739 $
Charges for Services 12,300 2,050 (10,250)
Total Revenues 12,431 2,920 (9,511)

EXPENDITURES
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (under) Expenditures 12,431 2,920 (9,511)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 12,431 2,920 (9,511)
Fund Balance, Beginning of Year 45,221 45,221 -
Fund Balance, End of Year 57,652 $ 48,141 $ (9,511) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2023
Budget and Actual - Fire Mitigation Fund
79 158
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings 328 $ 2,163 $ 1,835 $
Charges for Services 1,600 - (1,600)
Total Revenues 1,928 2,163 235

EXPENDITURES
Current:

Community Services 24,489 295 24,194
Capital Outlay - - -
Total Expenditures 24,489 295 24,194
Excess (Deficiency) of Revenues
Over (Under) Expenditures (22,561) 1,868 24,429

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances (22,561) 1,868 24,429
Fund Balance, Beginning of Year 154,318 154,318 -
Fund Balance, End of Year 131,757 $ 156,186 $ 24,429 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Park Land In-lieu Fund
Year Ended June 30, 2023
80 159
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings 82 $ 95,355 $ 95,273 $
Total Revenues 82 95,355 95,273

EXPENDITURES
Current:

Community Development - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 82 95,355 95,273

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out (200,000) (200,000) -
Total Other Financing Sources (Uses) (200,000) (200,000) - Net Change in Fund Balances (199,918) (104,645) 95,273
Fund Balance, Beginning of Year 818,096 818,096 -
Fund Balance, End of Year 618,178 $ 713,451 $ 95,273 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - State Revolving Loan Fund
Year Ended June 30, 2023
81 160
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings 951 $ 8,580 $ 7,629 $
Total Revenues 951 8,580 7,629

EXPENDITURES
Current:

Community Development - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (under) Expenditures 951 8,580 7,629
Fund Balance, Beginning of Year 771,265 771,265 -
Fund Balance, End of Year 772,216 $ 779,84 $ 5 $ 7,629
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - HOME Revolving Loan Fund
Year Ended June 30, 2023
82 161
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Fines and Forfeitures 10,000 $ 4,183 $ (5,817) $
Investment Earnings 26 553 527
Total Revenues 10,026 4,736 (5,290)

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,026 4,736 (5,290)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 10,026 4,736 (5,290)
Fund Balance, Beginning of Year 41,499 41,499 -
Fund Balance, End of Year 51,525 $ 46,235 $ (5,290) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -Traffic Safety Fund
Year Ended June 30, 2023
83 162
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ 144 $ 144 $
Charges for Services 100 - (100)
Total Revenues 100 144 44

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 100 144 44

OTHER FINANCING SOURCES (USES)
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 100 144 44
Fund Balance, Beginning of Year 10,320 10,320 -
Fund Balance, End of Year 10,420 $ 10,464 $ 44 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Skyline Bicycle Fund
Year Ended June 30, 2023
84 163
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ 1,196 $ 1,196 $
Charges for Services 500 - (500)
Total Revenues 500 1,196 696

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 500 1,196 696

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 500 1,196 696
Fund Balance, Beginning of Year 85,498 85,498 -
Fund Balance, End of Year 85,998 $ 86,694 $ 696 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Traffic Signals Fund
Year Ended June 30, 2023
85 164
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ - $
Intergovernmental - 202,199 202,199
Charges for Services - 50,000 50,000
Total Revenues - 252,199 252,199

EXPENDITURES
Current:

Community Development - 238,852 (238,852)
Capital Outlay - 154,351 (154,351)
Total Expenditures - 393,203 (393,203)
Excess (Deficiency) of Revenues
Over (Under) Expenditures - (141,004) (141,004)

OTHER FINANCING SOURCES (USES)
Transfers In - 200,000 200,000
Total Other Financing Sources (Uses) - 200,000 200,000
Net Change in Fund Balances - 58,996 58,996
Fund Balance, Beginning of Year (46,610) (46,610) -
Fund Balance, End of Year (46,610) $ 12,386 $ 58,996 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - CDBG Fund
Year Ended June 30, 2023
86 165
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ 15,848 $ 15,848 $
Intergovernmental 409,096 359,535 (49,561)
Total Revenues 409,096 375,383 (33,713)

EXPENDITURES
Current:

Streets 242,150 195,289 46,861
Capital Outlay 55,380 35,637 19,743
Debt Service:

Principal 9,054 9,053 1
Interest and Fiscal Charges 7,186 7,185 1
Total Expenditures 313,770 247,164 66,606
Excess (Deficiency) of Revenues
Over (Under) Expenditures 95,326 128,219 32,893

OTHER FINANCING SOURCES (USES)
Transfers Out (70,000) (70,000) -
Total Other Financing Sources (Uses) (70,000) (70,000) - Net Change in Fund Balances 25,326 58,219 32,893
Fund Balance, Beginning of Year 1,060,833 1,060,833 -
Fund Balance, End of Year 1,086,15 $ 9 $ 1,119,052 $ 32,893 City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Road Fund
Year Ended June 30, 2023
87 166
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ - $
Intergovernmental - - -
Total Revenues - - -

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances - - -
Fund Balance, Beginning of Year 31,008 31,008 -
Fund Balance, End of Year 31,008 $ 31,008 $ - $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Tobacco Grant Fund
Year Ended June 30, 2023
88 167
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Fines and Forfeitures - $ 90 $ 90 $
Investment Earnings - - -
Total Revenues - 90 90

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 90 90

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances - 90 90
Fund Balance, Beginning of Year 3,318 3,318 -
Fund Balance, End of Year 3,318 $ 3,408 $ 90 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Asset Forfeiture Fund
Year Ended June 30, 2023
89 168
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ - $
Intergovernmental - - -
Total Revenues - - -

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances - - -
Fund Balance, Beginning of Year 575 575 -
Fund Balance, End of Year 575 $ 575 $ - $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - FEMA AFG Grant Fund
Year Ended June 30, 2023
90 169
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 65,000 $ - $ (65,000) $
Investment Earnings - - -
Total Revenues 65,000 - (65,000)

EXPENDITURES
Current:

Community Development 61,462 8,902 52,560
Capital Outlay - - -
Total Expenditures 61,462 8,902 52,560
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,538 (8,902) (12,440)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 3,538 (8,902) (12,440)
Fund Balance, Beginning of Year (3,538) (3,538) -
Fund Balance, End of Year - $ (12,440) $ (12,440) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - LEAP Grant Fund
Year Ended June 30, 2023
91 170
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental - $ 1,084 $ 1,084 $
Investment Earnings - - -
Total Revenues - 1,084 1,084

EXPENDITURES
Current:

Public Safety - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 1,084 1,084

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances - 1,084 1,084
Fund Balance, Beginning of Year (1,084) (1,084) -
Fund Balance, End of Year (1,084) $ - $ 1,084 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - ABC Grant Fund
Year Ended June 30, 2023
92 171
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Intergovernmental 78,671 $ 10,612 $ (68,059) $
Investment Earnings - - -
Total Revenues 78,671 10,612 (68,059)

EXPENDITURES
Current:

Public Safety 78,518 11,380 67,138
Capital Outlay - - -
Total Expenditures 78,518 11,380 67,138
Excess (Deficiency) of Revenues
Over (Under) Expenditures 153 (768) (921)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances 153 (768) (921)
Fund Balance, Beginning of Year (153) (153) -
Fund Balance, End of Year - $ (921) $ (921) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - OTS Grant Fund
Year Ended June 30, 2023
93 172
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ - $
Charges for Services - - -
Total Revenues - - -

EXPENDITURES
Current:

Community Development - - -
Debt Service:

Principal 112,670 112,669 1
Interest and Fiscal Charges 22,761 22,660 101
Total Expenditures 135,431 135,329 102
Excess (Deficiency) of Revenues
Over (Under) Expenditures (135,431) (135,329) 102

OTHER FINANCING SOURCES (USES)
Transfers In 135,431 134,004 (1,427)
Transfers Out - - -
Total Other Financing Sources (Uses) 135,431 134,004 (1,427) Net Change in Fund Balances - (1,325) (1,325)
Fund Balance, Beginning of Year 52,235 52,235 -
Fund Balance, End of Year 52,235 $ 50,910 $ (1,325) $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - City Hall Fund
Year Ended June 30, 2023
94 173
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ - $
Charges for Services - - -
Total Revenues - - -

EXPENDITURES
Current:

Community Development - - -
Debt Service:

Principal 77,000 77,000 -
Interest and Fiscal Charges 23,664 23,664 -
Total Expenditures 100,664 100,664 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures (100,664) (100,664) -

OTHER FINANCING SOURCES (USES)
Transfers In 100,664 101,076 412
Transfers Out - - -
Total Other Financing Sources (Uses) 100,664 101,076 412 Net Change in Fund Balances - 412 412
Fund Balance, Beginning of Year 1,689 1,689 -
Fund Balance, End of Year 1,689 $ 2,101 $ 412 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Community Swimming Pool Fund
Year Ended June 30, 2023
95 174
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget

REVENUES
Investment Earnings - $ - $ - $
Charges for Services - - -
Total Revenues - - -

EXPENDITURES
Capital Outlay 13,848 - 13,848
Total Expenditures 13,848 - 13,848
Excess (Deficiency) of Revenues
Over (Under) Expenditures (13,848) - 13,848

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances (13,848) - 13,848
Fund Balance, Beginning of Year 13,848 13,848 -
Fund Balance, End of Year - $ 13,848 $ 13,848 $
City of Susanville
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - City Hall Parking Lot Fund
Year Ended June 30, 2023
96 175
City of Susanville
Non-major Enterprise Funds
Year Ended June 30, 2023
Golf Course Fund - accounts for the activities of the City’s golf course.

Geothermal Fund - accounts for the activities of providing geothermal heat to residents of the City.

97 176
City of Susanville
Combining Statement of Net Position
Non-major Enterprise Funds
June 30, 2023
Golf Course Geothermal Totals
ASSETS
Current Assets:

Cash and Investments 84,555 $ 214,030 $ 298,585 $
Accounts Receivable 89,755 5,751 95,506
Interest Receivable (646) 1,533 887
Prepaid Expenses 413 125 538
Inventory 3,261 - 3,261
Total Current Assets 177,338 221,439 398,777
Noncurrent Assets:

Capital Assets:

Non-depreciable 2,168,107 249,124 2,417,231
Depreciable, net 217,522 29,481 247,003
Total Capital Assets 2,385,629 278,605 2,664,234
Total Noncurrent Assets 2,385,629 278,605 2,664,234
Total Assets 2,562,967 500,044 3,063,011

LIABILITIES
Current Liabilities:

Accounts Payable 26,826 2,733 29,559
Accrued Liabilities - - -
Unearned Revenue 28,346 - 28,346
Total Current Liabilities 55,172 2,733 57,905
Total Liabilities 55,172 2,733 57,905

NET POSITION
Investment in Capital Assets 2,385,629 278,605 2,664,234 Unrestricted 122,166 218,706 340,872
Total Net Position 2,507,795 $ 497,311 $ 3,005,106
98 177
City of Susanville
Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds
Year Ended June 30, 2023
Golf Course Geothermal Total

OPERATING REVENUES
Charges for Services 385,806 $ 91,217 $ 477,023 $
Total Operating Revenues 385,806 91,217 477,023

OPERATING EXPENSES
Administration 439,701 113,875 553,576
Depreciation 13,994 2,136 16,130
Total Operating Expenses 453,695 116,011 569,706
Operating Income (Loss) (67,889) (24,794) (92,683)

NONOPERATING REVENUES (EXPENSES)
Interest Income 1,287 3,273 4,560
Interest Expense (33) - (33)
Other Revenues 111,096 - 111,096
Total Nonoperating Revenues (Expenses) 112,350 3,273 115,623 Income Before Capital Contributions
and Transfers 44,461 (21,521) 22,940
Capital Contributions - - -
Transfers In - - -
Transfers Out - - -
Change in Net Position 44,461 (21,521) 22,940
Net Position, Beginning of Year 2,463,334 518,832 2,982,166 Net Position, End of Year 2,507,795 $ 497,311 $ 3,005,106 $ 99 178
City of Susanville
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Year Ended June 30, 2023
Golf Course Geothermal Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 92,891 379,668 $ $ 472,559 Payments to Suppliers and Contractors (326,725) (115,248) (441,973) Payments to Employees (109,757) (1,116) (110,873)
Net Cash from Operating Activities (56,814) (23,473) (80,287)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from (to) Other Funds - - -
Payments Received from (Paid to) Other Funds - - -
Net Cash from Noncapital Financing Activities - - -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets - (20,989) (20,989)
Payments from Insurance Reimbursements - 21,341 21,341
Capital Grants - - -
Interest Paid - (33) (33)
Net Cash from Noncapital Financing Activities 319 - 319

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 2,155 2,174 4,329
Net Increase (Decrease) in Cash (54,340) (21,299) (75,639) Cash and Cash Equivalents - Beginning of Year 138,895 235,329 374,224 Cash and Cash Equivalents - End of Year 84,555 $ 214,030 $ 298,585 $ Reconciliation of Operating Income (Loss)
to Net Cash from Operating Activities:

Operating Income (Loss) (67,889) $ (24,794) $ (92,683) $ Adjustments to Reconcile Operating Income to Net
Cash Provided (Used) by Operating Activities:

Depreciation 13,994 2,136 16,130
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 116 1,674 1,790 (Increase) Decrease in Prepaids (322) (125) (447)
(Increase) Decrease in Inventory (728) - (728)
Increase (Decrease) in Accounts Payable 4,269 (2,364) 1,905 Increase (Decrease) in Accrued Liabilities - - -
Increase (Decrease) in Unearned Revenue (6,254) - (6,254) Net Cash Provided by Operating Activities $ (56,814) $ (23,473) $ (80,287) 100
179
City of Susanville
Internal Service Funds
Year Ended June 30, 2023
Public Works Administration Fund - accounts for the City’s public works administration activities.

Risk Administration Fund - accounts for City’s risk administration activities.

Retirement Benefits Fund - accounts for expenses related to other postemployment benefit costs.

101
180
City of Susanville
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Public Works Risk Retirement
Administration Management Benefits Totals
ASSETS
Current Assets:

Cash and Investments 232,180 $ 522,184 $ 4,441 $ 758,805 $ Accounts Receivable - 7,001 - 7,001
Interest Receivable 3,760 4,312 - 8,072
Prepaids 9,022 2,111 - 11,133
Total Current Assets 244,962 535,608 4,441 785,011

LIABILITIES
Current Liabilities:

Accounts Payable 20,142 13,567 - 33,709
Accrued Liabilities - 209 4,441 4,650
Current Portion of
Compensated Absences 6,257 - - 6,257
Total Current Liabilities 26,399 13,776 4,441 44,616
Noncurrent Liabilities:

Advances from Other Funds 47,571 - - 47,571
Compensated Absences 25,740 - - 25,740
Total Noncurrent Liabilities 73,311 - - 73,311
Total Liabilities 99,710 13,776 4,441 117,927

NET POSITION
Unrestricted 145,252 521,832 - 667,084
Total Net Position 145,252 $ 521,832 $ - $ 667,084 $
Governmental Activities
Internal Service Funds
102
181
City of Susanville
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2023
Public Works Risk Retirement
Administration Management Benefits Totals

OPERATING REVENUES
Charges for Services 1,212,580 $ 970,426 $ - $ 2,183,006 $ Total Operating Revenues 1,212,580 970,426 - 2,183,006

OPERATING EXPENSES
Administration 984,161 428,197 - 1,412,358
Insurance and Claims Costs 203,624 482,958 - 686,582
Depreciation - - - -
Total Operating Expenses 1,187,785 911,155 - 2,098,940
Operating Income (Loss) 24,795 59,271 - 84,066

NONOPERATING REVENUES (EXPENSES)
Interest Income 5,993 4,897 - 10,890
Interest Expense - - - -
Total Nonoperating Revenues (Expenses) 5,993 4,897 - 10,890 Income (Loss) Before Transfers 30,788 64,168 - 94,956
Transfers In - - - -
Transfers Out - - - -
Change in Net Position 30,788 64,168 - 94,956
Net Position, Beginning of Year 114,464 457,664 - 572,128 Net Position, End of Year 145,252 $ 521,832 $ - $ 667,084 $ Governmental Activities
Internal Service Funds
103
182
City of Susanville
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2023
Public Works Risk Retirement
Administration Management Benefits Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Interfund Services Provided $ 1,033,495 1,212,580 $ $ 2,246,075 - $ Cash Paid to Suppliers for Goods and Services (225,757) (1,035,709) (448) (1,261,914) Cash Paid to Employees (965,896) - - (965,896)
Net Cash from Operating Activities 20,927 (2,214) (448) 18,265

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Advances Received (Paid to) Other Funds (3,471) - - (3,471) Transfers to Other Funds - - - -
Net Cash from Noncapital Financing Activities (3,471) - - (3,471)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 3,183 1,412 - 4,595
Net Increase (Decrease) in Cash 20,639 (802) (448) 19,389 Cash and Cash Equivalents - Beginning of Year 211,541 522,986 4,889 739,416 Cash and Cash Equivalents - End of Year $ 232,180 $ 522,184 $ 4,441 $ 758,805 Reconciliation of Operating Income (Loss)
to Net Cash from Operating Activities:

Operating Income (Loss) $ 24,795 $ 59,271 $ 84,066 - $
Adjustments to Reconcile Operating Income to Net
Cash Provided (Used) by Operating Activities:

Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 63,069 - 63,069 - (Increase) Decrease in Prepaids (6,130) 9,264 - 3,134
Increase (Decrease) in Accounts Payable 1,522 (540) - 982 Increase (Decrease) in Accrued Liabilities ( - 133,278) (448) (133,726) Increase (Decrease) in Compensated Absences 740 - - 740 Net Cash from Operating Activities $ 20,927 $ (2,214) $ (448) $ 18,265 Governmental Activities
Internal Service Funds
104
183
City of Susanville
Fiduciary Funds
Year Ended June 30, 2023
LAFCO Fund - accounts for agency activities for LAFCO.

Air Pollution District Fund - accounts for agency activities for the Air Pollution District & California Climate Investments Reduction.

IRWMB Fund - accounts for agency activities for IRWMB.
105
184
City of Susanville
Combining Statements of Fiduciary Net Position
Custodial Funds
June 30, 2023
Air
Pollution
LAFCO District IRWMG Totals
ASSETS
Cash and Investments 47,599 $ 215,006 $ 13,645 $ 276,250 $ Accounts Receivable - 79,640 - 79,640
Interest Receivable 392 - - 392
Total Assets 47,991 294,646 13,645 356,282

LIABILITIES
Accounts Payable 5,650 54,973 - 60,623
Wages Payable - - - -
Due to City of Susanville - - - -
Deposits - - - -
Total Liabilities 5,650 54,973 - 60,623

NET POSITION
Restricted
Held for the Benefit of Others 42,341 239,673 13,645 295,659 Total Net Position 42,341 $ 239,673 $ 13,645 $ 295,659 $ Custodial Funds
106
185
City of Susanville
Combining Statements of Changes in Fiduciary Net Position Year Ended June 30, 2023
Air
Pollution
LAFCO District IRWMG Totals

ADDITIONS
Contributions:

Donations and Other Charges 59,534 $ 1,234,131 $ - $ 1,293,665 $ Investment Earnings:

Interest Income 681 9,337 - 10,018
Total Additions 60,215 1,243,468 - 1,303,683

DEDUCTIONS
General and Administrative 65,809 1,530,059 54,633 1,650,501 Total Deductions 65,809 1,530,059 54,633 1,650,501
Net Increase (Decrease) in Net Position (5,594) (286,591) (54,633) (346,818) Net Position, Beginning of Year (Restated) 47,935 526,264 68,278 642,477 Net Position, End of Year 42,341 $ 239,673 $ 13,645 $ 295,659 $ Custodial Funds
107
186

STATISTICAL SECTION
108
187
City of Susanville
Statistical Section
Year Ended June 30, 2023
Exhibit A-1
Statistical Section
This part of the report is consisted of the City of Susanville's comprehensive annual financial report which presents detailed information as a context for understanding in regarding to what the information in the financial statements, note disclosures, and required supplemental information says about the City's overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparison over time and with other governments.

Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement No. 34 as of June 30, 2004; schedules presenting government-wide information, include information beginning in that year. 109
188
Schedule 1
City of Susanville
Net Position by Component,
Last Ten Fiscal Years
Accrual Basis of Accounting
2014 (1) 2015 2016 2017 2018
Governmental activities
Net investment in capital assets 1,857,866 $ 2,419,492 $ 2,861,071 $ 3,011,863 $ 3,175,697 $ Restricted 4,440,352 3,939,682 3,228,998 3,091,763 2,694,959 Unrestricted (1,756,001) (8,820,376) (9,305,978) (9,198,224) (8,920,877) Total governmental activities net position 4,542,217 $ (2,461,202) $ (3,215,909) $ (3,094,598) $ (3,050,221) $ Business-type activities
Net investment in capital assets (3,222,304) $ (2,742,485) $ (1,573,502) $ (1,984,283) $ (1,465,481) $ Restricted for Debt Service 2,445,921 2,446,530 2,446,094 2,447,781 2,453,021 Unrestricted 8,308,203 7,722,700 6,449,364 7,568,558 8,237,205 Total business-type activities net position $ 7,426,745 7,531,820 $ 7,321,956 $ 8,032,056 $ 9,224,745 $ Primary government
Net investment in capital assets (1,364,438) $ (322,993) $ 1,287,569 $ 1,027,580 $ 1,710,216 $ Restricted 6,886,273 6,386,212 5,675,092 5,539,544 5,147,980 Unrestricted 6,552,202 (1,097,676) (2,856,614) (1,629,666) (683,672) Total primary government net position $ 4,965,543 12,074,037 $ 4,106,047 $ 4,937,458 $ 6,174,524 $ Source: City of Susanville's audited financial statements Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003-04. (1) Net position restated for prior period adjustment to comply with GASB 65 Fiscal Year
110
189
2019 2020 2021 2022 2023
$ 8,432,628 5,935,334 $ 8,389,623 $ 9,016,992 $ 11,017,453 $ 2,967,351 2,903,744 3,534,116 3,580,027 (11,238)
(7,644,408) (7,890,437) (8,376,956) (4,971,317) (2,177,696) $ 3,445,935 1,258,277 $ 3,546,783 $ 7,625,702 $ 8,828,519 $ $ 2,883,742 1,382,183 $ 3,136,200 $ 4,823,903 $ 5,636,796 $ 88,104
9,048,747 9,658,183 10,789,766 9,655,838 9,210,883
$ 12,541,925 10,519,034 $ 13,925,966 $ 14,479,741 $ 14,847,679 $ $ 11,316,370 7,317,517 $ 11,525,823 $ 13,840,895 $ 16,654,249 $ 3,055,455 2,903,744 3,534,116 3,580,027 (11,238)
1,404,339 1,767,746 2,412,810 4,684,521 7,033,187
$ 15,987,860 11,777,311 $ 17,472,749 $ 22,105,443 $ 23,676,198 $ Fiscal Year
111
190
Schedule 2
City of Susanville
Changes in Net Position
Last Ten Fiscal Years
Accrual Basis of Accounting
2014 2015 2016 2017 2018
Expenses
Governmental activities:

General government $943,178 $975,485 $528,514 $478,702 $969,254 Public safety 3,373,503 3,701,118 3,742,579 4,373,474 4,596,119 Streets 1,006,322 956,939 1,898,033 2,960,232 1,747,522 Protective Inspections 237,433 207,152 205,391 189,901 271,724 Community services 328,807 259,123 1,300,553 301,068 443,536 Community development 141,523 153,554 343,208 300,922 295,884 Interest on long term debt 289,184 311,569 327,131 308,646 182,460 Total governmental activities expenses 6,319,950 6,564,940 8,345,409 8,912,945 8,506,499 Business-type activities:

Rodeo 00000
Airport 219,979 217,642 274,051 278,398 274,429
Water 1,989,849 2,091,691 2,166,356 2,217,023 2,146,258 Geothermal 57,744 57,029 79,069 85,691 97,254
Natural Gas 4,170,689 3,766,602 4,180,922 4,171,912 3,868,114 Swimming Pool (closed in 2004-05) 00000
Day Care 00000
Golf Course 350,476 386,181 354,273 314,412 299,189
Total business-type activities expenses 6,788,737 6,519,145 7,054,671 7,067,436 6,685,244 Total primary government expenses $13,108,687 $13,084,085 $15,400,080 $15,980,381 $15,191,743 Program Revenues
Governmental activities
Charges for services:

General government $103,486 $106,054 $76,733 $126,315 $239,593 Public safety 52,593 136,678 83,481 119,412 131,708
Streets 1,715 4,448 197,411 1,581 526
Protective Inspections 117,560 94,793 84,744 87,614 136,430 Community services 178,785 74,784 88,125 57,475 103,050 Community development 52,538 38,249 48,694 12,607 14,856 Operating grants and contributions 1,096,669 925,909 1,030,102 823,166 1,373,417 Capital grants and contributions 896,293 738,606 987,566 2,475,395 924,443 Total governmental activities program revenues 2,499,639 2,119,521 2,596,856 3,703,565 2,924,023 Business-type activities:

Charges for services:

Rodeo 00000
Airport 81,680 97,128 69,394 72,722 89,210
Water 2,280,947 2,194,458 2,188,967 2,755,870 2,751,353 Geothermal 92,732 85,004 86,132 69,227 87,385
Natural Gas 4,581,073 3,945,118 4,182,414 4,681,446 4,542,782 Swimming Pool 00000
Day Care 00000
Golf Course 334,239 354,173 334,800 242,509 259,707
Operating grants and contributions 00000
Capital grants and contributions 61,354 586,883 163,969 43,524 163,666 Total business-type activities program revenues 7,432,025 7,262,764 7,025,676 7,865,298 7,894,103 Total primary government program revenues $9,931,664 $9,382,285 $9,622,532 $11,568,863 $10,818,126 Fiscal Year
112
191
2019 2020 2021 2022 2023
$1,244,074 $609,300 $837,240 $668,276 $2,331,966
4,064,275 5,526,037 6,120,015 4,365,037 7,199,915
1,079,366 1,278,011 1,273,293 1,305,474 1,521,435
226,543 185,822 176,004 244,339 0
346,781 340,401 410,160 513,650 1,198,098
242,905 546,163 159,255 236,045 247,754
397,707 262,643 56,661 245,702 409,156
7,601,651 8,748,377 9,032,628 7,578,523 12,908,324
0 00
264,759 279,308 276,776 281,288 278,439
2,137,896 2,343,498 2,327,176 3,419,890 2,883,328
95,228 97,672 91,969 139,023 116,011
4,054,528 3,860,551 3,531,090 4,786,890 4,820,031
0 0 00
0 0 00
298,278 270,412 289,892 331,085 453,728
6,850,689 6,851,441 6,516,903 8,958,176 8,551,537
$14,452,340 $15,599,818 $15,549,531 $16,536,699 $21,459,861 $228,967 $402,309 $48,405 $62,316 $530,620
213,694 324,893 859,362 895,189 259,801
0 0 0 00
122,968 124,946 168,298 123,573 0
25,863 117,623 214,588 225,295 285,246
33,233 16,038 10,963 20,284 168,445
583,063 837,781 933,086 2,677,707 2,320,511
2,707,994 3,321,307 1,503,002 1,398,349 2,914,425
3,915,782 5,144,897 3,737,704 5,402,713 6,479,048
0 0 00
87,927 125,229 112,102 122,580 134,614
2,722,266 2,923,739 3,013,537 2,989,643 2,905,783
102,314 93,757 93,036 91,474 91,217
4,792,701 4,589,085 4,234,497 4,725,359 5,103,217
0 0 00
0 0 00
250,089 249,367 376,606 361,030 496,902
0 0 00
34,471 1,499,085 0 0 0
7,989,768 9,480,262 7,829,778 8,290,086 8,731,733
$11,905,550 $14,625,159 $11,567,482 $13,692,799 $15,210,781 Fiscal Year
113
192
Schedule 2
City of Susanville
Changes in Net Position
Last Ten Fiscal Years
Accrual Basis of Accounting
2014 2015 2016 2017 2018
Net (Expense)/Revenue
Governmental activities ($3,820,311) ($4,445,419) ($5,748,553) ($5,209,380) ($5,582,476) Business-type activities 643,288 743,619 (28,995) 797,862 1,208,859 Total primary government net expense ($3,177,023) ($3,701,800) ($5,777,548) ($4,411,518) ($4,373,617) General Revenues and Other Changes in
Net Assets Governmental activities:

Taxes
Property taxes $1,455,797 $858,107 $877,382 $915,021 $942,800 Sales taxes 1,118,328 1,209,899 1,449,788 2,017,089 2,145,343 Transient Lodging Taxes 400,724 442,376 455,099 507,981 520,158 Franchise taxes 49,776 24,242 36,767 34,409 26,211
Business license taxes 221,939 237,758 241,985 278,286 200,760 Other taxes 39,786 37,731 42,996 40,227 48,364
Property tax in lieu of sales tax, unrestricted 384,924 358,806 349,848 0 0 Property tax in lieu of VLF, unrestricted 1,335,361 1,353,298 1,389,739 1,354,666 1,545,612 Use of Money and Property 34,761 11,607 39,206 46,938 63,022 Gain (loss) on sale of capital assets 0 7,514 0 0 0
Miscellaneous revenues 00000
Transfers (410,379) (55,164) 111,036 136,074 134,583
Total governmental activities 4,631,017 4,486,174 4,993,846 5,330,691 5,626,853 Business-type activities:

Use of Money and Property 18,698 24,380 35,242 48,312 118,413 Gain on sale of capital assets 00000
Miscellaneous revenues 00000
Transfers 410,379 55,164 (111,036) (136,074) (134,583)
Total business-type activities 429,077 79,544 (75,794) (87,762) (16,170) Total primary government 5,060,094 4,565,718 4,918,052 5,242,929 5,610,683 Change in Net Position
Governmental activities 810,706 40,755 (754,707) 121,311 44,377 Business-type activities 1,072,365 823,163 (104,789) 710,100 1,192,689 Total primary government $1,883,071 $863,918 ($859,496) $831,411 $1,237,066 Source: City of Susanville's audited financial statements Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003-04.

Fiscal Year
114
193
2019 2020 2021 2022 2023
($3,685,869) ($4,349,634) ($5,294,924) ($2,175,810) ($6,429,276) 1,139,079 2,628,821 1,312,875 618,822 180,196
($2,546,790) ($1,720,813) ($3,982,049) ($1,556,988) ($6,249,080) $980,191
$950,310 $1,047,463 $1,081,577 $1,198,106 $1,068,192
1,823,116 1,541,794 1,967,257 $2,309,006 $3,833,632
534,174 454,076 454,622 $503,097 $594,682
22,972 18,593 2,753 $13,364 $11,001
263,874 216,050 265,769 $539,663 $359,427
71,768 15,828 32,901 $25,799 $19,628
0 0 $0 $0
1,578,415 1,583,061 1,580,790 $1,655,849 $1,702,570
91,527 53,413 25,103 ($71,740) $193,180
0 0 $0 $0
0 19,785 0 $0 $0
113,028 841,075 (15,000) ($15,000) $0
5,449,183 5,791,138 5,395,772 6,158,144 7,782,312
268,238 235,145 56,166 16,538 187,742
0 000
0 000
(113,028) (841,075) 15,000 -81,585 0
155,210 (605,930) 71,166 (65,047) 187,742
5,604,393 5,185,208 5,466,938 6,093,097 7,970,054
1,763,314 2,187,658 100,848 4,078,919 1,403,036
1,294,289 2,022,891 1,384,041 553,775 367,938
$3,057,603 $4,210,549 $1,484,889 $4,632,694 $1,770,974
Fiscal Year
115
194
Schedule 3
City of Susanville
Fund Balances - Governmental Funds,
Last Ten Fiscal Years
Modified Accrual Basis of Accounting
2014(1) 2015 2016 2017 2018
General Fund
Reserved $0 $0 $0 $0 $0
Unreserved 00000
Nonspendable 445,196 104,869 101,417 90,344 109,993
Restricted 18,145 18,196 18,196 18,375 18,615
Committed 00000
Assigned 17,066 63,462 63,462 113,679 303,927
Unassigned 1,859,126 2,319,757 2,521,280 3,054,261 3,125,488 Total general fund 2,339,533 2,506,284 2,704,355 3,276,659 3,558,023 All Other Governmental Funds
Reserved 00000
Unreserved, reported in:

Special revenue funds 00000
Capital projects funds 00000
Debt Service Funds 00000
Nonspendable 00000
Restricted 4,097,490 3,921,486 3,210,802 3,073,388 2,676,344 Committed 00000
Assigned 44,599 596,858 632,817 351,353 548,240
Unassigned 0000 (165,397)
Total all other governmental funds $4,142,089 $4,518,344 $3,843,619 $3,424,741 $3,059,187 Source: City of Susanville's audited financial statements (1) The City includes advances to other funds as nonspendable Fiscal Year
116
195
2019 2020 2021 2022 2023
$0 $0 $0
0 $0 $0
109,653 100,427 118,129 $128,665 $230,694
18,615 19,133 19,563 $19,590 $19,555
0 0 $0 $0
223,380 426,694 589,615 $250,195 $267,302
3,462,765 478,357 604,557 $2,613,167 $6,902,246
3,814,413 1,024,611 1,331,864 3,011,617 7,419,797
0 00
0 0 00
0 00
0 00
0 197,719 0
2,957,539 2,890,235 3,675,780 3,313,145 3,263,232
0 0 00
326,997 97,065 67,771 67,772 66,859
(128,652) (385,212) (2,741) (51,385) (13,361)
$3,155,884 $2,602,088 $3,938,529 $3,329,532 $3,316,730
Fiscal Year
117
196
Schedule 4
City of Susanville
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
Modified Accrual Basis of Accounting
2014 2015 2016 2017 2018
Revenues
Taxes and assessments $5,035,959 $4,495,698 $4,907,453 $5,104,539 $5,493,736 Licenses and permits 101,323 78,350 86,142 87,084 114,154 Fines and forfeitures 24,301 95,579 99,371 94,449 79,169 Use of money and property 54,042 45,589 72,112 83,168 94,655 Intergovernmental revenues 1,985,090 1,293,514 1,999,435 3,280,340 2,302,882 Program income 14,824 27,271 2,910 2,910 20,000
Charges for services 71,367 74,323 83,214 151,018 307,453 Other revenues 249,062 150,233 261,704 45,330 62,007
Legal Settlement
Total revenues 7,535,968 6,260,557 7,512,341 8,848,838 8,474,056 Expenditures
General government 753,719 859,783 559,612 459,732 1,028,544 Public safety 3,285,119 3,478,557 3,705,924 3,908,056 4,299,489 Streets 973,660 973,736 2,003,878 2,974,325 1,734,312
Protective Inspections 229,397 205,594 213,935 191,767 258,145 Community services 209,120 199,819 1,274,122 284,846 427,010 Community development 216,459 153,555 356,909 307,596 287,325 Capital Outlay 64,123 182,134 315,516 57,939 50,707
Debt service:

Principal 236,367 390,777 427,488 513,770 424,876
Interest 168,604 430,116 313,639 307,056 182,421
Debt issuance cost 108,809 0 45,444 0 0
Total expenditures 6,245,377 6,874,071 9,216,467 9,005,087 8,692,829 Excess (deficiency) of revenues over (under)
expenditures 1,290,591 (1,704,126) (613,514) (156,249) (218,773) Other Financing Sources (Uses) .....

Contributions from trust funds
Transfers in 1,335,422 353,284 719,001 801,774 1,201,520 Transfers out (1,058,395) (455,583) (693,029) (494,940) (1,066,937) Payment to refunded debt escrow agent (4,798,191) 0000
Proceeds from sale of capital asset 4,300 7,499 1,500 2,841 0 Proceeds from debt issuance 4,907,000 0 1,200,000 0 0
Proceeds of long-term debt 00000
Total other financing sources (uses) 390,136 (94,800) 1,227,472 309,675 134,583 Special Item
Payment towards Unfunded Pension Liability
Net changes in fund balances 1,680,727 (708,314) (476,654) 153,426 (84,190) Debt service as a percentage of non-capital
expenditures 8.3% 12.3% 8.8% 9.2% 7.0%
Source: City of Susanville's audited financial statements Fiscal Year
118
197
2019 2020 2021 2022 2023
$5,236,015 $4,862,661 $5,372,508 $6,143,124 $7,572,621
110,100 98,955 146,625 $114,783 $152,029
43,220 26,857 35,558 $44,097 $33,379
157,021 115,413 40,287 ($57,195) $193,172
3,011,764 3,819,141 3,068,903 $4,302,650 $5,476,172
0 0 $0 $0
389,570 831,652 1,012,836 $592,349 $591,364
99,506 16,783 $0 $50,000
$516,583
9,047,196 9,771,462 9,676,717 11,139,808 14,585,320
747,423 666,501 729,402 901,970 462,940
3,981,685 4,452,669 5,125,431 5,129,378 5,088,507
899,280 915,714 818,359 822,736 1,108,067
226,543 185,822 176,004 244,339 0
340,624 334,913 331,395 434,886 1,116,878
242,905 938,415 159,255 236,045 247,754
1,446,778 2,386,145 441,947 1,216,759 2,533,791
568,915 3,869,121 177,577 182,459 544,043
352,984 264,597 58,653 52,620 322,146
0 0 195,128 0
8,807,137 14,013,897 8,018,023 9,416,320 11,424,126
240,059 (4,242,435) 1,658,694 1,723,488 3,161,194
..
1,038,117 3,990,414 296,327 1,018,246 1,626,715
(925,089) (3,091,577) (311,327) (881,716) (1,626,715)
0 000
0 000
0 0 8,279,512 0
0 0 000
113,028 898,837 (15,000) 8,416,042 0
(7,850,850)
353,087 (3,343,598) 1,643,694 2,288,680 3,161,194

12.5% 35.6% 3.1% 5.2% 9.7%
Fiscal Year
119
198
Schedule 5
City of Susanville
Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years
Total
Total Taxable Direct
Fiscal Less: Assessed Tax
Year Secured Utility Unsecured Tax Exemptions Value Rate 2014 $521,207,925 $41,856 $23,462,897 $11,615,402 $533,097,276 1.0389 2015 $519,626,089 $41,856 $21,828,632 $11,042,346 $530,454,231 1.0379 2016 $535,237,902 $41,856 $21,353,144 $10,785,608 $545,847,294 1.0396 2017 $553,097,267 $41,856 $21,842,156 $10,513,069 $564,468,210 1.0396 2018 $576,049,189 $41,818 $23,382,432 $10,318,697 $589,154,742 1.0544 2019 $602,821,995 $41,818 $24,212,708 $9,990,843 $637,067,364 1.0232 2020 $646,348,484 $41,818 $25,019,647 $9,897,235 $681,307,184 1.0394 2021 $645,421,455 $41,818 $24,035,311 $9,756,364 $679,254,948 1.0506 2022 $676,067,010 $41,818 $23,725,282 $9,624,560 $709,458,670 1.0294 2023 $695,143,140 $41,818 $23,464,747 $9,529,875 $728,179,580 1.0395 Source:

Lassen County - Assessor's Office
Notes:

The voters of the State of California passed Proposition 13 in 1978 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property. Each year, the assessed value of property may be increased by an "Inflation factor" of no more than 2%. Property is assessed at 100% of the original purchase price and is reassessed upon each subsequent sale.

Tax rates are per $1,000 of assessed value.
120
199
Schedule 6
City of Susanville
Direct and Overlapping Property Tax Rates,
Last Ten Fiscal Years
Rate per $1,000 of assessed value
City Direct Rate Overlapping Rates (a)
Total
Fiscal Basic Elementary Elementary Elementary Direct
Year Rate School Bond Bond 2009 Bond 2020 Rate
2014 1.0000 0.0389 1.0389
2015 1.0000 0.0379 1.0379
2016 1.0000 0.0396 1.0396
2017 1.0000 0.0396 1.0396
2018 1.0000 0.0544 1.0544
2019 1.0000 0.0232 1.0232
2020 1.0000 0.0394 1.0394
2021 1.0000 0.0506 1.0506
2022 1.0000 0.0294 1.0294
2023 1.0000 0.0395 1.0395
Source:

Lassen County
Notes:

The city's basic property tax rate is the same rate as Lassen County.

Refer to Schedule5 for explanation on direct rate limits. (a) Overlapping rates are those of city and county governments that apply to property owners within the City of Susanville. Not all overlapping rates apply to all Susanville property owners.
121
200
Schedule 7
City of Susanville
Principal Property Tax Payers
Current Year and Nine Years Ago
2023
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value (a) Value Rank Value (a)
Wal-Mart Real Estate Bus Trust 12,616,173 1 2.14% Wal-Mart 11,245,412 1 2.12% Rassier-Mariani 11,840,767 2 2.01% Rassier-Mariani 10,455,357 2 1.97% Eagle Lake Village LP 8,287,774 3 1.41% Triple E Investments 8,014,396 3 1.51% ACS Lassen Shopping Center 8,239,385 4 1.40% Ventas Eagle 7,492,465 4 1.41% Cunha Enterprises LP ETAL 6,102,574 5 1.04% Foxdale Associates LTD (Walgreens) 6,435,466 5 1.21% Foggy-Declaration of Trust 5,460,000 6 0.93% Lassen Station LP 4,462,343 6 0.84% Malhi Hotels LLC 5,108,942 7 0.87% Susanville Citrus Manor 4,455,562 7 0.84% CPI SUSANVILLE I, LLC ETAL 4,667,603 8 0.79% Trav-Cor & Investment Inc 3,333,839 8 0.63% Triple E Investment Co 4,467,811 9 0.76% Standiford, Larry & Reta 3,920,047 9 0.74% Hidden Acres MHP, LP 3,630,029 10 0.62% 2005 River LLC 3,339,248 10 0.63% Total $70,421,058 11.95% 63,154,135 11.90%
Source:

Lassen County Assessors Office
Notes:
(a) For total taxable assessed value, see schedule 5.
2014
122
201
Schedule 8
City of Susanville
Property Tax Levies and Collections,
Last Ten Fiscal Years
Collected within the
Fiscal
Year County Taxes AB8 City AB8 Collections
Ended Levied Allocation Percent Allocations Percentage in Subsequent Percentage June 30 Factor Growth Fiscal Year Amount of Levy Years Amount of Levy 2014 20,794,398 0.04141142 0.96946497 $834,831 $749,821 89.82% $76,606 $826,427 98.99% 2015 19,640,765 0.04092502 0.97446787 $782,647 $771,169 98.53% $9,654 $780,823 99.77% 2016 19,123,922 0.04124459 1.01338253 $793,121 $789,650 99.56% $6,153 $795,803 100.34% 2017 19,229,690 0.04128233 1.02660700 $814,223 $802,646 98.58% $29,151 $831,797 102.16% 2018 19,723,288 0.04093324 1.03134402 $839,744 $834,354 99.36% $34,541 $868,895 103.47% 2019 20,330,453 0.04158277 1.07134905 $899,659 $896,963 99.70% $59,416 $956,379 106.30% 2020 22,225,537 0.04221449 1.04288336 $938,240 $929,403 99.06% $56,058 $985,461 105.03% 2021 23,195,314 0.04317862 1.06746901 $1,001,542 $956,221 95.47% $16,522 $972,743 97.12% 2022 23,693,849 0.04212989 0.99668269 $998,219 $1,118,239 112.02% $6,101 $1,118,239 112.02% 2023 24,594,426 .046227.12 1.22262342 $1,220,446 $994,696 81.50% $994,696 81.50% Sources:

Lassen County Assessors Office
Notes:

Taxes levied are totals for Lassen County. Taxes are based on 1% of assessed value. Taxes are distributed using an AB8 allocation factor. Therefore, city tax amounts will not compute using this 1% as a basis.

Property Tax amounts collected for 2014 will not match the CAFR due to the City receiving the PTA fees from the County that were charged for the Property Tax In-Lieu payments and held in trust during the court disputes.

Fiscal Year of the Levy Total Collections to Date
123
202
Schedule 9
City of Susanville
Ratios of Outstanding Debt by Type,
Last Ten Fiscal Years
General Special Total Certificate Capital
Fiscal Obligation Capital Term Internal Assessment Governmental Revenue Term of Leases Year Bonds (7) Leases (10) Loans (8)(13) Borrowing (12) Bonds (3) Activities Bonds (6)(11) Loan (4)(9) Participation (6) (5)(9) 2014 1,457,972 4,859,000 500,000 6,816,972 33,440,000 856,000 2015 1,370,195 4,666,000 390,000 6,426,195 32,955,000 841,000 2016 2,480,708 4,448,000 270,000 7,198,708 32,445,000 826,000 2017 2,324,718 4,221,000 140,000 6,685,718 31,905,000 810,000 2018 2,164,842 4,096,000 0 6,260,842 31,010,949 793,000 2019 1,996,927 3,695,000 0 5,691,927 30,715,000 775,000 2020 1,822,806 0 2,800,462 0 4,623,268 26,792,300 757,000 2021 1,645,229 0 2,639,215 0 4,284,444 25,929,100 738,000 2022 1,462,770 10,601,500 2,474,648 0 14,538,918 22,022,900 718,000 2023 1,273,101 10,187,234 2,306,692 0 13,767,026 24,120,600 697,000 Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Personal Income for the City is unavailable. Substituted property values in this calculation. See Schedule 5 for values. (2) Population data can be found in schedule 13.
(3) Payment for this bond is responsibility of property owners within the assessment district. (4) In 2008 the Golf Course Loan was established
(5) In 2010 the Golf Course entered into a Capital Lease to acquire new equipment. (6) In August of 2010, The Susanville Public Financing Authority issued new Revenue Refinancing Bonds and paid off the 2000 & 2004 Water Revenue Bonds and the Series 2003, A, B, & C Certificate of Participation Natural Gas Bonds (7)
(8) In September 2013, the City entered into a loan agreement to pay off the City's side fund liability with CalPERS (9) City paid off the Golf Course Loan and Golf Course Equipment Lease (10)
(11)
(12)
(13)
In September 2019, The Susanville Public Financing Authority issued the 2019 Series Water and Natural Gas Bonds and paid off the 2010 Revenue Refinancing Bonds
In June 2020 by Resolution No20-5785, the City borrowed $3,161,549 to pay off the loan with Umpqua Bank for the CalPERS Side Fund.

The General Fund, Public Safety Police, Public Safety Fire , Streets and Water Funds are responsible for repayment to the Natural Gas Fund according to a debt service repayment plan.

In April 2022 by Resolution No. 22-5987, the City borrowed $10,601,500 through site lease agreements to finance the City's outstanding unfunded accrued liability to CalPERS. The General Fund, Public Safety Police, Public Safety Fire, Community Services, Streets, Water, and Gas are responsible for repayment of the site lease agreements according to a debt service repayment plan.

Governmental Activities Business-type Activities
In June 2012, The Susanville Public Financing Authority issued a new lease financing (City Hall Refunding Project) and paid off the 2002 Refunding Lease Bonds with Union Bank
In September 2015 the City entered into a capital lease ($1,200,000) with Umpqua Bank to finance the City portion due to the Honey Lake Valley JPA for construction of a community pool.
124
203
Total Total Percentage
Business-type Primary of Property Per
Activities Government Values (1) Capita (2)
34,296,000 41,112,972 7.01% 4,089
33,796,000 40,222,195 7.75% 4,504
33,271,000 40,469,708 7.37% 4,651
32,715,000 39,400,718 7.17% 4,700
31,803,949 38,064,791 6.69% 4,572
31,490,000 37,181,927 5.98% 4,335
27,549,300 32,172,568 5.46% 4,604
26,667,100 30,951,544 4.74% 3,633
22,740,900 37,279,818 4.36% 3,604
24,817,600 38,584,626 5.12% 3,994
125
204
Schedule 10
City of Susanville
Legal Debt Margin Information
Last Ten Fiscal Years
2014 2015 2016 2017 2018
Assessed Valuation $533,097,276 $530,454,231 $545,847,294 $564,468,210 $589,154,742 Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Valuation $133,274,319 $132,613,558 $136,461,824 $141,117,053 $147,288,686 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt Limit $19,991,148 $19,892,034 $20,469,274 $21,167,558 $22,093,303 Total net debt applicable to limit $1,457,972 $1,370,195 $2,480,708 $2,324,718 $2,164,842 Legal debt margin $18,533,175 $18,521,839 $17,988,566 $18,842,840 $19,928,460 Total net debt applicable to the limit 7.3% 6.9% 12.1% 11.0% 9.8% as a percentage of debt limit
Source:

Lassen County Assessors Office
City of Susanville Finance Department
Notes:

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. With the implementation of Prop 13, property is now assessed at 100% of market value (as of the most recent ownership of that parcel). The computations above reflect the 25% conversion from full valuation that would have been in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Refunding of unfunded liability owed to CalPERS constitutes an obligation imposed by law and therefore is exempt from the voter approval requirement of the California Constitution's debt limitation provision (Article XVI, section 18), therefore the amounts have been removed from the 2014, 2015 years
Fiscal Year
126
205
2019 2020 2021 2022 2023
$637,067,364 $681,307,184 $679,254,948 $709,458,670 $728,179,580 25% 25% 25% 25% 25%
$159,266,841 $170,326,796 $169,813,737 $177,364,668 $182,044,895 15% 15% 15% 15% 15%
$23,890,026 $25,549,019 $25,472,061 $26,604,700 $27,306,734 $1,996,927 $1,822,806 $1,645,229 $1,462,770 $1,273,101
$21,893,099 $23,726,213 $23,826,832 $25,141,930 $26,033,634

8.4% 7.1% 6.5% 5.5% 4.7%
Fiscal Year
127
206
Schedule 11
City of Susanville
Direct and Overlapping Governmental Activities Debt
As of June 30
Estimated City's Share
Outstanding Percentage of Overlapping
Governmental Unit: Debt 6/30/23 Applicable Debt
Susanville School Bond 2009 $665,000 100% $665,000
Susanville School Bond 2010 $1,889,672
Susanville School Bond 2020 $3,235,000
$5,789,672
Subtotal, overlapping debt $5,789,672
City of Susanville Direct Debt $1,822,806
Total direct and overlapping debt $7,612,479
Sources: Lassen County.

Note:

Overlapping governments are those that coincide, at least in part, with geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the property taxpayers of the City of Susanville.

This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property tax payers should be taken into account.

However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government
128
207
Schedule 12
City of Susanville
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of
General CalPERS Actual Taxable
Fiscal Obligation Capital Refunding Value of Per
Year Bonds Leases Loans Total Property Capita (a)
2014 1,457,972 4,859,000 6,316,972 1.18% 691
2015 1,370,195 4,666,000 6,036,195 1.14% 661
2016 2,480,708 4,448,000 6,928,708 1.27% 801
2017 2,324,718 4,221,000 6,545,718 1.16% 760
2018 2,164,842 4,096,000 6,260,842 1.06% 726
2019 1,996,927 3,695,000 5,691,927 0.89% 648
2020 1,822,806 0 1,822,806 0.27% 226
2021 1,645,229 0 1,645,229 0.24% 186
2022 1,462,770 0 1,462,770 0.21% 170
2023 1,273,101 0 1,273,101 0.17% 136
Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) Population data can be found in Schedule 13
129
208
Schedule 13
City of Susanville
Pledged Revenue Coverage
Last Ten Fiscal Years
Gross Less: Net
Fiscal Income and Operating Available
Year Revenue Expenses (d) Revenue Principal Interest Coverage 2014 2,290,494 $ 1,286,924 $ 1,003,570 $ 255,000 $ 378,735 $ 1.58 2015 2,199,120 1,365,308 833,812 260,000 375,669 1.31
2016 2,193,392 1,425,673 767,719 265,000 371,119 1.21
2017 2,794,591 1,479,844 1,314,747 270,000 366,384 2.07 2018 2,722,257 1,477,798 1,244,459 275,000 359,075 1.96 2019 2,844,198 1,397,731 1,446,467 303,000 440,624 1.95 2020 3,007,920 2,225,049 782,871 244,000 138,951 2.04
2021 3,014,957 2,551,562 463,395 338,200 180,071 0.89
2022 2,975,320 2,172,557 802,763 347,600 170,653 1.55
2023 2,964,620 2,259,288 705,332 357,300 160,973 1.36
Gross Less: Net
Fiscal Income and Operating Available
Year Revenue Expenses (d) Revenue Principal Interest Coverage 2014 4,589,502 $ 2,385,745 $ 2,203,757 $ 205,000 $ 1,414,761 $ 1.36 2015 3,956,377 1,956,454 1,999,923 225,000 1,409,594 1.22 2016 4,200,070 2,431,844 1,768,226 245,000 1,402,155 1.07 2017 4,725,382 2,468,943 2,256,439 270,000 1,393,731 1.36 2018 4,606,134 2,223,087 2,383,047 300,000 1,384,450 1.41 2019 4,947,906 2,392,595 2,555,311 330,000 1,384,267 1.49 2020 4,733,385 3,456,435 1,276,950 380,000 466,240 1.51 2021 4,288,245 2,538,653 1,749,592 525,000 706,115 1.42 2022 4,758,367 2,578,526 2,179,842 535,000 743,050 1.71 2023 5,226,341 3,269,925 1,956,417 545,000 732,350 1.53 Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Operating expenses do not include principal, interest, depreciation, amortization or grant expenses. (a) Special Assessment Collections will not tie to the financial statement due to the yearly prinicipal payment being booked to the revenue account to reduce the investment in bonds on the balance sheet (b) In June 2012, the City refinanced the 2002 Refunding Lease Revenue Bonds held with Union Bank.

The new lease agreement with Compass bank did not require any pledged revenues. (c) The new CalPERS refunding loan did not require any pledged revenue. Loan is being reported in governmental debt service, but will be charged to all funds that incur payroll expenses based on a formula ( d ) Cost of Issuance and paying off CalPERS Refunding Loan not included in the operating expenses for 2019-20 Debt Service
Debt Service
Water Revenue Bonds
Natural Gas Revenue Bonds
130
209
Special (a)
Assessment
Collections Debt Service
Principal Interest Coverage
129,324 105,000 42,819 0.87
128,052 110,000 34,488 0.89
149,933 120,000 25,565 1.03
1,799 130,000 15,888 0.01
0 140,000 5,425 0.00
Vehicle Property Tax
License In Lieu of Debt Service
Fees VLF Principal Interest Coverage
83,367 53,215
87,777 50,273
88,707 47,943
90,989 44,036
94,876 40,819
100,915 37,483
104,121 33,860
104,577 30,233
107,459 26,547
112,669 22,761
Miller /Fletcher Assessment Bonds
City Hall Improvement Lease (b)
131
210
Schedule 14
City of Susanville and County of Lassen
Demographic and Economic Statistics
Last Ten Years
County
Total Total County Per Capita City
Fiscal City Prison City & Prison County Personal Personal Unemployment Year Population Population Population Population Income Income Rate 2014 9,143 6,689 15,832 32,581 $1,061,423,000 $33,432 11.40% 2015 9,129 6,380 15,509 32,092 $1,085,466,000 $34,630 9.00% 2016 8,648 5,966 14,614 30,780 $1,155,947,000 $37,446 10.30% 2017 8,611 6,435 15,046 30,918 $1,143,237,000 $36,686 6.90% 2018 8,618 6,336 14,954 30,911 $1,165,660,000 $37,844 6.70% 2019 8,781 6,227 15,008 30,150 $1,092,110,000 $35,581 4.60% 2020 8,076 5,641 13,717 28,833 $1,215,362,000 $40,490 6.30% 2021 8,856 5,658 14,514 27,572 $1,306,255,000 $39,394 5.50% 2022 8,587 4,216 12,803 33,159 $1,217,102,000 $40,700 5.00% 2023 9,333 2,457 11,790 28,376 n/a n/a 3.80%
Sources:

Personal Income and Per capita data - Bureau of Economic Analysis City and County population - State of California Department of Finance Demographic Total County population includes the correctional facilities 132
211
Schedule 15
City of Susanville
Principal Employers
Current Year and Eleven Years Ago
2023 2012
Percentage Percentage
2022 of Total City of Total City
Employer (b) Employees Rank Employment (a) Employer Employees Rank Employment (a) High Desert State Prison 953 1 29.69% High Desert State Prison 1400 1 28.81% Lassen County 493 3 15.36% California Correctional Center 1055 2 21.71% Lassen Community College 416 4 12.96% Lassen County 445 3 9.16% Banner Health (all sites) 280 5 8.72% Banner Lassen Medical Center 203 4 4.18% Susanville School District 232 7 7.23% Wal-Mart 185 5 3.81% Wal-Mart* 173 6 5.39% Lassen Community College 165 6 3.40% Lassen Union High School 161 13 5.02% Diamond Mountain Casino 150 7 3.09% Diamond Mountain Casino 123 8 3.83% Susanville Indian Rancheria 129 8 2.65% City of Susanville 120 10 3.74% Susanville School District 110 9 2.26% Northeastern Rural Health 118 9 3.68% Countryvilla Riverview Rehab 102 10 2.10% Susanville Indian Rancheria 116 12 3.61% Lassen Union High School 93 11 1.91% Lassen National Forest ** 113 - 3.52% Northeastern Rural Health 93 12 1.91% Safeway 103 11 3.21% Safeway 92 13 1.89%
Susanville Supermarket 58 14 1.81% City of Susanville 57 14 1.17% Lassen Nursing & Rehab 54 15 1.68% Susanville Supermarket 54 15 1.11% 3513 109.44% 4333 89.16%
Source:

Employment Development Department, Listed Employers
Notes:
(a) Total Labor Force for the City is 3,210 (2023) and 4860 (2012) (b) Employers listed are within the city limits or have been annexed. *Requested Data Not Provided From Employer
**Lassen National Forest only includes employees listed as Susanville Duty Station 133
212
Schedule 16
City of Susanville
Full-time City Governmental Employees by Function/Program, Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Administration 3.5 3.5 3.5 3.5 3.5 3.5 2.5 2.5 2.5 3.5
City Clerk 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Finance 5555555555
Police 19 20 20 20 20 20 21 19 20 18
Fire 9999999999
Community Development 3333333433
Community Services 1111111222
Public Works 20 21 21 20 20 20 20 22 22 25
Total 62 64 64 63 63 63 63 65 65 67
Source:

City Finance Department
Notes:

Number differs from principal employers due to temporary employees included A full-time employee is scheduled to work 2,080 hours per year.

Fiscal Year
134
213

THIS PAGE INTENTIONALLY LEFT BLANK
135
214
Schedule 17
City of Susanville
Operating Indicators by Function/Program,
Last Ten Fiscal Years
2014 2015 2016 2017 ** 2018 ***
Function/Program
General Government
Building Permits Issued 317 336 174 322 362
Building Inspections Conducted 843 788 429 858 784
Police
Physical arrests 487 496 546 529 459
Parking violations 74 111 124 267 166
Traffic violations 182 374 361 169 237
Fire
Emergency responses 853 1137 1193 1259 1187
Fires extinguished 49 49 69 71 59
Inspections 122 124 105 117 85
Public Works
Street resurfacing (miles) 2.1 0 0.79 3.73 0.58
Potholes repaired 205 348 197 400 375
Community Services
Athletic field permits issued 44444
Water
New connections 22420
Average daily consumption 2708 1849 1547 1768 1800
(thousands of gallons)
Peak daily consumption 5230 5041 3859 3643 3594
(thousands of gallons)
Natural Gas
New connections 174 78 52 20 28
Average daily consumption *
MMBTU's 591 505 561 633 619
Peak daily consumption
MMBTU's 1795 1595 1795 1838 1555
Sources:

Various City Departments
Notes:

City's Natural Gas Department began operating in 2002
1 MMBTU equals one million British thermal units
* Corrected average daily consumption for 2014
** Corrected prior year meter installations
***Corrected prior year paving
Fiscal Year
136
215
2019 2020 2021 2022 2023
371 332 433 477 466
684 428 488 533 534
457 373 240 290 398
172 96 273 249 221
427 431 285 379 447
1257 1297 1570 1707 1730
54 55 27 10 59
146 168 134 181 129

1.68 2.26 0 0.48 0
389 315 270 320 400
44 444
3 0 2 8 13
1671 1726 1877 1768 2705
3279 3279 3415 3442 5433
20 15 36 71 19
620 618 589 577 709
1590 1677 1339 964 1345
Fiscal Year
137
216
Schedule 18
City of Susanville
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018
Function/Program
Police
Stations 11111
Patrol units 13 14 14 14 12
Fire
Fire Stations 11111
Fire engines 76666
Public works
Streets (miles) 54 54 54 54 54
Highways (miles) 00000
Street lights 534 534 534 534 534
Traffic signals 00000
Community Services
Parks acreage 147 147 147 147 147
Playgrounds 22222
Baseball/softball diamonds 33333
Soccer/football fields 11111
Museums 11111
Swimming pools 00000
Water
Water mains (miles) 65 65 65 65 65
Fire Hydrants 432 434 434 434 434
Storage capacity (thousands of gallons) 4000 4000 4000 4000 4000 Water meters 3805 3807 3811 3813 3813
Natural Gas
Gas mains (miles) 61 61 61 61 61
Gas meters 3075 3153 3180 3200 3228
Sources:

Various City departments
Notes:

Traffic Signals and Highways are owned by CalTrans.

City's Natural Gas Department began operating in 2002
In December 2005, Roosevelt Pool was closed due to structural damage to the building that housed the pool.

Fire Engines includes Ladder Trucks
Fire Department provided corrected fire hydrant numbers for 2011-2014 Fiscal Year
138
217
2019 2020 2021 2022 2023
11 1 1 1
12 11 9 9 9
11 1 1 1
66 5 6 7
54 54 54 54 54
00 0 0 0
535 535 535 535 535
00 0 0 0
147 147 147 147 147
22 2 2 2
33 3 3 3
11 1 1 1
11 1 1 1
00 0 0 0
65 65 65 65 65
434 434 434 434 434
4000 4000 4000 4000 4000
3816 3816 3788 3788 3788
61 61 61 61 61
3248 3261 3287 3293 3363
Fiscal Year
139
218
Schedule 19
City of Susanville
Water Department
Water Sold by Type of Customer
Last Ten Fiscal Years
(In Millions of Gallons)
2014 2015 2016 2017 2018
Residential 487.15 485.07 414.54 446.83 435.91
Commercial 202.28 197.26 158.21 169.11 178.95
Total 689.43 682.34 572.75 615.94 614.86
Water Sales $2,280,209 $2,185,204 $2,187,569 $2,725,529 $2,750,970 City Direct Rate Per Gallon 0.0033 0.0032 0.0038 0.0044 0.0045 Source:

City of Susanville Finance Department
Notes:

Total Water Revenue equals charges for services as found in schedule 2.

Fiscal Year
140
219
2019 2020 2021 2022 2023
445.90 458.70 555.67 512.81 438.56
182.28 177.58 191.52 190.36 177.40
628.17 636.28 747.19 703.17 615.96
$2,722,266 $2,923,739 $3,013,537 $2,989,643 $2,905,783

0.0043 0.0046 0.0040 0.0043 0.0047
Fiscal Year
141
220
Schedule 20
City of Susanville
Water Department
Water Rates
Last Eighteen Fiscal Years
Average
Fiscal Monthly Infrastructure Rate per
Year Ended Base Surcharge 1,000
June 30 Rates Gallons
2014 $23.65 (A) $1.66
2015 $23.65 (A) $1.66
2016 $23.65 (A)(B) $3.42/$2.86
2017 $23.65 $15.00 (A)(C) $2.18/$1.51
2018 $23.65 $15.00 (A)(C) $2.18/$1.51
2019 $23.65 $15.00 (A)(C) $2.18/$1.51
2020 $23.65 $15.00 (A)(C) $2.18/$1.51
2021 $23.65 $15.00 (A)(C) $2.18/$1.51
2022 $23.65 $15.00 (A)(C) $2.18/$1.51
2023 $23.65 $15.00 (A)(C) $2.18/$1.51
Source
City of Susanville Finance Department
Notes:

Rates are based on 5/8" meter, which is standard household meter size.

Commercial accounts charged differently based on meter size. (A) First 300 cubic feet now included in base rate.
(B)Resolution No. 16-5297 set new water rates based on the 2016 Water Rate Analysis and Calculation report.

This study put an end to the old tiered usage system and adopted rates for irrigation (April - October) and non-irrigation (November - March) watering season.
(C)Resolution No. 16-5339 set new water rates based on a revised 2016 Water Rate Analysis and Calculation report.

This revised study recalculated the cost to provide the service by removing some of the Capital Improvement Projects.

New irrigation and non-irrigation season rates were adotped along with a monthly infrasturcture surcharge based on meter size. 142
221
Schedule 21
City of Susanville
Water Department
Top Ten Water Customers
Current Year and Nine Years Ago
2023 2014
Percent of Percent of
Water Total Water Water Total Water
Water Customer Charges (a) Revenues Charges (a) Revenues Lassen County $80,354 2.77% Lassen County $67,821 2.97% City of Susanville $36,508 1.26% Lassen High School District $38,966 1.71% Susanville Indian Rancheria/Casino $32,934 1.13% Hidden Acres Mobile Home Park $23,542 1.03% Lassen Union High School $28,368 0.98% Diamond View School $20,041 0.88% Diamond View School $20,688 0.71% Susanville Indian Rancheria/Casino $19,688 0.86% Hidden Acres Mobile Home Park $20,549 0.71% Meadowview Elementary School $13,042 0.57% Citrus Manor Apartments $14,759 0.51% City of Susanville $12,924 0.57% Meadowview Elementary $11,021 0.38% Mountain View Mobile Home Park $10,060 0.44% Drumm, Marie & Fred $9,510 0.33% Uptegrove, J. $9,436 0.41% Susan Village, LLC $8,145 0.28% Millview Apartments $9,114 0.40% $262,835 9.05% $224,635 9.84%
Source:

City of Susanville Finance Department
Notes:
(a)Total Water Revenue equals charges for services as found in schedule 2. 143
222
Schedule 22
City of Susanville
Gas Department
Gas Sold by Type of Customer
Last Fourteen Fiscal Years
(In Therms)
2014 2015 2016 2017 2018
Residential 1,018,373 937,529 1,002,170 1,280,163 1,076,806 Commercial 1,133,858 992,290 1,059,923 1,183,869 1,017,122 Total 2,152,231 1,929,819 2,062,093 2,464,032 2,093,928 Nat Gas Sales $4,580,771 $3,942,591 $4,181,963 $4,681,092 $4,542,332 City Direct Rate per Therm $2.13 $2.04 $2.03 $1.90 $2.17 Source:

City of Susanville Finance Department - Utility Billing Notes:

Total Gas Revenue equals charges for services as found in schedule 2. 100 cubic feet=100,000 BTUs=1 Therm
BTU is British Thermal Unit
Fiscal Year
144
223
2019 2020 2021 2022 2023
1,132,966 1,095,829 1,128,022 1,209,883 1,517,109
1,120,308 1,067,576 1,021,074 1,420,618 1,121,932
2,253,274 2,163,405 2,149,096 2,630,501 2,639,041
$4,792,701 $4,589,095 $4,234,497 $4,725,359 $5,103,217
$2.13 $2.12 $1.97 $1.80 $1.93
Fiscal Year
145
224
Schedule 23
City of Susanville
Gas Department
Gas Rates
Last Ten Fiscal Years
Fiscal Monthly Rate per
Year Ended Base Therm
June 30 Rates
2014 $7.00 $2.14 (A)(B)(C)(D)
2015 $7.00 $2.14 (A)(B)(C)(D)
2016 $7.00 $2.14 (A)(B)(C)(D)
2017 $7.00 $2.14 (A)(B)(C)(D)
2018 $7.00 $2.14 (A)(B)(C)(D)
2019 $7.00 $2.14 (A)(B)(C)(D)
2020 $7.00 $2.14 (A)(B)(C)(D)
2021 $7.00 $1.95 (A)(B)(C)(D)(E)
2022 $7.00 $1.95 (A)(B)(C)(D)(E)
2023 $7.00 $1.95 (A)(B)(C)(D)(E)
Source:

City of Susanville Finance Department
Notes:

City of Susanville Natural Gas Department began operation in 2002 (A) - The City of Susanville passed new gas rates in May of 2010 with Resolution #10-4625 removing winter and summer rates and applying one rate for customers. It gave new customer sign-ups a welcome rate for one year at $1.95 per therm.

Rates
0-450 Therms $2.20
450 + Therms $2.12
1 Therm=100,000 BTUs
(E) - Resolution 20-5797 reduced the residential rate to $1.85 per therm. The standard commercial rate is fixed at $1.95 per therm. The variable rate structure for customers consuming over 30,000 therms is fixed at $1.65 per therm.
(B) - Resolution 07-4306 set variable price index billing for the city's largest consuming customers capable of using alternate fuels as their primary energy source in place of natural gas. The variable gas rate is set monthly by comparing one or both of the propane and heating oil indexes to the city's variable monthly gas cost. The lowest of the three shall be used as the current billing rate. (C) - Resolution 07-4119 gave the city's largest users that qualify for the variable price index the opportunity to lock into a fixed price for all or a portion of their supply. The fixed price is a mutually agreeable fixed price offered through City of Susanville by Susanville's gas supplier for the quantities specified by the customer, plus customer's variable price natural gas adder.
(D) - Resolution 13-4952 reduced the natural gas rates by .06 cents beginning July 1, 2013 and expiring June 30, 2014. Rates effective Julty 1, 2013 will be $2.14/therm (0-450 therms) and $2.06/therm (450 or more therms) Resolution 14-5069 made the rate reduction permanent.
146
225
Schedule 24
City of Susanville
Gas Department
Top Ten Gas Customers
Current Year and Nine Years Ago
Percent of Percent of
Gas Total Gas Gas Total Gas
Gas Customer Charges (a) Revenues Gas Customer Charges (a) Revenues Lassen County $282,275 5.53% Lassen Community College 262,817 5.74% Banner Health (all sites) $241,818 4.74% Banner Lassen Hospital 244,923 5.35% Lassen Community College $196,256 3.85% Lassen County 191,955 4.19% Susanville Indian Rancheria/Casino $88,873 1.74% Diamond Mountain Casino 92,860 2.03% Lassen High School District $80,510 1.58% Safeway 71,560 1.56% Superior Court of Lassen County $71,306 1.40% Lassen High School/Credence 60,278 1.32% Northeastern Rural Health Clinic $64,078 1.26% Susanville Garden Apartments 47,161 1.03% Safeway $60,385 1.18% McKinley School 44,754 0.98%
Susanville Garden Apartments $56,208 1.10% Northeastern Rural Health 43,462 0.95% Walmart $55,125 1.08% Meadowview Elementary 36,338 0.79% $1,196,834 23.45% $1,096,108 23.94%
Source:

City of Susanville Finance Department
Notes:
(a)Total Gas Revenue equals charges for services as found in schedule 2. 2023 2014
147
226
INDEPENDENT ACCOUNTANT’S REPORT ON AGREED-UPON PROCEDURES

APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
City Council
City of Susanville
Susanville, California
We have performed procedures enumerated below to be the accompanying Appropriations Limit worksheet of the City of Susanville, for the year ended June 30, 2023. These procedures, which were agreed to by the City of Susanville and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIIIB of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City’s management is responsible for the Appropriations Limit worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested of for any other purpose.

The procedures performed and our findings were as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Findings: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

Findings: No exceptions were noted as a result of our procedures

3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above.

Findings: No exceptions were noted as a result of our procedures.

1 227

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

Findings: No exceptions were noted as a result of our procedures We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article XIIIB of the California Constitution.

This report is intended solely for the use of the City Council and management of the City of Susanville and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

January 15, 2025
2 228

CITY OF SUSANVILLE

APPROPRIATIONS LIMIT COMPUTATION
2022-23 Fiscal Year
2022 - 2023
Change in Per Capita Personal Income 7.55%
Population Change
City Population Growth 1.06%
Change in Per Capita Personal Income Converted to a Ratio 1.0755 Population Change Converted to a Ratio 1.0106
Calculation Growth Factor 1.0869003
2021-2022 Appropriations Limit 12,611,803 $
2022-2023 Appropriations Limit
($12,611,803 X 1.0869003) 13,707,774 $
3 229
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
RESOLUTION NO. 25-6414

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE

ACCEPTING THE ANNUAL AUDIT REPORT FOR THE CITY OF SUSANVILLE FOR THE FISCAL YEAR ENDED JUNE 30, 2023
WHEREAS, Van Lant and Fankhanel, LLP Certified Public Accountants, having been engaged by the City of Susanville to perform the annual audit for the Fiscal Year Ended June 30, 2023; and
WHEREAS, Van Lant and Fankhanel, LLP CPAs, have performed the audit and submitted an Annual Comprehensive Financial Report (ACFR) for the City of Susanville for the Fiscal Year ending June 30, incorporated herein by reference.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Susanville that the ACFR for the fiscal year ended June 30, 2023, is hereby accepted for the City of Susanville.

APPROVED: _______________________________
Mendy Schuster, Mayor
ATTEST: _______________________________
Heidi Whitlock, City Clerk
The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Susanville held on the 5th day of March, 2025 by the following vote:

AYES:

ABSENT:

ABSTAIN:
_____________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM: _____________________________
Margaret Long, City Attorney
230
AGENDA ITEM NO. 9.B
Discussion Item
Submitted By: Tamra Spade, Economic Development
Action Date: March 5, 2025
SUBJECT: Discussion regarding Hdl Quarter 3 (July-Sept.) 2024 reports PRESENTED BY: Tamra Spade, Economic Development Director SUMMARY:

HdL is a economic consultant which provides details and analysis of the local sales tax receipts for Susanville. Each quarter, staff meets with the consultant in order to review the prior quarter's receipts and provide insight on on changes happening within the community.

These reports allow us to better forecast upcoming revenues or downturns to be more accurate during our budgeting process. These reports also help identify current trends in our industries to better support local businesses. Attached you will find the reports available for publishing for Q3 2024 (July- Sept.).

FISCAL IMPACT: None
ACTION REQUESTED: Information only

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:

Susanville 3Q24 Newsletter.pdf
California Consensus Forecast 3Q 2024.pdf
231
www.hdlcompanies.com | 888.861.0220
Q3 2023*
Q3 2024*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity County
and State
Pools
General
Consumer
Goods
Restaurants
and
Hotels
Fuel and
Service
Stations
Autos
and
Transportation
Food
and
Drugs
Building
and
Construction
Business
and
Industry
CITY OF SUSANVILLE HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Winter 2025
A One Food Mart
Burger King
Carlsons Tire Pros
Jack in the Box
Jw Wood
Les Schwab Tire Center
Lumberjacks Restaurant
Marshalls
McDonald’s
O’Reilly Auto Parts
Safeway
Spirit
Susanville Ace
Hardware
Susanville Beacon
Susanville Chevron
Susanville Food Mart
Susanville Shell
Susanville Supermarket
Taco Bell
Tractor Supply
USA Gas
Walmart
Western Nevada Supply
Co
Wheels West
Zaengles Carpet One
Floor & Home

SALES TAX UPDATE

CITY OF SUSANVILLE
3Q 2024 (JULY - SEPTEMBER)
Susanville’s receipts from July through
September were 15.8% below the third
sales period in 2023. Excluding reporting
aberrations, actual sales were down

1.1%.

While consumer confidence indices
have improved, this sentiment has not
translated into greater spending on
taxable goods. Inflation savvy shoppers
spent about the same amount at general
consumer goods retailers as last year;
several sectors posted gains, but several
posted decreases.

Fuel-service stations were down as
prices at the pump were lower than the
comparable quarter; the decline was
right in line with statewide averages.

Rising menu prices have caused diners
to make fewer trips to restaurants, the
group was up only 0.5%.

Measure P was impacted by the overthe-counter transactions above but was boosted by an increase in locals
purchasing new motor vehicles and by
an increase in online merchandise being
delivered into the City.

Net of aberrations, taxable sales for all
of Lassen County declined 2.5% over the
comparable time period; the Far North
region was down 4.2%.

TOTAL:
-1.9%
$603,754
Measure P
TOTAL: $ 570,127
-1.1% -2.5% -2.3%

COUNTY STATE

SUSANVILLE
3Q2024
232

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '24
Susanville
Business Type Change Change Change
County HdL State
Service Stations 59,143 -12.2% -4.5% -12.8%
Quick-Service Restaurants 36,694 0.4% 0.3% 1.1%
Grocery Stores 29,109 -0.5% -1.6% 1.4%
Casual Dining 26,980 3.6% 10.7% 1.1%
Automotive Supply Stores 26,567 0.1% 6.9% -0.7%
Auto Repair Shops 6,422 -15.1% -11.5% -2.5%
Electronics/Appliance Stores 5,613 2.1% 2.2% -5.1%
Specialty Stores 2,415 1.3% 2.7% -2.9%
Receivables/Master Outlets 813 -60.1% 42.7% 28.7%
Government/Social Org. 302 -77.2% -68.1% 1.7%
*Allocation aberrations have been adjusted to reflect sales activity $0
$2,000
$4,000
$6,000
$8,000
Susanville
Q3
21 Q3
24 Q3
22 Q3
23 County California
SALES PER CAPITA*
*ADJUSTED FOR

ECONOMIC DATA
3Q 2024 CITY OF SUSANVILLE SALES TAX UPDATE

STATEWIDE RESULTS
California’s local one cent sales and use tax
receipts during the months of July through
September were 2.3% lower than the
same quarter one year ago after adjusting
for accounting anomalies. The calendar
year third quarter traditionally is noted for
pleasant weather and statewide tourism;
however, taxes fell when compared to a
year ago. As such, it also means a weak
start of the 2024-25 fiscal year for many
California agencies.

Once again, autos-transportation receipts
took a hit and declined 4.8%. This period
marks the seventh consecutive quarter of
downturn for the sector. While used autos
returns and leasing activity have improved,
revenues from new car sales struggled due
to sustained high interest rates, tightened
credit standards, and increased cost of
auto insurance. As such, inventories for
many dealers remain elevated, applying
downward pressure on prices and growth
into 2025.

The summer season is usually an
advantageous time for home repairs and
construction work, however, this industry
is also struggling with high consumer
interest rates and limited access to equity
for homeowners. New projects remain
sidelined as developers await more
favorable investment conditions.

Brick-and-mortar general consumer
retailers pulled back 3.8% - worsened by
lower gas prices. Consumers appear more
interested in lower priced/discounted items
vs higher priced/luxury goods, forcing
merchants to again consider inventory
needs. Additionally, competition from
online merchants is as fierce as ever, as
shoppers look for greater value. With
holiday shopping around the corner, local
store expectations remain soft.

Fuel generating taxpayers had a rough
quarter; a combination of consumption
declines and falling fuel prices thrust
comparisons down by 13%. Further
contraction of national drug store locations
coupled with the steady fall from cannabis
merchants dating back to 2021, caused a
decrease of 2.8% in the food-drugs category.

Expect similar percentage declines for the
upcoming end of 2024 quarter.

Although statewide tourism appears to
have improved over 2023, revenue from
restaurants experienced only a modest gain
of 0.7%, which included a dramatic drop
from fine dining establishments – consistent
with spending trends in other sectors. State
mandated minimum wage requirements
remained a challenge, with higher menu
prices reducing patron visits.

These sluggish results solidify 2024 as a
down year. Recent reductions to the Fed
Funds Rate aren’t considered to help until
later in 2025. Agencies should expect
fiscal year 2024-25 sales taxes to stay flat
or decline slightly as sluggish economic
conditions leave consumers cautious in their
spending patterns, especially for big ticket
items and discretionary products.
233
888.861.0220 | [email protected] | hdlcompanies.com

CALIFORNIA FORECAST

SALES TAX TRENDS & ECONOMIC DRIVERS
DECEMBER 2024
Mt. Baldy, San Bernardino County
234

STATEWIDE

SALES TAX TRENDS
2024/25 | 2025/26 2024/25 | 2025/26
Overview: Sluggish third quarter 2024 tax filings and mixed short-term performance coming from the eight groups noted below combine to reduce sales taxes expectations for fiscal year 2024-25. This negative outlook reflects a second year of statewide revenue declines. Contributing factors in this uncertain economy include higher business operating costs and to what extent Federal Funds interest rates may decline further into 2025. Looking ahead, election results have introduced additional economic uncertainty. Nationally, consumer confidence and sentiment recently soared but future policy decisions could exert upward pressure on prices, resulting in fewer sales transactions.

Fuel/Service Stations -8.3% | 3.7%
The 13% decline in July to September payments revealed a drop in consumption, down 10% over the year ago quarter, as well as reductions in per gallon fuel rates paid by buyers. This sector again is expected to endure significant downward pressure on regular, diesel, and oil barrel prices compared to a year ago. As a result, the overall forecast in fiscal year 2024-25 is lower. Recent legislation and regulations imposed on suppliers of fuel in California are likely to have an upward pressure on fuel prices, which will offset the overall reduction in sales tax toward the second half of 2025. As a result, anticipate a slow recovery beginning in fiscal year 2025-26.

General Consumer Goods -1.9% | 1.4%
Numerous classifications remained depressed throughout the third quarter, contracting more than anticipated as the group absorbed some of the impact caused by lower gas prices. Despite cost reductions of some core goods, consumers battled stubborn inflation in non-taxable areas, forcing more attention on balancing needs versus wants. Brick-and-mortar storefronts remain in competition with the convenience of and investment in online shopping which has added negative headwinds for overall direct tax allocations across this segment. The outlook is cloudy with expectations for lower receipts throughout fiscal year 2024-25 and a return to mild growth in the following year driven by a bump in the overall costs of goods.

Restaurants/Hotels 1.2% | 3.7%
The restaurant industry is experiencing moderate growth, substantiated by a 1% increase in the recent quarter. However, higher labor and food costs persist as significant challenges, leading to menu prices increasing about 7% on average over the last year. This trend is causing budget-conscious diners to reduce their restaurant visits. Both fine dining and leisure-entertainment categories saw declines in 3rd quarter returns with price sensitivity remaining a big factor. While recent hotel stays have slowed, the outlook for room rates and occupancy in the coming year is positive.

State and County Pools 3.0% | 3.5%
Large audit corrections tied to county pools over allocations in prior years hurt cash payments in the third quarter of 2024, while economic basis gains of 3% were right in line with estimates for this period. Retail ecommerce holiday season sales growth rose once again, doubling the increase seen at physical retail locations.

Perceptive companies looking to enhance sales are making future investments in warehouse automation, artificial intelligence tools, and augmented reality; all with an eye toward directing shoppers to spend more purchasing time on devices to satisfy spending needs. The forecast captures steady year over year improvement, overcoming the (-0.5%) decline that occurred fiscal year 2023-24.

Autos/Transportation -0.9% | 3.5%
Affordability concerns have weighed on car sales, but a gradual easing of new vehicle prices, declining interest rates, and a strong labor market are expected to support demand over time. With the average age of vehicles on the road now at a record 12.6 years, significant pent-up demand has positioned the market for recovery. Short-term factors, such as the threat of potential tariffs and year-end incentives to clear excess inventory, could provide a temporary boost. The recovery is likely to be gradual, however, as structural challenges including high insurance costs, limited affordable models, and added complexity posed by the transition to electrification will continue to act as headwinds to the market.

Building/Construction -1.8% | 2.6%
This quarter’s results repeated much of what happened last quarter.

Sales at big box home improvement centers extended their slide while lumber and roofing supply sales held steady in the northern and southern ends of the state. Retailers providing rooftop solar materials and installation have yet to find the bottom of that market as sales receded yet again. Asphalt and cement batch plants reported a stable sales volume overall, but any progress came from outside the Central Valley. Optimism for future construction-related gains has been dampened by the Fed’s cautious and minimal adjustments to interest rates so far, while the specter of higher tariffs and uncertainty over the future of the home loan industry leave many unanswered questions.

Business/Industry 0.0% | 1.8%
Ecommerce continues to rule as consumers embrace the convenience of shopping online. Related sales jumped and CA-based fulfillment centers filled more “local” orders, contributing 27% of all B&I revenues. While business-to-business edged a little higher, most other categories remained relatively flat or declined as economic variables such as high interest rates stunted growth. The industrial and information technology sectors broke even compared to last year. Medical/-biotech, office supplies/furniture, and garden/ agricultural supplies all declined. Solar/energy projects across the State slowed as well. Given the diversity of this group, the outlook is modest. With twenty-one unique tax segments, predictions vary widely based on the size and character of local businesses.

Food/Drugs -1.8% | 0.4%
Grocery stores’ profits grew 1.4% as more customers ate at home because of elevated restaurant menu prices, especially for lowerincome patrons. Convenience/liquor markets see shrinkages as consumers pivot and buy more snack foods and alcohol at big box merchants. Cannabis retailers’ gross receipts tumbled for the fourth consecutive quarter; yielding an (-11.6%) return over this period.

Additionally, national brands’ recent announcements accelerating outlet closures could provoke drugstore graveyards while product inventory is scarce in some local communities. As such, until the drugstore category is transformed, anticipate this group to finish lower at the end of June and fiscal year 2025-26 to stay relatively flat.

TOTAL -0.8% | 2.6%
2024/25 | 2025/26
HdL Companies California Forecast
December 2024 235
Proposition 172
Total fiscal year 2023-24 Proposition 172 (P-172) statewide revenues ended about 1% lower than the prior year. The December projection anticipates a similar result for the 2024-25 fiscal period with a projected 1.1% decrease. Fiscal year 2025-26 reflects anticipated growth of 2.7%. Current county projections include updated pro-rata factors published by the SCO in September 2024. As the calendar year Bradley-Burns results fluctuate due to taxpayer modifications, statewide audits, economic impacts, etc. – Proposition 172 pro-rata factors and resultant P-172 revenues will vary for many counties.

NATIONAL AND STATEWIDE

ECONOMIC DRIVERS
U.S. Real GDP Growth 2.6% | 2.5%
As 2024 comes to an end, the U.S. economy continues to exceed expectations. Real GDP growth has averaged 3% over the past nine quarters, and preliminary data for the final quarter of 2024 suggests this momentum remains intact. Beacon Economics expects real GDP growth to continue, driven by the strength of U.S. household finances, which in turn is characterized by falling debt-to-income ratios, a decent savings rate, record high net worth, and rising real incomes. Consumer spending accounts for nearly 70% of U.S. economic output, meaning when consumers are doing well, the broader economy tends to follow suit.

CA Unemployment Rate 5.3% | 5.1%
While the U.S. unemployment rate held steady at 4.1% in October, California’s labor market is showing clear signs of strain. The state’s unemployment rate ticked up from 5.3% in September to 5.4% in October 2024—0.3 percentage points higher than October 2023 and a full percentage point above pre-pandemic levels. In contrast, the national unemployment rate is just 0.5 percentage points above pre-pandemic levels, and without California, the national unemployment rate drops to 3.98%. California’s increased unemployment rate is not driven by more people entering the labor force, as the state’s labor force participation rate has shrunk by nearly one percentage point since February 2020. In September, California had nearly two unemployed individuals for every job opening; a ratio of 1.9. The U.S. ratio remains significantly lower at 0.9, indicating that California’s challenges may stem as much from a shortage of job openings as from a constrained labor force.

CA Total Nonfarm
Employment Growth 1.2% | 1.0%
Total nonfarm employment in California fell to approximately 18.1 million on a seasonally adjusted basis in October, a decline of 5,500 positions. These losses were largely concentrated in the public sector, while the private sector added 2,000 jobs. The state has faced three months of job declines this year, with the first drop in service-sector employment occurring last month. Meanwhile, California’s household and payroll surveys continue to diverge: Payroll employment has risen 1.8% over the past two years, while household employment has remained nearly flat. A downward correction in payroll numbers may be on the horizon in March, when the annual revision takes place.

U.S. Unemployment Rate 4.3% | 4.1%
The nation’s unemployment rate continues to hover around historically low levels, despite rising slightly to 4.2% in November 2024. This rate represents an improvement over July 2024 and solid wage growth continues to underscore the U.S. economy’s strong performance. In October 2024, there were approximately 1.1 job openings for every unemployed person in the nation, indicating a tight labor market despite a decline from 1.44 job openings per person a year earlier. The U.S. job openings rate was 4.6% in October 2024, down from its peak in March 2022, but still at a historically elevated level, a sign of a persistently tight labor market.

CA Residential
Building Permits 98,521 | 102,959
Residential permits in California have declined in eight of the last twelve quarters YoY, including a nearly 13% drop in Q3 2024. High interest rates and borrowing costs, which have strained the housing market for two years, continue to hinder progress. The current pace of permitting remains far below what is needed to close the state’s substantial housing supply gap. Although recent Federal Reserve rate cuts have lowered short-term borrowing costs and offered relief to developers, the number of permits being issued remains far lower than demand. With further rate cuts expected, modest growth in permits is likely, but without accelerated issuance and more aggressive efforts to increase supply, California’s housing shortfall will persist, leaving homeownership out of reach for many residents.

CA Median Existing
Home Price $719,877 | $728,425
After several quarters of sluggish activity, California’s housing market is beginning to show signs of recovery despite ongoing affordability challenges. Single-family home sales rose nearly 11% year-over-year in November 2024, with the median price up nearly 6%. A drop in mortgage rates to 6.43% has encouraged hesitant sellers to return to the market, but high prices and limited supply keep affordability out of reach for many. Flattening mortgage rates are anticipated in 2025, which will likely spur additional demand and provide stability in the market. With the combined effects of stable mortgage rates and increased market activity, home prices are expected to continue rising, particularly in the latter half of the year, as demand intensifies, and inventory remains tight. 2024/25 | 2025/26 2024/25 | 2025/26
HdL Companies California Forecast
December 2024
Watch our webinar
for more info!
236
Beacon Economics LLC
310.571.3399 | BeaconEcon.com
Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL’s quarterly consensus updates. The collaboration and sharing of information between Beacon and HdL helps both companies enhance the accuracy of the work that they perform for their respective clients.

HdL Companies
888.861.0220 | [email protected] | hdlcompanies.com California’s allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client’s specific demographics, tax base and regional trends.

Delivering Insight, Revenue, and Efficiency
to Local Government
237
AGENDA ITEM NO. 9.C
Action Item
Submitted By: Marci Rojas, Public Works
Action Date: March 5, 2025
SUBJECT: Consider Resolution No. 25-6415, authorizing a budget amendment of $9,500.00 to the 7401 and $18,500.00 to the 7110 funds for the upgrade of the Public Works Department's Supervisory Control and Data Acquisition (SCADA) system and equipment. Further authorizes the Finance Director to make the necessary budget modifications to complete the work.

PRESENTED BY: Bob Godman, Public Works Director
SUMMARY: The Public Works Department is responsible for the City of Susanville water and natural gas systems. Public Works uses the supervisory control and data acquisition (SCADA) system to monitor and maintain the City water and natural gas systems. It has been recommended to upgrade our SCADA system to improve the security and functionality by our consultant with Full Spectrum, Inc. Public Works entered into a Professional Service Agreement with Full Spectrum, Inc. on April 7th, 2021. Part of the services provided by Full Spectrum to the City in the agreement is maintaining the SCADA system and trouble shooting technical problems.

As a public works project of less than $60,000, this work can be performed by negotiated contract. However, per the City's budget policy, a budget increase is needed to complete this upgrade. Staff has provided resolution for approval, Resolution No. 25-6415 approves a budget increase to the 7401 budget in the amount of $9,500.00 and a budget increase to the 7110 budget in the amount of $18,500.00 and authorizes the Finance Director to make the necessary budget modifications to complete the work.

FISCAL IMPACT: The estimated cost of the upgrade to the SCADA System is $27,755.88
$21,720 Full Spectrum SCADA Software and hardware upgrade $3,277.88 Computer Logistics work station upgrade
$2,758.80 Annually TeamViewer Corporate monitored remote access to system

SUSANVILLE CITY COUNCIL AGENDA ITEM
238
ACTION REQUESTED: Motion to approve Resolution No. 25-6415, authorizing a budget amendment of $9,500.00 to the 7401 and $18,500.00 to the 7110 funds for the upgrade of the Public Works Department's Supervisory Control and Data Acquisition (SCADA) system and equipment.

Further authorizes the Finance Director to make the necessary budget modifications to complete the work.

ATTACHMENTS:
25-6415.pdf
239
1 2
3 4
5 6
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11 12
13 14
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25 26
27 28
RESOLUTION No. 25-6415

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE

AUTHORIZING THE FINANCE DIRECTOR TO MAKE NECESSARY BUDGET AMENDMENTS TO THE CITY 7401 AND 7110 BUDGETS
WHEREAS, the City of Susanville operates the Water and Gas Divisions; and WHEREAS, the Public Works Department uses supervisory control and data acquisition (SCADA) to monitor and maintain the City’s water and natural gas; and WHEREAS, the city has a professional agreement with Full Spectrum, Inc. to provide maintenance and technical support for the SCADA system; and WHEREAS, Full Spectrum has recommended an upgrade to the SCADA system to improve the security and functionality of the system; and WHEREAS, the upgrade would include updating the software, hardware, workstation and adding a monitored remote log in.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Susanville hereby approves the budget amendment and authorizes the finance director to modify the budget as follows:

1. Natural Gas Fund (7401): increase of $9,500

2. Water Fund (7110): increase of $18,500
APPROVED: ________________________
Mendy Schuster, Mayor
ATTEST: ________________________
Heidi Whitlock, City Clerk
The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Susanville, held on the 5th day of March 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM: _____________________________
Margaret Long, City Attorney
240
AGENDA ITEM NO. 9.D
Action Item
Submitted By: Heidi Whitlock, City Clerk
Action Date: March 5, 2025
SUBJECT: Consider appointments to fill Planning Commission and Sales Tax Oversight Board
PRESENTED BY: Heidi Whitlock, City Clerk
SUMMARY: The Planning Commission performs many functions on behalf of the City Council and is often responsible for providing recommendations related to the development, design, and growth of the City. The Planning Commission consists of five members, but can have up to two alternates. As of February 4, 2025, Commissioner DeBoer resigned from the position, with his term ending in June 2027, leaving four commissioners and two alternates. Current alternate, Maria Fregulia, has submitted the attached letter of interest to be reassigned from an alternate commissioner to a commissioner.

Ms. Fregulia has also submitted a letter of interest to be appointed to the Sales Tax Oversight Board. The STOB consists of five members.

However, there are currently only two active members on the Board.

The addition of Ms. Fregulia would provide more opportunities for a quorum as at least three members are required to hold a meeting.

Staff recommends the Council authorize Ms. Fregulia for both appointments.

FISCAL IMPACT: Planning Commission stipend of $75.00 per month, included in annual budgets.

ACTION REQUESTED: Motion to approve the appointment of Planning Commissioner and STOB Board member

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:
2025 Fregulia Planning Commission Perm Letter.pdf
STOB M. Fregulia letter.pdf
241
Maria E. Fregulia
1135 Gail Way
Susanville, CA 96130
(530) 257-3599 Home
(530) 260-3599 Cell
[email protected]
February 26, 2025
Heidi Whitlock, City Clerk
City of Susanville
66 N Lassen Street
Susanville, CA 96130
City Clerk Whitlock:

I understand there is an opening for a permanent position on the Susanville Planning Commission.

I am interested in applying for this position.

My qualifications for this position are as follows:

I have a Bachelor of Science Degree in Home Economics, with a Specialization in Education and Extension. Embedded within that degree, is education regarding Community Housing, types, design and impact within the social strata of the community,
I have been a resident of Susanville for thirty-eight years, so am familiar with how the city has evolved, I understand how to evaluate building and project plans, and the manner in which they are applied, according to regulations,
I am willing to ask for information if a subject arises of which I am unfamiliar, I understand the importance of working with project applicants, as well as with the City of Susanville staff as Code Enforcement becomes a top priority.

Thank you for your consideration.

Maria E. Fregulia
1135 Gail Way
Susanville, CA 96130
242
.Maria T. :fregufia
1135 Gail Way
Susanville, CA 96130
(530} 257-3599 Home
(530) 260-3599 Cell
[email protected]
July 18, 2024
Heidi Whitlock, City Clerk
City of Susanville
66 N Lassen Street
Susanville, CA 96130
City Clerk Whitlock:

I am submitting my name to be a member of the City of Susanville Sales Tax Oversight Board.

My qualifications for this position are as follows:

Resident of Susanville for thirty-eight years,
I stay familiar with the business of the city, by attending council meetings, I understand how to read budgets and for the most part, the budgeting process, I would be able to work with other members of the Oversight Board by listening and learning the ins and outs of the decisions they have made, I am willing to understand the wishes of the current city council.

Thank you for your consideration.

Maria E. Fregulia
City Resident
243
AGENDA ITEM NO. 9.E
Discussion Item
Submitted By: Dan Newton, Administrative Services
Action Date: March 5, 2025
SUBJECT: Consider discussion regarding local gas pricing PRESENTED BY: Dan Newton, City Manager
SUMMARY: At the February 5, 2025 meeting, it was requested to bring back a discussion item related to local gas prices.

FISCAL IMPACT: None.

ACTION REQUESTED: Information item with possible direction to staff

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:
244
AGENDA ITEM NO. 12.A
Action Item
Submitted By: Dan Newton, Administrative Services
Action Date: March 5, 2025
SUBJECT: Consider Sierra Theater Performing Arts Center Business Plan PRESENTED BY: Dan Newton, City Manager
SUMMARY: The Susanville Symphony Society has prepared a business plan for the Sierra Theater Performing Arts Center. The business plan will be presented for Council's consideration and direction.

FISCAL IMPACT: None at this time.

ACTION REQUESTED: Provide direction to staff regarding the Sierra Theater Performing Arts Center Business Plan

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:

Sierra Theater Business Plan 3.0.pdf
245
Business Plan
Sierra Theater Performing Arts Center
PO Box 2172 | Susanville, CA 96130
Raymond White
Email: [email protected]
Phone: 530-310-3492
246
Sierra Theater Performing Arts Center
This Document is Not Confidential and is Available for Public Viewing Cover Page
This Business Plan summarizes certain information about The Sierra Theater Performing Arts Center. Except where the context requires otherwise, “Company,” “we,” “us,” “our,” “Sierra Theater Performing Arts Center,” refer to The Sierra Theater Performing Arts Center. _______________________________
This Business Plan is not confidential and is available for public viewing.

The following changes were made to the initial business plan submitted:
◼ Section 1.6.3: This section reflects a new table that shows the profitability with just one production per week (vacant 6 days per week) from several productions per week. With one production per week, operating costs decrease, and the theater still operates at a profit. ◼ Section 2.3.2: Added a reference for the tables (mileage radius). Additional narrative in red that better explains that table has been included.
◼ Sections 2.3.5 - 2.3.7: Added projections for the Cascade Theater, in Redding CA, that are commensurate proportionately with the prospective Sierra Theater Performing Arts Center. Aso added tables that compare both the Cascade and Sierra theaters in terms of revenue and affordability of tickets. Redding has almost 5x the population of Susanville, so the comparison is skewed.
247
Sierra Theater Performing Arts Center
This Document is Not Confidential and is Available for Public Viewing Table of Contents

1. Executive Summary & Company Overview.................................................................. 5

1.1 Business Summary..................................................................................................................................... 5

1.2 Market Opportunity................................................................................................................................... 5

1.3 What We Offer............................................................................................................................................ 6

1.4 Current Status and Outstanding Tasks ................................................................................................... 6

1.5 Development Timeline .............................................................................................................................. 7

1.6 Financials..................................................................................................................................................... 7

1.6.1 Sources and Uses of Capital ............................................................................................................... 7

1.6.2 5-Year Financial Forecast – 2 Productions per Week ...................................................................... 7

1.6.3 5-Year Financial Forecast – 1 Production per Week........................................................................ 8

1.6.4 Pro-Forma - Property .......................................................................................................................... 9

1.6.5 Total Cash Flow ................................................................................................................................... 9

2. Market Opportunity..................................................................................................... 10

2.1 Summary ................................................................................................................................................... 10

2.2 Market Description .................................................................................................................................. 10

2.2.1 Performing Arts Centers................................................................................................................... 10

2.2.2 Renovation of Old Theaters.............................................................................................................. 11

2.3 Demographics........................................................................................................................................... 14

2.3.1 Demographics Within a Mileage Radius of Susanville ................................................................ 16

2.3.2 Volume of Tickets Sold Expressed as a % of the Population – Sierra Theater........................... 16

2.3.3 Affordability - Value of Tickets Sold as a % of Total Salaries Earned – Sierra Theater............ 16

2.3.4 Demographics Within a Mileage Radius of Redding, CA............................................................ 17

2.3.5 Volume of Tickets Sold Expressed as a % of the Population – Cascade Theater....................... 17

2.3.6 Affordability - Value of Tickets Sold as a % of Total Salaries Earned – Cascade Theater........ 17

2.3.7 Comparison ........................................................................................................................................ 18

2.4 Market Trends .......................................................................................................................................... 18

3. Sierra Theater Performing Arts Center - Overview.................................................... 22

3.1 Business Summary................................................................................................................................... 22

3.1.1 Projected Key Features of the Venue .............................................................................................. 23

3.1.2 Key Benefits to Performers and to the Audience........................................................................... 23

3.1.3 Programming ..................................................................................................................................... 23

3.2 Revenue Sources....................................................................................................................................... 23

4. Sales and Marketing................................................................................................... 24

4.1 Summary ................................................................................................................................................... 24

4.2 Target Market ........................................................................................................................................... 24

4.3 Sales, Promotion, and Distribution........................................................................................................ 24

4.4 Social Media / Digital Strategy .............................................................................................................. 25

4.5 Key Success Factors.................................................................................................................................. 26

4.6 Competition .............................................................................................................................................. 27

5. Operating Plan ............................................................................................................ 28

5.1 Customer Service...................................................................................................................................... 28

5.2 Management Controls and Administration.......................................................................................... 28

5.3 Timeline..................................................................................................................................................... 29

5.4 Staff Categories......................................................................................................................................... 29

5.4.1 Salaried Staff....................................................................................................................................... 29

5.4.2 Hourly Wage Staff............................................................................................................................. 30

6. Financials.................................................................................................................... 31

6.1 Revenue ..................................................................................................................................................... 31

6.1.1 Venue Pricing / Number of Events & Guests................................................................................ 31 248
Sierra Theater Performing Arts Center
This Document is Not Confidential and is Available for Public Viewing

6.1.2 Concession.......................................................................................................................................... 31

6.1.3 Merchandise ....................................................................................................................................... 32

6.1.4 Membership ....................................................................................................................................... 32

6.1.5 Sponsorship........................................................................................................................................ 33

6.1.6 Revenue Summary ............................................................................................................................ 34

6.2 Cost of Goods Sold (COGS).................................................................................................................... 34

6.3 Gross Profit ............................................................................................................................................... 34

6.4 Expenses .................................................................................................................................................... 35

6.4.1 Staff Categories and Costs ................................................................................................................ 35

6.4.2 Operations .......................................................................................................................................... 35

6.4.3 Expense Summary............................................................................................................................. 35

6.5 5-Year Financial Forecast......................................................................................................................... 36

7. Appendix ..................................................................................................................... 37

7.1 Location Analysis ..................................................................................................................................... 37

7.1.1 Lassen County, CA............................................................................................................................ 37

7.1.2 Susanville, CA Micro Area / Zip Code: 96130............................................................................... 38

7.1.3 Susanville, CA.................................................................................................................................... 39

7.1.4 Janesville, CA ..................................................................................................................................... 40

7.1.5 Johnstonville, CA............................................................................................................................... 41

7.1.6 Plumas County, CA........................................................................................................................... 44 249
Sierra Theater Performing Arts Center
This Document is Not Confidential and is Available for Public Viewing 5

1. Executive Summary & Company Overview

1.1 Business Summary
The Sierra Theater Performing Arts Center is positioned as a live performance venue and cultural organization that brings together audiences and artists in a renovated performance space. With dynamic programming designed to enthrall and entertain, Sierra Theater Performing Arts Center will fuse sound quality, superior sightlines, and tierone venue facilities to deliver memorable creative experiences for the Susanville community and its surrounding regions.

Led by the Susanville Symphony, the mission is to acquire and refurbish the iconic Sierra Theater and to revitalize the building into the Sierra Theater Performing Arts Center. The space will be designed to be an accessible and inclusive, community-centered performing arts space and culture hub that offers compelling programming.

Revenue will be anchored by performances from local, regional, and national artists as well as by memberships, sponsorships, merchandise sales, and food and beverage sales. The Sierra Theater Performing Arts Center will be the first of its kind in the region, delivering complementary creative services in a single facility, and becoming a creative destination for artists and audiences alike.

Project Description
Name of Entity Sierra Theater Performing Arts Center
Business Model Performance space for the creative arts
Address 819 Main St, Susanville, CA 96130
Project Acquire the Sierra Theater in Susanville, CA, renovate and reposition as the Sierra Theater Performing Arts Center.

Initial Capital Need $450,000
Uses of Capital Building acquisition; hire engineers for initial due diligence Status Planning Phase – Projected Launch Date: 1Q2025

1.2 Market Opportunity
Compelling Demographics
Lassen County, of which Susanville is a part, reflects a population of 23,283, and boasts a creative community, a vibrant professional workforce, students, young families, and followers of the arts. With the average household income in the county reaching $59,515 and with close to 60,000 residents across a 75 mile radius of Susanville, the Sierra Theater Performing Arts Center would have wide support across a diverse demographic. Such a demographic is financially positioned to purchase tickets and engage in the performing arts center’s programming year after year.

Demographics Within a Mileage Radius 25 Miles 50 Miles 75 Miles Population 28,861 47,992 59,692
Estimated Population Between 18 and 65 - % 68% 68% 68%
Estimated Population Between 18 and 65 - # 19,625 32,635 40,591 Labor Force 8,905 16,622 21,290
Average Salary $58,860 $59,237 $57,210
250
Sierra Theater Performing Arts Center
This Document is Not Confidential and is Available for Public Viewing 6 Benefits of the Sierra Theater Performing Arts Center
The Susanville Symphony currently performs several times per year at venues such as the United Methodist Church, Veterans Memorial Hall, Smith Farm, and the Lassen Courthouse. The repositioned Sierra Theater as the Sierra Theater Performing Arts Center will provide the Susanville Symphony and other local productions with a dedicated, year-round, performance space, and offer the greater community additional benefits that include:
◼ Expanded programming for the Susanville Symphany enabling a greater number of performances per year. ◼ Dedicated performance space for the March Swing Band, Susanville’s Best of Broadway productions, and other local performances.
◼ A venue for traveling performances (plays, musicals, ballet, country/rock bands, and other performance artists).
◼ Positioning Susanville as a regional cultural hub, and one which could attract galleries, cafes, restaurants, hotels, tastemakers, and other businesses.

Participation in the League of Historic American Theatres Membership with the League of Historic American Theaters will also deliver exposure to the historic Sierra Theater and its new incarnation, the Sierra Theater Performing Arts Center. Such exposure will build awareness of the centers programming as well as its architectural significance. Associated with the League of Historic American Theatres will also provide access to resources such as grants, theater refurbishment, operational best practices and other resources.

1.3 What We Offer
The Sierra Theater Performing Arts Center fills a gap and positioning itself as the leading performing arts center in the region north of Reno Nevada and east of Redding CA, and as a critical target venue and stopover point for touring performing artists, musicians and others As a premier entertainment facility, the Susanville Performing Center will offer a compelling feature set that includes:

Feature Set
Expanded Stage 400 Seat Capacity
Venue LED Lighting Concession (Food and Beverage)
Sound System Box Office
Website (Online Ticket Sales / Event Calendar) Waiting Lounge, Restrooms, and Offices

1.4 Current Status and Outstanding Tasks
Actions Completed Actions Outstanding
Initial action steps identified, post-acquisition Finalize long-term upgrade plan Initial budget in place Hire sound and structural engineers Management and operations team identified;
volunteers in place; operating plan in place
Hire architect and builder
Initial programming in place (Susanville
Symphony; Best of Broadway, others)
Develop website
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1.5 Development Timeline
The Sierra Theater Performing Arts Center is projected to launch by 1Q-2026. We expect the facility to start recording revenue in the second year, which allows the first year for an update of the space.

Phase 1 Phase 2
Current – 1Q2025 1Q2025 – 1Q2026
$450,000 Capital Allocation Raise up to $500,000 in additional capital Acquire building in 1Q2025 Remove wall; initiate stage upgrades Hire sound and construction engineers Update sound and lighting Hire architect; finalize drawings for renovations;
submit application for permits
Launch marketing plan to build awareness of the
Susanville Performing Center

1.6 Financials

1.6.1 Sources and Uses of Capital
Project costs for the acquisition of the building are projected at $450,000. ◼ Sources of funds include a capital investment by the City of Susanville into the Sierra Theater Performing Arts Center in the amount of $450,000.
◼ Uses of funds includes building acquisition and engagement of engineers and an architect.

Sources and Uses of Funds - Property Value
Sources of Funds
Capital Investment $450,000
Total $450,000
Uses of Funds
Building Acquisition $400,000
Hire Engineering and Sound Consultants $50,000
Total Cost $450,000

1.6.2 5-Year Financial Forecast – 2 Productions per Week Immediately following acquisition of the Sierra Theater, funds will be deployed for engineering and architectural renderings. In the first year of operations following acquisition, the Susanville Performing Center will execute the development plan in preparation for a formal launch in 1Q2026. Sierra Theater Performing Arts Center’s operating costs during this first year will be minimal and funded by a combination of (1) revenue generated from the performances of the Susanville Symphony, (2) fundraiser dinners and events, (3) grants and other capital raising activities which are projected to reach up to $500,000.

The Sierra Theater Performing Arts Center will start recording revenue as an operating performance arts center in year 2 and is projected to experience steady growth through year 5. Revenue will include (1) ticket sales, (2) venue rental, (3) concession (food and beverage sales), (4) membership, (5) sponsorship, and (6) merchandise sales.

To be conservative, the Sierra Theater Performing Arts Center models just 2 performances per week, with tickets priced at $35 each. With just these ticket sales, the center achieves a solid profit. We project 12,480 tickets sold in year 2, ramping up to 14,440 sold by year 5.
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This Document is Not Confidential and is Available for Public Viewing 8 Financials Year 1 Year 2 Year 3 Year 4 Year 5
Tickets Sold per Year 0 12,480 12,960 13,440 14,400
Performances per Week 0 2 2 2 2
Revenue $47,850 $640,280 $688,710 $737,140 $807,050
Total Cost of Sales $0 ($168,550) ($175,033) ($181,516) ($194,481) Gross Profit $47,850 $471,730 $513,677 $555,624 $612,569 Operating Costs ($30,600) ($137,400) ($148,392) ($160,263) ($173,084) Staffing $0 ($228,848) ($235,713) ($242,785) ($250,068) Total Ops Costs ($30,600) ($366,248) ($384,105) ($403,048) ($423,153) EBITDA $17,250 $105,482 $129,572 $152,576 $189,416

1.6.3 5-Year Financial Forecast – 1 Production per Week The table below shows financials where the theater books only 1 show per week, starting in year 2. The facility still generates ample revenue. Operating and staffing costs will decrease as a result of fewer shows per week.

Financials Year 1 Year 2 Year 3 Year 4 Year 5
Tickets Sold per Year 0 6,240 6,480 6,720 7,200
Performances per Week 0 1 1 1 1
Revenue $47,850 $371,960 $410,070 $448,180 $497,450
Total Cost of Sales $0 ($50,497) ($52,439) ($54,382) ($58,266) Gross Profit $47,850 $321,463 $357,631 $393,798 $439,184 Operating Costs ($30,600) ($89,400) ($92,082) ($94,844) ($97,690) Staffing $0 ($195,941) ($201,819) ($207,873) ($214,110) Total Ops Costs ($30,600) ($285,341) ($293,901) ($302,718) ($311,799) EBITDA $17,250 $36,122 $63,730 $91,081 $127,385
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1.6.4 Pro-Forma - Property
The Sierra Theater Performing Arts Center is expected to create two companies:
◼ The Sierra Theater Performing Arts Center property company will acquire and manage the building (Sierra Theater).
◼ The Sierra Theater Performing Arts Center operating company will run the day to day operations.

In such an arrangement, the operating company will rent the facility from the legal entity that controls the property. Such an arrangement will insulate the property against risk. Revenue as noted below consist of rent payments from the operating company to the property company.

Projections Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $18,000 $42,000 $45,360 $48,989 $52,908
Repairs/Maintenance $0 $2,500 $2,575 $2,652 $2,732
Property Taxes $4,583 $4,721 $4,862 $5,008 $5,159
Insurance $7,000 $7,210 $7,426 $7,649 $7,879
Total Op Ex $11,583 $14,431 $14,864 $15,310 $15,769
Net Operating Income
(NOI) $6,417 $27,569 $30,496 $33,679 $37,139

1.6.5 Total Cash Flow
The table below reflects total cash flow from (1) the Sierra Theater Performing Arts Center operating company and (2) the Sierra Theater Performing Arts Center property company that represents the ownership of the building.

Total Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5
Sierra Theater
Performing Arts Center $17,250 $105,482 $129,572 $152,576 $189,416 Property Net Income $6,417 $27,569 $30,496 $33,679 $37,139 Total Cash Flow $23,667 $133,051 $160,068 $186,255 $226,555 Ss
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2. Market Opportunity

2.1 Summary
The Sierra Theater Performing Arts Center will benefit from several market forces:

Market Opportunity Summary
Lack of a dedicated performing arts center in Susanville to accommodate the Susanville Symphany and other local productions.

The nearest performing arts center in CA is located in Redding, which is two hours away from Susanville.

There are approximately 32,645 residents within 18 to 65 years of age who live within 50 miles of Susanville.

The web has enabled the ease to promote events within the greater community.

Touring music artists of all ranges of popularity are accessible and need venues to promote themselves.

The pandemic effect has made more community focused, smaller venues more appealing than larger scale event venues.

Theaters can reach global audiences and generate extra income by streaming performances online.

2.2 Market Description

2.2.1 Performing Arts Centers
Performing arts centers and music venues can be found in almost every city nationwide and fulfill a crucial role in providing a forum for local and touring performing artists. The performing arts market includes a diverse range of organizations involved in various types of live performances, including theater, dance, music, opera, and comedy. The North American performing art market was valued at $18.1 billion as of 2024. 1 Primary Venue Activities Revenue Creation
Venue management Tickets, food, beverages, and merchandise sales Booking talent Media rights, licensing, and advertisement Promoting and marketing events Rental services
Organizing logistics for events Sponsorship
Security and safety Media creation and sales
Uses of such venues can include:

Facility Uses
Locak Artists (Susanville Symphony, March Swing
Band, Best of Broadway productions, others)
Conferences/Meetings
Touring Symphonies; Country, Rock, Jazz, and
Classical Performances
Talent Shows and Competitions
Lectures and Book Readings Graduations / Holiday and Private Parties / Weddings Presentations Fundraisers and Annual Meetings
1 https://www.mordorintelligence.com/industry-reports/north-america-performing-art-companies-market 255
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2.2.2 Renovation of Old Theaters
Revived historic theaters are playing an important role in revitalizing urban communities Old movie theaters point to a time when thousands of people watched a single movie together. They are a remnant of the days before televisions, video, streaming, and other modes of media, when going to the movies was a social occasion. These theaters were often classical and elegant in design and were an important part of their communities. While some were grand, others were more modest; yet all played important roles in the neighborhoods they served. As times changed, along with tastes in entertainment, many were abandoned and fell into disrepair.

Today, old movie theaters reflect chapters of cultural history. Theaters are making a comeback, and some are being renovated and adapted to today’s technology and entertainment tastes, thanks to skilled architects and craftspeople, developers, historic tax credits and enthusiastic communities. As theaters revive, often so do the communities they serve. Newly renovated theaters can become great economic hubs for downtowns, creating thriving art, music, and food scenes. Such venues generate an impact of at least $2-$3 per dollar spent on tickets and catalyze other business development, create jobs, and improve the local quality of life.2 Leading theaters in California3
The following theaters share a business model similar to that of the Sierra Theater Performing Arts Center. The bulk of the theaters noted below are larger than Sierra Theater Performing Arts Center, though their size is commensurate with the urban centers they serve. The Pioneer Center in Reno, NV is the closest mileage-wise at 86 miles away (driving) followed by the Cascade Theater in Redding, CA which is 112 miles away (driving). The Sierra Theater Performing Arts Center can safely capture the attention of local residents up to 50+ miles radius of Susanville. The remaining theaters listed below are far enough away where they do not represent meaningful competition. Though, the success of such theaters demonstrate their viability in the communities they serve.

Venue Name Venue Description Distance from Susanville
Pioneer Center, Reno NV Seats 1,500
Built in 1968
Primary Mission: Performing Arts
86 Miles
Cascade Theater,
Redding, CA
Seats 1,006
Built in 1935
Primary Mission: Performing Arts
112 Miles
Crest Theater,
Sacramento, CA
Seats 975
Built in 1912
Primary Mission: Movies and Performing Arts
185 Miles
Colonial Theater,
Sacramento, CA
Seats 576
Built in 1940
Primary Mission: Movies, Concerts, Performing
Arts
185 Miles
Eureka Theater, Eureka,
CA
Seats 800
Built in 1939
Primary Mission: Movies and Performing Arts
259 Miles
State Theatre, Modesto,
CA
Seats 571
Built in 1934
Primary Mission: Movies and Performing Arts
263 Miles
Paramount Theater,
Oakland, CA
Seats 2,992
Built in 1931
Primary Mission: Performing Arts
285 Miles
2 https://savingplaces.org/stories/10-tuesday-10-steps-restoring-historic-theaters 3 https://www.lhat.org/lhat/program-services/theatre-inventory/ca-mbr 256
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This Document is Not Confidential and is Available for Public Viewing 12 The Lark Theater,
Larkspur, CA
Seats 220
Built in 1940
Primary Mission: Movies and Performing Arts
291 Miles
The Historic Bakersfield
Fox Theater, Bakersfield,
CA
Seats 1,570
Built in 1930
Primary Mission: Performing Arts
470 Miles
Sebastiani Theater,
Sonoma CA
Seats 1,006
Built in 1935
Primary Mission: Movies and Performing Arts
537 Miles
Mission Playhouse, San
Gabriel, CA
Seats 1,387
Built in 1927
Primary Mission: Performing Arts
543 Miles
Lobero Theatre, Santa
Barbara, CA
Seats 604
Built in 1924
Primary Mission: Movies and Performing Arts
571 Miles
Granada Theater, Santa
Barbara, CA
Seats 1,550
Built in 1924
Primary Mission: Movies and Performing Arts
571 Miles
Theater Highlight: Cascade Theater, Redding, CA
The Cascade Theatre is the closest, renovated old theater in CA, to the prospective Sierra Theater Performing Arts Center. The Cascade Theater was constructed in 1935 as a movie palace though struggled to survive during the 1990s with the rise of shopping mall-based multiplex cinemas. In 1997 the Cascade ceased operating.

A gift of $750,000 in funding by The McConnell Foundation helped with the restoration of the Cascade Theatre, which was completed on August 14, 2004, when it reopened as a regional nonprofit performing arts center. The restoration was conducted in a way that honored the heritage of the building while providing the functionality of a modern professional performing arts facility, complete with state-of-the-art sound, lighting and theater technology. The theatre hosts a wide range of arts and cultural events, including concerts, dance, stage and film presentations. Restoration was made possible by many partners and funders. It’s believed that the architect of the Cascade theater, hired J. Lloyd Conrich of San Francisco, also designed the Sierra Theater in Susanville. In fact, both theaters resemble each other.
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This Document is Not Confidential and is Available for Public Viewing 13 Rental Pricing
While the bulk of theater’s revenue is derived from ticket sales, some theaters are available for rental. Rental fees can range $1.75 to $4.00 per s/f with pricing dependent on whether the rental is on a weekend or weekday.

Venue Name Rental Pricing
Cascade Theater, Redding, CA Rental available
Mission Playhouse, San Gabriel, CA Rental available
Sebastiani Theater, Sonoma CA Rental not available
Granada Theater, Santa Barbara, CA4 Mon-Thurs: $4,900 per day/ Fri-Sun: $7,000 per day ($3.2 to $4.5 per s/f)
Crest Theater, Sacramento, CA Rental available
Eureka Theater, Eureka, CA Rental not available
The Lark Theater, Larkspur, CA Rental not available
Lobero Theatre, Santa Barbara, CA Rental available
State Theatre, Modesto, CA Rental available
Paramount Theater, Oakland, CA5 Private Events: $12,000 per day / Ticketed events:
$7,000 per day ($2.3 to $4.0 per s/f)
The Historic Bakersfield Fox Theater, Bakersfield, CA Rental available Pioneer Center, Reno NV Rental not available
Colonial Theater, Sacramento, CA Mon-Thurs: $900 first 4 hours / Fri-Sun: $1,000 first 4 hours ($1.75 per s/f)
Ticket Pricing
Pricing per ticket can exceed $250 for specific productions and for productions that are run certain times of the year, such as Christmas. The pricing below represents that of productions that ran during December 2024. Many such theaters run programming at least 50% of the days available, meaning that at least 15 days out of the moth contain programming. To be conservative, the Sierra Theater Performing Arts Center models just 2 performances per week and achieves a profit.

Venue Name Ticket Pricing
Cascade Theater, Redding, CA Up to $112.00
Mission Playhouse, San Gabriel, CA Up to $60.00
Sebastiani Theater, Sonoma CA Up to $155.00
Granada Theater, Santa Barbara, CA Up to $267.00
Crest Theater, Sacramento, CA Up to $150.00
Eureka Theater, Eureka, CA Up to $35.00
The Lark Theater, Larkspur, CA Up to $50.00
Lobero Theatre, Santa Barbara, CA Up to $125.00
State Theatre, Modesto, CA Up to $80.00
4 https://www.granadasb.org/renting-the-venue/rental-information/facility-rental-fee/ 5 https://paramountoakland.production.carbonhouse.com/assets/doc/2425-Rental-Rates-a594a9fb9d.pdf 258
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The Historic Bakersfield Fox Theater, Bakersfield, CA Up to $90.00 Pioneer Center, Reno NV Up to $135.00
Colonial Theater, Sacramento, CA Up to $50.00

2.3 Demographics
The table below reflects the demographics of Lassen County which includes both the zip code 96130 and the Susanville. There are approximately 2,500 inmates that are included in the populations listed below. Such populations skew the per capita income, household income, median age, volume of married couples, and other factors.

Demographics Lassen County6 Zip Code 96130 Susanville City7 Median Household Income $59,515 $66,725 $52,997
Per Capita Income $23,646 $22,800 $17,912
Median Home Price $233,100 $253,700 $203,100
Population 31,873 21,460 15,737
Population Bet. 18 and 65 68% 70% 75%
Households 8,925 5,389 3,447
% of Households with over
$50,000 in Income 58% 62% 53%
% of Households with over
$100,000 in Income 29% 31% 27%
# of Households with over
$50,000 in Income 5,177 3,341 1,827
# of Households with over
$100,000 in Income 2,588 1,671 931
Persons per Household 2.67 2.7 2.62
Bachelor’s Degree or Higher 12.1% 11% 8.3%
Population per Sq/mile 7.2 42.9 1,985.5
Land Area 4,542 499 7.92
Median Age 37.2 35.0 33.7
Married Couples 44% 41% 36%
6 https://censusreporter.org/profiles/05000US06035-lassen-county-ca/ 7 https://censusreporter.org/profiles/16000US0677364-susanville-ca/ 259
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This Document is Not Confidential and is Available for Public Viewing 15 Janesville, Johnstonville, Westwood, and Honey Lake represent population centers within Lassen County.

Demographics8 Janesville Johnstonville Westwood Honey Lake Median Household Income $64,180 $93,375 $49,306 $47,302 Per Capita Income $36,312 $37,749 $25,815 $17,010
Median Home Price $279,100 $276,800 $192,900 $154,600
Population 2,641 1,090 2,391 3,676
Population Bet. 18 and 65 63% 56% 55% 75%
Households 1,053 347 1,011 882
% of Households with over
$50,000 in Income 47% 78% 49% 50%
% of Households with over
$100,000 in Income 21% 36% 17% 27%
# of Households with over
$50,000 in Income 495 271 495 441
# of Households with over
$100,000 in Income 221 125 172 238
Persons per Household 2.5 3.1 2.4 2.9
Bachelor’s Degree or Higher 11.4% 17.6% 10.6% 11.6%
Population per Sq/mile 78.1 8.6 3.4 7.2
Land Area 33.8 sq/mi 8.6 sq/mi 712.4 sq/mi 511 sq/mi
Median Age 50.7 41.3 50.4 40.8
Married Couples 59% 51% 59% 41%
8 US Census - SLC
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2.3.1 Demographics Within a Mileage Radius of Susanville The population within 25 miles of Susanville, and between the ages of 18 and 65, approaches 19,625 and expands to 40,591 within a 75 mile radius. Average salaries within a 75 miles radius fall just under $60,000.

Demographics Within a Mileage Radius9 25 Miles 50 Miles 75 Miles Population Within This Mileage Radius 28,861 47,992 59,692 Estimated Population Between 18 and 65 - % 68% 68% 68%
Estimated Population Between 18 and 65 - # 19,625 32,635 40,591 Labor Force Within This Mileage Radius 8,905 16,622 21,290 Average Salary Within This Mileage Radius $58,860 $59,237 $57,210

2.3.2 Volume of Tickets Sold Expressed as a % of the Population – Sierra Theater We project 12,480 tickets sold in year 2, ramping up to 14,440 sold by year 5. The table below reflects the percentage of the population that purchases 1 ticket per year across a 25, 50, and 75 mileage radius over a 5-year period. To illustrate, if we divide 28,861, which represents the population with a 25 mile radius, by 12,480, the projected number of tickets sold in year 2, we arrive at 43.2% as noted in the table below.

Year 1 Year 2 Year 3 Year 4 Year 5
Tickets Sold per Year 0 12,480 12,960 13,440 14,400
25 Mile Radius 0.0% 43.2% 44.9% 46.6% 49.9%
50 Mile Radius 0.0% 26.0% 27.0% 28.0% 30.0%
75 Mile Radius 0.0% 20.9% 21.7% 28.0% 24.1%

2.3.3 Affordability - Value of Tickets Sold as a % of Total Salaries Earned – Sierra Theater Below we show projected annual ticket sales expressed as a% of total salaries earned across a 25 mile radius of Susanville. This metric demonstrates the affordability of buying tickets to support the Sierra Theater Performing Arts Center. Focusing on salaries within a 25 mile radius, we show .023% of total salaries spent on annual tickets in year 1, and .108% of total salaries spent on $35 tickets by year 5.

Year 1 Year 2 Year 3 Year 4 Year 5
Tickets Sold per Year 0 12,480 12,960 13,440 14,400
Avg Price per Ticket $35 $35 $35 $35 $35
Annual Ticket Sales
Value $0 $436,800 $453,600 $470,400 $504,000
Labor Force 8,905 8,905 8,905 8,905 8,905
Avg. Salary $58,860 $58,860 $58,860 $58,860 $58,860
Total Salaries Paid 524,148,300 524,148,300 524,148,300 524,148,300 524,148,300 % of Salaries Spent
on Tickets (at Sierra
Theater Performing
Arts Center) 0.000% 0.083% 0.087% 0.090% 0.096%
9 https://www.statsamerica.org/radius/about.aspx
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2.3.4 Demographics Within a Mileage Radius of Redding, CA The population within 25 miles of Redding, CA, and between the ages of 18 and 65, approaches 122,649 and expands to 229,910 within a 75 mile radius. Average salaries within a 75 miles radius reach $56,249.10 Demographics Within a Mileage Radius11 25 Miles 50 Miles 75 Miles Population Within This Mileage Radius 180,366 260,932 539,138 Estimated Population Between 18 and 65 - % 68% 68% 68%
Estimated Population Between 18 and 65 - # 122,649 177,434 366,614 Labor Force Within This Mileage Radius 74,898 106,348 229,910 Average Salary Within This Mileage Radius $58,089 $57,263 $56,249

2.3.5 Volume of Tickets Sold Expressed as a % of the Population – Cascade Theater Close to 60% larger than the Sierra Theater, the Cascade Theater with 1,006 seats, is estimated to sell 31,680 tickets per year (330 tickets sold x 2 performances per month x 12) increasing to 36,674 if we project out 5 years. (the 330 tickets sold at the Cascade Theater is commensurate proportionately with the projected volume of the tickets sold at the Sierra Theater Performing Arts Center).

The table below reflects the percentage of the population that purchases 1 ticket per year across a 25, 50, and 75 mileage radius over a 5-year period. To illustrate, if we divide 180,366, which represents the population with a 25 mile radius, by 31,680, the projected number of tickets sold in year 2, we arrive at 5.9% as noted in the table below.

Year 1 Year 2 Year 3 Year 4 Year 5
Tickets Sold per Year 0 31,680 33,264 34,927 36,674
25 Mile Radius 0.0% 17.6% 18.4% 19.4% 20.3%
50 Mile Radius 0.0% 12.1% 12.7% 13.4% 14.1%
75 Mile Radius 0.0% 5.9% 6.2% 13.4% 6.8%

2.3.6 Affordability - Value of Tickets Sold as a % of Total Salaries Earned – Cascade Theater Below we show projected annual ticket sales expressed as a% of total salaries earned across a 25 mile radius of Redding, CA. This metric demonstrates the affordability of buying tickets to support the Cascade Theater Focusing on salaries within a 25 mile radius, we show .025% of total salaries spent on annual tickets in year 1, and .03% of total salaries spent on $35 tickets by year 5.

Year 1 Year 2 Year 3 Year 4 Year 5
Tickets Sold per Year 0 31,680 33,264 34,927 36,674
Avg Price per Ticket $0 $35 $35 $35 $35
Annual Ticket Sales Val $0 $1,108,800 $1,164,240 $1,222,452 $1,283,575 Labor Force 74,898 74,898 74,898 74,898 74,898
Avg. Salary $58,089 $58,089 $58,089 $58,089 $58,089
Total Salaries Paid 4,350,749,922 4,350,749,922 4,350,749,922 4,350,749,922 4,350,749,922 10 https://www.statsamerica.org/radius/big.aspx
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Spent on Tickets at the
Cascade 0.000% 0.025% 0.027% 0.028% 0.030%

2.3.7 Comparison
Percentage of the population that purchases 1 ticket
The table below reflects the percentage of the population that purchases 1 ticket per year across a 25 mileage radius over a 5-year period for both Susanville, CA and Redding, CA. For Susanville, this is more than double that of Redding, though Redding also has a much larger community. 180,366 within a 25 mile radius in Redding verses 28,861 within a 25 mile radius for Susanville.
25 Mile Radius Year 1 Year 2 Year 3 Year 4 Year 5
Susanville, CA 0.0% 43.2% 44.9% 46.6% 49.9%
Redding, CA 0.0% 17.6% 18.4% 19.4% 20.3%
Affordability
Given the lower population in Susanville, the % of total salaries spent on tickets is higher than that of Redding, CA though not by a wide margin.
25 Mile Radius Year 1 Year 2 Year 3 Year 4 Year 5
% of Total Salaries
Spent on Tickets at
Sierra Theater 0.000% 0.083% 0.087% 0.090% 0.096%
% of Total Salaries
Spent on Tickets at
the Cascade 0.000% 0.025% 0.027% 0.028% 0.030%

2.4 Market Trends
Venues are set to attract younger demographics, fostering expansion ◼ Performing arts venues continue to face external competition from venues like sporting stadiums for bigticket musicians and clubs for up-and-coming bands and DJs. ◼ Performing arts production companies will continue vying for a share of patrons' budgets and leisure time as competition increases from other forms of entertainment, like films. ◼ Industry venues are poised to progressively target new demographics, particularly younger patrons, to boost audience numbers.
◼ Social media has fast-tracked word-of-mouth recommendations, particularly among younger audiences, driving interest and ticket sales when demand is generally low. By using these platforms, shows have a better shot at finding an audience.
◼ Younger audiences have expressed a growing appreciation for performing arts and companies can grab their attention by introducing new talent, composers and artists to generate excitement.

Performing arts venues have leveraged multiple product offerings to cater to a broader target market. ◼ Industry centers have been improving their food and beverage services. ◼ Performing arts centers have sought to boost revenue by renting their facilities for private functions like weddings, conferences and corporate events.
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◼ Performing arts venues have focused on integrating digital technology, including subscription services that allow users to stream performances from home.
◼ Technological advancements enable large-scale productions to put on shows with more elaborate sound, lighting and set designs. Consumers are drawn to these embellished and expensive performances, allowing theaters to increase prices.

Live streaming will present an opportunity for performing arts centers ◼ Live performance theaters will increasingly adopt recordings and live streaming to reach broader audiences and generate additional revenue streams. Sharing performances will enable them to expand to new markets, like customers who are interested in seeing live performances but have no access to live theater and cannot afford to travel.
◼ Partnerships with streaming services will become more common, allowing theaters to showcase their productions to a global audience. The rise of pay-per-view fees for performances streamed online will offer theaters a new way to monetize their shows and attract virtual attendees. ◼ By leveraging technology and innovation, live performance theaters will bridge the gap between in-person experiences and digital accessibility, catering to a diverse audience and staying relevant in the everchanging entertainment landscape.

Millennials drive the industry
◼ Millennials, ranging in age from 24 to 39, have settled with careers, homes, and families. Their buying power is robust: By 2030, the collective annual income of Millennials worldwide is expected to exceed 4 trillion dollars.12 The combination of spending power, interest in experiences, a large and youthful generation that grew on music streaming, and a focus on experiences, position the music venue industry for success.

Growth of social media
◼ The proliferation of social media provides a platform for musical artists to amplify and promote their music and possibly reach millions of people. The ability to generate fast awareness encourages fans and followers to see such artists live. Performing arts venues will also leverage social media to promote music artists who are performing at the venue.

Opera sales slow while musical theater heats up
◼ Musical theater combines songs, acts, dance and spoken dialogue, whereas opera is a form of theater in which music is the leader and singers take part. A younger and more diverse audience has urged major opera companies to modernize their shows.

Non-musical performances contend with world-renowned musicals ◼ Non-musical performances refer to a variety of theatrical genres like drama, comedy and improv. This segment includes plays, which, unlike musicals, focus on spoken dialogue rather than musical numbers to tell a story.
◼ Business for non-musical theater productions grows when musical ticket sales fall and vice versa. 12 https://khoros.com/blog/millennial-buying-habits
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◼ Other live performances include symphonies and classical music shows, popular music performances, spoken word, dance performances, public appearances and speeches. These acts attract an array of audiences interested in specific art forms, diversifying the theater's patron base. ◼ Classical music performed by symphonies is typically more popular among older generations. Still, younger consumers looking for alternative experiences may choose to attend a symphony performance.

Gifts and grants provide a financial lift to performance theaters ◼ Individuals, businesses, unions, foundations and the government provide financial contributions and grants to support live performance theaters. Such support often comes with recognition opportunities, fostering donor loyalty and repeat giving.
◼ Private and government contributions enable theaters to fund artistic projects. Greater donations help theaters create more intricate shows that tend to attract more consumer attention.

High-tech equipment enhances live productions
◼ Large-scale theaters are innovating using the latest technology to create realistic and fantastic sets.

Enhanced theater productions draw in larger crowds by using high-definition LED screens, advanced projectors and sophisticated sound systems to create stunning and immersive effects. ◼ Technology has improved the accessibility of productions for hard-of-hearing audience members. Since June 2018, Broadway shows have used vocal recognition software to offer closed captioning and audio descriptions for every performance.

Morphing role of music venues
◼ Prior to the internet when record labels controlled and managed leading artists, music venues served as places to see music and buy merchandise. The performance venue industry now serves a critical role in the success of artists, providing them with a platform to generate revenue, build brand awareness, become noticed, and generate revenue through branding and other opportunities. And due to streaming and social media, consumers are exposed to an even greater number of musical artists, where prior to the web, such artists would not have had a voice.

Revenue diversification levels revenue swings
◼ Industry players can reduce revenue volatility by diversifying their services, mainly through operations that self-generate revenue. These self-generating revenue operations include food and beverage services, venue tours, gift shops and car park facilities.
◼ Performing arts venues can work on increasing private donations and corporate sponsorship to offset any discrepancies in government funding.
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3. Sierra Theater Performing Arts Center - Overview

3.1 Business Summary
As a place for emerging and established performance artists, the 400-seat Sierra Theater Performing Arts Center will cater to all forms of performances from music to dance, theater, multi-cultural spectaculars, and other performances and events. The art deco performing arts center also serves as a venue for regional and national touring productions and is positioned to become a premier performing arts center in northeast California. The Sierra Theater Performing Arts Center will be home to the Susanville Symphony, Best of Broadway Productions, local bands, and other productions.

A local landmark for nearly a century, the Sierra Theater underwent an extensive renovation in 1982, updating critical infrastructure. To this end, upgrades to the theater only relate to those needed to transition the space from a movie house to a performing arts center. Such renovations include stage enlargement, wall removal (uniting the twin theaters into one space for the performing arts); lighting and sound equipment upgrades; sound mitigation upgrades; bathroom updates; and other enhancements.

With the updates completed, the performing arts center will feature a sound system suitable for performances, an enlarged stage, updated acoustics, state-of-the-art lighting and AV equipment, and optimal stage site lines.

Performances and events held in the space will support the greater mission to foster the arts, provide cultural enrichment, mitigate rural isolation and enhance economic opportunities in downtown Susanville.

Summary
Concept Multi-purpose performing arts space
Clientele Working professionals, locals, students, couples, others.

Projected Capacity 400 Seated
Projected Occupancy Up to 2 performances/events per week Projected Time Frame to Launch 1Q 2026
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3.1.1 Projected Key Features of the Venue
◼ Box office (located in the front of the facility)
◼ Stage suitable for live events/performances
◼ Concession (Local beer, wine, spirits, and non-alcoholic beverages; food items) ◼ Bi-level space open to the ceiling; the balcony will provide patrons a higher view of the stage and the musical talent.
◼ Catering, dressing rooms, and lounge areas for the musical talent. ◼ A tier-one sound system with soundproofing and dampening will further control sound. ◼ Large-venue quality lighting system
◼ Merchandise area that offers both artist merchandise as well as Sierra Theater Performing Arts Center merchandise.
◼ Bathrooms
◼ Coat check
◼ WiFi

3.1.2 Key Benefits to Performers and to the Audience
◼ Wide stage
◼ Well-appointed performer quarters (for pre/post show) ◼ Ample parking
◼ State-of-the-art sound system
◼ Built-in venue lighting
◼ Superior air filtration system
◼ Experienced, friendly, and welcoming management and staff

3.1.3 Programming
In addition to booking live performances (plays, musicals, symphonies, operas/rock/country/jazz bands), Sierra Theater Performing Arts Center booking agents will sign-up events such as photoshoots, wedding receptions, readings, lectures, holiday events, fashion shows, talent shows, and corporate events.

3.2 Revenue Sources
Sierra Theater Performing Arts Center will generate revenue through several sources:
◼ Ticket Sales: Percentage of ticket sales
◼ Rental: Rental of the facility for events
◼ Food and Bar Sales: Beer, wine, spirits, soft drinks, juice, water, and food items (popcorn, pretzels, other). ◼ Merchandise Sales: Hats, t-shirts, hoodies, bags, CDs, LPs, and other merchandise ◼ Monthly Membership: Access to private lounge; preferred access to shows; discounts on food, beverage, ticket sales, and merch.
◼ Sponsorships
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4. Sales and Marketing

4.1 Summary
The Sierra Theater Performing Arts Center will employ marketing and promotional efforts that will convey its positioning and value proposition. Branding and messaging strategies are critical in building awareness of the venue, its programing, and its performing artists. Such strategies include social media, digital advertising, print media, and radio which builds brand awareness through Facebook, Instagram, Tik Tok, X, and other channels.

Search Engine Optimization (SEO) will ensure top search engine page rankings within key word searches. The strength of the Sierra Theater Performing Arts Center brand is driven by the company’s ability to educate its target market on its position as a leading performing arts space in the region and the surrounding communities.

4.2 Target Market
Depending on the programming or the genre of music being played, the Sierra Theater Performing Arts Center will appeal to a balanced mix of young professionals, students, musicians, artists, couples, and others. The target demographic generally includes those aged 18 to 65, and with average incomes up to $60,000 and over. The regional demographics is wide and varied and supports such a target market.

Target Market
Emerging Professionals
(Millennials):

This group is in the early stages of their career and enjoy live performances with music, beer, and spirts. They enjoy seeing live performances regardless of who is performing.

Established Working
Professionals (Generation X):

Working professionals with disposable incomes who enjoy live performances on occasions and will go to shows with friends.

Corporations and Event
Planners
Corporations and event planners who rent the space for an event.

Students Legal drinking-age students can take a break from their studies and enjoy live performances.

Local/Regional Followers of
the Arts
This demographic enjoys supporting the arts and frequently see symphonies, plays, musicals, and other performances.

Couples Those who seek to experience a special night out alone or with friends.

4.3 Sales, Promotion, and Distribution
The following strategies will help build brand awareness of both the venue and the music artists:
◼ Membership with the League of Historic American Theaters: Such membership will provide exposure and awareness of the historic Sierra Theater and its new incarnation, the Sierra Theater Performing Arts Center.
13 Such awareness will encourage visits to the theater as well as provide Sierra Theater Performing Arts Center with access to resources to support the theater. ◼ Strategic Partners: The Sierra Theater Performing Arts Center will leverage several strategic partnerships to build its patron base: (1) promoters, (2) event planners, and (4) local musical artists that promote The Sierra Theater Performing Arts Center to their networks of friends and family. ◼ Location: A location that is near transportation hubs, parking, and at the crossroads of traffic. 13 https://www.lhat.org/lhat/program-services/theatre-inventory/ca-mbr 269
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◼ Online Ticket Sales: Focusing on getting pre-sales (online). ◼ New / Varied Programming: Offer unique programming that helps build a community for the venue. ◼ Collaborate with Artists: Work with musical artists in promoting their show. ◼ Endorsements from Notable regional Celebrities: This can include famed musicians any those of notoriety who attract visitors to The Sierra Theater Performing Arts Center ◼ Public Relations (PR) & Media Relationship Building: Public Relations will play a key role in building brand awareness with select online and offline media outlets, and strategic partners. ◼ Advertising & Media Buying Print Media: Online (web/Facebook) and offline (print) media buying will communicate the advertising message.
 Tracking links will show which advertising or artist promotion is converting to sales, helping the venue spend on advertising channels that maximize exposure.  Building a strategy that targets the right audience, providing them with relevant ads, and attract new visitors.
◼ Referral Networks: Word of mouth marketing from frequent attendees will build brand awareness. ◼ Media / Journalists / Food Freelancers: Journalists and freelance writers who focus on the entertainment and who can provide access to news outlets with wide distributions. ◼ Discounts / Rewards / Loyalty Programs: Discounts offered to patrons on slow nights will encourage patronage.
◼ Website: The Sierra Theater Performing Arts Center website will address questions people may have about the venue. The website will be fast, easy to navigate, boast a clean design, and be clear on the offerings.
◼ Merchandise: High-quality, aesthetically designed, branded merchandise will generate awareness of the venue and the live performances that perform there.
◼ Community Outreach: Community outreach through local service organizations, schools, local government, civic organizations, etc.
◼ Attract Performing Artists: The Sierra Theater Performing Arts Center will attract musical artists through the following actions:
 Booking agent: Highlight the performing arts center’s features and compelling demographic.  Referrals: Referrals will circulate about the Sierra Theater Performing Arts Center is a preferred venue at which to perform.
 Social Media: Touring regional and national performing arts talent will become aware of The Sierra Theater Performing Arts Center via social media.

4.4 Social Media / Digital Strategy
The Sierra Theater Performing Arts Center will merge traditional PR outreach with a robust digital strategy that leverages access to its target audience via Instagram, Facebook, and YouTube. Such social media platforms enable the venue to connect directly with patrons.
◼ Leverage Viral Platforms to increase search engine rankings: The Sierra Theater Performing Arts Center will develop quality online content (e.g., Blogs, Instagram Facebook, SnapChat, TikTok, Twitter, Yelp) to build a patron-base.
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 Social Networking: Facebook/Instagram: Share and recommend photos of the space through Facebook and Instagram.
 Video Platforms: YouTube; Vimeo: Live streaming concerts on YouTube or Facebook Live. 67% of live video viewers are more likely to buy a ticket to a concert or event after watching a live video of that event or a similar one.
14  Email Marketing: Segment email lists into categories such as people who have bought tickets in the past versus those who haven’t. Create email campaigns that speak to those smaller groups with specific messages. Create email campaigns that speak to those smaller groups with specific messages.  Podcasts: Launch podcast with a theme that’s relevant to the venue’s brand.  Music Platforms: Use Spotify as a social media channel to reach music fans. A Spotify account for the venue can help define the venue’s brand, create shareable content, and reach engaged music fans.

4.5 Key Success Factors
Success is predicated on several factors that include:

Success
Factor
Description Action Taken
Ease of Buying
Tickets
Ease of buying tickets online is critical to
revenue.
Employ a leading online ticket agency that will
ensure maximum exposure to the Sierra Theater
Performing Arts Center events. Tickets are also
sold at the box office.

Compelling
Features
Offer facility features that resonate with and
appeal to musical artists, event planners, and the
audience.
Offer compelling features such as large seating
area, beverage program, quality merchandise,
high-end sound and lighting, Wi-Fi
connectivity, and clean and modern bathrooms.

Appealing
Ambiance
An appealing and welcoming ambiance catches
the attention of customers, which leads to
increased sales and greater revenue.
Deliver an open space with comfortable seating
and a welcoming ambiance.

Layout In a generally crowded space, patrons want to
feel that they can easily move around. In this
context, proper venue layout is critical.
The Sierra Theater Performing Arts Center
floorplan will be intuitive and allow for easy
customer flow around the facility. Exits,
bathrooms, the bars, and other areas will be
strategically placed and easily found.

Parking Ample parking for guests is essential. The selected location for The Sierra Theater Performing Arts Center will offer an abundance
of parking. There is a side parking lot available
plus parking in the streets.

Superior
Reputation
A superior reputation and consistency will
convert new customers into repeat customers.
The Sierra Theater Performing Arts Center will
become a destination performing arts space and
event venue that offers an exceptional customer
experience.

Experienced
Workforce
Patrons are more likely to return if a business
has an experienced and knowledgeable staff.
Staff and management will be highly
knowledgeable on the shows, venue protocols,
and all venue operations. All customer
questions will be heard.
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Environment
Demonstrate a strong team environment. The Sierra Theater Performing Arts Center patrons will immediately recognize how well
the staff works together, as well as their
enthusiasm to serve patrons.

Pricing Most consumers are price conscious and opt for a lower price alternative if value is not sacrificed.
Pricing will be in sync with other venues, if not
lower, though will offer a superior customer
experience.

Location A convenient location is critical to business growth.
The Sierra Theater Performing Arts Center is
located downtown and in close proximity to
main roadways.

4.6 Competition
The nearest performing arts centers to Susanville are the Pioneer Center in Reno NV and the Cascade Theater in Redding, CA at 86 miles and 122 miles away, respectively. While there are spaces for performances in Susanville, none are adequate, which has necessitated the need to reposition the Sierra Theater into the Sierra Theater Performing Arts Center. Such a move will provide a space where the performing artists can maximize their opportunity.

Ket advantages that the Sierra Theater Performing Arts Center will offer:
◼ Commitment to the principles of safety, inclusivity, and variety. We seek to prioritize the well-being of performing artists, patrons, and members.
◼ Openness to a diverse array of music scenes. We intend to cater to various genres, including rock, country, jazz, classical, electronic, metal, goth, ska/punk and others. ◼ Energize a cadre of volunteers who will walk around to answer questions, assist those in need, and monitor for any suspicious activities or potential issues.
◼ Keep prices modestly low in terms of food and beverage sales.

Other differentiating factors of focus that set us apart:
◼ Active booking team that finds and books new talent.
◼ Programing, content, and protocols will reflect the presence of the diverse local community. ◼ Gives back by offering programing that caters to the needs of the local community. ◼ Multi-functional event space that can cater to weddings, dance performances, youth programing, commercial shoots, and other uses.
◼ Higher-end ambiance without pretense; customer centric service; convivial and hospitable ambiance. ◼ Highly skilled and courteous concession workers.
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5. Operating Plan

5.1 Customer Service
The Sierra Theater Performing Arts Center will maintain high levels of customer satisfaction with talented, knowledgeable, and well-trained staff that understand and implement the principles of customer service. The Sierra Theater Performing Arts Center employees will be highly familiarized with the venue’s protocol’s to ensure all patron’s questions are addressed confidently and quickly.

5.2 Management Controls and Administration
Management will practice sound procedures, control costs, ensure service quality, provide friendly customer service, and present a welcoming atmosphere for both patrons and the performing artists who are essential to the success of the venue.
◼ Programming: Programming will be designed by the management. Aside from the Susanville Symphony, the Best of Broadway productions, and other local performers, priority will be placed largely on performing artists and events that can generate the greatest revenue. ◼ Booking: A booking agent may book the space and secure contracts in advance. ◼ Ticketing: In addition to selling tickets at the box office, The Sierra Theater Performing Arts Center will sell tickets online and through a service like Ticketmaster an industry leader in ticket processing. ◼ Financial: Management will oversee all financial activity, from ticket sales to bar sales, merchandise sales, and other forms of revenue.
◼ Ordering Supplies: The general manager will be responsible for assessing inventory (liquor, wine, beer, merchandise, office supplies, paper supplies, and other supplies.) ◼ Suppliers: The Sierra Theater Performing Arts Center will source supplies from a combination of local and regional distributors.
◼ Weekly Inventory: Management will conduct a weekly concession inventory count to determine inventory needs for daily operations and for the preparation of weekly profit and loss reports. ◼ End of Day Close-Out: As the day ends, management will oversee the end of night reconciliation. All checks from concession are reconciled against the credit card receipts and cash – which must balance. ◼ Point of Sale / Accounting System: A Point of Sale (POS) platform will be used to monitor and adjust expenditures to maximize efficiency and increase revenue. The Sierra Theater Performing Arts Center may use Stipe or Square.
◼ Linens, Laundry: The Sierra Theater Performing Arts Center will contract a local laundry service as needed.
◼ Janitorial Services: Lounge areas, common areas, bathrooms, and walkways will be cleaned each morning and throughout the day.
◼ Purchasing Records / Payables: A part time bookkeeper will process and record invoices and credits daily. Reports detailing cash expenditures, payments by check, and accounts payable transactions will be readily available.
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5.3 Timeline
The Sierra Theater Performing Arts Center is positioned to launch by 1Q-2026. We expect the facility to start recording revenue in the second year, which allows the first year for renovation of the space.

Timing Description
Current – 2Q 2025 $450,000 capital allocation
Acquire building in 1Q2025
Assess budget for build-out
Hire sound and construction engineers
Hire architect; finalize drawings for renovations; submit application for permits Develop marketing plan
Apply for and secure beer and wine/ liquor license and food operator’s license Source vendors
Identify key staff
2Q 2025 – 2Q2026 Create architectural plans
Hire contractors and architect
Finalize formal construction budget and timing
Finalize design
Raise up to $500,000 in additional capital
Remove wall, initiate stage upgrades
Compete renovations
Take delivery of furniture, fixtures, and equipment
Update sound and lighting
Launch marketing plan to build awareness of the Susanville Performing Center Continue interviews for staff
Launch marketing plan
Develop strategic partners
Build relationships with local businesses
Launch PR strategy
Interview, hire, and train staff
Execute social media platform
Formally launch

5.4 Staff Categories
Not all the staff categories will be filled at launch though such roles can be considered for hire downstream. A dedicated general manager may be hired in year 2 of operations. Concession will be managed by a combination of direct hires and volunteers. Year one operations may be overseen largely by volunteers.

5.4.1 Salaried Staff
◼ General Manager: Oversee the daily venue operations including bookings, selection, development, and performance management of employees; overseeing the inventory supplies; staff scheduling; payment of invoices, vendor management and other operational tasks. ◼ Booking Agent: A booking agent would be responsible for booking live performances and events. ◼ Venue Assistant: A venue assistant's responsibilities would include booking and marketing the venue, organizing, and reviewing vendor contracts, completing all safety and regulatory documents, and overall maintenance of the facility.
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5.4.2 Hourly Wage Staff
◼ Box Office: The box office manages ticket inventory and reconciliation for all performances; maintains seating manifests and financial records; manages the preparation, presentation, and settlement of all box office statements, and other tasks.
◼ Concession: Manage the concession; serve customers food and beverages; manage payments. ◼ Security: Managing entrance and exit points, crowd control, diffusing a volatile situation, patrolling, responding to reports of drug use, violence, or other problems, identifying, and removing trespassers (people without tickets), guarding the stage and performers, and directing people on what to do and where to go in an emergency.
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6. Financials

6.1 Revenue

6.1.1 Venue Pricing / Number of Events & Guests
Volume of Performances / Events
We project an estimated two events per week and using a four-week month, we project 96 performances /events per year.

Volume of Performances/Events Year 1 Year 2 Year 3 Year 4 Year 5 Events per Week 0 2 2 2 2
Events per Month 0 8 8 8 8
Events per Year 0 96 96 96 96
Pricing and Number of Guests per Performance / Event
We project an average ticket price of $35. The number of guests per performance is projected at 130 in year 2, increasing to 150 by year 5.

Pricing / Number of Guests Year 1 Year 2 Year 3 Year 4 Year 5 Events/Performances per Year 0 96 96 96 96
Average Ticket Price $0 $35 $35 $35 $35
Number of Guests per Performance 0 130 135 140 150
Annual Revenue - Venue $0 $436,800 $453,600 $470,400 $504,000 For events that seek to rent the facility per day/night, we project a price of $500.

6.1.2 Concession
Concession includes the sale of food and beverage per event. This includes water, juices, soda, wine, beer, and light snacks.

Concession Year 1 Year 2 Year 3 Year 4 Year 5
Projected Number of Guests per
Year 0 1,040 1,080 1,120 1,200
Percentage of Guests Who Purchase
Food/Beverage 0% 75% 75% 75% 75%
Number of Guests Who Purchase
Food/Beverage 0 780 810 840 900
Value Spent Per Guest on Food and
Beverage / Night $0 $12 $12 $12 $12
Annual Food & Beverage Revenue $0 $112,320 $116,640 $120,960 $129,600 276
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6.1.3 Merchandise
The Sierra Theater Performing Arts Center will sell merchandise representing the Susanville Symphany, the Sierra Theater Performing Arts Center and other performers.

Concession Year 1 Year 2 Year 3 Year 4 Year 5
Projected Number of Guests per
Year 0 1,040 1,080 1,120 1,200
Percentage of Guests Who Purchase
Merch 0% 3% 3% 3% 3%
Number of Guests Who Purchase
Merch 0 31 32 34 36
Value Spent Per Guest on Merch $0 $25 $25 $25 $25
Merch Revenue per Year $0 $9,360 $9,720 $10,080 $10,800

6.1.4 Membership
The Sierra Theater Performing Arts Center will offer 8 forms of memberships starting with the Benefactor's Circle at $5,000 per year and the Silver Tier at $100 per year. Such memberships values will mirror those of the Susanville Symphony. We include membership revenue for year 1 as the Susanville Symphony will be generating revenue in the first year of operations and such revenue will support the Sierra Theater Performing Arts Center.

Membership Pricing Year 1 Year 2 Year 3 Year 4 Year 5
Benefactor's Circle $5,000 $5,000 $5,000 $5,000 $5,000
Conductor's Circle $2,250 $2,250 $2,250 $2,250 $2,250
Maestro's Circle $1,150 $1,150 $1,150 $1,150 $1,150
Concert Masters Circle $950 $950 $950 $950 $950
Musician's Circle $750 $750 $750 $750 $750
Platinum Tier $450 $450 $450 $450 $450
Gold Tier $300 $300 $300 $300 $300
Silver Tier $100 $100 $100 $100 $100
We expect the following membership volume to also mirror the volume of the Susanville Symphony at launch, though increasing through year 5.

Membership Volume Year 1 Year 2 Year 3 Year 4 Year 5
Benefactor's Circle 5 6 7 8 9
Conductor's Circle 4 5 6 7 8
Maestro's Circle 4 5 6 7 8
Concert Masters Circle 3 4 5 6 7
Musician's Circle 4 5 6 7 8
Platinum Tier 4 5 6 7 8
Gold Tier 4 5 6 7 8
Silver Tier 4 5 6 7 8
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Benefactor's Circle $25,000 $30,000 $35,000 $40,000 $45,000 Conductor's Circle $9,000 $11,250 $13,500 $15,750 $18,000 Maestro's Circle $4,600 $5,750 $6,900 $8,050 $9,200
Concert Masters Circle $2,850 $3,800 $4,750 $5,700 $6,650 Musician's Circle $3,000 $3,750 $4,500 $5,250 $6,000
Platinum Tier $1,800 $2,250 $2,700 $3,150 $3,600
Gold Tier $1,200 $1,500 $1,800 $2,100 $2,400
Silver Tier $400 $500 $600 $700 $800
Membership Revenue $47,850 $58,800 $69,750 $80,700 $91,650

6.1.5 Sponsorship
The Sierra Theater Performing Arts Center expects to offer 3 tiers of sponsorships, Silver, Gold, and Platinum.

Sponsorships will commence in year 2 and each tier will offer different packages from pre-show sponsor announcements to ad placement in programs and banners, and to naming rights.

Sponsorship Pricing Year 1 Year 2 Year 3 Year 4 Year 5
Platinum Package $0 $10,000 $10,000 $10,000 $10,000
Gold Package $0 $5,000 $5,000 $5,000 $5,000
Silver Package $0 $1,000 $1,000 $1,000 $1,000
We expect the following sponsorship volume through year 5.

Sponsorship Volume Year 1 Year 2 Year 3 Year 4 Year 5
Platinum Package 0 1 2 3 4
Gold Package 0 2 3 4 5
Silver Package 0 3 4 5 6
Given the above assumptions, we project the following revenue through year 5.

Sponsorship Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Platinum Package $0 $10,000 $20,000 $30,000 $40,000
Gold Package $0 $10,000 $15,000 $20,000 $25,000
Silver Package $0 $3,000 $4,000 $5,000 $6,000
Total Sponsorship Revenue $0 $23,000 $39,000 $55,000 $71,000 278
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6.1.6 Revenue Summary
Revenue Summary Year 1 Year 2 Year 3 Year 4 Year 5
Total Venue Revenue $0 $436,800 $453,600 $470,400 $504,000 Concession / Food & Beverage $0 $112,320 $116,640 $120,960 $129,600 Merch $0 $9,360 $9,720 $10,080 $10,800
Memberships $47,850 $58,800 $69,750 $80,700 $91,650
Sponsorships $0 $23,000 $39,000 $55,000 $71,000
Total Revenue $47,850 $640,280 $688,710 $737,140 $807,050

6.2 Cost of Goods Sold (COGS)
Assumptions
COGS consists of (1) value paid to the preforming artists (aside from the Susanville Symphany and others) (2) food and beverage costs, and (3) merchandise costs, and (5) transaction costs.

COGS Assumptions % of Revenue
Cost of Performers (Ticketed Events) 50%
Cost of Food & Beverage 35%
Cost of Merch 50%
Transaction Costs (Credit Cards) 2.75%
Annual COGS include the following:

Annual Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5 Cost of Performers (Ticketed Events) $0 $109,200 $113,400 $117,600 $126,000 Cost of Food & Beverage $0 $39,312 $40,824 $42,336 $45,360 Cost of Merch $0 $4,680 $4,860 $5,040 $5,400
Transaction Costs (Credit Cards) $0 $15,358 $15,949 $16,540 $17,721 Total COGS $0 $168,550 $175,033 $181,516 $194,481

6.3 Gross Profit
Gross Profit Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $47,850 $640,280 $688,710 $737,140 $807,050
COGS $0 $168,550 $175,033 $181,516 $194,481
Gross Profit $47,850 $471,730 $513,677 $555,624 $612,569 279
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6.4 Expenses

6.4.1 Staff Categories and Costs
We project total payroll taxes, social security, FICA, and benefits at 20% of total staff costs.

Staff Costs Year 1 Year 2 Year 3 Year 4 Year 5
Salaried Staff
General Manager $0 $74,160 $76,385 $78,676 $81,037
Hourly Staff
Concession $0 $41,134 $42,368 $43,639 $44,948
Ushers $0 $41,134 $42,368 $43,639 $44,948
Sound & Lighting $0 $34,278 $35,307 $36,366 $37,457
Total Staffing Costs $0 $190,707 $196,428 $202,321 $208,390 Staff Costs (with Benefits,
Taxes, etc.) $0 $228,848 $235,713 $242,785 $250,068

6.4.2 Operations
Operating Costs Year 1 Year 2 Year 3 Year 4 Year 5
Rent $18,000 $42,000 $45,360 $48,989 $52,908
Utilities (Gas, Electric, Water,
Wireless, Phones) $3,000 $18,000 $19,440 $20,995 $22,675 Pest Control $1,800 $4,800 $5,184 $5,599 $6,047
Cleaning/Janitorial $0 $6,000 $6,480 $6,998 $7,558
Supplies (Cleaning and Office) $0 $2,400 $2,592 $2,799 $3,023 Accounting/Bookkeeping $4,200 $6,000 $6,480 $6,998 $7,558 Marketing and SEO $0 $18,000 $19,440 $20,995 $22,675
Advertising/Promotions $0 $36,000 $38,880 $41,990 $45,350 Business Insurance $3,000 $3,000 $3,240 $3,499 $3,779
Banking Fees $600 $1,200 $1,296 $1,400 $1,512
Total OPEX $30,600 $137,400 $148,392 $160,263 $173,084

6.4.3 Expense Summary
Expense Summary Year 1 Year 2 Year 3 Year 4 Year 5
Staffing Costs $0 $228,848 $235,713 $242,785 $250,068
Operating Costs $30,600 $137,400 $148,392 $160,263 $173,084 Total Expenses $30,600 $366,248 $384,105 $403,048 $423,153 280
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6.5 5-Year Financial Forecast
Financials – 5-Years Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $47,850 $640,280 $688,710 $737,140 $807,050
Total Cost of Sales $0 ($168,550) ($175,033) ($181,516) ($194,481) Gross Profit $47,850 $471,730 $513,677 $555,624 $612,569 Operating Costs ($30,600) ($137,400) ($148,392) ($160,263) ($173,084) Staffing $0 ($228,848) ($235,713) ($242,785) ($250,068) Total Operations Costs ($30,600) ($366,248) ($384,105) ($403,048) ($423,153) EBITDA $17,250 $105,482 $129,572 $152,576 $189,416
281
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7. Appendix

7.1 Location Analysis

7.1.1 Lassen County, CA15
Lassen County is located in the scenic northeastern corner of the state and covers an area approximately the size of Connecticut. This rural county sits at the confluence of the Sierra Nevada mountains, the volcanic Cascade Range, and the high elevation Great Basin desert. The area encourages camping, hiking, fishing, snowmobiling, snow shoeing and cross-country skiing. As of the 2022, the Lassen County population reached 31,873 and covered 4,541.4 square miles. Lassen County comprises the Susanville, California, micropolitan statistical area. 15 https://censusreporter.org/profiles/05000US06035-lassen-county-ca/ 282
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7.1.2 Susanville, CA Micro Area / Zip Code: 9613016
The zip code 96130 covers close to 500 square miles within Lassen County, or approximately 22.36 miles by

22.36 miles. Within this range, 21,460 people reside as of 2022. The zip code includes urban centers such as Susanville with a population of 15,737; Johnstonville, with a population just under 1,000 and located 4.5 miles east-southeast of Susanville; Westwood, with a population of close to 1,500 and located 20 miles west-southwest of Susanville; and Janesville, with a population of 2,641 and located 11 miles from Susanville. 16 https://censusreporter.org/profiles/31000US45000-susanville-ca-micro-area/ 283
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7.1.3 Susanville, CA17
Susanville, the county seat of Lassen County, serves as the recreational crossroads for the eastern part of the Shasta Cascade Region, with a variety of shops, restaurants, and lodging. The city sits in high desert country in remote northeast California. with an elevation of 4,186 feet (1,276 m). The city lies on the Susan River, at the eastern base of the Sierra Nevada, at the head of the Honey Lake Valley, and is 85 miles northwest of Reno, Nevada.

Of the current population, close to 3,500 are inmates at the local prisons. Such prisons employ roughly 1,700 Susanville residents.
17 https://censusreporter.org/profiles/16000US0677364-susanville-ca/ 284
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7.1.4 Janesville, CA18
Janesville is a census designated place (CDP) in Lassen County with a population of 2,641. There were 615 housing units at an average density of 46.6 per square miles and the average household size was 2.62. The area is 33.8 square miles with 78.1 people per square mile. Janesville is 11 miles southeast of Susanville. 18 https://censusreporter.org/profiles/16000US0637134-janesville-ca/ 285
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7.1.5 Johnstonville, CA19
Johnstonville is a census-designated place (CDP) in Lassen County with a population of 973 and a location that’s

4.5 miles east-southeast of Susanville. Johnstonville has 370 households with an average size of 2.77 people, and a median age of 41.3 years. The area consist of 8.6 square miles with 126.9 people per square mile. 19 https://censusreporter.org/profiles/16000US0637484-johnstonville-ca/ 286
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Westwood is a census-designated area in Lassen County with a population of 2,931 and a location that’s 20 miles west-southwest of Susanville. Westwood as 1,011 households with an average size of 2.40 people, and a median age of 50.4 years. The area consist of 712.4 square miles with 3.4 people per square mile. 20 https://censusreporter.org/profiles/06000US0603593710-westwood-ccd-lassen-county-ca/ 287
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Honey Lake is a census-designated place in Lassen County with a population of 3,676 and a location that borders Susanville CCD to the south-east. Honey Lake has 882 households with an average size of 2.90 people, and a median age of 40.8 years. The area consist of 511 square miles with 7.2 people per square mile. 21 https://censusreporter.org/profiles/06000US0603591320-honey-lake-ccd-lassen-county-ca/ 288
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7.1.6 Plumas County, CA22
Plumas County borders Lassen County directly south and is just a few miles south of Susanville. There are an estimated 8,104 households in Plumas Country with an average household size of 2.4 people. The area consist of 2,553 square miles with 7.7 people per square mile.
22 https://censusreporter.org/profiles/05000US06063-plumas-county-ca/ 289
AGENDA ITEM NO. 13.A
Discussion Item
Submitted By: Heidi Whitlock, City Clerk
Action Date: March 5, 2025
SUBJECT: Department Reports
PRESENTED BY: Dan Newton, City Manager
SUMMARY: The City Manager's Report is designed for Department Heads to address the Council on a variety of topics, is needed. Also, for the Council to address any questions or comments regarding that Department Head.

FISCAL IMPACT: None.

ACTION REQUESTED: Information only.

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:
290
AGENDA ITEM NO. 14.A
Discussion Item
Submitted By: Heidi Whitlock, City Clerk
Action Date: March 5, 2025
SUBJECT: Future Council Items
PRESENTED BY: Dan Newton, City Manager
SUMMARY: Council may provide direction to staff to bring back items for discussion or action at a future meeting.

FISCAL IMPACT: None.

ACTION REQUESTED: Possible direction to staff.

SUSANVILLE CITY COUNCIL AGENDA ITEM
ATTACHMENTS:
250305.Future.Items.List.pdf
291
7/16/2024
Consider doing away with the Planning Commission and have the planning department handle the duties - IN PROGRESS
1/15/2025 Consider creation of advisory committee to assist with economic development efforts. 2/19/2025
Consider an upgrade to the city's livestreaming software/hardware and possible partnerships with other agencies.
12/4/2024 Request to bring back discussion item regarding the HLVRA, its budget and request for additional funding
12/18/2024 Request to bring back discussion item regarding council chamber sound system 2/19/2025
Request to add three additional positions to the Public Works Department as well as a list of vacancies within that department
2/19/2025
Request to provide a report on the status of Susanville's fire hydrants due to the recent fires in Southern CA.
12/18/2024 Request to bring back LARP Agreement for review of new council members.

LAST THREE MONTHS (12/04/2024 to current)

BUSINESS FROM THE FLOOR
Council requested - FUTURE COUNCIL ITEMS
Completed List Items
292

Susanville City CouncilMarch 5, 2025

Susanville City Council
March 5, 2025